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.