The Latin American experience in pension system reform: Coverage, fiscal issues and possible implications for China
In the past two decades, Latin American countries reformed their pension systems focusing mainly on addressing the weaknesses of the contributory schemes - fiscal unsustainability, low coverage levels and a high degree of segmentation- and barely addressed the non-contributory element. The reform experiences show however that the intended reforms did not manage to meet their objectives. Firstly, to this day, a large proportion of the population remains inadequately covered by the contributory system. Secondly, the fiscal performance and outcome of the reform was worse than originally planned. The possibilities for the success of these reforms faced several constraints of a structural nature that are independent of the pension system itself and that as a result can not be overcome by a pension reform including mainly the limited savings capacity of some population groups and the instability and precariousness of the labor markets in the region. The Latin American experience shares similarities with that of China in terms of coverage, labor market informality. Both cases attest to the importance of combining contributory and non-contributory components in pension reform design.
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- Natalia Ferreira-Coimbra & Alvaro Forteza, 2005. "Can Latin America Protect the Elderly with Non-Contributory Programmes? The Case of Uruguay," Development Policy Review, Overseas Development Institute, vol. 23(6), pages 683-702, November.
- Felix Salditt & Peter Whiteford & Willem Adema, 2007. "Pension Reform in China: Progress and Prospects," OECD Social, Employment and Migration Working Papers 53, OECD Publishing.
- Marisa Bucheli & Natalia Ferreira-Coimbra & Alvaro Forteza & Ianina Rossi, 2005. "El acceso a la jubilación o pensión en Uruguay: ¿cuántos y quiénes lo lograrían?," Documentos de Trabajo (working papers) 0106, Department of Economics - dECON.
- Dewen Wang, 2006. "China's Urban and Rural Old Age Security System: Challenges and Options," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(1), pages 102-116.
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