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Skills and the Labor Market in a New Era
Uruguay faces medium- and long-term challenges associated with two global megatrends: population aging and technological change. These two megatrends have been developing for some time, but policy responses have been late or inadequate in many cases. Trying to delay them--by promoting higher fertility or enforcing restrictions on the adoption of new technologies--would probably be ineffective but also ill-advised, as these trends are generating important opportunities to increase production and welfare. The objective of this book is to identify these opportunities, as well as the challenges that population aging and technological change pose for the Uruguayan economy and to determine how they can be addressed through better-designed public policies, with a focus on the development of new skills that increase workers’ productivity.
When We're Sixty-Four
Latin American countries are in the midst of a demographic transition and, as a consequence, a population-aging process. Over the next few decades, the number of children will decline relative to the number of older adults. Population aging is the result of a slow but sustained reduction in mortality rates, given increases in life expectancy and fertility. These trends reflect welcome long-term improvements in welfare and in economic and social development. But this process also entails policy challenges: many public institutions—including education, health, and pension systems and labor market regulations—are designed for a different demographic context and will need to be adapted. When...
As Time Goes By in Argentina
The process of demographic transition through which Argentina is passing is a window of both opportunities and challenges in economic and social terms. Argentina is still a young country in which the working-age population represents the largest proportion of its total population. Currently, the country just began a 30-year period with the most advantageous age structure of its population, which could favor greater economic growth. This situation, known as the 'demographic window of opportunity,' will last until the beginning of the 2040s. The dynamics of the fertility and mortality rates signify a gradual ageing of the population, with implications for various dimensions of the economy, the...
Beyond Contributory Pensions
Many Latin American countries in recent years have moved toward a more inclusive pensions system with expanded coverage of the elderly. Given the difference in initial conditions, objectives pursued, and implementing capacity, results have varied noticeably across countries.
Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World
Nonfinancial Defined Contribution (NDC) schemes are now in their teens. The new pension concept was born in the early 1990s, implemented from the mid-1990s in Italy, Latvia, Poland and Sweden, legislated most recently in Norway and Egypt and serves as inspiration for other reform countries. This innovative unfunded individual account scheme created high hopes at a time when the world seemed to have been locked into a stalemate between piecemeal reforms of ailing traditional defined benefit schemes and introducing pre-funded financial account schemes. The experiences and conceptual issues of NDC in its childhood were reviewed in a prior anthology (Holzmann and Palmer, 2006). This new antholog...
Demographic Change in Uruguay
The population of Uruguay is undergoing a slow but sustained aging process, driven by the demographic transition that started early in the twentieth century. While this reflects significant improvements in mortality and fertility trends, it also creates important challenges for the fiscal sustainability of some social policies and the economic trends in the medium and long term. Uruguay is currently going through the “demographic bond†? stage of this process, as the proportion of the population aged between 15 and 65 years old is peaking. This temporary situation creates the possibility of increasing the endowment of capital and labor force and entering a path of sustained economic growt...
The Next Great Globalization
Many prominent critics regard the international financial system as the dark side of globalization, threatening disadvantaged nations near and far. But in The Next Great Globalization, eminent economist Frederic Mishkin argues the opposite: that financial globalization today is essential for poor nations to become rich. Mishkin argues that an effectively managed financial globalization promises benefits on the scale of the hugely successful trade and information globalizations of the nineteenth and twentieth centuries. This financial revolution can lift developing nations out of squalor and increase the wealth and stability of emerging and industrialized nations alike. By presenting an unpre...
Ecuador
This publication explores current development challenges facing Ecuador and examines policy options available, under three key themes of fiscal consolidation and economic growth, promoting sustainable and equitable social development and governance and anti-corruption issues.
Pension Reform and the Development of Pension Systems
"Formal pension systems are an important means of reducing poverty among the aged. In recent years, however, pension reform has become a pressing matter, as demographic aging, poor administration, early retirement, and unaffordable benefits have strained pension balances and overall public finances. Pension systems have become a source of macroeconomic instability, a constraint to economic growth, and an ineffective and/or inequitable provider of retirement income."
Gender and Social Security Reform
Aging populations are creating tremendous pressures on social security systems throughout the world, lifting the need for reform to the top of policy agendas. Proposed reforms often have different implications for men and women. At the same time, traditional family and gender roles are changing with the decline in fertility rates and the rapid rise in women's participation in the paid labor force.While trying to adapt social security systems to the fiscal demands of aging societies, policymakers face the compelling challenge of how to design pension reforms that achieve fair outcomes for women. Gender and Social Security Reform examines how different countries are attempting to meet this cha...
