Poverty Reduction: The Missing Piece of Pension Reform in Latin America

Employment‐based pension plans constitute the main form of pension provision in Latin America. Although recent pension reform in the region has focused on strengthening these, old‐age poverty remains high in most countries in the region, with older people over‐represented among the poor. The article argues that ensuring old‐age support for poor and vulnerable groups involves a different set of priorities and options for pension reform, namely a strong focus on tax‐financed public cash transfer programmes. Cash transfer programmes focused on poor older people are the missing piece of pension reform in the region. The article examines the experience of the handful of countries with such programmes in place, and draws the lessons for the future of social policy in the region.     

Social Security at The Crossroads: Toward Effective Pension Reform in Latin America

Individual pension savings accounts in Latin America promised to improve compliance and raise benefits in a cost‐effective manner, while at the same time raising savings rates, which would in turn promote economic growth. A review of the evolution of pension reform in Latin America shows results to have been mixed. Analyses of the recent reforms generally fail to consider the extent to which the success or failure of pension systems is driven by exogenous factors, including macroeconomic and labour market conditions, and institutions. A number of recent studies have issued a reassessment of the region's reforms that stresses the importance of a basic guaranteed pension benefit and recognizes that a range of alternatives are viable in the region. Pension systems based on individual accounts are undergoing a thorough reevaluation.     

Modeling Pension Reforms and Estimating Implicit Pension Debt

The article reviews the major structures of pension schemes, their classification, prerequisites, and the reasons for pension reforms. Special attention is given to implicit pension debt as a tool for estimating future government obligations. The main principles of implicit debt estimation and a short review of its implementation are discussed.     

Pension Reforms in Europe and Life-course Politics

In recent years, somewhat drastic pension reforms have taken place in all European countries. The pension systems developed in the last century are no longer considered to be suited to the changing demographic constellations in European countries, and the financial sustainability of these systems is under threat. Moreover, the changing political and economic set‐up in European countries is also used to justify reforming the different pension systems. Different reasons can be given to explain the various pension reform measures without, however, there being any integrated coherence. We suggest that a politics of social policy, and of pension policy in particular, based on a life‐course perspective, facilitates the understanding of the whole range of pension reform measures. In the past, the elaborated pension systems were attuned to a normative standard biography. A new standard biography, with different phases and more transitions and combinations, enables one to understand the variety of the ongoing pension reform measures. Such a life‐course perspective integrates sequences of learning, working and caring considered necessary for the polity. In other words, it is based on a conception of human potential, and it integrates, to some extent, the previously separate domains of labour market policy, education policy, care policy and pension policy. However, recent theoretical and empirical studies of the life course lead to a critical evaluation of the new standard biography, with the conclusion that the new standard is one‐sided and scientifically unsound, entailing challenges for social policy.     

The Changing Face of Pensions in Latin America: Design and Prospects of Individual Capitalization Pension Plans

This paper discusses the spread of individual capitalization pension plans in Latin America in the 1990s. Following the example of Chile in 1980, Argentina, Colombia, Costa Rica, Mexico and Peru have all introduced individual capitalization pension schemes in the 1990s. The paper discusses the rationale for the reforms and compares the main design features of the reformed pension systems in these countries. Lastly, the likely success of pension reform is discussed by focusing on issues of pension scheme coverage, benefit adequacy and administrative costs.     

Doctrine and Practice in Social Security Pension Reforms

This article describes the debate taking place about the most appropriate way for States to provide for retirement income for their citizens. The main doctrinal approaches reflected in this debate are analysed in relation to the actual outcomes of state practice. The key issue is argued to be one not of economic or social policy but of political culture. Reform efforts are surveyed on the basis of the starting points and paths followed in particular countries. The critical problem is found to be how to build a pension system that is realistically based on the actual economic, social, and political conditions of a country.     

Occupational Risks in Latin America

Protection against employment accidents and occupational diseases, also known as occupational risks, has a long history in Latin America. There have been very few studies of this branch of social security, despite the fact that as a vehicle of social protection it is of the greatest importance for any society. In view of its implications in terms of improved worker protection and greater productivity in the economy, this form of insurance deserves greater attention. This article attempts to give an overview of the evolution of occupational risk insurance in Latin America, as well as its current problems and status. It discusses specific aspects of selected schemes, with concluding observations on the challenges now faced by such schemes in the region.     

Poverty and Social Policy in Latin America

Most indicators of human development in Latin America improved considerably until the early 1980s. Unfortunately, the debt crisis which hit most countries in the region during the 1980s badly dented the social record. Not only did it increase the number of people living in poverty but it led to a profound change in the nature of the development model. Neo-liberal economic thought and the lessons of the debt crisis convinced one Latin American state after another that it should follow a different development path.
Economic stabilization and structural adjustment had a profound effect on poverty in the region. Most families became poorer, particularly those living in the cities. Structural adjustment and the new economic model also modified the role of the state. Increasingly, Latin American governments stopped giving general subsidies and introduced a strategy of targeting subsidies at the poor. In places, the new strategy will no doubt provide an adequate safety net, but in others it will fail to provide sufficient help for the poor. All we can predict is that poverty will long remain regrettably common in most parts of Latin America. In places, economic growth will undoutedly reduce poverty but it is not at all easy to predict where it will be reduced. In this respect Latin America is very much like the rest of the world. Globalization has opened up local economies to international competition and offered them the prospect of selling local goods to foreign markets. How many Latin American economies will benefit from the new situation will determine how the poor will fare. Unfortunately, the state's ability to deal with any subsequent poverty has been greatly reduced. That, too, is part and parcel of the process of globalization.     

The gender gap in pensions in Latin America

Lower female lifetime labour market participation rates, greater interruptions during their working lives, and wage gaps contribute to create gender gaps in pensions at the time of retirement. The design of social security systems may reinforce or attenuate these gaps. This article provides new evidence on gender gaps in access to pensions and in pension income in four Southern Cone countries in Latin America and analyses their evolution between 2000 and 2013, showing significant improvements in both gaps, with differential patterns by countries. The decrease in the gender gap in pension income has been particularly significant in Argentina and Brazil. In both cases, the largest increases in pension values during the period correspond to the lowest income percentiles, where women are overrepresented. The application of redistributive policies in these countries, aimed at reducing poverty and inequality but not necessarily focused on gender equity, has had positive and probably unintended consequences in terms of reduction in gender gaps in pensions.     

Evaluating the Possible Impact of Pension Reforms on Elderly Poverty in Europe

Since the 1990s, reforms have changed substantially both the nature of state pension provision and the level of generosity. This article tries to assess the impact of these changes using estimates of pension wealth for a number of hypothetical cases. By focusing on all prospective pension transfers rather than just those at the point of retirement, this approach can provide additional insights, especially on the impact of changes in benefit indexation. These estimates corroborate existing evidence that reforms have decreased generosity significantly. Moves to link benefits to contributions have made systems less progressive, raising adequacy concerns for certain groups. The reforms have, in particular, strengthened the need of ensuring better access to labour markets, of having in place adequate crediting arrangements and minimum pensions.     

拉美左翼崛起现象探析

拉美左翼是世界社会主义运动的一个重要组成部分。20世纪90年代后期以来,拉美左派顾时而变,及时调整斗争策略,以新的姿态重新出现在拉美政治舞台上。这一现象表明了拉美政治力量的新变化,它将对拉美地区的政治格局产生重要影响。     

拉丁美洲的经济改革与产业结构调整

拉美的经济改革不可避免地带来了产业的结构调整。对产业和企业来说 ,经济改革实际上是优胜劣汰的过程 ,是技术优势和竞争优势取胜的过程。 80年代后期以来 ,拉美不同产业的市场份额发生了变化 ,以自然资源为基础的产业和客户工业发展较迅速。经济的结构性改革、技术的提高和制度的变革三者的结合 ,提高了拉美一些产业的劳动生产率 ,落后企业的倒闭 ,新的技术先进的企业进入市场 ,在此过程中实现了一些产业在技术和制度上的过渡。拉美一些产业和企业虽然正在较高技术水平的基础上发展 ,但劳动生产率的提高却主要依靠了进口技术和设备 ,产品的附加值却非常之低。此外 ,拉美国家为出口服务的产业结构对经济增长也存在着隐患。在这种发展模式中 ,跨国公司正在获得最大利益 ,而拉美的人民却较少从中获益 ,拉美地区的贫富差距也将难以因经济改革和技术提高有所改善。     

Expanding economic protection to the elderly in Latin America

This article addresses the reforms introduced in Latin American pension systems that had the aim of increasing coverage beyond formal‐sector workers. For this purpose, fourteen representative regional experiences are analysed using a taxonomy based on features of the cases examined in terms of design, implementation and results. The findings show that, although the reforms share the goal of expanding coverage, there are significant differences deriving from the context in which they were originally designed, their goals, and the capacity available to implement them. The results are not homogeneous, and it is possible to identify some aspects in which policy decisions can lead to better or worse results.     

The Role of Insurance in Social Protection in Latin America

Social protection schemes in Latin America face serious short falls in the financial resources available to meet their needs. New types of insurance envisaged in reforms should help to contain costs and increase coverage. However, in strengthening schemes' coverage it is highly probable that considerable demand for additional financial resources will arise to address the need to introduce the principle of solidarity into the system. This article examines reforms in the financing of social security for healthcare and pensions, highlighting the implications of various public-private combinations for financial management and coverage.     

The prospects for higher domestic savings rates in Latin America

This paper analyzes the prospects for raising domestic saving rates to permit increased investment and/or reduced dependence on foreign-capital inflow in Latin America. We analyze the question of rising saving rates by applying a random-coefficients approach: treating the parameters estimated in time-series analysis for individual countries as observations drawn from an international cross-section of savings behavior. Correlation analysis is then applied to clarify the conditions associated with international differences in savings parameters across a sample of 21 Latin American countries.