
Contents
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1 Structural Reforms and Their Differences 1 Structural Reforms and Their Differences
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2 The Beneficial Effects of Structural Reform 2 The Beneficial Effects of Structural Reform
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3 The Importance of the Private System 3 The Importance of the Private System
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4 An Evaluation of Eight Assumed Benefits of Structural Pension Reform 4 An Evaluation of Eight Assumed Benefits of Structural Pension Reform
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4.1 Declining Coverage of the Labor Force 4.1 Declining Coverage of the Labor Force
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4.2 Increasing Non-compliance in the Payment of Contributions 4.2 Increasing Non-compliance in the Payment of Contributions
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4.3 Imperfect Competition among Management Firms 4.3 Imperfect Competition among Management Firms
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4.4 High and Sustained Managerial Costs 4.4 High and Sustained Managerial Costs
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4.5 Significant Accumulation of Capital in the Pension Fund but Questionable Impact on National Saving 4.5 Significant Accumulation of Capital in the Pension Fund but Questionable Impact on National Saving
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4.6 Apparent Development of the Capital Market but Poor Diversification of the Investment Portfolio 4.6 Apparent Development of the Capital Market but Poor Diversification of the Investment Portfolio
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4.7 Variable Real Capital Returns 4.7 Variable Real Capital Returns
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4.8 Accentuation in Gender-Based Inequalities 4.8 Accentuation in Gender-Based Inequalities
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5 Conclusions and Directions for Future Research 5 Conclusions and Directions for Future Research
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Notes Notes
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References References
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33 Structural Pension Reform—Privatization—in Latin America
Get accessCarmelo Mesa-Lago is Distinguished Service Professor Emeritus of Economics and Latin American Studies at the University of Pittsburgh and has been a visiting professor/researcher in seven countries and a lecturer in 36 countries. The author of 60 books and more than 200 articles/chapters published in eight languages in 33 countries, half of them on social security, his most recent is Las Reformas de Pensiones en América Latina y los Principios de la Seguridad Social (Santiago: ECLAC, 2004). He has worked in all countries of Latin America as a regional adviser for ECLAC, a consultant with most international financial organizations, as well as with various UN branches and national and foreign foundations. He was President of the Latin American Studies Association, is a member of the National Academy of Social Insurance and of the Board of the International Social Security Review. He has received the Alexander von Humboldt Stiftung Senior Prize, two Senior Fulbrights, the Arthur Whitaker and Hoover Institution Prizes, and OISS and CISS Homages for his life's work on social security. Address is 1902 Beechwood Blvd., Pittsburgh, PA 15217, USA. Email: [email protected]
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Published:02 September 2009
Cite
Abstract
This article analyses structural pension reforms in the twelve Latin American countries. The first section offers a brief description of the three different models of reforms applied in the region, as well as outlining the range of features of the specific reforms in each of the countries. The second section provides a summary of the beneficial impact of such reforms. The third section discusses the diverse levels of pension privatization in ten countries and the reasons for this divergence. The fourth section evaluates eight assumptions about the effects of structural reforms based on statistics available for ten countries, and the fifth section concludes with a review of outstanding issues and indications of further research needed.
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