Latin American countries have increased the state’s role in pension provision since the mid-2000s. Bolivia has introduced changes in which the state has a bigger role, and this is linked to the reforms promoted by the socialist MAS party. Still, the private system has endured, Leandro N. Carrera (LSE Public Policy Group) and Marina Angelaki (Panteion University) explain.

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Since the 1980s, the region has been at the forefront of pension privatisation. But in recent years, many Latin American countries have introduced reforms of the opposite direction by increasing the role of the state in pension provision. A look at the recent experiences of re-reforms shows that while some countries have eliminated the mandatory pillar of private accounts, others have maintained it and have introduced significant changes. In a recently published article, we explored how policy legacies from previous reforms and political institutions have reshaped the outcome in Southern Cone countries.

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The Bolivian pension system has not escaped this process of continuous transformation. It was first reformed in 1997 with the introduction of a pillar of private accounts and continued with a series of reforms since the mid-2000s that increased the state’s role, albeit always maintaining the system of private accounts. The impact of COVID-19 has sparked discussions about allowing partial withdrawals from private pensions to alleviate members’ hardship situation throughout the region, and the government has recently legislated to allow such withdrawals. We contend that policy legacies and institutions are key to understanding recent changes and that a closer look at the Bolivian case may help us understand policy changes in other Latin American countries.

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