THE POLITICS AND ECONOMICS OF PENSION PRIVATIZATION IN LATIN AMERICA.

This research note seeks to explain why a large number of Latin American countries have privatized their pension systems in recent years. It argues that the privatization schemes are a response to the severe capital shortages that have plagued their countries intermittently in recent years rather th...

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Publicado en:Latin American Research Review Vol. 37; no. 2; pp. 159 - 183
Autor principal: Madrid, Raul
Formato: Report
Publicado: Cambridge University Press 2002
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Madrid, Raul
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        Privatization
        Pensions
        Social security
        Latin America
      sug:
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          Latin America
          Privatization
          Pensions
          Social security
      ab: This research note seeks to explain why a large number of Latin American countries have privatized their pension systems in recent years. It argues that the privatization schemes are a response to the severe capital shortages that have plagued their countries intermittently in recent years rather than to the financial problems facing some of the pension systems. The likelihood of pension privatization, I argue, is determined in large part by the vulnerability of countries to capital shortages as well as the influence wielded by international financial institutions, especially the World Bank. Whether such reforms are politically feasible, however, depends largely on the strength of organized labor and the president's degree of control over the legislature. A statistical examination of recent pension policy in Latin America provides support for most of these arguments.
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