The Asian crisis prompted calls from several quarters for tighter controls on foreign investment and capital flows in emerging markets. However, there are several compelling arguments in favour of freeing up capital flows in these markets, provided it is done in an orderly and properly structured way.
More than a decade after Chile moved from a public pay-as-you-go to a private funded pension system, seven more countries in Latin America have reformed their pension systems. This study provides a detailed description of all second-generation pension reforms in Latin America to date, evaluates the first years of operations of the new systems and outlines the problems and challenges which the systems are still facing. The basic common
May 1998. This paper was presented at an IMF Seminar on Current Legal Issues Affecting Central Banks.