Brazil : Critical Issues in Social Security, Volume 2. Policy Report
The study consists of two volumes, the first volume contains a detailed summary of the report findings, and policy implications, and, the second volume, the Policy Report, contains discussions on policy recommendations for each of the components of...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2000/06/729055/brazil-critical-issues-social-security-vol-2-2-policy-report http://hdl.handle.net/10986/14969 |
| Summary: | The study consists of two volumes, the
first volume contains a detailed summary of the report
findings, and policy implications, and, the second volume,
the Policy Report, contains discussions on policy
recommendations for each of the components of the Brazilian
social security system. An overview on the dimensions of the
social security challenge, reviews the system components,
revealing unsustainable fiscal imbalances, and
administrative weaknesses in both the unreformed General
Regime for Social Security (RGPS), and the Pension Regime
for Government Workers (RJU), with large tax-related
distortions, and labor market inefficiency. Thus the goals
of Brazil's reforms are to reduce fiscal deficits,
lower actuarial imbalances, increase equity and
redistribution, reduce collateral inefficiencies, and
facilitate growth of funded pensions. The study implies
there is no recourse for the country, but to lower the high,
uniform replacement rates (experience suggests that rates
higher than 40-70 percent, cannot be sustained) and, spells
out that the key to effective reform of social security, is
widening the debate to include potential winners from these
changes, particularly the private sector, the young, and the
poor. Policy recommendations suggest, that the adverse
equity effects of RGPS reforms, should be widely publicized
to generate political support for deeper RJU reform. |
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