The global rise and fall of pension privatization
From 1981 to 2004, more than thirty countries modified their government-run pension systems to include individual, private savings accounts. But pension privatization stopped abruptly in 2005. What happened? In the current issue of Governance, Mitchell Orenstein of Northeastern University argues that ideational as well as fiscal factors caused a temporary halt to the privatization trend. “The tables turned in 2005,” Orenstein says, “with the rise of anti-privatization critiques within the World Bank and the high-profile rejection of pension privatization in the United States.” Read the article.