Old-Age Income Support in the 21st Century : An International Perspective on Pension Systems and Reform

by Holzmann, Robert; Hinz, Richard P.; Gersdorff, Hermann Von (CON); Gill, Indermit (CON); Impavido, Gregorio (CON)

• ISBN13: 9780821360408
• ISBN10: 082136040X
• Format: Paperback
• Copyright: 2005-06-01
• Publisher: World Bank

Summary

The past decade has brought an increasing recognition to the importance of pension systems to the economic stability of nations and the security of their aging populations. During this time, the World Bank has taken a leading role in addressing this challenge through its support for pension reforms around the world.'Old-Age Income Support in the 21st Century' attempts to explain current policy thinking and update the World Bank's perspective on pension reform. The Bank has been involved in pension reforms in nearly 60 countries, and the demand for its support continues to grow. This book incorporates lessons learned from recent Bank experiences and research that have significantly increased knowledge and insight regarding how best to proceed in the future.The book has a comprehensive introduction and two main parts. Part I presents the conceptual underpinnings for the Bank's thinking on pension systems and reforms, including structure of Bank lending in this area. Part II highlights key design and implementation issues where it signals areas of confidence and areas for further research and experience, and includes a section on regional reform experiences, including Latin American and Europe and Central Asia.This book will be of interest to Bank clients, the international community, and anyone interested in pension systems and reform.

Table of Contents

Preface	vii
Acronyms and Abbreviations	ix
Introduction and Executive Summary	1	(1)
A Framework for Pension Reform	2	(7)
Design and Implementation Issues	9	(11)
Structure of the Report	20	(3)
Part 1. Conceptual Underpinnings
The Need for Reform	23	(14)
Fiscal Pressure: Short-Term Urgencies and Long-Term Needs	23	(4)
Delivering on Promises	27	(3)
Aligning Systems with Socioeconomic Changes	30	(2)
Challenges and Opportunities of Globalization	32	(2)
The Contours of Promising Reform Directions	34	(3)
Conceptual Foundations of the World Bank's Perspective	37	(18)
The Social Risk Management Framework	37	(2)
Rationale for Public Intervention	39	(3)
The Multipillar Approach: Diversification and Efficiency	42	(2)
The (Net) Benefits of Funding	44	(9)
A Benchmark, Not a Blueprint	53	(2)
Goals and Criteria That Define the World Bank's Perspective	55	(8)
Primary Goals: Adequate, Affordable, Sustainable, and Robust Pensions	55	(2)
Secondary Goal: Contribution to Economic Development	57	(1)
Reform Criteria	58	(5)
World Bank Lending to Support Pension Reform	63	(10)
Scope of the World Bank's Pension Lending	64	(1)
Diversity of Pension Reforms	65	(8)
Part 2. Design and Implementation Issues
General and Country-Specific Options for the Reform of Pension Systems	73	(20)
General Options for Reform	73	(11)
Country-Specific Options for Reform: Policy Progression and Path Dependency	84	(7)
Conclusions	91	(2)
Key Reform Issues: Firm Positions and Open Questions	93	(48)
Pillar Design, Poverty Relief, and Redistribution	93	(11)
Financial Sustainability Issues	104	(2)
Management of Public Pension Funds	106	(8)
Administrative and Implementation Issues	114	(13)
Readiness and Regulatory and Supervisory Financial Market Issues	127	(7)
Political Economy and Organization of Pension Reforms	134	(4)
Examples of Reform Dilemmas and Questions	138	(3)
Regional Experiences: Developments and First Evaluation of Reform	141	(30)
Latin America and the Caribbean	141	(9)
Central and Eastern Europe and Central Asia	150	(9)
South Asia	159	(3)
Sub-Saharan Africa	162	(3)
Middle East and North Africa	165	(3)
East Asia	168	(3)
Final Remarks	171	(2)
Appendix: Tables on Old-Age Income Poverty	173	(6)
Endnotes	179	(10)
Glossary	189	(6)
References	195	(20)
Contributors	215