Retirements: what the government says about the pension reform and the objectives of harmonization with the IMF

As part of the celebration of the international day “Democracy and social security: affirmation of the principle of solidarity and universality” The nation’s labor minister, Raquel “Kelly” Olmos, highlighted the broad coverage of the social security system and outlined the need to discuss changes, according to one of the concepts that was the backbone of the meeting.

In this sense, at the conference he organized Ibero-American Social Security Organization (OISS). The minister spoke about the importance of the “affirmation of a solidarity system meet the needs of those who have less”, after oppose the negative consequences of privatization of contributions and contributions through AFJP.

“That was one of the causes of the biggest fiscal crisis in 2001, which led to the deepest financial economic crisis that Argentina has experienced with difficult balances such as unemployment, informality and poverty levels,” he said.

Olmos immediately asked not to return to the dynamics where financial interest prevails “where it is short-term speculative flow of capital brings indirect benefit, but they leave scorched earth when they retreat” and pointed out additional pressure from the international context.

external factor

At this point, while the economic technicians are delaying the order from International Monetary Fund which indicates “special regimes” to adjust spending on social security, described the concept of Olmos “international distribution offer”.

He used it to explain the tensions he assumed support for the social security system, also from external aspects such as debt that Argentina faces with international organizations.

“The debate on income distribution is key to building a more democratic society” he said, but he didn’t just focus on the tripartite negotiations involved in the The state, companies and workers in the local area, but now also on foreign actors.

“Today,” he explained, “since the post-pandemic and the war, an inflationary process has been going on that the world was not aware of; to solve it, Interest rates”.

Consequently, he considered that the financial creditors arguing “for part of the income and savings” of the Argentines “they condition the financing of the social security policy”.

recalculating

He correctly pointed out that game forecasts started with rates tending to zero and today are around 5%: “with levels indebtedness which we inherited, in the budget we have to redefine the loads based on the new reality“.

Faced with a system affected by external and internal factors that records close to a 40% informalityOlmos was open to revisions, but took aim at those proposing to remove contributions. “It is no coincidence that the neoliberal sectors seek to eliminate the funds that support the solidarity system”indicated.

During the conference, with the presence of experts from the domestic and international sphere, advantages of the inclusive systemhowever, there are pronounced shortcomings that began to show themselves after the fall in formal employment after the peak between 2003 and 2008.

coverage uh

Analysts acknowledged reporting on Universal child allowance (AUH) which reaches 8 million users, but warned that it has failed to solve structural problems like child poverty which currently affects 50% of girls and boys in the country.

Walter Arrighian expert in social security systems, pointed out that in 2005 it was predicted that the retirement level would decrease from 70% to 50% of the adult population.

Although he pointed out the pressure currently created by the inclusion of users due to the moratorium, he emphasized that they enabled the expansion of coverage to 89.6% of women over 60 and 92.4% of men over 65.

challenges and pension reform

However, he warned that new challenges predict “tsunami” from pressure created by special regimes and overlapping systems; lack of solidarity; system breakdown; prosecutor’s office and defunding.

At this stage, Luis Bulit Goñithe secretary of social security, analyzed the situation and he didn’t rule one out pension reform. “We owe each other a deep, serious discussion, devoid of interest, but with interests on the table,” he said and assumed that “It is difficult to discuss the rules of the game in Argentina”.

We owe each other a deep, serious discussion, devoid of interest, but with interests on the table. It is difficult to talk about the rules of the game in Argentina

for his part, Diego Xavier Schleserthe undersecretary for planning, studies and statistics assured that the principles of solidarity, equity and universality are “in conflict” which is why he considers them “significant” to unraveling the achievements of the system.

“Supporting the guidelines – he clarified – does not mean not taking them into account challenges faced by the social protection system today; there are questions that must be resolved yes or yes”.

Among them, he mentioned demographic changes, transformations and the future in work modalities, fiscal sustainabilitybut he was of the opinion that “the current system should be enriched, without changing the principles that guide it”.

Online, after stating that the current mechanism achieved a record recovery of registered employment, which today reaches 13 million jobs, Minister “Kelly” Olmos did not close the possibility of discussing the changes.