From Reform to Crisis: Argentina's Pension System
Posted: 29 Nov 2004
Abstract
Argentina underwent economic and social collapse in December 2001. The crisis brought the worst socioeconomic indicators in its history, and the pensions system was not immune from this disaster, which was unparalleled in any middle-income developing country. In 1994 the pensions system was restructured, and was regarded as a viable model for other reforms elsewhere. This article discusses in general terms the features of the current pensions scheme, the structural problems that were not resolved in the reform of 1994, the relation between that reform and the government's financial crisis, and the impact of the economic collapse on the pensions system. Finally, it discusses some aspects of the challenges faced in building a system that is both financially viable and has the potential to close the major gaps in coverage affecting both the working population and the aged.
Keywords: Social security, pensions, Argentina, coverage
JEL Classification: H55
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