Cover image for Keeping the Promise of Social Security in Latin America.
Keeping the Promise of Social Security in Latin America.
Title:
Keeping the Promise of Social Security in Latin America.
Author:
Gill, Indermit S.
ISBN:
9780821383759
Personal Author:
Physical Description:
1 online resource (368 pages)
Contents:
Cover -- Title Page -- Contents -- Latin American Development Forum Series -- About the Contributors -- Foreword -- Acknowledgments -- 1 Rethinking Social Security Priorities in Latin America -- Introduction -- The Benefits of Hindsight -- Significant Progress, but Stalled Coverage -- Distinctions That Matter-Pooling vs. Saving, and Mandatory vs. Voluntary -- A Summary of the Main Findings -- A Roadmap to this Volume -- Notes -- PART 1 Retrospective: Fiscal, Financial, and Social Benefits from Pension Reform -- 2 Structural Reforms to Social Security in Latin America -- Introduction -- Demographic Changes in Latin America -- Taxonomy of Social Security Reform in Latin America2 -- Structure and Implementation of the Mandatory Savings Component -- Structure and Implementation of the Voluntary Savings Component -- Conclusion -- Notes -- 3 The Fiscal Sustainability of Public Pension Promises in Latin America -- Introduction -- Simulated Fiscal Impact of Structural Reforms -- What Simulations Can and Cannot Show -- Effects of Structural Pension Reform on Economic Growth -- Broader Risks and Macroeconomic Concerns Raised by Structural Reforms5 -- Conclusion -- Notes -- 4 The Financial Benefits of Pension Reform -- Introduction -- The Regulation of Mandatory Pension Funds -- Regulation of Pension Fund Managers -- Restrictions on Pension Fund Investment -- Rapid Growth in Pension Savings -- How the Pension Fund Industry Operates -- Decisionmaking in an Oligopolistic Industry -- Dealing with the Transition Debt -- Asset Management Practices, Financial Innovation, and Regulatory Reform -- Role of Pension Funds in Corporate Governance -- Effects of Reforms on the Market for Government Debt -- Development of the Market for Public Sector Debt -- Effects of Pension Funds on the Market for Government Bonds -- Effects of Reforms on the Banking System.

Role of Pension Funds in the Development of the Market for Banking Sector Securities -- Impact on Bank Efficiency and Stability -- Effects of Reform on the Market for Private Sector Securities -- Pension Fund Investment and Stock Market Liquidity -- Development of the Corporate Bond Market -- Venture Capital and Real Estate Funds -- Conclusion -- Notes -- 5 Social Gains from Pension Reforms in Latin America -- Introduction -- Inequitable Effects of Social Security and Progress with Reforms -- Equity Implications of a Large Informal Sector -- Has Reform Increased Coverage? -- Conclusion -- Notes -- PART 2 Analytical: How Governments Can Help Individuals Deal with Retirement -- 6 How Individuals View Social Security -- Introduction -- The Advantage of Taking the Individual's Viewpoint -- Saving as the Mainstay of Old-Age Income Security -- Pooling to Insure Against the Risk of Old-Age Poverty -- Justifying Mandatory Saving-Individual Welfare -- Justifying Mandatory Saving-Economy-Wide Externalities -- Conclusion -- Notes -- 7 How Well Has the "Savings" Component Performed from the Individual's Perspective? -- Introduction -- Risks to Old-Age Income Security -- Performance of the New Funded Pillars in the Accumulation Stage -- Returns from Investment High But Volatile -- The Cost to Affiliates of the New Savings Component -- Performance of the New Funded Pillar in the Distribution Stage -- Investment and Longevity Risk Management Properties of the Funded System -- Conclusion -- Notes -- 8 The Preferences That Individuals Reveal -- Introduction -- Is Low Participation Evidence of Social Exclusion or Individual Choice? -- Who Contributes to Social Security? Survey Evidence from 13 Latin American Countries -- Do Low Participation Rates Reflect Lack of Demand? -- Implications of Household-Level Analysis: The Preferences Individuals Reveal -- Conclusion.

Notes -- PART 3 Prospective: The Future of Social Security in Latin America -- 9 Preventing Poverty in Old Age: Improving the Pooling Component -- Introduction -- Government's Essential Role: Preventing Poverty Among Elderly People -- Pillar Zero vs. Pillar One: Does the Distinction Matter? -- Options for Preventing Poverty among Elderly People -- Contributory Minimum Pension Guarantees -- Noncontributory Poverty Prevention Pensions in Latin America -- Forecasting the Cost of Public Pooling Alternatives -- Conclusion -- Notes -- 10 Facilitating Consumption Smoothing: Improving the Savings Component -- Introduction -- Improving the Mandatory Savings Pillar: Lowering Costs to Affiliates -- Helping People Meet Their Differing Life Cycle Needs -- Enacting Reforms to Decrease Administrative Costs and Commissions -- Improving Risk Management of Mandated Retirement Savings -- Improving the Voluntary Savings Pillar: Increasing Options and Incentives -- Do Mutual Funds Have a Role in the Voluntary Savings Pillar? -- Is There a Role for Life Insurance Providers in the Voluntary Savings Pillar? -- Are There Options to Improve the Voluntary Funded System? -- Conclusion -- Notes -- 11 The Way Forward -- Introduction -- Why This Survey Now? -- What Have Been the Main Benefits of Reform? -- What Are the Principal Concerns about Reforms? -- What Is the Way Forward? -- Conclusion -- Notes -- Technical Annex. Assumptions of PROST Simulations -- Calculations of Internal Rates of Return -- Affiliate Profiles and Other Assumptions -- Note -- Appendix. Background Papers for Keeping the Promise -- Bibliography -- Index -- Back Cover.
Abstract:
Empirical analysis of two decades of pioneering pension and social security reform in Latin America and the Caribbean shows that much has been achieved, but that critical challenges remain. In tackling this unfinished agenda, a great deal can be learned from the reform experience of countries in the region. Keeping the Promise, produced by the chief economist's office in the Latin America and Caribbean Region at the World Bank, evaluates policy reforms in 12 countries, points to successes and shortcomings, and proposes priorities and options for future reform. "Keeping the Promise provides a timely assessment of two decades of pension reform experience-with a wealth of new data, and empirical evaluation of reformed social security systems. Many economists and policymakers will not be persuaded by some of the main conclusions and recommendations-such as the supposed failure to increase coverage, and the call for strengthening a pay-as-you-go defined-benefit scheme for poverty prevention-but they will welcome the book's critical appraisal. This is required reading for pension specialists and policymakers in Latin America and beyond." -Klaus Schmidt-Hebbel, Chief of Economic Research, Central Bank of Chile "A heavyweight analysis of the Latin American pension revolution which raises important questions about the optimal scale of compulsory saving when redesigning pension systems." -Paul Wallace, The Economist.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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