Publication: Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme: A Case Study of Tanzania
Date
2019-04
ISSN
Published
2019-04
Author(s)
Abstract
About one-half of Africa’s population
will remain below age 30 well past 2050,with relatively few
aged 60 and older. Using Tanzania’s projected demographics
and presenteconomic point of departure, this paper
demonstrates how the implicit “double”demographic dividend
can be harnessed to create inclusive growth. A Swedish-style
non financial defined contribution (NDC) system is launched
where the government can borrow funds from the future
through NDC “consol” bonds to transform individual savings
into human and physical capital to promote inclusive
economic growth. The consol bonds constitute a reserve to
cover pensions of the retiring “demographic bubble” in the
future as the dependency ratio gradually glides into
demographic equilibrium. Minimum transfers tothe current
elderly are also introduced with the phase-in.
Citation
“Larsson, Bo; Leyaro, Vincent; Palmer, Edward. 2019. Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme: A Case Study of Tanzania. Social Protection and Jobs Discussion Paper,no. 1922;. © World Bank, Washington, DC. http://hdl.handle.net/10986/31651 License: CC BY 3.0 IGO.”