The politics and policy trade-offs of reforming the public pension system in post-communist Moldova

Europe - Asia Studies

Volumn 52, Issue 4, 2000, Pages 741-757

  Cashu, Ilean ^b  

^a SYRACUSE UNIVERSITY   (United States)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

PENSION SYSTEM; POST-COMMUNISM; REFORM PROCESS; SOCIAL POLICY;

MOLDOVA;

EID: 0033909823     PISSN: 09668136     EISSN: None     Source Type: Journal    
DOI: 10.1080/713663080     Document Type: Article

References (81)

1. 'Public pension system' refers to an insurance-based programme designed to compensate workers for lost income due to old age, disability and survivorship.
2. Victor Pestoff, 'Reforming Social Services in Central and Eastern Europe: Meso-Level Institutional Change After the Fall of Communism', American Behavioral Scientist, 38, 5, March/April 1995, p. 788.
3. Linda Cook, The Soviet Social Contract and Why it Failed: Welfare Policy and Workers From Brezhnev to Yeltsin (Harvard University Press, 1993).
4. Jon Elster et al., Institutional Design in Post-communist Societies: Rebuilding the Ship at Sea (Cambridge University Press, 1998), pp. 204-205.
5. Elvira Tuchkova, 'The Evolution of the System of Pension Provision in Russia: Legal Issues', Moscow Law Academy, unpublished manuscript, 1998 (in Russian).
6. Walter Connor, 'Social Policy under Communism', in E. Kapstein & M. Mandelbaum (eds), Sustaining the Transition: The Social Safety Net in Post-communist Europe (Council on Foreign Relations, 1997), p. 33. See also Nina Orlova & Per Ronnas, 'The Crippling Cost of an Incomplete Transformation: The case of Moldova', Post-Communist Economies, 11, 3, 1999, pp. 373-398.
7. Walter Connor, 'Social Policy under Communism', in E. Kapstein & M. Mandelbaum (eds), Sustaining the Transition: The Social Safety Net in Post-communist Europe (Council on Foreign Relations, 1997), p. 33. See also Nina Orlova & Per Ronnas, 'The Crippling Cost of an Incomplete Transformation: The case of Moldova', Post-Communist Economies, 11, 3, 1999, pp. 373-398.
8. Vladimir Mikhalev, 'Social Security in Russia under Economic Transformation', Europe-Asia Studies, 48, 1, 1996, p. 7.
9. Tuchkova, 'The Evolution ...'.
10. Mark Foley & Jeni Klugman, 'The Impact of Social Support: Errors of Leakage and Exclusion', in Jeni Klugman (ed), Poverty in Russia: Public Policy and Private Responses (The World Bank, 1997), p. 190.
11. Vie George & Nick Manning, Socialism, Social Welfare, and the Soviet Union (Routledge & Kegan Paul, 1980), p. 46.
12. Elvira Tuchkova, Professor, Moscow State Law Academy, Department of Labour Law and Social Protection, Member of the Working group on the Elaboration of the 1990 Draft Law on State Pension Provision, interview with author, Moscow, 23 June 1999.
13. Mikhalev, p. 9.
14. Bob Deacon, The New Eastern Europe: Social Policy, Past, Present and Future (Sage Publications, 1992), p. 4.
15. Martha De Melo, Cevdet Denizer & Alan Gelb, 'From Plan to Market: Patterns of Transition', Policy Research Working Paper 1564, The World Bank, 1996, Table 2.
16. Center for Strategic Studies and Reforms, Moldova in Transition: Economic Survey (Chisinau, November 1998), p. 94.
17. Center for Strategic Studies and Reforms, Moldova in Transition: Economic Survey (Chisinau, July 1998), p. 73.
18. Hidden unemployment far exceeds the official rate, and fluctuated around 15-17% of the labour force in 1996. See United Nations Development Program (UNDP), '1997 Moldova National Human Development Report', p. 56.
19. UNDP, '1998 Moldova National Human Development Report', Figure 4, p. 42.
20. Ion Gutu, Republica Moldova: Economie in Tranzitie (Litera, 1998), p. 358.
21. BASA-Press, 'Social Fund Accrues only 54.1% of Planned in First Trimester of 1999', citing Labour and Social Protection Minister Vladimir Guritsenco, 5 April 1999.
22. UNDP, '1998 Moldova National Human Development Report', p. 42.
23. The number of pension beneficiaries increased from 727 400 in 1992 to 757 000 in 1997. See Monitorul Oficial al Republicii Moldova, 'Strategia Reformei Sistemului de Asiguare cu Pensii din Republica Moldova', MOLDPRESS, 3 December 1999, Table 2, p. 12.
24. Center for Strategic Studies and Reforms, 'Pension System Reform - First Difficult Steps', in Moldova in Transition: Economic Survey, Chapter 7 (Chisinau, November 1998), p. 94.
25. Data show that between 1980 and 1990 the number of elderly people in Moldova increased by 28%. See National Report for the World Summit on Social Development (Copenhagen, 1995).
26. Gutu, p. 358.
27. Guy Standing, 'Social Protection in Central and Eastern Europe: A Tale of Slipping Anchors and Torn Safety Nets', in Gosta Esping-Andersen (ed), Welfare States in Transition: National Adaptations in Global Economies (Sage Publications, 1996), p. 225.
28. Joan Nelson, 'The Politics of Pension and Healthcare Delivery Reform in Hungary and Poland', paper prepared for the workshop on Consolidating Fiscal Reforms, Collegium Budapest Focus Group, 27-28 March 1998, p. 4.
29. Robert Holzmann, 'Starting Over in Pensions: The Challenges Facing Central and Eastern Europe', Journal of Public Policy, 17, 3, 1997, p. 199.
30. Claus Offe, 'The Politics of Social Policy Reforms in East European Countries: Antecedents, Agents, and Agenda for Reform', Social Research, 60, 4, 1993, pp. 649-684.
31. The three off-budgetary funds were the Pensions and Benefits Fund, the Social Security Fund and the Unemployment Assistance Fund.
32. Evlampie Donos, Deputy Minister of Labour and Social Protection in Charge of Pension Reform, Interview with Author, Chisinau, 7 July 1999.
33. Ministry of Labour and Social Protection, 'Strategy of the Social Protection Reform of the Republic of Moldova', Chisinau, 1997, p. 8.
34. Ibid.
35. 'Incheind Contracte Dubioiase Fondul Social a Inregistrat Pagube de Circa 23,300,000 Lei', Vocea Poporului, 17 October 1998; 'Kto kradet dengi u pensionerov', Yurii Stoikov (MP, Communist Party of Moldova), Nezavisimaya Moldova, 20 October 1998.
36. 'Fondul Social a Fost Transformat in Furt Masiv a Banilor Publici', interview with Deputy Prime Minister Oleg Stratulat, Mesagerul, 2 October 1998.
37. Ministry of Labour and Social Protection, p. 6.
38. Center for Strategic Studies and Reforms, Moldova in Transition: Economic Survey (Chisinau, November 1998), p. 94.
39. Ibid.
40. Standing, pp. 233-234; see also International Labour Organisation Central and Eastern European Team, The Ukrainian Challenge: Reforming Labor Markets and Social Policy (CEU Press, 1995), p. 255.
41. The World Bank, 'Moldova Public Expenditure Review', Report No. 15532-MD, 9 October 1996.
42. The government of Ion Sturza was defeated by a new parliamentary opposition comprising the Communists (40 votes), Christian Democrats (nine votes) and Independent MPs (nine votes) on 9 November 1999. After more than a month of political vacuum, the new parliamentary majority approved the government of Dumitru Braghis on 21 December 1999. See INFOTAG, 'Moldovan Parliament Approves New Prime Minister, Government and Work Program', 21 December 1999.
43. 'Pensionarii din Raionul Leova Protesteaza prin Blocarea Drumurilor', Vocea Poporului, 22 August 1998.
44. 'Ministerial Justitiei a Refuzat sa Sustina Propunerea Fondului Social Republican', Flux, 22 September 1998.
45. 'In Prim Plan Problema Pensiilor', Moldova Suverana, 25 August 1998; 'Premierul in Dialog cu Pensionarii', Moldova Suverana, 3 October 1998.
46. 'In Prim Plan Problema Pensiilor', Moldova Suverana, 25 August 1998; 'Premierul in Dialog cu Pensionarii', Moldova Suverana, 3 October 1998.
47. Deborah Mabbett, 'Social Insurance in the Transition to a Market Economy: Theoretical Issues with Application to Moldova', Policy Research Working Paper 1588, The World Bank, 1996.
48. 'Komissya po Problemam Pozhilykh lyudei pri Prezidente Respublike Moldova Sozdana Dva Goda Nazad', Nezavisimaya Moldova, 11 November 1998.
49. Louise Fox, 'Pension Reform in the Post-Communist Economies', in Joan Nelson & Charles Tilly (eds), Transforming Post-Communist Political Economies (National Academy of Sciences Press, 1997), p. 377.
50. Elena Niculina, Senior Economist, The World Bank Resident Mission, interview with author, Chisinau, 8 June 1999.
51. Stephen Kay, 'Unexpected Privatizations: Politics and Social Security Reform in the Southern Cone', Comparative Politics, July 1999, p. 405. For a detailed analysis on the role of international organisations in shaping domestic social policy see Bob Deacon, Global Social Policy: International Organizations and the Future of Welfare (Sage Publications, 1997).
52. Stephen Kay, 'Unexpected Privatizations: Politics and Social Security Reform in the Southern Cone', Comparative Politics, July 1999, p. 405. For a detailed analysis on the role of international organisations in shaping domestic social policy see Bob Deacon, Global Social Policy: International Organizations and the Future of Welfare (Sage Publications, 1997).
53. The World Bank, Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth (Oxford University Press, 1994), pp. 222-223.
54. Colin Gillion, John Turner, Clive Bailey & Denis Latulippe (eds), Social Security Pensions: Development and Reforms (International Labour Organisation, Geneva, 1999). Charlton, McKinnon & Konopielko provide a useful two-fold typology of emerging trends in pension reform. One refers to the 'pluralisation' of the pension systems to include the rule-adjusting reform of the PAYG pillar with private pension funds offered only on a voluntary basis. The other is the 'pilarisation' of pension systems, that adds mandatory private pension funds to the reformed PAYG pillar and voluntary private schemes. See Roger Charlton, Roddy McKinnon & Lukasz Konopielko, 'Pension Reform, Privatisation and Restructuring in the Transition: Unfinished Business or Inappropriate Agendas?', Europe-Asia Studies, 50, 8, 1998, p. 1419.
55. Colin Gillion, John Turner, Clive Bailey & Denis Latulippe (eds), Social Security Pensions: Development and Reforms (International Labour Organisation, Geneva, 1999). Charlton, McKinnon & Konopielko provide a useful two-fold typology of emerging trends in pension reform. One refers to the 'pluralisation' of the pension systems to include the rule-adjusting reform of the PAYG pillar with private pension funds offered only on a voluntary basis. The other is the 'pilarisation' of pension systems, that adds mandatory private pension funds to the reformed PAYG pillar and voluntary private schemes. See Roger Charlton, Roddy McKinnon & Lukasz Konopielko, 'Pension Reform, Privatisation and Restructuring in the Transition: Unfinished Business or Inappropriate Agendas?', Europe-Asia Studies, 50, 8, 1998, p. 1419.
56. Interview with Donos, 7 July 1999.
57. The old pension law provided three lists of professionals entitled to preferential treatment in the form of early retirement and enhanced benefits. List 1 covered individuals working in extremely hazardous conditions; List 2 included individuals employed in other kinds of hazardous conditions; and, List 3 represented a special scheme for farmers.
58. Interview with Donos, 7 July 1999.
59. Gutu, p. 366.
60. Peter Coates, Team Leader, EU-TACIS Project for the Reform of the Social Protection System, interview with author, Chisinau, 16 June 1999.
61. MP Victor Stepaniuc, Committee for Social Policy, Health and Family, Communist Faction, Moldovan Parliament, interview with author, Chisinau, 9 June 1999.
62. Linda Cook & Mitchell Orenstein, 'The Return of the Left and its Impact on the Welfare State in Poland, Hungary and Russia', in Linda Cook, Mitchell Orenstein & Marilyn Rueschemeyer (eds), Left Parties and Social Policy in Postcommunist Europe (Westview Press, 1999), p. 69.
63. Paul Pierson, 'The New Politics of the Welfare State', World Politics, 48, 2, 1996, p. 147.
64. Michael Cain & Surdej Aleksander, 'Transitional Politics or Public Choice? Evaluating Stalled Pension Reforms in Poland', in Linda Cook, Mitchell Orenstein & Marilyn Ruescheyer (eds), Left Parties and Social Policy in Postcommunist Europe (Westview Press, 1999), p. 158.
65. The Alliance for Democracy and Reforms holds a total of 61 seats; the Democratic Convention of Moldova 26, the Bloc for a 'Prosperous and Democratic Moldova' 24, the Party of Democratic Forces 11. The Democratic Convention represents an electoral alliance consisting of the Christian Democratic Popular Front, 9 seats, and the Party of Revival and Accord, 17 seats. Finally, the opposition, the Communist Party of Moldova, has 40 seats. See http://www.agora.stm.it/elections/election/mold-ova.htm.
66. Ministerul Finantelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 02/4-03, 11 July 1998; Ministerul Economiei si Reformelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 30/2433, 9 July 1998; Ministerul Justitiei, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 03/2885, 17 July 1998.
67. Ministerul Finantelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 02/4-03, 11 July 1998; Ministerul Economiei si Reformelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 30/2433, 9 July 1998; Ministerul Justitiei, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 03/2885, 17 July 1998.
68. Ministerul Finantelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 02/4-03, 11 July 1998; Ministerul Economiei si Reformelor, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 30/2433, 9 July 1998; Ministerul Justitiei, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 03/2885, 17 July 1998.
69. Confederatia Nationala a Patronatului, 'Aviz la Proeictul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 01/11, 8 July 1998.
70. Consiliul Federatiei Generale a Sindicatelor din Republica Moldova, 'Aviz la Proiectul de Lege privind Pensiile de Asigurari Sociale de Stat', No. 02-02/445, 14 July 1998.
71. 'Adekvatnye deistvya garantiruem', Veteranul, June 1998.
72. Interview with Victor Stepaniuc, 9 June 1999.
73. Moldovan Parliament, Transcript of the Plenary Session on the Draft Law on State Pension Provision (Chisinau, 14 October 1998).
74. MP Ion Morei, Alliance for Democracy and Reforms, Bloc for a Prosperous and Democratic Moldova, interview with author, Chisinau, 15 June 1999.
75. BASA-Press, 'Communists Ready to Vote Retirement System Reform, but in a Compromise Variant', 10 October 1998.
76. Moldovan Parliament, Transcript of the Plenary Session.
77. INFOTAG, interview with MP Hie Untila, Alliance for Democracy and Reforms, Democratic Convention, 15 October 1998.
78. Ministerul Muncii si Protectiei Sociale, 'Legislatia Noua de Pensionare', Chisinau, 1999.
79. Interview with Elena Niculina, 8 June 1999.
80. For a critique of privatisation of public pension systems, see Charlton, McKinnon & Lukasz.
81. Mesagerul, citing MR Leonid Zaharia; Alliance for Democracy and Reforms, Bloc for a Prosperous and Democratic Moldova, 16 October 1998.