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The Design and Implementation of Public Pension Systems in Developing Countries: Issues and Options

Author

Listed:
  • Bloom, David E.

    (Harvard School of Public Health)

  • McKinnon, Roddy

    (International Social Security Association)

Abstract

Developing countries are increasingly aware of the need to design and implement improvements in public systems for providing pensions to the elderly. Such systems may aim to smooth consumption and thus provide reliable income to older people, reduce poverty among the elderly, insure those no longer working against the risk of running out of funds, and promote equal treatment of men and women in retirement security even when lifetime earnings and projected average life expectancy may differ greatly. The increasing share of the elderly in the population of all countries makes implementation of sustainable pension systems both more urgent and more difficult. Planners must consider numerous options in pension system design and choose the combination of policies that will optimize coverage, benefits, and financing given a country's demographics, history, practices regarding family support of the elderly, political system, extent of informal labour, and fiscal situation.

Suggested Citation

  • Bloom, David E. & McKinnon, Roddy, 2013. "The Design and Implementation of Public Pension Systems in Developing Countries: Issues and Options," IZA Policy Papers 59, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp59
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    References listed on IDEAS

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    1. Indermit S. Gill & Truman G. Packard & Juan Yermo, 2005. "Keeping the Promise of Social Security in Latin America," IDB Publications (Books), Inter-American Development Bank, number 59998, February.
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    3. John Beard & Simon Biggs & David E. Bloom & Linda P. Fried & Paul R. Hogan & Alexandre Kalache & S. Jay Olshansky, 2012. "Global Population Ageing: Peril or Promise?," PGDA Working Papers 8912, Program on the Global Demography of Aging.
    4. Bernard H. Casey, 2009. "Policy learning and social protection: What have we learnt?," International Social Security Review, John Wiley & Sons, vol. 62(4), pages 103-106, October.
    5. Indermit S. Gill & Truman Packard & Juan Yermo, 2005. "Keeping the Promise of Social Security in Latin America," World Bank Publications - Books, The World Bank Group, number 7391, December.
    6. Robalino, David A. & Rawlings, Laura & Walker, Ian, 2012. "Building social protection and labor systems : concepts and operational implications," Social Protection Discussion Papers and Notes 67608, The World Bank.
    7. Jurgen De Wispelaere & Lindsay Stirton, 2012. "A disarmingly simple idea? Practical bottlenecks in the implementation of a universal basic income," International Social Security Review, John Wiley & Sons, vol. 65(2), pages 103-121, April.
    8. Barr, Nicholas & Diamond, Peter, 2008. "Reforming Pensions: Principles and Policy Choices," OUP Catalogue, Oxford University Press, number 9780195311303.
    9. repec:idb:brikps:59998 is not listed on IDEAS
    10. Robert Holzmann & David A. Robalino & Noriyuki Takayama, 2009. "Closing the Coverage Gap : The Role of Social Pensions and Other Retirement Income Transfers," World Bank Publications - Books, The World Bank Group, number 2651, December.
    11. Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
    12. Armando Barrientos, 2002. "Old age, poverty and social investment," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(8), pages 1133-1141.
    13. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336, December.
    14. Alberto R. Musalem & Maribel D. Ortiz, 2011. "Governance and social security: Moving forward on the ISSA good governance guidelines," International Social Security Review, John Wiley & Sons, vol. 64(4), pages 9-37, October.
    15. Anna McCord, 2010. "The impact of the global financial crisis on social protection in developing countries," International Social Security Review, John Wiley & Sons, vol. 63(2), pages 31-45, April.
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    Cited by:

    1. David E. Bloom & Dara Lee Luca, 2016. "The Global Demography of Aging: Facts, Explanations, Future," PGDA Working Papers 13016, Program on the Global Demography of Aging.
    2. Bloom, D.E. & Luca, D.L., 2016. "The Global Demography of Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 3-56, Elsevier.
    3. Rudolph, Alexandra & Priebe, Jan, 2015. "Pension programs around the world: determinants of social pension," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112986, Verein für Socialpolitik / German Economic Association.
    4. Owen Nyang'oro & Githinji Njenga, 2022. "Pension funds in sub-Saharan Africa," WIDER Working Paper Series wp-2022-95, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    pension systems; aging; retirement; life expectancy;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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