By Katja Hujo (eds.)
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Extra resources for Reforming Pensions in Developing and Transition Countries
In Chile, transition costs were spread over a 30-year period. 5 per cent in 2010 (Titelman et al. 2009). To close the rising coverage gap caused by privatization, Chile introduced a non-contributory basic pension and subsidies to low-income groups in 2008, at an estimated cost of around 1 per cent of GDP annually (Titelman et al. 2009; see also Chapter 10, this volume). In the case of Argentina, the transition costs associated with the shift towards private pension accounts in 1994 caused a fiscal deficit that prompted creditors to withdraw their support in 2001, leading to sovereign debt default and the worst crisis in the history of the country (Hujo 2004; Goldberg and Lo Vuolo 2006).
14 In the developing world, the evolution of old-age protection has followed more diverse paths: public pension schemes were created at the beginning of the 20th century in several of the more developed Latin American countries, reaching quasi-universal coverage of formal sector workers in the 1960s and 1970s (Mesa-Lago 1978), and later in Asia, Africa and the Middle East. These often built on previous colonial schemes and, with some exceptions, covered only small fractions of the formal labour force such as employees in the civil service and the private formal sector (ILO 2010).
Notes 1. 5. 2. The CIS is a regional organization composed of former Soviet Republics. 3. HelpAge estimated the number of older people living on less than US$1 per day at 100 million in 2004 (Helpage International 2004). 4. See the special double issue (Vol. 66, No. 3–4, July–December 2013) of the International Social Security Review on ‘The role of national social protection floors in extending social security to all’ for a comprehensive analysis of this initiative, for a summary the introduction by Hagemejer and McKinnon 2013.
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