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Pension Reform and Capital Market Development : "Feasibility" and "Impact" Preconditions

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dc.contributor.authorVittas, Dimitri
dc.date.accessioned2014-08-27T21:14:40Z
dc.date.available2014-08-27T21:14:40Z
dc.date.issued2000-08
dc.description.abstractThe link between pension reform, and capital market development, has become a perennial question, raised every time the potential benefits, and pre-conditions of pension reform are discussed. The author asks two questions. First, what are the basic "feasibility" pre-conditions for the successful launch of a pension reform program? And second, what are the necessary "impact" pre-conditions for the realization of the potential benefits of funded pension plans for capital market development? His main conclusion is that the feasibility pre-conditions, are not as demanding as is sometimes assumed. In contrast, the impact pre-conditions are more onerous. The most import feasibility pre-condition is a strong, and lasting commitment of the authorities to maintaining macroeconomic, and financial stability, fostering a small core of solvent, and efficient banks, and insurance companies, and creating an effective regulatory, and supervisory agency. Opening the domestic banking, and insurance markets to foreign participation, can easily fulfill the second requirement. The main impact pre-conditions include the attainment of critical mass; the adoption of conducive regulations, especially on pension fund investments; the pursuit of optimizing policies by the pension funds; and, a prevalence of pluralistic structures. The author argues that pension funds are neither necessary, nor sufficient for capital market development. Other forces, such as advances in technology, deregulation, privatization, foreign direct investment, and especially regional, and global economic integration, may be equally important. But pension funds are critical players in "symbiotic" finance, the simultaneous and mutually reinforcing presence of many important elements of modern financial systems. They can support the development of factoring, leasing, and venture capital companies, all of which specialize in financing new, and expanding small firms.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/08/693246/pension-reform-capital-market-development-feasibility-impact-preconditions
dc.identifier.doi10.1596/1813-9450-2414
dc.identifier.urihttps://hdl.handle.net/10986/19799
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2414
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGENCY PROBLEMS
dc.subjectASSET MANAGEMENT
dc.subjectASSET MANAGERS
dc.subjectASSETS
dc.subjectBANK DEPOSITS
dc.subjectBOND MARKETS
dc.subjectBONDS
dc.subjectBUDGET DEFICITS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKET DEVELOPMENT
dc.subjectCAPITAL MARKETS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMPETITIVE BIDDING
dc.subjectCONTRACTUAL SAVINGS
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE MANAGEMENT
dc.subjectDEBT
dc.subjectDEBT INSTRUMENTS
dc.subjectDEREGULATION
dc.subjectDERIVATIVE PRODUCTS
dc.subjectDIRECT INVESTMENT
dc.subjectDISABILITY INSURANCE
dc.subjectDISABILITY PENSIONS
dc.subjectDOMESTIC MARKETS
dc.subjectECONOMIC INTEGRATION
dc.subjectEQUITY CAPITAL
dc.subjectEXTERNAL ASSET MANAGERS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SECTOR
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectINDEXATION
dc.subjectINDIVIDUAL INVESTORS
dc.subjectINFLATION
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE MARKETS
dc.subjectINVESTMENT BANKS
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT PERFORMANCE
dc.subjectINVESTOR PROTECTION
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE COMPANIES
dc.subjectLIFETIME EARNINGS
dc.subjectLIQUIDITY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMONOPOLIES
dc.subjectMUTUAL FUNDS
dc.subjectNORMAL RETIREMENT AGE
dc.subjectPAYROLL TAXES
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSION PLANS
dc.subjectPENSION REFORM
dc.subjectPENSION REFORMS
dc.subjectPENSION SCHEMES
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONERS
dc.subjectPOSITIVE EFFECTS
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE PENSION FUNDS
dc.subjectPRIVATE PILLAR
dc.subjectPRIVATIZATION
dc.subjectPROVIDENT FUNDS
dc.subjectRATING AGENCIES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY STRUCTURES
dc.subjectRETIREMENT
dc.subjectSECURITIES
dc.subjectSECURITIES MARKETS
dc.subjectSIDE EFFECTS
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL SECURITY SYSTEMS
dc.subjectSUPERVISORY AGENCY
dc.titlePension Reform and Capital Market Development : "Feasibility" and "Impact" Preconditionsen
dspace.entity.typePublication
okr.crossref.titlePension Reform and Capital Market Development ¤Feasibility and ¤Impact Preconditions
okr.date.disclosure2000-08-31
okr.date.doiregistration2025-04-10T09:42:43.744144Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/08/693246/pension-reform-capital-market-development-feasibility-impact-preconditions
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.guid359341468766218017
okr.identifier.doi10.1596/1813-9450-2414
okr.identifier.externaldocumentum000094946_0009070538219
okr.identifier.internaldocumentum693246
okr.identifier.reportWPS2414
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/10/13/000094946_0009070538219/Rendered/PDF/multi_page.pdfen
okr.sectorCapital Markets Development
okr.sectorFinance
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicEconomic Theory and Research
okr.topicPensions and Retirement Systems
okr.topicInternational Terrorism and Counterterrorism
okr.topicInfrastructure Economics and Finance::Infrastructure Finance
okr.topicPayment Systems and Infrastructure
okr.unitFinance, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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