Abstract
The issue of pension reform has recently received a considerable amount of attention, both in developed and in developing countries. In the former group the interest arises from the fact that current demographic trends -which project a dramatic increase in dependency ratios over the nex 20 to 40 years- make the unfunded, pay-as-you-go pension systems currently in place in most of these countries, unsustainable. Some countries in Latin America, on the other hand, have pioneered the move towards funded private pension systems. Chile was the first country to move in that direction, followed in recent years by many others, including Mexico, Colombia and Argentina. The issue is also being discussed in Brazil.
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