Abstract

GARRON BOZO, Jaime A.. Pension Liabilities and Public Finances in Bolivia: Evidence from a Reformer Country. rlde [online]. 2007, n.9, pp.45-80. ISSN 2074-4706.

In 1996 Bolivia undertook a radical pension reform, switching from an unfunded to a fully funded privately managed system. This paper analyzes the impact of the pension reform and post-reform pension policies (1997-2003) on public finances; it shows initial estimates for the transition cost, analyzes the main factors that increased the financial burden for the Treasury to unexpected levels, presents some public accounting considerations, and examines post-reform linkages between the Treasury and the new pension system. It concludes that the effect of the pension reform and post-reform pension policies on public finances has been two-fold: increasing considerably pension net liabilities, and inducing a higher fiscal deficit for the explicit report of the pension debt.

        · abstract in Spanish     · text in English     · English ( pdf )