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Kazakhstan's Pension System: Pressures for Change and Dramatic Reforms

Listed author(s):
  • Seitenova, Ai-Gul S.
  • Becker, Charles M.
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    Five years ago, Kazakhstan embarked on a dramatic reform of its pension and social security system in order to move from an unsustainable public defined benefit ("solidarity") system to one of defined mandatory contributions (accumulative system). While assessment of long-run success is premature, early results have exceeded expectations. This paper considers the reform's rationale and initial impact: Why did the Government of Kazakhstan decide to introduce a new pension system? What advantages did the state perceive? Was the Government's decision appropriate, and what alternatives existed? The paper also analyzes pension reform issues that have yet to be fully resolved.

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    Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series Discussion Paper with number 142.

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    Length: 46 p.
    Date of creation: Mar 2003
    Handle: RePEc:hit:piedp1:142
    Note: for presentation at the Institute of Economic Research, Hitotsubashi University, Workshop on Pension Reform in Transition Economies, Tokyo, Japan, February 22, 2003, This research has been funded in part by the US Agency for International Development and by the US National Institute of Aging through a grant to the University of Colorado.
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