In the last decade, the discussion about the role of social protection emerged in the context of development cooperation and therefore started to gain importance in many countries in the developing world. Several developing countries in Latin America, Africa and Asia began to implement social protection measures, like for example (conditional) cash transfers to protect the poorest and especially vulnerable groups against shocks and risks in difficult stages of life, like for example childhood, motherhood or old age.
In this context, non-contributory old age pensions financed via taxes and provided by the state - especially for those not involved in other state old age insurance schemes - emerged and gained of importance in developing countries in the last few years. Donors and international institutions as well as governments of the respective countries recognized and emphasized on the importance of such schemes and their role in protecting poor old people.
This paper deals with the given conditions that enable and the driving forces behind the implementation of universal non-contributory social pension schemes. It wants to explore what the main factors for their implementation in different developing countries were in the last few years. Thereby, the focus of the analysis lies on the international discourse and external forces, which push for the implementation of a specific pension scheme. Evidence was collected from the poorest developing countries with a universal pension scheme where a universal pension scheme was implemented in the last two decades: from Bolivia, Lesotho and Nepal, and partly from other countries where such schemes already exist, namely Namibia, Mauritius, and Botswana.
Table of Contents
1 Introduction
2 State of Research
3 The concept of universal non-contributory old age pensions in developing countries
4 The enabling conditions behind the implementation of universal pensions
4.1 Institutional, systemic, societal an global factors that shape old age protection
4.2 The driving forces behind the implementation of universal pensions
5 The Approaches of international actors towards Universal Old Age Pensions
5.1 The approach of the World Bank
5.2 The approach of the ILO
5.3 Approaches of other international actors
6 Evidence from Bolivia
7 Conclusions
Objectives and Research Themes
This paper examines the factors and external influences driving the implementation of universal non-contributory old age pension schemes in developing countries, specifically analyzing the role of international organizations like the World Bank and the ILO in shaping these policies.
- Driving forces behind social pension implementation
- Role of international discourse and external institutional pressure
- Comparative analysis of World Bank and ILO pension models
- Political economy and social protection in developing nations
- Case study: The evolution of the Bolivian 'Bonosol' and 'Renta Dignidad'
Excerpt from the Book
4.2 The driving forces behind the implementation of universal pensions
Pelham distinguishes in her paper between driving forces behind social old age pensions alongside two axes: internal vs. external forces, and ex-post vs. ex-ante forces (cf. Pelham 2007: 7 – 19). Internal forces are understood as those produced by actors within a formal political system of a country and external forces as those produced by external actors. Ex-post and ex-ante responses refer to decisions taken in response to events (ex-post) or decisions taken in order to achieve objectives or mitigate the risks of future events (Pelham 2007: 2) This is visualized in the subsequent table:
Ex-post responses are for example when universal non-contributory pension schemes are implemented as a response to the pressure certain groups of population imposed on the political actors in power. These groups often mobilise because their social and economic situation impoverished due to certain conditions and changes within the country. In some countries, for example in Latin America, protests took place as answer to the implementation of structural adjustment programs and privatisation of the formal pension system in the last decade. The implementation of a universal or means-tested non-contributory pension can be seen as political answer to these protests from civil society. However, the poor often do not constitute a political constituency per se and they are often not organised to make pressure on the state institutions and political parties (Hulme/Shepherd 2003, Hickey 2007). For example Case et. al. note that the non-contributory social pension in South Africa was not driven by demands of its beneficiary constituency (Case et. al. 1998: 1334). The same is true for the mobilisation of beneficiaries and class politics and trade union movements.
Summary of Chapters
1 Introduction: Provides an overview of the rising importance of social protection in developing countries and defines the central research questions regarding the implementation of universal pension schemes.
2 State of Research: Reviews existing academic literature on pension reform, noting that while privatization has been well-studied, research on the driving forces behind universal non-contributory pensions remains limited.
3 The concept of universal non-contributory old age pensions in developing countries: Defines universal social pensions and discusses the rationale for their implementation, including social equity, poverty reduction, and response to demographic change.
4 The enabling conditions behind the implementation of universal pensions: Explores the political, social, and economic factors that create environments conducive to pension reform, including both institutional and external driving forces.
5 The Approaches of international actors towards Universal Old Age Pensions: Analyzes the conflicting pension models advocated by the World Bank and the ILO, and discusses the role of other international actors in shaping global discourse.
6 Evidence from Bolivia: Presents a case study on the political development of the 'Bonosol' scheme, illustrating how it evolved as a response to privatization and political change.
7 Conclusions: Summarizes the study's findings, highlighting the increasing autonomy of developing nations in social policy and the evolving nature of international influence on universal pension schemes.
Keywords
Universal pensions, Non-contributory, Developing countries, Social protection, World Bank, ILO, Pension reform, Bolivia, Bonosol, Renta Dignidad, Social security, Poverty reduction, International discourse, Demographic change, Social policy
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the emergence and implementation of universal non-contributory old age pension systems in developing nations, analyzing why these schemes are adopted despite financial constraints.
What are the primary themes addressed?
Key themes include the political economy of social protection, the influence of international organizations, the difference between contributory and non-contributory systems, and the role of demographic shifts.
What is the main research question?
The research asks what enabling conditions and driving forces facilitate the implementation of universal old age pensions and how international actors influence these processes through advocacy or opposition.
Which scientific methodology is applied?
The study employs a qualitative analysis of international discourse and institutional frameworks, combined with a comparative case study of social pension development in Bolivia.
What does the main body cover?
It covers theoretical frameworks for pension reform, the specific approaches of the World Bank and the ILO, and an in-depth look at the political evolution of pension schemes in Bolivia.
What characterize the key terms?
The work is defined by terms focusing on social rights, universalism vs. means-testing, and the tension between neoliberal reform agendas and social protection needs.
How did the Bolivian case demonstrate international influence?
The Bolivian case shows that international influence was indirect; the universal pension was partly a byproduct of structural adjustments and privatizations pushed by the World Bank.
Why are universal pensions considered controversial?
They are often debated due to concerns over fiscal affordability and the historical preference of many international financial institutions for targeted or private, contributory pension models.
- Quote paper
- Mag. Martina Bergthaller (Author), 2009, The Driving Forces behind universal non-contributory old age pensions in developing countries and the role of international actors, Munich, GRIN Verlag, https://www.grin.com/document/145266
