COVID-19 and other recent crises have proved the need to review the state-of-play and implement robust institutional frameworks in the complex, heterogenous and decentralised European supervisory architecture. This insightful book outlines what can be done to innovate the current set-up in the face of pressing issues such as climate change, BigTech and crypto assets. Revisiting the debate on financial sector oversight in Europe, a range of highly acclaimed international academics and influential policymakers discuss the scope of institutional arrangements. Chapters examine how the architecture of European financial supervision currently works, analysing the trends in banking supervision design and the influence that recent financial and economic crises have exerted. Providing a rare insight into the role that central banks play in the supervisory set-up, their accountability and democratic legitimacy, the book also considers the ways that macro- and micro-prudential and monetary policies interact. Gleaning lessons from the FinTech revolution and the COVID-19 crisis, the book ultimately concludes by seeking a path for optimal architecture for European financial supervision. With invaluable industry insights, this cutting-edge book will prove vital to academics in the field of financial economics and financial regulation, alongside policymakers looking to transform their current supervisory architecture.

This thought-provoking book investigates the political and economic transformation that has taken place over the past three decades in Central, Eastern and Southeastern Europe (CESEE) since the fall of the Iron Curtain. Through an examination of both the successes and shortcomings of post communist reform and the challenges ahead for the region, it explores the topical issues of economic transition and integration, highlighting important lessons to be learned. Featuring contributions from both top academics and experienced policymakers, 30 Years of Transition in Europe first discusses the process of transition in CESEE from a historical perspective, analysing the impacts of differing approaches on economic and monetary policy, the role of central banks and the speed of reform in various countries of the region. Chapters also compare CESEE transformations to emerging economies in Asia, and examine contemporary concerns around financial and monetary stability, as well as exploring the long-term determinants of economic growth such as digitalization, climate change and demographic trends. Economists, central bankers, and policymakers in the banking sector and other international financial organizations will find this book an enlightening read. It will also be useful for academics in economics and politics with a particular interest in emerging European economies and European integration.

The successful macroeconomic stabilization in Central and Eastern European countries has encouraged inflows of foreign capital badly needed to promote economic development. Strikingly, these countries have found capital inflows in their various forms to be a mixed blessing, threatening the macroeconomic balance that they have recently achieved. These countries have learned that it is not easy to continue to attract foreign capital and simultaneously to reduce its adverse effects on inflation, the exchange rate and the current account, and to contain disturbances resulting from reversals of the flows. This book investigates recent experiences in Central and Eastern Europe and contrasts it with that of Latin America and East Asia, and suggests appropriate policies and lessons to be learned. The authors conclude that many features of, and policy dilemmas faced by, formerly centrally planned economies in Europe are similar to those in other emerging economies. However, certain unique characteristics such as data limitations and the fragility of the banking and financial systems, compound the problems faced by policy makers in Central and Eastern Europe. This book will prove invaluable to policymakers and scholars interested in and responsible for international finance in transition economies.

Theoretical and policy perspectives on the taxation of pension, viewed in an international context. Policy makers and academic researchers have been preoccupied in recent decades with the design of pension schemes and effective pension system reform. Relatively little attention has been given to the taxation of pensions and, more broadly, the provision of retirement income. In this book, experts from a range of countries explore the interconnection. Their contributions are especially timely, given recent demographic and political developments including population aging that lengthens the time between contribution payment and benefit receipt, the mobility of capital and labor brought about by globalization, and the complexity of pension taxation within and between countries. In shedding light on these issues, the chapters document the various forms of taxation of pension systems; use economic theory to explain both qualitative and quantitative observations; and consider whether the observed interaction of taxation and pensions is efficient. Theoretical overviews are followed by rigorous analyses of pension taxation in specific countries, including Denmark, Sweden, Portugal, Australia, Germany, the United Kingdom, and the United States. Contributors Torben M. Andersen, Spencer Bastani, Hazel Bateman, Soeren Blomquist, Axel Boersch-Supan, Jorge Miguel Bravo, Gary Burtless, Rafal Chomik, Helmuth Cremer, Carl Emmerson, Csaba Feher, Bernd Genser, Robert Holzmann, Paul Johnson, Alain Jousten, Christian Keuschnigg, Eric Koepcke, George Kudrna, Jukka Lassila, Luca Micheletto, Pierre Pestieau, John Piggott, Christopher Quinn, Tarmo Valkonen, Alan Woodland

Comprehensive reform of China s pension and social security system is an essential element of achieving its objectives of a harmonious society and sustainable development. Over the past few years, the Government has considered various options and initiated several significant measures. In 2009 the authorities established a national framework for rural pensions, the Rural Pension Pilot Program (RPPP) and in 2011 a Pilot Social Pension Insurance for Urban Residents announced. In this process, it has articulated principles for a reformed urban pension system (indicated by 12 Chinese characters ) which are broad coverage, protects at the basic level, is multi-layered, and sustainable while the principles for the rural system (indicated by 12 characters ) are broad coverage, protects at the basic level, flexible, and sustainable. These principles underpin the commitments made at the 17th Party Congress towards a comprehensive and integrated social security system by 2020. Although substantial reforms of the pension system have been undertaken over the past two decades, some policymakers have suggested that additional reforms are needed to meet the needs of China s rapidly changing economy and society. Issues such as legacy costs, system fragmentation and limited coverage have not been fully addressed. At the same time, many new challenges have emerged such as rapid urbanization, increased income inequality and urban-rural disparities, greater informalization of the labor force, changes in family structure, and the effects of increased globalization. This report has been prepared at the request of the Ministry of Finance to develop a medium term vision of a holistic framework that could be realized by 2040 for strengthening old age income protection in China which is consistent with the principles outlined in the 12 characters and design options towards achieving it. The main body of this report outlines this vision summarizing the key features of a proposed medium-term pension system while the annexes provide the deeper analysis and context which underpins the recommendations contained herein."

Nonfinancial Defined Contribution (NDC) schemes are now in their teens. The new pension concept was born in the early 1990s, implemented from the mid-1990s in Italy, Latvia, Poland and Sweden, legislated most recently in Norway and Egypt and serves as inspiration for other reform countries. This innovative unfunded individual account scheme created high hopes at a time when the world seemed to have been locked into a stalemate between piecemeal reforms of ailing traditional defined benefit schemes and introducing pre-funded financial account schemes. The experiences and conceptual issues of NDC in its childhood were reviewed in a prior anthology (Holzmann and Palmer, 2006). This new anthology serves to review its adolescence and with the aim of contributing to a successful adulthood. To this end the book offers a deep and comprehensive review of the experience of countries where NDC schemes have been in place for a decade or more, takes stock of the discussions of the place of NDCs in the world of pension reform, and addresses in detail important issues related to implementation and design, such as the of the "NDC story", making transparent the legacy costs, financial accounting, balancing, creation of a reserve fund, gender, and longevity. The book also contains analyses of the pros and cons of NDC contra FDC and a typical paygo DB scheme in two Latin American countries. The key policy conclusions include: (i) NDC schemes work well (as documented by the experience of Italy, Latvia, Poland and Sweden during the crisis) but there is room to make them work even better; (ii) Go for an immediate transition to the new scheme to avoid future problems; (iii) Identify the legacy costs and their explicit financing during the transition as they will hit you otherwise soon; (iv) Adopt an explicit stabilising mechanism to guarantee solvency; (v) Establish a reserve fund to guarantee liquidity; (vi) Elaborate an explicit mechanism to share the systemic longevity risk; and, last but not least; (vii) Address the gender implications of NDC with deeper analysis and open political discourse.

The use of matching contributions to enhance the participation and level of savings in pensions system has now been in use for nearly three decades in a number of high income countries. Increasingly, countries across the full range of economic development are looking to the design as a means of addressing the low rates of participation in formal pension and other retirement savings systems. A number of countries have recently introduced innovations in their pension systems that significantly rely on contributions matches and related types of direct subsidies to provide incentives for groups that mandates and other indirect methods such as preferential tax treatment have been unsuccessful in reaching. There is particular interest among developing countries in utilizing this design to extend coverage to informal sector and low income workers that typically do not pay income related taxes. This volume provides descriptions and analysis of the design, experience and outcomes achieved in the high income countries where there information about the dynamics and outcomes that this approach has achieved is not beginning to emerge. It also reviews new efforts to use the design in a number of other settings in which the matching contributions have been included as a significant element in reform of the pension system. The review of the experience with matching contribution across this full range of settings provides important observations and some initial lessons for policy makers and analysts who may be considering or evaluating the use of this approach to increase pension coverage.

Nonfinancial Defined Contribution (NDC) schemes are now in their teens. The new pension concept was born in the early 1990s, implemented from the mid-1990s in Italy, Latvia, Poland and Sweden, legislated most recently in Norway and Egypt and serves as inspiration for other reform countries. This innovative unfunded individual account scheme created high hopes at a time when the world seemed to have been locked into a stalemate between piecemeal reforms of ailing traditional defined benefit schemes and introducing pre-funded financial account schemes. The experiences and conceptual issues of NDC in its childhood were reviewed in a prior anthology (Holzmann and Palmer, 2006). This new anthology published in 2 volumes serves to review its adolescence and with the aim of contributing to a successful adulthood. Volume 1 on Lessons, Issues, Implementation includes a detailed analysis of the experience and the key policy lessons in the old and new pilot countries and general thoughts around the implementation of NDCs in other countries, including Chile, Greece and China. Volume 2 on Gender, Politics, Financial Stability includes deeper and new analyses of these issues that found limited or no attention in the 2006 publication. The key policy conclusions include: (i) NDC schemes work well (as documented by the experience of Italy, Latvia, Poland and Sweden during the crisis) but there is room to make them work even better; (ii) Go for an immediate transition to the new scheme to avoid future problems; (iii) Identify the legacy costs and their explicit financing during the transition as they will hit you otherwise soon; (iv) Adopt an explicit stabilizing mechanism to guarantee solvency; (v) Establish a reserve fund to guarantee liquidity; (vi) Elaborate an explicit mechanism to share the systemic longevity risk; and, last but not least; (vii) Address the gender implications of NDC with deeper analysis and open political discourse.

"Severance pay, a program that provides compensation to workers on termination of employment, is the most widely used income protection program for the unemployed-yet it is often blamed for creating economic inefficiencies such as reducing employment and limiting access to jobs for disadvantaged groups. Reforming Severance Pay: An International Perspective fills the knowledge gap in evaluating the international experience by providing a collection of worldwide overviews and labor market impact assessments, theoretical analyses, and country case studies. The authors summarize the performance of existing severance pay arrangements around the world and discuss recent innovative severance pay reforms in Austria, Chile, and the Republic of Korea. Reforming Severance Pay proposes policy directions based on country characteristics such as folding severance pay of higher income coun--tries into existing social insurance programs and making severance pay a contractual affair between market partners to live up to the efficiency-enhancing device in a knowledge-based economy. For lower income countries, the authors advise reforming severance pay toward realistic benefit levels, strengthening compliance of benefit payments by the employer, and safeguarding minimum benefits. This report will be of interest to policy makers and researchers working on labor market, unemployment benefit, and pension issues; economic policy reform; poverty reduction; and social analysis and policy."

All countries in the former transition economies of Central, Eastern, and Southern Europe have undertaken public pension reforms of varying depth and orientation, often with the support of the World Bank. Although the reformed public pension schemes provide broad benefit adequacy, in most cases additional measures are needed to achieve fiscal sustainability in an aging society. 'Adequacy of Retirement Income after Pension Reforms in Central, Eastern, and Southern Europe: Eight Country Studies' assesses the benefit adequacy of the reformed pension systems for eight countries Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania, the Slovak Republic, and Slovenia to identify policy gaps and options. The authors identify the motivations for reform against the backdrop of the trend toward multi-pillar arrangements, document key provisions, and compare them in the context of the World Bank's five-pillar paradigm for pension reform. They then evaluate the sustainability and adequacy of reformed pension systems and provide recommendations to address gaps and take advantage of opportunities for further reforms. The case studies and summary suggest the following broad policy conclusions: Fiscal sustainability has improved in most study countries, but few are fully prepared for the inevitability of population aging. The linkage between contributions and benefits has been strengthened, and pension system designs are better suited to market conditions Levels of income replacement are generally adequate for all but some categories of workers (including those with intermittent formal sector employment or low lifetime wages), and addressing their needs requires initiatives that go beyond pension policy. Further reforms should focus on extending labor force participation by the elderly to avoid benefit cuts that could undermine adequacy and very high contribution rates that could discourage formal sector employment. More decisive financial market reforms are needed for funded provisions to deliver on the expectations of participants and keep funded pensions safe. This book will be of interest to policy makers, researchers, and everyone interested in the topic of pensions in the region, and beyond."

In high-income countries, the percent of the population covered under mandatory old-age pension programs is typically high but often incomplete; in low- and middle-income countries, coverage is low and even stagnant. At the same time, older people are less able to rely on family and community support as a result of growing urbanization and migration. And low-income workers and the poor simply cannot save enough to prepare for their old age. As a response, many countries are considering or have already implemented various forms of retirement income transfers aiming to guarantee a minimum level of income during old age. Despite the growing popularity of these programs, research assessing their success has been limited. 'Closing the Coverage Gap: The Role of Social Pensions and Other Retirement Income Transfers' brings together a group of renowned academics, policy analysts, and policy makers working in the area of pensions and public policy. They discuss how social pensions and other retirement income transfers can be used to close the coverage gap of mandatory pension systems: how they operate, when they can be appropriate, and how to make them work. The book reviews the experiences of low-, middle-, and high-income countries with the design and implementation of retirement income transfers. The book analyzes design issues related to financing, incentives, targeting mechanisms, and administration, and also identifies the role of promising instruments such as matching contributions to reach parts of the informal sector.

Population aging is placing enormous pressures on the pension benefits governments are able to provide. The former transition economies of the countries of Central, Eastern, and Southern Europe (CESE) face unique challenges. The growth of their aging populations outpaces other European countries, while the growth of their financial markets (essential to fund pension provisions) lags behind. With support and direction from the ERSTE Foundation, an Austrian group focused on Central European policy issues, a World Bank team investigated the challenges faced by these countries against the background of international experience from the OECD countries and Latin America. ""Aging Population, Pension Funds, and Financial Markets: Regional Perspectives and Global Challenges for Central, Eastern, and Southern Europe"" examines how well the financial systems in the CESE economies were prepared for the challenges of multipillar pension reform, how ready they are for the approaching payout of benefits to the first participants, whether returns from pension funds can be sustained in an aging population, and how determined policy actions might be implemented to complete financial market development.

Policymakers worldwide are struggling to adapt their pension systems to the reality of aging populations, globalization, and tightening budgets. The World Bank actively supports these policymakers by helping them to identify the economic and demographic challenges facing them to highlighting potential policy responses and providing implementation support. 'New Ideas about Old Age Security' is a selection of papers presented at a conference in September 1999 convened by the World Bank and attended by leading academics and policymakers from around the world. These papers, which have subsequently been revised, contain a sample of the most recent thinking in the global debate over pension reform. The papers in this volume explore a wide variety of pension reform issues. Some of the topics covered in this book include new approaches to multi-pillar pension reform, the relevance of index funds for pension investment in equities, and managing public pension reserves.

The first phase of transition to a market economy in Central and Eastern Europe was characterized by a sharp decline in output. The fall in real GDP exceeded 20% while real industrial production even decreased by 40%. This text provides comprehensive multi-factor explanations for this unique and painful experience. Various hypotheses are analyzed: credit and fiscal policies may have been too tight; the collapse of the CMEA and the USSR came as a shock; domestic producers were neither experienced, nor flexible enough to adjust the output to new patterns of demand. It contains a combination of authors from East and West who have extensively analyzed new data based on national studies. If we can understand the causes of recent output decline then we can hope to assess the prospects for Eastern Europe. The book is intended for researchers and students as well as interested officials who deal with the transition of formerly centrally planned economies in Central and Eastern Europe.

Das Lehrbuch ermoeglicht einen schnellen Einstieg in (wirtschafts-)ethische Grundlagentheorien sowie in die moralische Verhaltensoekonomik, die angesichts weitreichender Unternehmensskandale zunehmend in den Fokus akademischer Lehrplane ruckt. In pragnanter, verstandlicher Weise werden die wesentlichen (wirtschafts-)ethischen sowie moralpsychologischen Theorien erlautert. Kurze Lerneinheiten, ubersichtliche didaktische Module sowie die begleitende Lernkontrolle sorgen fur eine nachhaltige Wissensvermittlung. Es richtet sich damit an alle, die sich mit Fragen der Wirtschaftsethik im Rahmen ihrer Aus- und Weiterbildung (auch im Nebenfach) sowie ihrer beruflichen Praxis auseinandersetzen.

Offering public pensions with an account scheme that pays out what one paidin plus interest, and that keeps the system financially sound while not using financial markets has emerged as a reform benchmark for all pension schemes worldwide. The publication analyses country experiences, design and operational challenges, and solutions.

The World Bank commitment to Social Protection and Labor (SP&L) activities began in earnest in the late 1980s with the first social funds to help communities cope with short-term adverse impacts of structural reforms. In the early 1990s the Bank got deeply involved in the transition from plan to market and the need to address the related social policy problems. In recognition of the importance of these issues for poverty reduction and development, the SP&L sector was created in 1996 as part of the Human Development Network. This institutional focus was conducive to rethinking the role of social protection in development and to articulating a new conceptual framework and strategy. Social Protection and Labor at the World Bank, 2000-2008 presents a progress review of sector strategy by the World Bank, published in early 2001. The strategy proposed a new conceptual framework Social Risk Management to review and reform existing interventions and propose new ones that better assist vulnerable people in addressing the many risks to which they are exposed. Based on this framework and in line with the World Bank s vision and mission of poverty reduction and inclusive and sustainable globalization, the SP&L strategy has three broad policy objectives: Improving earning opportunities and the quality of jobs Increasing security through better risk management for households and communities Enhancing equity and reducing extreme poverty through better assistance programs for vulnerable groups. The review of strategic objectives and the sector results since the strategy launch include a stocktaking of the analytical work and lending operations for each of the six core competence areas: Labor market Social security Social safety nets Social funds Disability and development Risk and vulnerability analysis The review results reveal the progress made in the understanding of the importance of social risk management for poverty reduction and its critical contribution to equitable and sustainable globalization. The breadth of analytical work and lending operations across the areas o f core competence are testimony to the impact of the strategy had on poor and vulnerable people in partner countries. The lessons learned are critical to address the current food and energy prices crisis through social safety nets, youth unemployment through better school-to-work transition, and poverty among the elderly persons through multipillar pension schemes. The book documents the progress made in the implementation of the World Bank s SP&L strategy, which assists the vulnerable to better manage the risks. The reviews of the strategic directions, the achieved results, and the analytical work and lending operations suggest substantial progress; they also point out the need for further work at the level of data, empirical analysis, policy design, and implementation. This book will be of interest to members of the international community, government, nongovernmental organizations, and researchers working in the areas of labor markets, pension reform, social safety nets, social funds, disability issues, and vulnerability analysis."

In der vorliegenden Arbeit wird ein neuer Ansatz fur die Analyse von Lebenseinkommen, und darauf aufbauend ein neues wohlfahrtsfundiertes Masskonzept fur Lebenseinkommensverteilungen entwickelt, welches ein geeigneteres Instrumentarium fur Verteilungs- und Umvertei ungsanaly- sen darstellen sollte als die traditionellen Konzepte. Obwohl der Be- handlung von Lebenseinkommen in theoretischen und empirischen Studien zunehmend Aufmerksamkeit geschenkt wird, bleiben in diesen eine Reihe von Fragen und Problemen offen. Auf einige dieser Fragen und Probleme glaubt der Autor Antwort geben zu koennen. Im Zuge der Entstehung der Arbeit konnte der Autor von einer Reihe wertvoller Diskussionen und Anregungen profitieren. Besonders gedankt sei hierbei Dieter Boes (Universitat Bonn), Gerhart Bruckmann, Bernd Genser und Gerhard Orosel (alle Universitat Wien), Erich Streissler (University of StanfordjUniversitat Wien), Winfried Schmahl (FU Ber- lin), Alexander Van der Bellen (Universitat Wien) und Robert von Weizsacker (Universitat Bonn). Einzelne Teile der Arbeit konnten im finanzwissenschaftlichen Privatissimum der Universitat Wien, am Oster- treffen des "Heiligenkreuzer Arbeitskreises" und im Forschungsseminar des Department of Economics (University of Bristol) vorgetragen wer- den. Den Teilnehmern dieser Veranstaltungen sei fur ihre konstruktive Kritik gedankt. Ein mehrwoechiger Forschungsaufenthalt an der Univer- sity of Bristol und die zahlreichen Diskussionen mit Angus Deaton und Martin Browning haben letztlich viel zur Abklarung des Ansatzes beige- tragen. Die mit der quantitativen Abschatzung des Ansatzes verbundenen umfang- reichen EDV-Arbeiten erforderten einen hohen Zeit- und Kernspeicherbe- darf. Fur das von den Verantwortlichen des Rechenzentrums der Univer- sitat Wien gezeigte grosszugige Entgegenkommen sei ihnen an dieser Stelle gedankt.

This is the third publication to analyze progress, challenges, and adjustment options of this reform revolution for mandated public pension schemes. The individual account-based but unfunded approach that promises fair and financially sustainable benefits is a reform benchmark for all pension schemes. Nonfinancial defined contribution (NDC) schemes originated in the 1990s independently in Italy and Sweden, were then adopted by Latvia, Poland, and Norway, envisaged but not implemented in various other countries (such as Egypt and Russia), and remain under discussion in many countries across the world (such as China and France). In its complete form, the approach also comprises budget-financed basic income provisions and mandated or voluntary funded provisions. Volume 1 offers an assessment of early reform countries before addressing key aspects of policy implementation and design review, including: how to best combine basic income provisions with NDC; how to deal with heterogeneity in longevity; and how to adjust NDC design and labor market policies to deliver on reform expectations. Volume 2 addresses a second set of important issues, including: the gender pension gap and what family policies can do within the NDC frame; the administrative challenges of NDCs and how countries are coping; the role of communication in NDCs; and the complexity of cross-border pension taxation, and much more

Gegenstand dieses Buchs ist die Frage, wie die Budgetpolitik gestaltet werden soll, um eine nachhaltige Entwicklung der Staatsverschuldung zu gewahrleisten. Die Beitrage berucksichtigen dabei sowohl kurz- und mittelfristige konjunkturelle Auswirkungen von Staatsschulden wie Wachstumseffekte. Einen Schwerpunkt bilden die Probleme in der Eurozone, die durch die Staatsschuldenkrise im Gefolge der Grossen Rezession besonders betroffen war. Neben Untersuchungen zu den institutionellen Besonderheiten des Euroraums zeigen die in diesem Buch enthaltenen Landerstudien, wie man testen kann, ob Entwicklungspfade der Staatsverschuldung nachhaltig sind, und welchen Herausforderungen sich die nationalen budgetpolitischen Entscheidungstrager bei der Sicherung der Nachhaltigkeit gegenuberstehen.