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Experience of formation of pension systems in developing countries of world

Journal: Scientific and practical journal “Economy of Industry” (Vol.66, No. 2)

Publication Date:

Authors : ;

Page : 53-67

Keywords : pensions; pension system; classifi- cation of pension systems; developing countries;

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The pension system is composed of the elements that form a complex socio-economic system. Each system has its own characteristics and experience of reform. At present the need for change in the pension system is related to the changing demographics (decrease in the number of employable population while increasing the number of pensioners). This article analyzes the emergence and development of pension systems in developing foreign countries considered international experience constructing systems of compulsory pension insurance and classification of pension systems. The need to consider the experience of formation of pension systems in developing countries is due to the fact that these countries are closer to the development of Ukraine in contrast to the developed countries and the problems arising from the reform of pension systems in these countries are somewhat alike existing in Ukraine. Therefore, for a more objective analysis of the possibility of using foreign experience for our country, we can not ignore the pension reforms in Asia, Latin America and the Russian Federation. Most developing countries are still far from creating a financially stable pension system, which could provide an adequate level of income for most retirees in the future. A three-element system is used in most countries to ensure the sustainability of the pension system. In Latin America the most popular is funded pension system, but taking into account Ukraine's low popularity private pension funds this application experience, though promising, but premature. The experience of the formation of pension systems in the South Asian countries can not be applied to Ukraine due to the fact that in many countries pension systems are still being formed, as well as there is a high ratio of workers to pensioners number. This paper looks into the need for building up a concept and mechanism of environment focused management of industrial production development. It is critical to start using a concept of environmentally focused development, which has to replace a conventional concept of economic development, based on the extensive consumption of natural resources and great imprint on the environment. Instrumentally innovations are to become one of state regulation subjects within this concept, which will allow bringing the system under regulation into a new development phase. These innovations have to be environmental focused on nature and for mitigating ecodestructive impact, while promoting energy-saving technologies. To secure environmental focused anti-recessionary management of industrial production development the national economy has to adopt a sustainable development model, which can be achieved thorough designing an effective anti-recessionary state policy. The first part of the paper focuses on the theoretical background and overview of research results related to economic development processes of national economy with allowance for the ecological factor. The key element of economy is production; hence, securing a continuous industrial growth is among major issues addressed by economic science. The second part of the paper offers a mechanism of environmentally focused anti-recessionary management of industrial production development which includes seven complementary functional directions: marketing, diagnostics, forecasting, strategic goal-setting, tactical planning, organization and control. Implementation of the proposed mechanism will create sustainability of industrial production due to green innovations. Also it should be noted that the experience in forming and reforming the pension system of the Russian Federation is closer for Ukraine. Russian pension problems (budget deficit of pension fund, low pensions, aging population) are similar to problems in Ukraine.

Last modified: 2017-03-30 20:42:14