The Chilean Pension System
The introduction in the early 1980s of a privately managed pension system in Chile, based on individual capital accounts, has attracted world-wide attention. This reform – as well as other market-oriented structural changes – and the subsequent improvement in Chilean economic performance has led many observers to conclude there is a causal link between the two. The rise in private domestic savings generated through the new pension system has also been cited as evidence for this conclusion.
Long abstract