Reversing Pension Privatizations Rebuilding public pension systems in Eastern Europe and Latin America Edited by Isabel Ortiz Fabio Durán-Valverde Stefan Urban Veronika Wodsak Reversing Pension Privatizations: Rebuilding public pension systems in Eastern Europe and Latin America Edited by Isabel Ortiz, Fabio Durán-Valverde, Stefan Urban and Veronika Wodsak Reversing Pension Privatizations: Rebuilding public pension systems in Eastern Europe and Latin America Edited by Isabel Ortiz, Fabio Durán-Valverde, Stefan Urban and Veronika Wodsak International Labour Organization Copyright © International Labour Organization 2018 First published 2018 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condi- tion that the source is indicated. 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Information on ILO publications and digital products can be found at: www.ilo.org/publns. This publication was produced by the Document and Publications Production, Printing and Distribution Branch (PRODOC) of the ILO. Graphic and typographic design, layout and composition, printing, electronic publishing and distribution. PRODOC endeavours to use paper sourced from forests managed in an environmentally sustainable and socially responsible manner. Code: JMB-ICA About the Authors PART I. Reversing Pension Privatizations: Rebuilding Public Pensions Systems in Eastern Europe and Latin America Dr. Isabel Ortiz, Director of the Social Protection Department, International Labour Organization (ILO). Fabio Durán-Valverde, Head of Public Finance, Actuarial Services and Statistics, Social Protection Department, ILO. Stefan Urban, Social Protection Financing Expert, Social Protection Department, ILO. Veronika Wodsak, Social Security Expert, Social Protection Department, ILO. Zhiming Yu, Technical Officer Social Protection, Social Protection Department, ILO. PART II. Country Cases Argentina Dr. Fabio Bertranou, Director of the ILO Decent Work Team and Country Office for the South Cone of Latin America, Santiago de Chile, Chile. Dr. Oscar Cetrángolo, Researcher at the Interdisciplinary Political Eco- nomy Institute, University of Buenos Aires and the University Tres de Febrero, Argentina. Dr. Carlos Grushka, National Social Security Administration and University of Buenos Aires, Argentina. Luis Casanova, Technical Support Officer, ILO Country Office in Buenos Aires, Argentina. v Reversing Pension Privatizations Bolivia Dr. Carmelo Mesa-Lago, Distinguished Service Professor Emeritus of Economics and Latin American Studies at the University of Pittsburgh, United States. Hungary Dr. Dorottya Szikra, Senior Researcher at the Hungarian Academy of Sciences, Centre for Social Sciences, Hungary. Kazakhstan Dr. Elena Maltseva, Assistant Professor of Political Science at the University of Windsor, Canada. Dr. Saltanat Janenova, Assistant Professor at the Graduate School of Public Policy, Nazarbayev University in Astana, Kazakhstan. Poland Dr. Michał Polakowski, Poznań University of Economics and Business and ICRA, International Centre for Research and Analysis, Poland Dr. Krzysztof Hagemejer, Bonn-Rhein-Sieg University of Applied Sciences and ICRA, International Centre for Research and Analysis, Poland. Ecuador Francisco Peña-Jarrín, former Actuarial Director of the Ecuadorian Institute of Social Security, Ecuador. Nicaragua Dr. Karlos Navarro Medal, Professor at the National Autonomous University of Nicaragua and President of the Academy of Judiciary and Legislation of Nicaragua. Venezuela Dr. Luis Eduardo Díaz, Director, School of Law, University of Zulia, Venezuela. vi About the Authors Bulgaria, Croatia, Estonia, Latvia, Macedonia, Romania and Slovakia Dr. Elaine Fultz, Associate of JMF Research Associates in Philadelphia, and former ILO official. Kenichi Hirose, Senior Social Protection Specialist, ILO Decent Work Team and Country Office for Central and Eastern Europe, Budapest, Hungary. vii Acknowledgements This book would not have been possible without substantive contributions from colleagues worldwide. To start, this volume would not exist, were it not for the support and guidance from Deborah Greenfield, Deputy Director-General for Policy, International Labour Office (ILO), and earlier Sandra Polaski, sincere thanks for their support. The authors greatly appreciate comments and suggestions to Part 1 of this book provided by Sandra Polaski, former Deputy Director-General, ILO; José Antonio Ocampo, former Minister of Finance of Colombia and former United Nations Under Secretary-General of Economic and Social Affairs; Michael Cichon, for- mer Director, Social Security Department, ILO; Andras Uthoff, former Director, Social Development Division, United Nations Economic Commission for Latin America and the Caribbean (ECLAC); Carmelo Mesa-Lago, Distinguished Service Professor Emeritus of Economics and Latin American Studies at the University of Pittsburgh, United States; Anis Chowdhury, former Director Macroeconomic Policy and Development Division and Statistics Division, United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP); Helmut Schwarzer, former Social Security Secretary of State of Brazil and Social Protection and Economic Development Specialist, ILO; Juan Pablo Bohoslavsky, United Nations Independent Expert on Foreign Debt and Human Rights; Dean Baker, Co-founder and Senior Economist, Centre for Economic Policy Research, Washington D.C.; Shahra Razavi, Chief, Research and Data and Research Director of Progress of the World’s Women, UN WOMEN; Magdalena Sepúlveda-Carmona, Senior Research Associate, United Nations Research Institute for Social Development (UNRISD) and former United Nations Special Rapporteur on Extreme Poverty and Human Rights; Christina Behrendt, Head, Social Policy Unit, Social Protection Department, ILO; Katja Hujo, Senior Research Coordinator, UNRISD; Alex Izurieta, Senior Economic Affairs Officer, Division on Globalization and Development Strategies, United Nations Conference on Trade and Development (UNCTAD); Dorothy Rosenberg, former Senior Social Policy Advisor, United Nations Development Programme (UNDP); Karuna Pal, Head of the Programming, Partnerships and ix Reversing Pension Privatizations Knowledge Sharing Unit, Social Protection Department, ILO; Anuradha Seth, Policy Advisor, Economic Empowerment, UN WOMEN; and Paul Mondoa Ngomba, Technical Officer Social Security, International Social Security Association (ISSA). The authors of the chapters in Part 2 appreciate the comments and guidance received by Isabel Ortiz, Director, Social Protection Department, ILO; Fabio Durán-Valverde, Head, Public Finance, Actuarial Services and Statistics, Social Protection Department, ILO; Stefan Urban, Social Protection Financing Expert, Social Protection Department, ILO and Veronika Wodsak, Social Security Expert, Social Protection Department, ILO. Additionally to their suggestions, the chapter on Hungary benefited from comments from Kenichi Hirose, Senior Specialist Social Protection, ILO Decent Work Team for Central and Eastern Europe, Budapest, and Hiroshi Yamabana, Senior Policy Advisor in Employment Injury, Global Employment Injury Programme, ILO. In addi- tion, the chapter on Bolivia received support from José Francisco Ortiz Vindas, National Project Coordinator, ILO Office en San José de Costa Rica, Oscar Ferrufino Morro, current Director-General of Pensions, Bolivia’s MEFP; Joel Mendizábal, former official at UDAPE; and Marcelo Ticona, former Director General of Pensions in Bolivia. Chapter 9 on pension re-reforms in Bulgaria, Croatia, Estonia, Latvia, Macedonia, Romania, and Slovakia would have not been possible without the help and support from Snježana Baloković, Predrag Bejakovic, Linda Chikan, Krzyszstof Hagemejer, Catalin Ghinararu, Ala Lipciu, Lauri Leppik, Jadranka Mrsik, Maria Svorenova, Penka Taneva, Inta Vanovska, Hristina Mitreva,