Summary |
The debate on Social Security Reforms has taken the center stage in developed and developing countries as one of the most critical policy issues during recent times. The policy makers and researchers intensely debating for an appropriate mechanism to confront the complex issues related to demographic burden owing to ageing, growing inability of the government to finance unfunded pensions, pressure on government budget due to increasing costs of retirement benefits. Pension Reforms, have therefore become a hot pursuit for planners, policy makers, market analysts.
A new dimension has been added to the search of a solution for the problems of old age security due to the gradual dismantling of the concept of Welfare States in the emerging market economy sharking of the responsibility of social assistance and passing the responsibility to the individual. In the new world, economic security of its members is no more the sole concern of parental state and the of economic restructuring advocates passing the same to the private enterprise. There are several arguments, some are positive- some are not so positives. There are a variety of models suggesting pension reforms. A large number of such models centered around the arguments of privatising pensions and passing the funds management to private asset managers through introduction of funded defined contribution system.
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