Transitional Economies: Banking, Finance, Institutions

By Yelena Kalyuzhnova; Michael Taylor | Go to book overview
Save to active project

6
Reforming Pension Systems in Transitional Economies: Case study of Kazakhstan 1

YelenaKalyuzhnova


Introduction

Reform of pension systems in the transitional economies has been driven by a number of macroeconomic imperatives: first, to achieve the fiscal retrenchment that has become necessary given the relatively small tax base of many transitional states. The small size of their tax base has made it difficult for them to continue to meet the large contingent liabilities, stretching well into the future, created by the existence of unfunded pension schemes. ‘Many governments have failed to accept or understand that, in a market economy, a tax system should be based on laws that establish tax rates and rules for objectively defining the tax bases and should have one paramount objective to raise revenue as efficiently and equitably as possible’ ( Tanzi, 1999, p. 23). Second, reform of the pension system has also been necessary because, under central planning, responsibility for providing many social services rested at the level of the firm. Large state monopolies were, effectively, mini-welfare states for their employees. Third, it is widely recognized that funded pension schemes increase the savings rate and hence provide a deeper pool of investment capital for economic development. Obviously, the question of pension reform is intimately related to the more general issue of transfer payments and income distribution policy in transitional economies, among which are interest payments on the public debt.

However, beyond these macroeconomic factors, the relationship between the development of funded pension schemes and that of financial markets is a crucial one: funded pensions cannot exist without the

-167-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Transitional Economies: Banking, Finance, Institutions
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 256

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?