January 2020

16Jan

Public sector salaries and pensions rise in Uruguay

The Uruguayan government reported today that it decreed a salary increase of 8.7 percent for civil servants, whereas pensioners will receive similar benefits from this year. According to the presidential decree approved by the Council of Ministers, the specific figure is in line with inflation, to maintain real wages. Other data from the National Statistics Institute indicate that since 1998, civil servants of the central government have received the highest average pay rise, of nearly 40 percent. On the...

January 16, 2020
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16Jan

Chile’s Pinera proposes reform of pension system that has fueled protests

Chilean President Sebastian Pinera said on Wednesday that he will send a bill to Congress this week to reform the country’s pension system, which leaves many retirees living in poverty and has been one of the main complaints of protesters in months of demonstrations. Read Also Piñera’s proposal fuels debate on low pensions in Chile In a radio and television broadcast, Pinera said he will propose a 6% increase in the pension contribution per worker. Chile’s pension system is a...

January 16, 2020
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09Jan

Estonia. Public ill-informed about pensions and retirement: Research

According to recent market research, awareness among the Estonian public about the impending pension reform is low, with many not knowing key facts surrounding the move to make the so-called second pillar, referring to employee contributions to pension schemes, voluntary, where it had previously been mandatory for most wage earners. This was particularly the case among young people, with higher awareness recorded among those aged over 55, as well as professionals, according to the survey commissioned by pollsters Turu-uuringute on...

January 9, 2020
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09Jan

Solving Chile’s Crisis Starts With Fixing Its Pension System

BY JORGE HEINE Protesters cite the Pinochet-era retirement scheme as their top grievance. Fixing it will mean a return to basic principles of social security. As Chile’s protests continue into the new year, it is important to understand the reasons behind the public’s frustration – and for policymakers to come up with ways to address it. In that, no issue is more important than Chile’s private pension scheme, singled out in opinion polls as the most important issue for...

January 9, 2020
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December 2019

31Dec

The Collapse of the Models. Re-shaping Social Protection in Europe and Latin America

The 2010-decade was a challenging period for the world. Latin America’s economy was doing relatively well at the beginning of the decade. However, the region’s economy is stagnated. Read also Colombia’s Pension Reform Hampered By Political Tension The European Union has been struggling too. Besides economic stagnation, right-wing populist candidates have been on the rise. The populists’ slogans on preserving national identity and tackling uncontrolled immigration have gained traction. Read also Greek government planning pension rises for 450,000 recipients Further, the...

December 31, 2019
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December 2019

20Dec

Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms

By Sandra Rozo, Hernan Winkler This paper examines the effects of large inflows of internally displaced persons (IDP), who are primarily absorbed by the informal sector, on the behavior of formal manufacturing firms in Colombia. To identify causal effects, the analysis employs annual, firm-level panel data between 1995 and 2010 and exploits that when conflict intensifies, forcefully displaced individuals tend to migrate to municipalities where people from their origin locations settled earlier. The paper finds that large inflows of...

December 20, 2019
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10Dec

Asset & Wealth management Revolution

By PwC The world’s Asset & Wealth Management (AWM) industry has turned its eyes to the Latin American (LatAm) region, with many fund managers looking for growth in the burgeoning market. However, the fabric underlying the industry is set to be upended in the coming years as new clients enter the space and the existing, bank dominated, distribution model begins to face challenges as clients look for new, and cheaper, ways of buying products. While economic uncertainty in the region is...

December 10, 2019
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10Dec

Latin American AuM will more than double by 2025: PwC report

Despite a number of Latin American countries facing political and economic uncertainty, the long term growth prospects for the asset and wealth management industry remain strong across the continent according to a report published today by PwC and Sura Investment Management. The report, titled Asset and Wealth Management Revolution: Latin America's flourishing opportunities, finds that, despite the challenges faced by the region, assets have grown by 7.9% compounded annual growth rate (CAGR) since 2015 to reach $2.4trn in 2018....

December 10, 2019
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November 2019

28Nov

CPPIB takes stake in Latin American fitness chain Smart Fit

Canada Pension Plan Investment Board has acquired a 12.4 percent stake in Latin American fitness chain Smart Fit. The investment was for C$340 million. Smart Fit, which currently serves 2.5 million members across 739 locations in ten countries, is headquartered in São Paulo, Brazil São Paulo, Brazil/Toronto, Canada (November 26, 2019): Canada Pension Plan Investment Board (“CPPIB”) has invested R$1,071 million (C$340 million) for a 12.4% stake in Smartfit Escola de Ginástica e Dança S.A. (“Smart Fit”), broadening its...

November 28, 2019
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September 2019
06Sep

Twenty Years of Wage Inequality in Latin America

By Julián Messina, Joana Silva This paper documents an inverse U-shape in the evolution of wage inequality in Latin America since 1995, with a sharp reduction starting in 2002. The Gini coefficient of wages increased from 42 to 44 between 1995 and 2002 and declined to 39 by 2015. Between 2002 and 2015, the 90/10 log hourly earnings ratio decreased by 26 percent. The decline since 2002 was characterized by rising wages across the board, but especially among those...

September 6, 2019
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