|
KMID : 1023720120560010325
|
|
Journal of Welfare for the Aged
2012 Volume.56 No. 1 p.325 ~ p.351
|
|
|
Successes and Failures of the Pension Reforms in Latin America
|
|
Won Seok-Jo
|
|
|
Abstract
|
|
|
The pension reforms in Latin America have become a model for the US social security pension reform and the Chinese old age pension reform. Their core strategy is three types of financial methods, such as the substitute, parallel and mix model. This new approach showed the possibility of financial sustainability, and was the most important reason for the worldwide concerns. However, in spite of the concerns, existing evaluations were subjective as well as partial, and
biased ideologically. Therefore, objective and total evaluation of the success and failure of Latin America’s pension reforms on the long-term perspective is needed. It is the aim of this paper. The results are as follows; First, successes of the pension reforms in Latin America are achieving financial stabilization and sustainability of pension systems, increasing returns and assets of pension funds, rising of saving and investment rates, contribution to economic growth and capital markets. Second, however, they got failures such as coverage stagnation, inequity of returns, excess administration fees of pension funds, and strong governmental regulation on fund portfolios. Third, there are both positive and negative variables in the reforms on long-term perspective. The future of financial sustainability is a little negative, but the coverage problem will be improved. In conclusion, latin America’s pension reforms have failures as well as successes, and there are both positive and negative variables on long-term perspective. This means it’s hard to evaluate their reforms. But we must recognize that they gained successes in unstable economic environment. Anyway the individual accounts already became a important model for worldwide pension reforms, and it seems that IA will influence the structural reform of the Korean National Pension System.
|
|
|
KEYWORD
|
|
|
Aging Society, Social Welfare for the Aged, Pension Reforms, Individual Accounts, IA, pay-as-you-go, PAYG, Financial Sustainability, Portfolio
|
|
|
FullTexts / Linksout information
|
|
|
|
|
|
Listed journal information
|
|
|
|