CONSERVATISM AS A CATALYST FOR ECONOMIC CHANGES IN CENTRAL EUROPE STATESJournal: MEST Journal (Vol.7, No. 1)
Publication Date: 2019-01-15
Authors : Saida Kazbekovna Kuizheva; Lydmila Vladimirovna Prigoda;
Page : 41-47
Keywords : society aging; budget expenditures; pension payments;
The article considers modern demographic trends, analyzes the forecast scenarios of the development of the world community, taking into account the aging of the population, and justifies the need to search for new tools and sources of pension provision for citizens. A developed pension system is evidence of a high level of development of society. The maximum coverage and a decent replacement rate are evidence of the socialization of social institutions, the enhancement of the value of a citizen's life, carry humanistic ideas of ensuring a decent standard of living for the least protected social strata. However, from the economic point of view, the ideas of humanism and universal prosperity have a high price. The effectiveness of pension savings depends on many factors and the dynamics of the development of pension systems are not always unambiguous. Modern pension systems are in a disequilibrium state: most developed and developing countries are already experiencing problems with balancing the pension system or will experience pension budget deficit in the mid-term. The problems of forming pension savings are objective. The world passes through the stage of population transition, which is expressed in the reduction of population growth with the simultaneous lengthening of life expectancy. This increases the burden on pension funds, increases the age-dependent ratio of financial systems. The research hypothesis is that it is impossible to achieve a balance of the pension system while maintaining a sufficient level of pension provision through parametric reform – a paradigmatic restructuring of the pension accumulation architecture with the use of advanced financial tools is necessary. The tool-methodical apparatus, which allows achieving the reliability of conclusions and recommendations, is provided by wide application of general scientific theoretical (comparative analysis, induction, deduction, generalization, synthesis) and practical (graphical and tabular interpretation) methods of cognition. Elements of econometrics and socioeconomic modeling were used to determine demographic trends. The institutional analysis was used in the study of parametric characteristics of pension systems. To study the investment paradigm the approaches of neoclassical and modern portfolio theories and long-range forecasting were used.
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Last modified: 2019-01-12 22:00:05