Financing the transition to multipillar
This report focuses primarily on the mechanics of financing the transition from an unfunded pension scheme with equates with hidden public debt to a funded scheme which makes this debt explicit, and on the financial stocks and flows involved. Only if the problem is treated in a consistent stock/flow concept can the true costs or benefits of transition, and its economic and distributive implications be fully assessed. To this end, the structure of this report is as follows: after the introductory section, section 2 elaborates on the appropriate definition of the scope of the obligations that become explicit, the way these are measured, and how they change under reform. Section 3 presents the main strategies for reducing the debt to be made explicit. Section 4 highlights the changes in the composition of total (i.e., implicit and explicit) debt and the related fiscal requirements during the transition under alternative reforms. Section 5 presents the options to finance the transition through debt or budgetary financing.
|Date of creation:||01 Dec 1998|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/spl
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Palacios, Robert & Whitehouse, Edward, 1998.
"The role of choice in the transition to a funded pension system,"
Social Protection and Labor Policy and Technical Notes
20109, The World Bank.
- Palacios, Robert & Whitehouse, Edward, 1998. "The Role of Choice in the Transition to a Funded Pension System," MPRA Paper 14176, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:wbk:hdnspu:20052. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Raiden C. Dillard)
If references are entirely missing, you can add them using this form.