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Seguridad social y competencia política

  • Alvaro Forteza

    ()

    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

In Uruguay, like in other countries in Latin America, the management of the public social security programs has been frequently criticized. These programs have shown financial problems and high evasion and have been slow to adjust to the demographic changes. I argue in this paper that the poor management, the evasion and the inability to adapt to changing conditions were determined to a large extent by the old rules of the game. The public social security programs were administered with large degrees of discretion, both in terms of granting benefits and monitoring the contributions. I hypothesize that the whole society supported the discretionary social policy, because of the flexibility associated to this policy regime. The discretionary social policy was accepted as a substitute for the formal Welfare State that could not be organized. I also argue that the social security reform initiated in 1995 involved an institutional change that reduces the room for discretion in the system and put a halt to clientelism.

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File URL: http://decon.edu.uy/publica/2003/Doc0403.pdf
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Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0403.

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Length: 21 pages
Date of creation: Jul 2003
Date of revision:
Handle: RePEc:ude:wpaper:0403
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  1. Peter Diamond, 1998. "The Economics of Social Security Reform," NBER Working Papers 6719, National Bureau of Economic Research, Inc.
  2. Richard Disney, 1996. "Can We Afford to Grow Older?," MIT Press Books, The MIT Press, edition 1, volume 1, number 026204157x, June.
  3. Faust, Jon & Svensson, Lars E O, 2001. "Transparency and Credibility: Monetary Policy with Unobservable Goals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 369-97, May.
  4. Alvaro Forteza, 2001. "Electoral competition and the unfunding of public pension programs," Documentos de Trabajo (working papers) 0101, Department of Economics - dECON.
  5. Alesina, Alberto & Tabellini, Guido, 1988. "Credibility and politics," European Economic Review, Elsevier, vol. 32(2-3), pages 542-550, March.
  6. Herrendorf, Berthold, 1999. "Transparency, reputation, and credibility under floating and pegged exchange rates," Journal of International Economics, Elsevier, vol. 49(1), pages 31-50, October.
  7. Alvaro Forteza, 1998. "Los efectos fiscales de la Reforma de la Seguridad Social uruguaya," Documentos de Trabajo (working papers) 0898, Department of Economics - dECON.
  8. Olivia S. Mitchell & Flavio Ataliba Barreto, 1997. "After Chile, What? Second-Round Pension Reforms in Latin America," NBER Working Papers 6316, National Bureau of Economic Research, Inc.
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