Pension reforms in Latin America: comparative analysis of reforms in Peru and Bolivia
|Author:||Bc. Petra Kučová|
|Year:||2011 - summer|
|Leaders:|| PhDr. Petr Hedbávný
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||During 1990s, pension reforms took place in 7 Latin American countries. This paper
focuses on pension reforms in two countries of the region – namely Peru and Bolivia.
Apart from describing reforms, the paper deals with indexation of pensions. Using data
from Peru, it examines whether the consumer price index is an appropriate indicator for
indexing pension benefits.
Section I adumbrates economic and demographic situation in Latin America and history
of local pension systems. Next section is devoted to the pension system in Peru, its
reform and subsequent adjustments. The third section describes the reform and its
modification in Bolivia. Section IV summarizes and compares examined reforms. Final
section analyses costs of living of particular income groups in Peru. Results show that
55-60 % of pensioners faced lower inflation than was the overall inflation in the country
during the period 1995-2003. Therefore, indexing pensions with consumer price index
is advantageous for more than half of pensioners.
|Downloadable:|| Bachelor Thesis of Kučová