UNUnited Nations Economic Commission for Europe

Press Releases 1999

[Index]

Geneva, 20 April 1999

ECE/GEN/99/1

ECONOMIC IMPLICATIONS OF POPULATION AGEING IN THE UN/ECE REGION

The UN/ECE Spring Seminar

3 May 1999

On 3 May 1999, the United Nations Economic Commission for Europe (UN/ECE) will hold its Spring Seminar which will focus on the economic implications of population ageing in the UN/ECE region. Four themes will be discussed:

- The economic consequences of population ageing and the macroeconomics of pension reform;

- Pension reform in market economies;

- Reforming pension systems in the transition economies: problems and policies within a broader programme of transformation;

- What are the implications for pension reforms of the global financial and economic crisis?

The session on "Economic consequences of population ageing and the macroeconomics of pension reform" will consider the impact of population ageing on key economic variables, such as savings, fixed investment, productivity and labour force participation, and thus economic growth and future prosperity. It will address such questions as: Have state pension systems crowded out private spending or other, more urgent, public spending? Have they or will they threaten fiscal stability in developed market economies? Is it really the case that unfunded public pension schemes have reduced national saving? Can private saving schemes alter this? In sum, do different pension schemes actually offer major macroeconomic choices? Do they have sharply differing implications for overall fiscal policy? To what extent can we project that future prosperity will depend on decisions taken now on old-age security?

This session will open with the presentation of a paper by John Eatwell (Professor of Economics and President of Queens' College, University of Cambridge). Colin Gillion (Director, Social Security Dept., ILO); Domenico Mario Nuti (Professor, University of Rome "La Sapienza" and London Business School); and Tomas Weiss (Deputy Head of Economics Division, Federal Ministry of Labour and Social Affairs, Bonn) will act as discussants.

The session on "Pension reform in market economies" will examine the most recent developments and debates on pension reform in western Europe and North America. It will look at, inter alia, subjects such as alternative approaches to pension reform, and the transition to a new system; public pensions and international competitiveness; risks of mid-career economic and demographic changes. The session will also review microeconomic issues such as the reasons for creating mandatory retirement programmes, the search for new paradigms and the possibility of a new consensus.

Lawrence Thompson (Senior Fellow, Urban Institute, Washington, D.C.) will present a paper. Johann K. Brunner (Professor, University of Linz); Joakim Palme (Swedish Institute for Social Research, University of Stockholm); and Andras Uthoff (Regional Adviser, Economic Commission for Latin America and the Caribbean) will participate as discussants.

The session on "Reforming pension systems in the transition economies: problems and policies within a broader programme of transformation" will examine the problems of pension arrangements in the transition countries and the acute and unusual issues for pension reform which are posed by systemic transformation, as well as those common to most countries in the region. It is expected that the debate will bring out the variation in country experiences, which has been quite large.

Maria Augusztinovics (Institute of Economics, Hungarian Academy of Sciences) will present a paper. Jerzy Hausner (Professor, Academy of Economic Science, Cracow); Romas Lazutka (Director, Institute of Social and Economic Research, Vilnius); and Paul Wachtel (Professor, Stern School of Business, New York University) will be discussants.

A panel discussion on "What are the implications for pension reforms of the global financial and economic crisis?" will consider whether the financial turmoil since mid-1997 has affected the nature of the debate, particularly on the role of private pension funds. What has been, and could be, their global impact? What problems of regulation, national and global, do they pose? What risk differences are there between "pay-as-you-go" and fully-funded systems, and how is the balance of risks likely to change in 1999? What indications do we have of the way in which present pension arrangements and differential rates of ageing in various parts of the world have affected stock market fluctuations and the world financial system?

Jean-Michel Charpin (Commissaire, Commissariat général du Plan, Paris) will chair the panel. JiÍí Rusnok (Deputy Minister of Labour, responsible for Social Insurance and Income Policy, Czech Republic); Brigitte Granville (Head, International Economics Programme, Royal Institute of International Affairs, London, and Centre for Advanced International Studies, Moscow); Tatyana Maleva (Bureau of Economic Analysis, Moscow); and Daniel Wydler (Director, Banque Pictet et Cie., Geneva) will participate in the panel.

The Seminar is open to the public.

For further information please contact:

Economic Analysis Division
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations
CH B 1211 Geneva 10, Switzerland

Tel: (+41 22) 917 27 18
Fax: (+41 22) 917 03 09
E-mail: [email protected]
Website: http://www.unece.org/ead/ead_h.htm