ABSTRACT
This chapter reviews the current state of knowledge about pension policy and pension policy formulation in emerging economies undergoing demographic transition, and with this background indicates directions for further policy development. The countries we consider are primarily located in East and Southeast Asia, a region that is home to more than 30 percent of the world’s population, and are characterized by increasing life expectancy, falling and/or low-fertility rates, relatively immature social protection policy structures, high rates of informal employment, and in many cases, high rates of co-residency.
These features point to the relevance of strands of research that do not normally sit together in thinking about the evidence base for pension policy formulation and its impacts. They include fiscal implications, impacts on economic growth and intergenerational affordability, the relationship between alternative pension models and labor market (in)formality, the role of public benefits in the context of multigenerational households and intergenerational transfers, and issues related to pension administration for older people who have worked in the informal sector for most or all of their lives.
The chapter documents what we know about these various aspects of the issue and identifies knowledge gaps. Based on the evidence we do have, we indicate policy reform directions, in particular regarding expansion—or for some countries—introduction of social pensions directed to older people who have worked in the informal sector.
