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PENSION REFORM BASED ON THE WORLD BANK MODEL - A MAGIC FORMULA FOR OVERCOMING THE PENSION SYSTEM CRISIS AND PROMOTION OF ECONOMIC GROWTH R A HIGH RISK STRATEGY

Ante Škember


Puni tekst: hrvatski pdf 88 Kb

str. 720-737

preuzimanja: 1.393

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Sažetak

In general, the pension reform takes two directions. First is adjustment of existing public pension systems mostly based on PAY-AS-YOU-GO model to new circumstances. Second is a more radical second reform of public pension system as a transition from pay-as-you-go system to privatization, i.e. capitalized funded pension contribution. It is usual to add capitalization and privatization to pay-as-you-go system as the second pension pillar. The World Bank strongly advocates pension capitalization and privatization and it presents the thesis on pension capitalization as a magic formula for overcoming the overall crisis of public pension systems and simultaneous promotion ofincreased economic growth rate. This paper challenges afore mentioned thesis since current pension payments areactually tax on income of currently insured persons, and pension based on capitalized fundsis taken from profit on the capital originated from contributions. In both cases funding forpension beneficiaries may spend only the funds produced by the workforce, and therefore they always depend on the working population.

Ključne riječi

Hrčak ID:

28372

URI

https://hrcak.srce.hr/28372

Datum izdavanja:

15.8.2002.

Podaci na drugim jezicima: hrvatski

Posjeta: 2.533 *