Alternative Social Security Systems in CIS Countries
February 1, 1993
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Summary
In the USSR in 1990, social security reforms led to the imposition of a uniform system of benefits in a large and demographically diverse country. This required inter-regional transfers, which are now no longer feasible with the demise of the USSR. Relatively high contribution rates also pose a problem for a nascent commercialized sector. The paper argues that benefit levels in some former Soviet Union countries are now unsustainable. The price shock associated with the “transition” to a market economy should lead to a consideration of a “mix” of policies, including a basic benefit in kind. While funded systems may eventually reduce contribution rates, there are implementation difficulties in the medium term.
Subject: Aging, Expenditure, Financial services, Labor, Non-wage benefits, Pension spending, Pensions, Population and demographics, Real interest rates
Keywords: Aging, Central Asia, CIS country, CIS republic, contribution rate, Non-wage benefits, PAYG pension benefit, PAYG system, Pension spending, Pensions, real interest rate, Real interest rates, WP
Pages:
22
Volume:
1993
DOI:
Issue:
008
Series:
Working Paper No. 1993/008
Stock No:
WPIEA0081993
ISBN:
9781451842470
ISSN:
1018-5941
