Social security privatisation: The lessons from the Chilean experience for other Latin American countries and the USA

Abstract

The purpose of this article is to analyse the economic and social implications of the privatisation of social security in Chile and to draw some lessons from the Chilean experience. The focus of the analysis is on the costs and benefits of the privatised system and its impact on social equity. Thus, the main section of the article is devoted to the analysis of the 20-year-old Chilean experience. This section is followed by a discussion of privatisation in other Latin American countries and the impact that World Bank's policies have had on the region. The last section looks at the lessons for the United States and argues against the establishment of a partially private plan in the USA.