By Maria Amparo Cruz-Saco, Carmelo Mesa-Lago

This well timed quantity brings jointly experts at the reform of social safeguard platforms to research the similarities and variations of these well-being care and pension reforms that experience taken position because the early Nineteen Nineties and indicates attainable profits via contemporary or pondered revisions to these platforms. members: Mariela Arenas; Alberto Arenas de Mesa; Julin Bertranou; Silvia Borzutzky; Miguel Eduardo Crdenas Rivera; Brian Cartin; Ricardo C-rdova Mac'as; Aldo Isuani; Cheikh Kanerical details, broad ranging throughout huge and small Latin American nations, and firmly desirous about the reform of pension and healthiness care structures, this accomplished publication is more likely to develop into the normal reference paintings on its topics. To my wisdom, no different booklet accomplishes loads in those areas." - Jorge Dom'nguez, the guts for foreign Affairs, Harvard college "With a wealth of aspect on a dozen significant nations in Latin the United States, this edited quantity demonstrates that there's no unmarried route to reform of social safety. The editors' precis and suggestions remind these looking uncomplicated suggestions that every nationwide adventure precludes making use of one-size-fits-all formulae. Globalization may well push all governments towards slimmer safeguard nets, yet incumbent stakeholders will face up to, draw out, and attenuate strikes towards larger fairness and potency. Thisam McGreevey, Director, improvement Economics, The Futures workforce Int'l and important Economist, the area financial institution "The sound and insightful research during this quantity asssesses quite a few social defense and healthiness care schemes in Latin the US, the place coverage matters havtilateral businesses, together with the InterAmerican improvement financial institution, the realm financial institution, and the Acuerdo de Cartagena, and legitimate organizations akin to the govt of Paraguay and vice chairman of improvement at the Corporac'on Financiera de Desarrollo in Peru.

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Additional info for Do Options Exist?: The Reform of Pension and Health Care Systems in Latin America (Pitt Latin Amercian Studies)

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The old social security system, critics say, demanded fiscal subsidies in many countries and was a factor in state budget deficits and low national savings. The increase in contributions, appropriate financial investment, and higher returns supposedly lead to a significant accumulation of the pension fund in the new system and, hence, expands capital markets and national savings that promote economic growth. This process is reinforced when employers' contributions are eliminated, thus reducing labor cost and correcting labor market distortions.

And the debate continuessee Mitchell and Zeldes (1996), for example, and also Feldstein (1997), who analyzes the social security pension reform in the United States. On health care reform, the World Bank (1993) produced a key report, which opened world debate on issues that had already been addressed, such as institutional fragmentation, inefficiencies in the organization and delivery of health care, equity and quality problems, and proposed solutions. Gerard La Forgia, in the sections on Problems and Proposed Solutions, in chapter 11 of this volume, performs a fine job of guiding the reader to the most representative literature concerning the diverse problematique of the current status of the health sector both in Latin America and elsewhere.

There is also a fundamental change in the understanding of the types of incentives that are needed for the sustainability of a pension program. The WB proposal is based, in essence, on the belief that the pension system ought to be a profit-seeking and privately managed activity to increase domestic savings. The role of the government is to subsidize the transition (cover the deficit in the old system), regulate and financially support the private system (taking care of the cost of contributions transferred from the old to the new system), and solve market failures (provide exogenous solidarity through a minimum guaranteed pension in the new system and a welfare pension paid to the noninsured dispossessed).

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