Contested universalism: from Bonosol to Renta Dignidad in Bolivia

Bolivia is the only Latin American country to feature a universal old-age pension scheme. Though strikingly modest, originating at US$248 per annum, this benefit runs counter to the prevailing targeting paradigm. Ten years after the scheme's controversial start in South America's poorest country, this article is the first to focus on the interesting political economy of the universal benefit. The introduction of the benefit was not motivated by social policy considerations but by the desire to privatise state-owned enterprises and pensions. Conceived by neoliberal structural reformers, the benefit was challenged first by the international financial institutions and then by Bolivia's developmentalist government, before the latter found a way to reconcile its re-nationalisation project with a re-branded universal pension.     

Pension financialization and collective risk sharing in Canada and Finland

This article contributes to the debate concerning pension financialization and how countries are adapting their pension systems to respond to demographic ageing. We do so by examining the statutory pension systems of Canada and Finland, which diverge interestingly from current international trends. The Canadian and Finnish public pension schemes reflect two tendencies often associated with pension financialization: an increasing reliance on financial markets and an investment policy with a diversified asset allocation. However, unlike in many other countries, this has not resulted in heightened individual risks in old-age income security caused by a shift from defined benefit to defined contribution pensions – an otherwise common trend internationally.     

Changing the Financing of the Lithuanian Pensions System

After the first pension reform in Lithuania, in 1995, the reforming process must continue. Important changes are needed, based on principles of old age security financing. A three-tier system has been drafted and approved by the government as a Concept of the reform. The main change proposed as a first tier is the introduction of a national pension based on the residence principle, instead of the existing basic pension based on the insurance principle. It is expected that in this way the problem will be solved of providing protection against poverty for the increasing number of people who do not have the necessary insurance record. The second tier should be a compulsory funded system based on privately managed pension funds. Several important goals would thus be achieved: diversifying the old age security risk between pay-as-you-go and funded schemes; boosting investment opportunities and encouraging financial markets to develop; offering improved incentives for the working population to contribute; and so on. The main obstacle to the introduction of the second tier is the high transition cost. The third tier would comprise voluntary pension funds: their activities should be liberated and the severe constraints on investment return removed.     

"Risk" and UK Pension Reform

“Risk” is a word that has become common currency in the financial services industry in general, and in the pensions industry in particular. This article critically examines its use in the context of the current debate about UK pension reform. “Risk” is used by a broad spectrum of interests to discuss a wide range of pension issues in a variety of contexts. The article outlines key theoretical perspectives on the nature and construction, or conceptualization, of risk. Their relevance to debate and policy initiatives, particularly public pension policy, is examined. It is suggested that current government policy is failing to carry with it those to whom the policy applies; that reforms implicitly, if not explicitly, underestimate the importance of “security”; and that failure to conduct a much broader debate about the fundamental notions of work, retirement, saving and security may simply condemn the UK to interminable pension reform.     

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.     

Voluntary Pension Saving for Old Age: Are the Objectives of Self‐responsibility and Security Compatible?

Fiscal pressure and demographic change lead governments to seek ways of reducing state expenditure on pensions. Individuals are asked to take more responsibility, and funded, supplementary pension schemes have been established in many countries. This article looks at schemes that are voluntary – the NEST or Personal Accounts scheme in Britain and the Riester Pension scheme in Germany. It examines the debate about whether it is worthwhile for some people to participate in pension schemes that are not mandatory – particularly those with low incomes and/or potentially broken careers. The small pensions they accumulate in such schemes merely offset entitlements to means‐tested pension benefits, leaving them no better off in old age. Concerns about the behavioural consequences of pension means‐testing are not new. Nonetheless, few policymakers have been willing to look at when and how such concerns were expressed in the context of voluntary pension savings. Equally, they have seldom been prepared to explain the costs involved in guaranteeing savings‐based pensions or the implications that the lack of offering such a guarantee might have for individual behaviour. The state has sought for people to take greater ‘self‐responsibility’ for their retirement income, but many people wish for some certainty with respect to the pensions they can expect. These goals might well be in conflict. Whether the ‘state pension for the 21st century’, as proposed by the UK government, will succeed in satisfying the objectives both of the state and of pension savers remains an open question.     

Between labour market and retirement pension — flexible transition as a new paradigm for ageing societies?

Increasing the pensionable age due to rising life expectancy meets strong political resistance. For health and labour market reasons it will always be impossible for some to achieve full pension eligibility directly from employment. Even if early retirement options are not restricted the scope for an accumulation of earnings to fund an early pension is often narrowly defined. Consequently, it is impossible for early retirees to compensate for the reductions in the pension they receive. Contrary to the general tendency to increase the pensionable age an alternative reform proposal is currently under discussion in German social policy circles. This involves free choice of retirement at age 60; unlimited accumulation of additional pension entitlements whilst earning; actuarial deductions for early retirement; and consideration of life expectancy in making adjustments to pension awards. This solution relieves the public pension system financially, raises the attractiveness of senior citizens on the labour market, offers the opportunity for a self‐determined transition from work to retirement and reduces political resistance to pension reform. The effect on the labour market for senior citizens remains to be examined.     

Democracy and poverty: The implementation of social reforms in the countries of central and eastern Europe

Why has the political and economic transformation in Russia and central and eastern Europe been accompanied by deteriorating living standards? Many of the reform programmes have contained social elements, but these have been neglected in the implementation process. Certain barriers to change – mental, cultural, political and economic – have made the implementation difficult. Russia and central and eastern Europe have to pass through a problematic dual transformation, from authoritarianism to democracy and from centrally planned economies to market economies. Experiences from Latin America show that such transitions are virtually impossible. The social results from the transformations in central and eastern Europe have been disappointing, which has been documented by scholars in this field. Nevertheless, if the political and economic transformation processes continue, the prospectes for the future are relatively bright. But there is also a negative scenario with authoritarianism and civil war as endpoints. A more cautious transition to a market economy might improve social welfare and living standards.     

Three Routes to Pension Reform: Politics and Institutions in Reforming Pensions in Denmark,Finland and Sweden

By analysing pension reforms in three Nordic countries – Denmark, Finland and Sweden – that apply different institutional solutions in their old‐age security programmes, this article argues that the political processes that shaped the country‐specific pension set‐ups in the 1950s and 1960s had important ramifications for subsequent reform possibilities. A high degree of inertia exists not only in the institutions themselves but also in the political reform options and the ways in which pensions were reformed. The analysis shows that the ‘new politics’ was not new in any of the three countries. Furthermore, given the differences in the three cases, the analysis questions the nature of pension reform. The Swedish reform in the late 1990s was a ‘big bang’ that eliminated the old and changed everything; the Finns built on piecemeal reforms of conversion that gradually changed the whole system; and, while the Danish story appears to be one of stability and status quo, the drift of Danish policy ultimately changed the basic characteristics of the system. Although all three countries have more or less thoroughly reformed their pensions, the reform processes have differed according to both historical legacies and institutional frameworks.     

近十年我国社会保障改革的历史进程与经验总结

近十年来,我国面临的国际国内形势出现了新的变化,社会保障改革在此背景下也进行了新的道路选择并取得一系列成就。2011年开展城镇居民社会养老保险试点工作,这与2009年建立的新农保制度初步构成了我国养老保障制度的基本框架,标志着我国覆盖城乡居民社会保障体系的主要制度都建立起来,是我国社会保障改革和全面建设小康社会的重大进步。总结近十年来我国社会保障改革的基本经验,有益于我们更明确的认识改革的历史与现状,为继续推进社会保障改革、发展社会保障事业奠定重要基础。     

Explaining Italian “exceptionalism” and its end: Minimum income from neglect to hyper-politicization

Traditionally at the margins of the political debate, minimum income protection has recently become a key issue in Italian politics. After decades of social and political “neglect” letting Italy the only European country (with Greece) still lacking an anti-poverty minimum income safety net in the 2010s, finally a national programme called Inclusion Income was introduced in 2018, then replaced by a more robustly financed scheme, the Citizenship Income in 2019. The introduction of these new programmes was the object of an intense political debate, which raises two main puzzles. Why a policy field characterized by the low political resources of would be beneficiaries and low incidence on the overall welfare budget has become so important in the political debate? How did it occur in Italy, where minimum income protection had been absent in political discourses for at least five decades after World War II? To answer these questions, this article first elaborates a novel theoretical framework which combines the main properties of socio-political demand and political supply in order to explain the scope and direction of minimum income reforms. Second, it provides an analytically oriented reconstruction of MIS policy trajectory in Italy in the three different phases: the phase of MIS “neglect” (1948–1992) characterized by inertia; the period of political “contentiousness” (1993–2012), marked by attempts of path departure followed by policy reversals; the more recent phase leading to the introduction and institutionalization of a MIS. Third, the article provides a theoretically framed interpretation of the overall MIS trajectory in Italy.     

Determinants of state long-term debt: The political market framework

Because it focuses on the moderating role of political institutions – which emphasize equilibrium policy outcomes under different institutional arrangements derived from the interaction of policy supply and demand – the political market framework provides useful insights for analyzing the determinants of state long-term debt. Thus, different types of state political institutions should affect the degree of long-term debt in terms of specific demands and supply. Despite the numerous studies that have either applied the political market approach to local governments in policy areas or have analyzed the determinants of long-term debt from only a financial management perspective, few studies have applied the political market framework to state governments. Thus, adopting a state financial management perspective and conducting a panel data analysis using state data from 1980 to 2014, this study identifies the reasons why state governments act on long-term obligations in terms of the political market framework. This study also aims to expand the application of the political market framework to state governments and to integrate determinants of state long-term indebtedness.     

The macroeconomic impact of reforming a PAYG system: The Portuguese case

Abstract   The article analyses the impact of various types of reform options on social security pension system financial sustainability and on a range of macroeconomic variables. The HERPOR model is used to consider the likely effects of parametric reforms of the existing pay-as-you-go system, as well as those of a systemic reform. The article concludes that the former are sufficient to ensure financial sustainability, although they should be accompanied by employment implementation measures. The article concludes that a fully pre-funded system does not seem to be a viable option for policy-makers in the redesigning of social security pension systems, due to the high transition costs involved.     

National pension systems and mass opinion: a case study of confidence, satisfaction and political attitudes in Norway

It is commonly assumed that popular support for national pension systems depends on widespread satisfaction with projected benefit levels among the working age population, and in particular that public support for the system will be jeopardised if the taxpayers do not feel confident about eventually receiving the promised benefits. On the basis of Norwegian survey data, two sets of questions are addressed in the article: (1) Is there a widespread lack of confidence in and satisfaction with the Norwegian National Insurance pension scheme? and (2) Is there an association between confidence and satisfaction and people's political attitudes towards the National Insurance pension scheme? Although we do not find any signs of a dramatic erosion of confidence towards the system, we do find that overall satisfaction with projected benefits is low among the working age population. Contrary to what one might expect, however, confidence and satisfaction from the point of view of individual interests appear not to be associated with a political preference for privatisation.     

Some considerations on the debate on social work in China: who speaks for whom?

In this article I persist with my argument that indigenous, local, culturally relevant practice ought to trump the external imposition of social work definitions, standards and professional models. The challenge, however, is not to fall prey to false dichotomies. Importantly, social work in China is not static but emergent, and no‐one is sure of the exact shape it will take. And the essential question is to what extent will Western knowledge and standards be uncritically appropriated into China? Most contributors to the debate thus far have taken the international definition of social work as their starting point, but far more significant are the political dimensions involved in this process of indigenisation. This article proposes that empirical evidence from within China regarding culturally appropriate, effective local responses – and some clear benchmarks for international engagement – should form the basis for dialogue between China and the broader social work community.     

Pensioners among Chinese elderly

The pension system is one type of social welfare system which provides support for elderly citizens after retirement. The system in the People's Republic of China was established in the 1950s, mainly for state employees and employees of privately owned enterprises, while peasants relied on their land to support them in their old age. Up to the 1970s, there was little change in this system. However, the system has since undergone dramatic reform. The implication of the new system for the future elderly in China will be significant. This paper discusses the current impact of the pension system on the elderly in China. According to our analysis, fewer than 25% of Chinese elderly receive a pension. The social and demographic characteristics (e.g. age, gender, residence, educational attainment, occupation) of pension recipients are partially a legacy of past policies. As new policies are implemented and the pension system improves, more elderly will be covered by the pension system. Nonetheless, we need to find ways to support those who do not receive a pension.     

The Brazilian pension model: The pending agenda

To achieve national goals defined by the 1988 Brazilian Federal Constitution, cash benefits alone are insufficient in the absence of more robust social services to reduce inequalities and improve social cohesion. The Constitution, albeit of national importance and international significance, has not addressed many institutional and administrative weaknesses in the design of the national pension system. Although coverage has been increased and inequality reduced, these measures are not sufficient. Brazil's ambitions to further develop social policies (and, indeed, to live up to its accorded international status as a social policy leader) may be constrained by an over‐reliance on conditional cash transfers such as those provided under the Bolsa Família programme. Brazil faces a major political‐economy challenge in addressing all these issues because the policy reform process is difficult, and, more importantly, because of the embedded role of vested interests. Moreover, Brazil must tackle these issues in the face of growing fiscal pressures, which could weaken the current political legitimacy of social policy and undermine important recent successes.     

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.     

The World Bank Approach to Pension Reform

This paper highlights the World Bank's thinking and worldwide involvement in pension reform. Both are driven by the Bank's mandate to help countries develop economically and to reduce poverty. The Bank has four key concerns in working with clients on pension policy: (1) short-term financing and long-term financial viability; (2) effects on economic growth; (3) adequacy and other distributive issues; and (4) political risk and sustainability. In response to these concerns and after review of the three main reform options for unfunded systems - mere PAYG reform, a rapid and complete shift to a mandatory funded system, and a gradual shift to a multipillar scheme - the Bank clearly favours the multipillar approach but in a pragmatic and country-specific manner. When helping to implement a pension reform the Bank fully takes account of country preferences and circumstances, bases its support on sound reform criteria, links the client assistance with knowledge management, provides training and other measures to enhance the reform capacity of a country, and seeks cooperation with other international institutions. In addition, the Bank has a comprehensive research agenda to improve the working of multipillar schemes, and the investigations include issues of coverage, administrative costs and annuities.     

The Future of Retirement Protection in Southeast Asia

This paper analyses the formal retirement protection systems in five economically successful, rapidly industrializing, and globalized economies of Southeast Asia: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. It finds that while there are major differences in the formal retirement protection systems of the five countries in terms of coverage; contribution rates; scope and nature of preretirement schemes; investment patterns, practices and performance; replacement rates; administrative and compliance efficiency; and regulatory structures, the main common feature (with the exception of the Philippines) is aversion to social insurance and predominant reliance on individual provision through publicly mandated and managed provident funds. While these systems do minimize the fiscal burden on the State and thereby help maintain international competitiveness, they provide socially inadequate levels of retirement protection and are weak in ensuring efficiency of the saving-investment process. Moreover, several design and institutional features prevent full realization of many of the advantages of the provident funds found in these countries. They may, therefore, benefit by following the worldwide pension reform debate more closely, particularly concerning design and institutional and regulatory structures for mandatory defined-contribution schemes.