Another look at causes and consequences of pension privatization reform reversals in Eastern Europe

摘要: In order for ‘carve-out’ pension privatization to improve long-term sustainability, the transition should not be predominantly debt financed, and private funds deliver (net) rates of return tangibly higher than gross domestic product (GDP) growth. We show that none reforming countries in Eastern Europe was successful fulfilling these two preconditions, even before emergence global financial crisis. While existing literature mostly describes a recent wave reform reversals as politically driven short-sighted policies deteriorate we argue contrary: structural deficiencies disappointing performance allow short-term stance without necessarily undermining sustainability. conclude unless political consensus exists support multi-decade fiscal austerity required finance privatization, adjustments can rational alternat...