Chile’s pension system came under close scrutiny in recent years. This paper takes stock of the adequacy of the system and highlights its challenges. Chile’s defined contribution system was quite influential when introduced, and was taken as an example by other countries. However, it is now delivering low replacement rates relative to OECD peers, as its parameters did not adapt over time to changing demographics and global returns, while informality persists in the labor market. In the absence of reforms, the system’s inability to deliver adequate outcomes for a large share of participants will continue to magnify, as demographic trends and low global interest rates will continue to reduce replacement rates. In addition, recent legislation allowing for pension savings withdrawals to counter the effects from the COVID-19 pandemic, is projected to further reduce replacement rates and increase fiscal costs. A substantial improvement in replacement rates is feasible, via a reform that raises contribution rates and the retirement age, coupled with policies that increases workers’ contribution density.

Pension reform is high on the policy agenda of many advanced and emerging market economies. In advanced economies the challenge is generally to contain future increases in public pension spending as the population ages. In emerging market economies, the challenges are often different. Where pension coverage is extensive, the issues are similar to those in advanced economies. Where pension coverage is low, the key challenge will be to expand coverage in a fiscally sustainable manner. This volume examines the outlook for public pension spending over the coming decades and the options for reform in 52 advanced and emerging market economies.

The twelve remarkable essays in this book explore this vital issue from a number of enlightening perspectives. European Social Security and Global Politics represents a partial gleaning of the September 2001 conference-held in Bergen, Norway-of the European Institute of Social Security, a leading multidisciplinary research group and the vanguard of the debate on social security in Europe. Fifteen highly committed researchers and administrators from all over Europe offer in-depth analysis and conclusions in such crucial areas as: how globalisation increases inequality and hinders redistribution of wealth how certain social security policies hamper the free movement of workers the elusive promise of regional social security in Europe essential elements of any proposed global social security policy various reform initiatives for the fair administration of pension schemes In addition to the invaluable individual insights advanced in each paper, two notable trends seem to pervade the entire conference. One is the growing divergence of social security policy within European countries, coexisting uneasily with EU measures against social exclusion; the other is the sudden clarity of principle and design in the European welfare state when seen against the virtual anarchy of the globalisation model. Where these trends may lead us is only beginning to come into focus, and this book is among the first to sharpen the images of the possible futures in European social security that are likely to emerge in the next decade. All professionals in any aspect of social security policy or study will benefit enormously from this provocative book, not only in Europe but throughout the world.

This policy-oriented book identifies the issues countries should consider as they reevaluate their old income security policies and formulate new methods. The choice between the various models for providing old-age security has broad implications for the operation of labor and capital markets, the fiscal system, and the level, growth, and distribution of GNP. The author concludes that a mixed strategy is more effective than any single method of income security. This will be an important book for international economists and policymakers.

Contrary to the traditional view that distortions of relative prices have modest effects, Easterly finds that distortions can greatly affect growth and welfare.

Private sector involvement and user participation in water resource management, if properly structured, can provide incentives needed to stabilize and improve the efficiency of irrigation and water supply systems. Cost recovery is excellent in many projects in which water management and operations and maintenance are entrusted to water users.

A case for shifting from the unitary to the collective model of the household -- in which the household may be viewed as a factory in which individuals are motivated at times by altruism, at times by self- interest, and often by both.