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Western Hemisphere > Argentina

You are looking at 1 - 10 of 11 items for :

  • Type: Journal Issue x
  • Nonwage Labor Costs and Benefits; Private Pensions x
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Cover IMF Staff Country Reports
Nicaragua: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper analyzes Nicaragua’s social security system, which is projected to run out of liquid reserves by 2019, several years earlier than anticipated. To avoid burdening the budget, reforms to the system are urgently needed. A deep actuarial, economic, and operational analysis is needed to design a comprehensive reform program. Such a program must ensure that the defined-benefit, pay-as-you-go system can sustain itself for another generation of workers and that improved health care benefits can be maintained. A politically acceptable, pragmatic solution appears within reach. However, the authorities should act quickly to avoid a costly bailout of the system.
Keywords:
ISCR; CR; GDP; Nicaragua; free zone; commodity; transfer pricing; CPS deficit; export tax free zones; commodity export; CPS balance; trade shock; commodity TP regulation; Pension spending; Pensions; Climate change; Natural disasters; Global; Caribbean; Central America
Cover IMF Working Papers
Demographic Changes in Latin America: The Good, the Bad and …
Mr. Santiago Acosta Ormaechea
,
Marco A Espinosa-Vega
, and
Diego Wachs
The paper develops a simple, integrated methodology to project public pension cash flows and healthcare spending over the long term. We illustrate its features by applying it to the LAC5 (Argentina, Brazil, Chile, Colombia and Mexico), where public spending pressures are expected to increase significantly over 2015-50 due to demographic trends and rising healthcare costs. We simulate alternative pension reforms, including the transition from a defined benefit to a defined contribution pension system and the fiscal burden of a minimum guaranteed pension under the latter. We also analyze public healthcare outlays in the LAC5, which is likewise expected to increase significantly over 2015-50 due to aging and the so-called excess cost growth factor of healthcare services, showing that curbing the evolution of the latter (e.g., through enhanced competition in the healthcare sector) could aid in containing spending pressures. Despite its simplicity, the methodology yields projections that compare well with other approaches. It therefore provides a good benchmark for assessing alternative reform scenarios, particularly in data-constrained countries.
Keywords:
WP; inflation rate; defined contribution; DC system; replacement rate; DB system; pension system; public pension spending; public healthcare spending; aging; pension system reforms; contribution rate; cash flow; Pension spending; Pensions; Retirement; Western Hemisphere
Cover IMF Working Papers
Pension Privatization and Country Risk
Mr. Alfredo Cuevas
,
Ms. Maria Gonzalez
,
Arnoldo López-Marmolejo
, and
Davide Lombardo
This paper explores how privatizing a pension system can affect sovereign credit risk. For this purpose, it analyzes the importance that rating agencies give to implicit pension debt (IPD) in their assessments of sovereign creditworthiness. We find that rating agencies generally do not seem to give much weight to IPD, focusing instead on explicit public debt. However, by channeling pension contributions away from the government and creating a deficit of resources to cover the current pension liabilities during the reform's transition period, a pension privatization reform may transform IPD into explicit public debt, adversely affecting a sovereign's perceived creditworthiness, thus increasing its risk premium. In this light, accompanying pension reform with efforts to offset its transition costs through fiscal adjustment would help preserve a country's credit rating.
Keywords:
WP; debt; implicit pension debt; privatization; pension privatization; credit rating
Cover IMF Working Papers
Pension Reform and Macroeconomic Stability in Latin America
Mr. Jorge Roldos
This paper reviews macroeconomic aspects of pension reforms in Latin America, focusing on financial market stability and fiscal sustainability. Concentration of pension fund portfolios in government bonds remains high, and the lack of new investment alternatives has distorted asset prices. Countries have gradually liberalized investments abroad, but remain wary of the impact on foreign currency markets. The fiscal costs of the transition to funded systems have been higher than expected, and have contributed to high debt levels. The paper highlights the importance of coordinating changes in portfolio limits with debt management policies and measures to develop securities markets.
Keywords:
WP; investment; market; deficit; Chile; GDP
Cover Paraguay
Paraguay
Corruption, Reform, and the Financial System
Mr. Jeffrey R. Franks
,
Miss Randa Sab
,
Ms. Valerie A Mercer-Blackman
, and
Roberto Benelli

Abstract

Following some historical background, this paper describes how corruption is manifested in Paraguay. The paper distinguishes between factors that explain the growth performance of Paraguay since 1960 (where corruption does not directly enter as a significant factor) and factors that explain the relative level of income of Paraguay in the past 40 or 50 years compared with other countries. It then illustrates how Paraguay's weak institutions may have led to long-term growth below its potential. Finally, the authors briefly consider how Paraguay could improve its institutions. To the extent that prudent policies and the willingness to consider the adoption of international best practices will exert pressure for change in Paraguay, a gradual improvement of institutional quality will ensue, which is necessary for sustained long-run growth.

Keywords:
ISI; SI; exchange rate; real exchange rate; terms of trade; Chaco War pension; survivor pension; wage inflation; pension recipient; Pensions; Real exchange rates; Pension spending; Wages; Retirement; Sub-Saharan Africa; South America; Africa; East Asia; Caribbean; retirement age; government effectiveness; Real effective exchange rates
Cover IMF Staff Country Reports
Peru: Selected Issues
International Monetary Fund
This Selected Issues paper focuses on policies to promote high, sustainable growth in Peru, the risks posed by dollarization, and key medium-term fiscal issues of decentralization and social security reform. The paper identifies the main impediments to output and employment growth and proposes steps to remove them. It uses a balance sheet approach to analyze Peru’s highly dollarized economy, and finds that the factors explaining Peru’s relatively low international trade levels are related to the impediments to growth. The paper also looks at the main impediments to high, sustainable output, and employment growth in Peru.
Keywords:
ISCR; CR; cost; trade; foreign currency; government; rate; employment growth; balance sheet approach; dollar liquidity; dollarized economy; reserve holding; Peru investment climate survey; Pensions; Pension spending; Fiscal federalism; Financial statements; Currency mismatches; East Asia; Western Hemisphere; South America
Cover IMF Working Papers
The Role of Private Sector Annuities Markets in an Individual Accounts Reform of a Public Pension Plan
Mr. George A Mackenzie
Pension reforms that establish individual accounts will diminish the relative importance of the traditional state pension while creating a significant role for individual accounts in providing income for retirement. This paper surveys the policy issues this new role entails. It offers general advice to countries considering such issues as the restrictions to be placed on the timing, extent, and form of withdrawals from individual accounts and the need for mandatory annuitization (conversion into annuities) of accumulated account balances. The paper also considers the role that private annuity markets should play and related regulatory, social safety net, tax, and administrative questions.
Keywords:
WP; annuities market; private sector; annuity payment; indexed annuity; life insurance company; Public pension reform; individual accounts; annuity markets; replacement ratio; deferred annuity; Insurance; Insurance companies; Pensions; Pension spending; Personal income; South America
Cover IMF Staff Country Reports
Uruguay: Statistical Annex
International Monetary Fund
This paper describes the social security system and pension reform in Uruguay. The reform of the social security system is the most important structural issue facing Uruguay. Large social security outlays have led to high rates of payroll taxes and large transfers from the Central Government, which has encouraged tax evasion and reduced the availability of resources for other essential public outlays, such as investment and other social services. Moreover, the fast growth of social security outlays has threatened the solvency of the public finances, undermined confidence, and discouraged private investment.
Keywords:
ISCR; CR; foreign currency; exchange rate; Uruguayan peso; private sector; replacement ratio; personal property; average earnings; long-term debt; Currencies; Public sector; Exchange rates; Pension spending; Pensions; Western Hemisphere; Europe; Asia and Pacific
Cover Finance & Development
Finance & Development, March 1995
International Monetary Fund. External Relations Dept.
For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.
Keywords:
FD; F&D; inflation; trade; price; country; liberalization; Uruguay Round agreement; Index performance; trade liberalization; dollarization ratio; data base base product; tax reform; Infrastructure; Emerging and frontier financial markets; Pension spending; Stock markets; Pensions; Caribbean; Global; East Asia; Africa; Europe
Cover IMF Working Papers
Social Security Issues in Developing Countries: The Latin American Experience
International Monetary Fund
The paper surveys the major economic, financial, and administrative issues that confront social security systems in Latin America. The larger systems have contributed substantially to public sector financial disequilibria. Expenditures of the younger systems with more limited coverage could increase dramatically as the pension plan matures, life expectancy increases, and coverage is broadened, but the narrow revenue base will force a tradeoff between broader coverage and the generosity of benefits. Most plans are pay-as-you-go, and the case for full or partial funding is not found to be compelling. The inflationary environment can have a substantial effect on the financial balance, even under full indexation.
Keywords:
WP; social security; tax finances; real value; tax-transfer mechanism; retirement age; tax remittance; value-added taxation; GDP deflator; expenditure increase; expenditure ratio; wage bill; family allowance; social security expenditure; extent expenditure; health expenditures of the social security system; Securities; Pensions; Pension spending; Payroll tax; Income; Central America