Reforming the Pension Reforms: The Recent Initiatives and Actions on Pensions in Argentina and Chile

48 Pages Posted: 26 Jan 2012

See all articles by Rafael Rofman

Rafael Rofman

World Bank - Social Protection Unit; University de Buenos Aires

Eduardo Fajnzylber

Universidad Adolfo Ibañez

German Dario Herrera

affiliation not provided to SSRN

Date Written: March 26, 2009

Abstract

This paper describes the recent reforms of pension policies adopted by Argentina and Chile. The structural reforms in the 1980s and 90s were targeted on improving the long term fiscal sustainability of the system and their institutional design, while transferring part of the economic and social risks from the State to participants. However, in recent years authorities in both countries coincided on identifying insufficient coverage among the elderly and adequacy of benefits as the most critical problems. As a result of differences in political economy and institutional constraints, responses were different. In Chile, a long and participatory process resulted in a large reform that focuses on impacts on the medium term, through a carefully calibrated adjustment. In Argentina, instead, reforms were adopted through a large number of successive normative corrections, with little public debate about their implications, and immediate impacts on coverage and fiscal demands.

Keywords: Argentina, Chile, pension reform, public pensions

JEL Classification: H55, J14, J26

Suggested Citation

Rofman, Rafael and Fajnzylber, Eduardo and Herrera, German Dario, Reforming the Pension Reforms: The Recent Initiatives and Actions on Pensions in Argentina and Chile (March 26, 2009). Available at SSRN: https://ssrn.com/abstract=1992438 or http://dx.doi.org/10.2139/ssrn.1992438

Rafael Rofman (Contact Author)

World Bank - Social Protection Unit ( email )

Bouchard 547
piso 29 CP1106
Buenos Aires
Argentina

University de Buenos Aires

Buenos Aires
Argentina

Eduardo Fajnzylber

Universidad Adolfo Ibañez ( email )

Diagonal Las Torres 2640 Peñaleón
Presidente Errázuriz 3485 Las Condes
Santiago, 794-1169
Chile

German Dario Herrera

affiliation not provided to SSRN

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