Pension Reform Paths in Comparison: the Case of Central-Eastern Europe

Abstract

Pension reform seems inevitable in postcommunist Central-Eastern Europe, because the process of economic transformation is greatly straining existing security systems. The different pension reform experiences of Poland, Hungary, & the Czech Republic are comparatively analyzed, focusing on the relationship between the relevant set of political actors, the respective structural settings, & the resulting institutional choice in old-age security, shedding light on the political economy of pension reform in the region. It is revealed that neither the sole reform of public pay-as-you-go schemes nor their replacement by mandatory private fully funded systems has proved to be a suitable reform option in itself. Rather, hybrid schemes that combine elements of both systems represent the most viable alternative both politically & economically.