Chilean expert criticizes Bolsonaro's pension reform: it would be madness.
Andras Uthoff, consultant at the Instituto Igualdad and professor at the University of Chile, says that, "despite state subsidies, 80% of pensions paid in Chile are below the minimum wage and 44% are below the poverty line. The system has failed and it would be complete madness to implement it in Brazil"; "The capitalization system has led to mass protests in the streets, as it impoverishes the elderly and denies rights, while being extremely profitable for Pension Fund Administrators (AFPs)," stated Uthoff, who holds a doctorate in Economics from the University of Berkeley.
247 - Andras Uthoff, consultant at the Instituto Igualdad and professor at the University of Chile, says that, "despite state subsidies, 80% of pensions paid in Chile are below the minimum wage and 44% are below the poverty line. The system has failed and it would be complete madness to implement it in Brazil."
"The capitalization system has led to mass protests in the streets because it impoverishes the elderly and denies rights, while being extremely profitable for Pension Fund Administrators (AFPs)," says Uthoff, PhD in Economics from the University of Berkeley, former advisor to the International Labour Organization (ILO) and the Economic Commission for Latin America and the Caribbean (ECLAC). The reports were published in... Major Card.
Asked if the arguments of the Minister of Economy, Paulo Guedes, are "fake news" regarding the Pension Reform, the scholar states:
"First of all, the Chilean pension model is difficult to copy because it's a model implemented in dictatorships. If you're not in a dictatorship, it's very difficult to impose something like that. And I honestly don't want or recommend a return to dictatorship for Brazil. Secondly, they also sold many promises to the Chilean people. Workers would receive 70% of their salary, something that never happened. It's a system based on illusions. Guedes can say whatever he wants and he'll have at least 30 years before he's proven wrong. But I can assure you it won't be as he said."
Regarding the Chilean pension system, the economist cites "a very strong crisis." "The AFP system has not fulfilled its promise. The promise was simple: participants in this model could retire with 70% of their last salary. The average payment the system makes today is 35%. Far below what was promised. Pension fund experts say that, with the current structure, the system cannot improve, as it will not surpass these figures."