Grijalva Maza, Luisa Fernanda - Introductio- A Rawlsian Analysis of Pension Privatization in North America Report as inadecuate




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Grijalva Maza, Luisa Fernanda
- Introductio-
A Rawlsian Analysis of Pension Privatization in North
America
-- Maestría en Estudios de
Norteamérica. - Departamento de Relaciones Internacionales
y Ciencias Políticas. - Escuela de Ciencias Sociales, - Universidad de las Américas
Puebla.


Teaser



INTRODUCTION The Welfare State, born after the Second World War in industrialized countries, is undergoing a deep transformation, justified by its poor performance as a competitive economic actor.1 This transformation is particularly characterized by the complete structural redesign of state-run Pay-As-You-Go (PAYG) pension schemes, which were founded on social cooperation, redistribution, protection from free-market and natural life-span contingencies, and the moral relevance of some of the least advantaged members of society. Unfortunately, due to demographic, fertility and economic changes that have reconfigured societies, pension programs have been highly criticized2 for the financial burden they represent for the state and for younger generations.
One of the most popular solutions, supported by international financial institutions including the World Bank and the International Monetary Fund, is the privatization of pension programs, commonly known as Individual Accounts (IA). The basic design of such a private scheme is meant to respond primarily to the financial urgencies created by the previous pension system, and to the current mobilization of states towards free-market based programs.
To address these financial considerations, the new program, in many states like Mexico, is structured as an individualized system that cancels the redistributive scheme and eliminates collective cooperation between generations.
This avoids economic burdens placed on the state and on younger and less numerous generations, and allows individuals to control their assets and the manner in which to manage them. Without a redistributive scheme and collective cooperation, pension privatization shifts its 1 Neil Gilbert, Transformation of the Welfare State: The Silent Surrender of Public Responsibility (Oxford: Oxford University Press, 2004), 10. 2 See George Rejda, Social Insurance and Economic Security (New Jersey: Prentice Hall, 1991).
Guy Peters, Political Economy in Western Democ...






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