IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v7y2015i1p65-88.html

Pension System Reform in Emerging Countries

Author

Listed:
  • Meiram Zhandildin

Abstract

In 1998, Kazakhstan introduced a funded pension scheme instead of the former Soviet Union’s pay-as-you-go (PAYG) system. In 2013, there was another significant reform—the creation of a government-owned single accumulated pension fund (SiAF), the only legitimate fund to collect mandatory contributions. While the 1998 reform has been widely covered, there are few discussions about the 2013 reform. This article aims to fill this gap in the literature by examining the performance of the funded system prior to the reform, analyzing the reasons for the single fund creation, and assessing the impact of pension market monopolization. Results show that the Kazakhstani pension system was profoundly evolving prior to 2008, but after the crisis its performance significantly deteriorated, which raised questions about the ability of pension funds to provide adequate benefits in the future. This deterioration in performance and doubt about the future contributed to the creation of SiAF. Despite the fact that the 2013 reform aimed to improve the performance of the pension system, it also brought new risks that make the achievement of its primary goals uncertain.

Suggested Citation

  • Meiram Zhandildin, 2015. "Pension System Reform in Emerging Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(1), pages 65-88, January.
    • Handle: RePEc:sae:emeeco:v:7:y:2015:i:1:p:65-88
    DOI: 10.1177/0974910114556939
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0974910114556939
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0974910114556939?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
    2. Michal Slavík, 2006. "The Czech Pension System and the Perspectives of Its Reform," Prague Economic Papers, Prague University of Economics and Business, vol. 2006(3), pages 214-230.
    3. Srinivas, P.S. & Whitehouse, Edward & Yermo, Juan, 2000. "Regulating private pension funds'structure, performance, and investments : cross-country evidence," The Social Policy and Labor Discussion Paper Series 23302, The World Bank.
    4. Peter Jarrett, 2011. "Pension Reforms in Poland and Elsewhere: the View from Paris," CASE Network Studies and Analyses 425, CASE-Center for Social and Economic Research.
    5. Martin Feldstein, 1998. "Privatizing Social Security," NBER Books, National Bureau of Economic Research, Inc, number feld98-1, December.
    6. repec:wbk:wbpubs:7336 is not listed on IDEAS
    7. Andrews, Emily S., 2001. "Kazakhstan : an ambitious pension reform," The Social Policy and Labor Discussion Paper Series 23156, The World Bank.
    8. Waldo Tapia, 2008. "Comparing Aggregate Investment Returns in Privately Managed Pension Funds: An Initial Assessment," OECD Working Papers on Insurance and Private Pensions 21, OECD Publishing.
    9. Seitenova, Ai-gul S. & Becker, Charles M., 2004. "Kazakhstan's Pension System : Pressures for Change and Dramatic Reforms," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 45(2), pages 151-187, December.
    10. Impavido, Gregorio & Rocha, Roberto, 2006. "Competition and performance in the Hungarian second pillar," Policy Research Working Paper Series 3876, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/13629 is not listed on IDEAS
    2. Dayoub, Mariam & Lasagabaster, Esperanza, 2008. "General trends in competition policy and investment regulation in mandatory defined contribution markets in Latin America," Policy Research Working Paper Series 4720, The World Bank.
    3. Senderski, Marcin, 2014. "Assessing the strictness of portfolio-related regulation of pension funds: Rethinking the definition of prudent," MPRA Paper 56610, University Library of Munich, Germany.
    4. Ling-Ni Boon & Marie Brière & Carole Gresse & Bas J. M. Werker, 2013. "Regulatory Environment and Pension Investment Performance," Post-Print hal-01492619, HAL.
    5. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    6. Georgios Symeonidis & Platon Tinios & Panos Xenos, 2020. "Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece," Risks, MDPI, vol. 9(1), pages 1-17, December.
    7. Juan F. Jimeno, "undated". "El sistema de pensiones contributivas en España: Cuestiones básicas y perspectivas en el medio plazo," Working Papers 2000-15, FEDEA.
    8. David Miles & Ales Cerny, 2001. "Risk, Return and Portfolio Allocation under Alternative Pension Arrangements with Imperfect Financial Markets," CESifo Working Paper Series 441, CESifo.
    9. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    10. Chabakauri, Georgy, 2010. "Asset pricing with heterogeneous investors and portfolio constraints," LSE Research Online Documents on Economics 43142, London School of Economics and Political Science, LSE Library.
    11. Jukka Lassila, 2000. "Wage formation by majority voting and the incentive effects of pensions and taxation," Finnish Economic Papers, Finnish Economic Association, vol. 13(2), pages 89-115, Autumn.
    12. Juan F. Jimeno, "undated". "Incentivos y desigualdad en el sistema español de pensiones contributivas de jubilación," Working Papers 2002-13, FEDEA.
    13. Samwick, Andrew A., 1999. "Social Security Reform in the United States," National Tax Journal, National Tax Association, vol. 52(n. 4), pages 819-42, December.
    14. Antón, Arturo & Leal, Julio, 2013. "Aggregate Effects of a Universal Social Insurance Fiscal Reform," IDB Publications (Working Papers) 4580, Inter-American Development Bank.
    15. Iñigo Iturbe-Ormaetxe & Guadalupe Valera, 2012. "Social security reform and the support for public education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 609-634, January.
    16. Marko Köthenbürger & Panu Poutvaara, 2002. "Social Security Reform and Intergenerational Trade: Is there Scope for a Pareto-Improvement?," CESifo Working Paper Series 795, CESifo.
    17. repec:wbk:wbpubs:7187 is not listed on IDEAS
    18. David K. Miles, 2000. "Funded and Unfunded Pension Schemes: Risk, Return and Welfare," CESifo Working Paper Series 239, CESifo.
    19. Alan L. Gustman & Thomas L. Steinmeier, 2000. "Social Security Benefits of Immigrants and U.S. Born," NBER Chapters, in: Issues in the Economics of Immigration, pages 309-350, National Bureau of Economic Research, Inc.
    20. Miles, David & Cerny, Ales, 2001. "Risk Return and Portfolio Allocation under Alternative Pension Systems with Imperfect Financial Markets," CEPR Discussion Papers 2779, Centre for Economic Policy Research.
    21. Peter A. Diamond, 2000. "Administrative Costs and Equilibrium Charges with Individual Accounts," NBER Chapters, in: Administrative Aspects of Investment-Based Social Security Reform, pages 137-172, National Bureau of Economic Research, Inc.
    22. Olivera, Javier, 2010. "Recuperando la Solidaridad en el Sistema Peruano de Pensiones. Una Propuesta de Reforma [Recovering the Principle of Solidarity in the Peruvian Pension System. A reform proposal]," MPRA Paper 60194, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:7:y:2015:i:1:p:65-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.