Alternative Social Security Systems in CIS Countries

22 Pages Posted: 15 Feb 2006

See all articles by S. Ehtisham Ahmad

S. Ehtisham Ahmad

affiliation not provided to SSRN

Jean-Luc Schneider

affiliation not provided to SSRN

Date Written: February 1993

Abstract

In the USSR in 1990, social security reforms led to the imposition of a uniform system of benefits in a large and demographically diverse country. This required inter-regional transfers, which are now no longer feasible with the demise of the USSR. Relatively high contribution rates also pose a problem for a nascent commercialized sector. The paper argues that benefit levels in some former Soviet Union countries are now unsustainable. The price shock associated with the "transition" to a market economy should lead to a consideration of a "mix" of policies, including a basic benefit in kind. While funded systems may eventually reduce contribution rates, there are implementation difficulties in the medium term.

JEL Classification: H5, I3, P2

Suggested Citation

Ahmad, S. Ehtisham and Schneider, Jean-Luc, Alternative Social Security Systems in CIS Countries (February 1993). IMF Working Paper No. 93/8, Available at SSRN: https://ssrn.com/abstract=883424

S. Ehtisham Ahmad (Contact Author)

affiliation not provided to SSRN

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Jean-Luc Schneider

affiliation not provided to SSRN

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