A report published today by the Institute of Economic Affairs* condemns the pension privatisation model that has been promoted by the World Bank and which has provided a blueprint for reform in South America and Central and Eastern Europe.
The report argues that compulsory private pension schemes have often been implemented in countries where the basic financial infrastructure is poorly developed. As such, they provide families with little security and undermine other methods of saving and other provision for old age that families find valuable. Compulsory private pension funds are often so highly regulated that "privatisation" occurs in name only.
State social security in under-developed and middle-income countries,