| Abstrakt: |
In 1981, Chile initiated old-age pension reforms that introduced mandatory funded individual retirement accounts (IRAs) and moved away from public systems. During the 1990s, nine other Latin American countries followed in Chile's wake. In recent years, even before the onset of the financial crisis, a second round of pension reforms was initiated to strengthen the public component and address the problems created by individual accounts. This article addresses whether IRA pension reforms are retrenching in Latin America. Although the idea is provocative, we conclude that the concept of "retrenchment" alone is insufficient to characterize the new politics of old-age pension reform. As opposed to the politics of the 1980s and 1990s, pension reform in Latin America in recent years has combined retrenchment with improvement of IRAs. With the exception of Argentina, which has re-nationalized its pension system, the magnitude in the second round of reforms seems to be less radical compared to the path-breaking changes introduced by the first round. The dominant policy prescriptions in vogue during the first round of reforms in Latin America have been clearly re-evaluated. The World Bank and other organizations that promoted IRAs have recognized that more attention should be paid to poverty reduction, coverage and equity, and to protect participants from market risks. The experience faced by countries that introduced IRAs, the changes in international financing institutions policies, and the recent financial volatility and heavy losses experienced in financial markets have tempered the enthusiasm of other countries from applying the same type of reforms. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR] |
