From Bismarck to Friedman
Article first published online: 15 JUN 2007
Volume 27, Issue 2, pages 83–87, June 2007
How to Cite
Niemietz, K. (2007), From Bismarck to Friedman. Economic Affairs, 27: 83–87. doi: 10.1111/j.1468-0270.2007.00737.x
- Issue published online: 15 JUN 2007
- Article first published online: 15 JUN 2007
Chile provides the most frequently quoted example of a change from an established state PAYGO pension system to a privately funded scheme based on personal savings. Most of the key results have been impressive and a lot of the often-heard criticisms of funded schemes have been disproved. A number of shortcomings remain. These shortcomings are seldom caused by features inherent to funded schemes, but rather by elements specific to the Chilean arrangement which could be altered given the political will.