IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2310.html
   My bibliography  Save this paper

How politics and institutions affect pension reform in three post-communist countries

Author

Listed:
  • Orenstein, Mitchell A.

Abstract

The author examines the political and institutional processes that produced fundamental pension reform in three post-communist countries: Hungary, Kazakhstan, and Poland. He tests various hypothesis about the relationship between deliberative process and outcomes through detailed case studies of pension reform. The outcomes of reform were similar: each country implemented a mandatory funded pension system as part of reform, but the extent, and configuration of changes, greatly differed. Countries with more"veto actors"- social and institutional actors with an effective veto over reform - engaged in less radical reform, astheory predicted. Poland and Hungary generated less radical change than Kazakhstan, partly because they have more representative political systems, to which more associations, interest groups, and"proposal actors"have access. Proposal actors shape the reform agenda and influence the positions of key veto actors. Pension reform takes longer in countries with more veto and proposal actors, such as Poland and Hungary. Legacies of policy, the development of civil society, and international organizations, also profoundly affect the shape and progress of reform. The author sees pension reform as happening in three phases: commitment-building, coalition-building, and implementation. He presents hypothesis about tradeoffs among inclusiveness (of process), radicalism (of reform), and participation in, and compliance with, the new system. The hypothesis: including more, and more various, veto and proposal actors early in the deliberative process, increases buy-in and compliance when reform is implemented, but at the expense of faster and greater change. Early challenges in implementation in all three countries, nut especially in Kazakhstan, suggest the importance of improving buy-in through inclusive deliberative processes, where possible.

Suggested Citation

  • Orenstein, Mitchell A., 2000. "How politics and institutions affect pension reform in three post-communist countries," Policy Research Working Paper Series 2310, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2310
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/05/02/000094946_00041906125784/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2003. "Case Study 4 - Poland : Participation in Macroeconomic Policy Making and Reform," World Bank Other Operational Studies 11317, The World Bank.
    2. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications, The World Bank, number 7336, April.
    3. Jiří Večerník, 2004. "Social Policies and Structures Under Transition: Cohesion and Tensions," Prague Economic Papers, University of Economics, Prague, vol. 2004(4), pages 310-322.
    4. repec:dau:papers:123456789/6253 is not listed on IDEAS
    5. Sunita Kikeri & Thomas Kenyon & Vincent Palmade, 2006. "Reforming the Investment Climate : Lessons for Practitioners," World Bank Publications, The World Bank, number 7096, April.
    6. Robert Holzmann & Mitchell Orenstein & Michal Rutkowski, 2003. "Pension Reform in Europe : Process and Progress," World Bank Publications, The World Bank, number 15132, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2310. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.