By Carolin A. Crabbe
The social protection equation is worsening worldwide with the elderly inhabitants starting to be swifter than the hard work strength. within the final twenty years of the 20 th century, the Latin American and the Caribbean sector was once confronted with what appeared insurmountable problems during this regard. Social defense bills had grown with the inflation and upward changes of wages and frequent tax evasion. inside this framework, a number of international locations within the zone undertook a profound overhaul in their social safeguard platforms, changing them absolutely or in part with a privately controlled and invested procedure. those far-reaching reforms have replaced the best way social defense is considered and, for that reason, policymakers world wide are taking a look at the adventure of the quarter. 1 / 4 Century of Pension Reform in Latin the USA and the Caribbean presents an research of those reforms, what labored good, what didn't, what are the teachings discovered and what are the following steps.
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Extra info for A Quarter Century of Pension Reform in Latin America and the Caribbean: Lessons Learned and Next Steps
The importance of the private sector once the public sector’s monopoly was eliminated and private pension management was introduced varies considerably from country to country because of the variety of reform models introduced. At the end of 2002, 100 percent of those afﬁliated in Bolivia, Mexico (IMSS only),4 and Costa Rica had joined the private system (or the private pillar, in a mixed system). 2). Changes in participation from one system to the other depend not only on the good features of the private system, but also on four other factors.
In addition, a private system is instituted to provide a complementary pension (pillar two). Both the public and private pillar are characterized as described above in terms of contributions, beneﬁts, and ﬁnancial structure. However, the administration is mixed (public and private). This is the most widespread model worldwide and is in place in at least 12 countries in Western and Eastern Europe (Mesa Lago and Hohnerlein 2002; Müller 2002). 1 preserved their public social security systems. Brazil introduced parametric reforms in 1998–99 (which include a structured ﬁnancial regime of notional accounts within the general regime for private workers).
Collins, Joseph and John Lear. 1995. Chile’s Free-Market Miracle: A Second Look. : Institute for Food and Development Policy. Domeniconi, Hector, Julia Domeniconi, Bruno Domeniconi, Andrea Perrotto and Hugo Bertin. 2004. El sistema de pensiones en Argentina. C. Fundación Mediterránea, Instituto de Estudios sobre la Realidad Argentina y Latinoamericana (IERAL). 2003. Revista Jubilaciones y Pensiones. 76, Buenos Aires, Argentina. Gill, Indermit, Truman Packard, and Juan Yermo. 2005. Keeping the Promise of Social Security in Latin America.