Alternative Social Security Systems in CIS Countries

Author/Editor:

Ehtisham Ahmad ; Jean-Luc Schneider

Publication Date:

February 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 1993/008

Subject:

Aging Expenditure Financial services Labor Non-wage benefits Pension spending Pensions Population and demographics Real interest rates

English

Publication Date:

February 1, 1993

ISBN/ISSN:

9781451842470/1018-5941

Stock No:

WPIEA0081993

Pages:

22

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