IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v7y2015i1p65-88.html
   My bibliography  Save this article

Pension System Reform in Emerging Countries

Author

Listed:
  • Meiram Zhandildin

Abstract

In 1998, Kazakhstan introduced a funded pension scheme instead of the former Soviet Union’s pay-as-you-go (PAYG) system. In 2013, there was another significant reform—the creation of a government-owned single accumulated pension fund (SiAF), the only legitimate fund to collect mandatory contributions. While the 1998 reform has been widely covered, there are few discussions about the 2013 reform. This article aims to fill this gap in the literature by examining the performance of the funded system prior to the reform, analyzing the reasons for the single fund creation, and assessing the impact of pension market monopolization. Results show that the Kazakhstani pension system was profoundly evolving prior to 2008, but after the crisis its performance significantly deteriorated, which raised questions about the ability of pension funds to provide adequate benefits in the future. This deterioration in performance and doubt about the future contributed to the creation of SiAF. Despite the fact that the 2013 reform aimed to improve the performance of the pension system, it also brought new risks that make the achievement of its primary goals uncertain.

Suggested Citation

  • Meiram Zhandildin, 2015. "Pension System Reform in Emerging Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(1), pages 65-88, January.
    • Handle: RePEc:sae:emeeco:v:7:y:2015:i:1:p:65-88
    DOI: 10.1177/0974910114556939
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0974910114556939
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0974910114556939?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Srinivas, P.S. & Whitehouse, Edward & Yermo, Juan, 2000. "Regulating private pension funds'structure, performance, and investments : cross-country evidence," Social Protection Discussion Papers and Notes 23302, The World Bank.
    2. Martin Feldstein, 1998. "Privatizing Social Security," NBER Books, National Bureau of Economic Research, Inc, number feld98-1.
    3. Andrews, Emily S., 2001. "Kazakhstan : an ambitious pension reform," Social Protection Discussion Papers and Notes 23156, The World Bank.
    4. Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
    5. Michal Slavík, 2006. "The Czech Pension System and the Perspectives of Its Reform," Prague Economic Papers, Prague University of Economics and Business, vol. 2006(3), pages 214-230.
    6. Peter Jarrett, 2011. "Pension Reforms in Poland and Elsewhere: the View from Paris," CASE Network Studies and Analyses 425, CASE-Center for Social and Economic Research.
    7. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336.
    8. Waldo Tapia, 2008. "Comparing Aggregate Investment Returns in Privately Managed Pension Funds: An Initial Assessment," OECD Working Papers on Insurance and Private Pensions 21, OECD Publishing.
    9. Seitenova, Ai-gul S. & Becker, Charles M., 2004. "Kazakhstan's Pension System : Pressures for Change and Dramatic Reforms," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 45(2), pages 151-187, December.
    10. Impavido, Gregorio & Rocha, Roberto, 2006. "Competition and performance in the Hungarian second pillar," Policy Research Working Paper Series 3876, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivera, Javier, 2010. "Recuperando la Solidaridad en el Sistema Peruano de Pensiones. Una Propuesta de Reforma [Recovering the Principle of Solidarity in the Peruvian Pension System. A reform proposal]," MPRA Paper 60194, University Library of Munich, Germany.
    2. Marcela PARADA‐CONTZEN, 2023. "Gender, family status and health characteristics: Understanding retirement inequalities in the Chilean pension model," International Labour Review, International Labour Organization, vol. 162(2), pages 271-303, June.
    3. Johannes Holler, 2007. "Pension Systems and their Influence on Fertility and Growth," Vienna Economics Papers 0704, University of Vienna, Department of Economics.
    4. Senderski, Marcin, 2014. "Assessing the strictness of portfolio-related regulation of pension funds: Rethinking the definition of prudent," MPRA Paper 56610, University Library of Munich, Germany.
    5. Heinz Rudolph & Hela Cheikhrouhou & Roberto Rocha & Craig Thorburn, 2007. "Financial Sector Dimensions of the Colombian Pension System," World Bank Publications - Books, The World Bank Group, number 6785.
    6. Ling-Ni Boon & Marie Brière & Carole Gresse & Bas J. M. Werker, 2013. "Regulatory Environment and Pension Investment Performance," Post-Print hal-01492619, HAL.
    7. Georgios Symeonidis & Platon Tinios & Panos Xenos, 2020. "Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece," Risks, MDPI, vol. 9(1), pages 1-17, December.
    8. repec:dau:papers:123456789/13629 is not listed on IDEAS
    9. Dayoub, Mariam & Lasagabaster, Esperanza, 2008. "General trends in competition policy and investment regulation in mandatory defined contribution markets in Latin America," Policy Research Working Paper Series 4720, The World Bank.
    10. Khasanbaev, Alisher & Pfau, Wade Donald, 2009. "The Funded Pension Scheme in Uzbekistan: An Analysis," MPRA Paper 19035, University Library of Munich, Germany.
    11. Munyambonera, Ezra & Katunze, Miriam & Munu, Martin Luther & Sserunjogi, Brian, 2018. "Expanding the Pension Sector in Uganda," Research Series 275661, Economic Policy Research Centre (EPRC).
    12. Tânia Santos & Inmaculada Domínguez-Fabián, 2011. "Financial solvency of pension systems in the European Union," EcoMod2011 2916, EcoMod.
    13. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    14. Axel Börsch‐Supan & Alexander Ludwig & Joachim Winter, 2006. "Ageing, Pension Reform and Capital Flows: A Multi‐Country Simulation Model," Economica, London School of Economics and Political Science, vol. 73(292), pages 625-658, November.
    15. David Robalino, 2005. "Pensions in the Middle East and North Africa: Time for Change," World Bank Publications - Books, The World Bank Group, number 7427.
    16. Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    17. Calvo, Esteban & Williamson, John B., 2006. "Old-Age Pension Reform and Modernization Pathways: Lessons for China from Latin America," MPRA Paper 4872, University Library of Munich, Germany, revised 2007.
    18. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    19. Chabakauri, Georgy, 2010. "Asset pricing with heterogeneous investors and portfolio constraints," LSE Research Online Documents on Economics 43142, London School of Economics and Political Science, LSE Library.
    20. Jukka Lassila, 2000. "Wage formation by majority voting and the incentive effects of pensions and taxation," Finnish Economic Papers, Finnish Economic Association, vol. 13(2), pages 89-115, Autumn.
    21. Juan F. Jimeno, "undated". "Incentivos y desigualdad en el sistema español de pensiones contributivas de jubilación," Working Papers 2002-13, FEDEA.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:7:y:2015:i:1:p:65-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.