Brazil pension reform has small window of opportunity

Headline BRAZIL: Pension reform has small window of opportunity

2020 ◽  
Vol 16 (3) ◽  
pp. 299-316 ◽  
Author(s):  
Katharine McGowan ◽  
Andrea Kennedy ◽  
Mohamed El-Hussein ◽  
Roy Bear Chief

Purpose Reconciliation between Indigenous peoples and the Canadian plurality has stalled. While the Truth and Reconciliation Commission’s (TRC) Calls to Action could be a focusing event, creating a window of opportunity for transformative social innovations; we see coalescing of interest, social capital and investment in decolonization and indigenization in the proliferation of professorships, programs, installations and statements. However, Blackfoot (Siksika) Elder Roy Bear Chief raised significant concerns that Indigenous knowledge, experiences and people are not yet seen as relevant and useful in higher education; such marginalization must be addressed at a systems level for authentic reconciliation at any colonial university. The purpose of this paper was to explore this dual goal of exploring barriers to and opportunities for Indigenous knowledges and knowledge holders to be valued as relevant and useful in the Canadian academy, using a complexity- and systems-informed lens. Design/methodology/approach Local Indigenous Elders provided guidance to reflect study purpose and target audience of academics, with an approach that respectfully weaved Westernized research methods and co-learning through indigenous knowledge mobilization strategies. This analysis extends results from a qualitative grounded theory study to explain social processes of professors and administrative leadership in a Canadian mid-sized university regarding barriers and facilitators of implementing TRC Calls to Action. This further interpretation of applied systems and panarchy heuristics broadens understanding to how such micro-social processes are positioned and influence larger scale institutional change. Findings This paper discusses how the social process of dominionization intentionally minimizes meaningful system disruption by othering indigenous knowledge and knowledge holders; this form of system-reinforcing boundary work contributes to rigidity and inhibits potentially transformative innovations from scaling beyond individual niches and moments in time. Elders’ consultation throughout the research process, including co-learning the meaning of findings, led to the gifting of traditional teachings and emerging systems and multi-scale framework on the relevance of indigenous knowledges and peoples in higher education. Research limitations/implications This study was performed in one faculty of one Canadian institution; an important and potentially widely-present social process was identified. Further research is needed for greater generalizability. Conditions that led to this study are increasingly common across Canada, where at least one third of higher education organizations have explicit indigenization strategies and internationally where the rights and self-determination of indigenous peoples are growing. Social implications Insights from this study can inform conversations about social innovation in institutional settings, and the current systems’ resistance to change, particularly when exploring place-based solutions to national/international questions. These initiatives have yet to transform institutions, and while transformation is rarely rapid (Moore et al., 2018), for these potential innovations to grow, they need to be sustainable beyond a brief window of opportunity. Scaling up or deep within the academy seems to remain stubbornly elusive despite attention to the TRC. Originality/value This study contributes to a growing literature that explores the possibilities and opportunities between Indigenous epistemologies and social innovation study and practice (McGowan, 2019; Peredo, McLean and Tremblay, 2019; Conrad, 2015), as well as scholarship around Indigenization and decolonization in Canada and internationally.


2020 ◽  
Vol 40 (3/4) ◽  
pp. 342-365
Author(s):  
Pg Md Hasnol Alwee Pg Hj Md Salleh ◽  
Roslee Baha

PurposeDespite the inclusion of financial literacy in retirement studies, there are limited studies that look into retirement concerns and how financial literacy plays a role in managing retirement concerns. Understanding retirement concerns prior to retirement is important given how it affects retirement satisfaction. Therefore, this paper aims at assessing the retirement concerns in Brunei and the role of financial literacy in managing those concerns.Design/methodology/approach700 government employees, divided into three groups, were interviewed: Defined Contribution Plan (DCP) employees retiring in the next 10–15 years, DCP employees retiring in 20–30 years' time and Defined Benefit Plan (DBP) employees retiring in the next 10 years. Pearson's chi-square tests and logistic regressions were used to ascertain significant relationships.FindingsThe results indicate the relatively younger DCP group is more likely to be financially literate compared to senior groups however, these respondents are more inclined to focus on private home ownership at this juncture. The findings also indicate the importance of knowing how much to save for retirement towards determining those with an additional retirement plan, and consequently reducing their retirement concerns. The value of financial advice is also significant in determining the amount to save for retirement and in possessing an additional retirement plan.Research limitations/implicationsResults cannot be generalised to the population, as purposive sampling was utilised due to the absence of a population frame.Practical implicationsThe implications of the paper may provide value to policymakers to consider approaches to enhance the quality of financial advice and provide sound knowledge in computing the amount needed for retirement. Understanding the role of financial literacy vis-à-vis retirement concerns may also be useful for neighbouring countries with similar socio-cultural aspects such as Malaysia.Originality/valueGiven the limited research on retirement concerns and financial literacy, this paper is one of the few to emphasise on the importance of knowing how much is needed to save for retirement, in relation to retirement concerns. This may also be useful in other countries/communities with similar retirement context such as those with relatively low retirement planning or with similar retirement schemes. Further, with the 1993 pension reform, there is no known publication on retirement concerns and expectations in Brunei. Left unchecked, it may lead to poverty in old age and/or dependency on welfare institutions and family support.


Subject Outlook for the new government. Significance Despite opinion polls before the February 25 election indicating a victory for the incumbent People's National Party (PNP), the opposition Jamaica Labour Party (JLP) won a narrow one-seat victory and JLP leader Andrew Holness was sworn in as prime minister for a second time on March 3. The PNP ran a lacklustre campaign that failed to galvanise its core supporters. In contrast, the JLP offered a positive message of tax cuts and job creation. Impacts Absent rapid economic improvements, public opinion may turn against the new government. Juggling IMF targets and popular demands may prove beyond the JLP's capabilities. The government has only a narrow window of opportunity before the PNP recovers from its surprise defeat.


Subject The risk that the Brazilian economy will stagnate, rather than recover, this year. Significance The recent passage of legislation freezing government spending and the ambitious pension reform currently under discussion in Congress are the flagship policies of the government of President Michel Temer. Both seek to defuse Brazil’s fiscal time bomb in the long term. However, they offer little support to immediate expansion in an economy that not only has been in recession since the second quarter of 2014 but is also locked in a low-growth trap will few apparent short-term escape routes. Impacts Popular dissatisfaction may trigger a new wave of demonstrations, further weakening the government. As long as the fiscal crisis persists, the government’s ability to stimulate the economy will be limited. Political risk will be a crucial factor in business investment decisions in Brazil.


Significance The amendment is a flagship policy of President Michel Temer in his attempt to address Brazil’s fiscal crisis. However, the government’s victory was qualified, as the initiative was backed by fewer senators than in the first vote in late November, suggesting ebbing Congress support for the administration. Impacts Early presidential elections are unlikely but remain a possibility. Support for Temer's coalition in Congress is shakier than ever and may become more so. There is no guarantee Congress will pass the pension reform, another crucial policy in Temer’s agenda.


Subject Prospects for Russian domestic politics in 2019. Significance Although President Vladimir Putin was re-elected with a large majority in 2018, widely held grievances about pension reform and economic hardship present challenges to which the authorities are proving unable or unwilling to respond adequately. Putin's six-year economic stimulus package faces many obstacles and its mid-to-long-term aims mean it cannot deliver a swift political pay-off.


Subject Social and economic inequality. Significance After its progress in reducing poverty, highlighted by a recent report of the UN Economic Commission for Latin America and the Caribbean (ECLAC), Chile faces the complex and socially divisive challenge of tackling its deep-rooted economic and social inequalities. Impacts The key problem in addressing poverty will be its concentration in specific groups of the population. Some of the government’s planned reforms, such as pension reform, would help to improve income distribution. The outcome of the government’s Country Undertaking initiative will depend on its ability to implement the resulting ideas.


Subject The outlook for pension reform. Significance In 2016 Congress passed Law 27.260, which established measures to improve pensioners’ welfare, and set a three-year deadline to create a new pension system, which would be universal, comprehensive and sustainable, and maintain the current system’s pay-as-you-go feature. The pensions deficit represents a significant portion of the fiscal imbalance, so any policy to improve fiscal sustainability will require social security reform. However, the current pension system is considered unfair by most pensioners and active workers. Impacts The social security reform will face opposition in Congress and resistance from public opinion. A strong result for the new Unidad Ciudadana party in the October elections could delay the reform. The large informal sector will militate against reducing the pensions deficit.


Subject Pension reform in China. Significance China's main pension fund could be completely depleted as early as 2035. New research published by the Chinese Academy of Social Sciences (CASS) predicts that expenditure from the urban worker basic pension fund will begin exceeding contributions in 2028, after which reserves will decline exponentially and could be exhausted within eight years. The government has already introduced measures to address the most pressing problems, such as the gross imbalance between regional pension funds and the failure of employers to contribute to the scheme. Impacts Younger workers will rely on their own savings and investment schemes, having little faith in the government pension. Rural residents, the self-employed and precariously employed have little or no meaningful state-backed pension. International insurers will eventually be allowed to enter China's private pension sector.


Keyword(s):  

Headline TAIWAN: Pension reform delays fiscal crunch at best


Sign in / Sign up

Export Citation Format

Share Document