UNDP Blue Ribbon Analytical and Advisory Centre | In Focus

BRAAC Presented in Donetsk the Brochure "Pension Reform: A Challenge for Ukraine"

Donetsk, 6 November 2008 – the Blue Ribbon Analytical and Advisory Centre, a UNDP-led and EU-funded project, presented brochure “Pension Reform: Challenge for Ukraine”, aimed to revive public debate on pension reform in Ukraine. Presentation in Donetsk was to continue a series of regional launches of the brochure, which was earlier presented to high level officials, experts, journalists and broad public in Volyn region at the meeting of the Verkhovna Rada Committee for Pensioners, Veterans and People with Disabilities,jointly with the Ministry of Labour and Social Policy of Ukraine, Pension Fund of Ukraine, at the events in Odessa and Kyiv , as well as at various round tables and conferences of employers and of trade unions.

BRAAC presented the brochure “Pension Reform: A Challenge for Ukraine” within the public awareness campaign on key aspects and models of pension reform. “Through this publication BRAAC aims to contribute to better understanding of policy challenges and options existing in the area of pensions in Ukraine. Namely, this brochure shows why such measures as introduction of individual pension accounts and establishment of higher retirement age are necessary to support future pensioners. Finally, we believe that a well-informed public debate, also at regional level, can help achieve a consensus allowing for implementation of the reform.” – said Mr. Marcin Swiecicki, UNDP BRAAC Director.

The presentation was funded by the Embassy of the Republic of Poland and organized by BRAAC in cooperation with the Oblast State Administration, and Main Department of Pension Fund of Ukrainein Donetsk oblast. Around 100 participants attended the presentation and debated the pensino reform issues, including representatives of local authorities, private companies, NGOs, universities and students etc.

The brochure, developed by Mr. Marek Gora, one of the fathers of pension reform in Poland, argues that without the reform current demographic trends will gradually push Ukraine’s pension system towards financial crises because number of pensioners will be growing at an accelerated rate. According to Institute of Demography and Social Sciences of the National Academy of Sciences of Ukraine, by 2050 there will be 139 pensioners per 100 contributors. “Each worker will have to work for himself and besides make contributions to cover pension of one pensioner, plus almost 40% of pension of another pensioner”– says the publication. Hence, traditional pension system design is socially and economically inefficient, argues the publication.

The study, initiated by the Centre, presents rationale for reform, explains what the possibilities of rationalization of the traditional pension system and of a more profound reform are. Based on international experience the study says there are several options for rationalized pension system including establishment of higher retirement age, contributing to higher employment, indexation. However, according to the authors, experience of other countries shows that implementation of these measures is not enough and profound reform means introduction of a system, based on individual pension accounts. This system is based on quite simple principle: after retirement a worker will receive back the amount that he/she paid as contributions plus interest earned from his/her pension savings, whereas the state is only to regulate the system and guarantee minimal pensions.

Such an approach would stimulate working population to contribute to her/his pension account in a more systematic way and work for more years: “Since monthly pension is calculated on the basis of the average life expectancy the pensioners who is lucky to live longer than average live expectancy for pensioners will get more than his/her contributions plus interest whereas the pensioner who lives less than average will get less than his/her account provides. This feature of the system is based on insurance principles”, argues publication.

The choice of pension reform options belongs to Ukraine solely, but it is clear that delaying reform will lead to serious social, economic and political losses: the longer the reform will be delayed the more resources it will demand from Ukraine and the Ukrainians.

For more information please contact Mr. Andriy Zayika, tel. +380 44 253 58 66, e-mail: andriy.zayika@undp.org

The event is co-financed by the Polish aid programme of the Ministry of Foreign Affairs of the Republic of Poland

Київ, 19 грудня 2008 року - в Міністерстві економіки України відбулася зустріч Міністра економіки Богдана Данилишина з Координатором системи ООН в Україні Френсісом М. О’Доннеллом. Міністр економіки Богдан Данилишин висловив вдячність Представництву ООН в Україні за постійну та цілеспрямовану підтримку та допомогу у діалозі з донорською спільнотою з питань координації міжнародної технічної допомоги в Україні, а також Програмі Розвитку ООН, Європейській комісії за всебічну підтримку, яка надається Україні в рамках програм та проектів міжнародної технічної допомоги, що набуває особливого значення в період підготовки та реалізації програмних документів та заходів щодо запобігання поширенню наслідків міжнародної фінансової кризи. За словами Міністра, завдяки динамічному розвитку співробітництва сьогодні в Україні діє понад двадцять проектівтакої допомоги.

2008-12-01

BRAAC Co-organized Round Table on How to Find the Way Out of Financial Crisis

1 December 2008, Kyiv– UNDP Blue Ribbon Analytical and Advisory Center co-organized and held together with the Institute for Economic Research and Policy Consulting, the Diplomatic Academy of Ukraine and the National Committee of the International Chamber of Commerce the round table “Coping with Effects of International Financial Crisis: Searching for Proper Policy Response”. The aim of the round table was to identify proper national measures and instruments to mitigate negative economic impact of the crisis. The Institute for Economic Research and Policy Consulting presented brief report on how to cope with the crisis, which was discussed during the session moderated by Mr. Marcin Swiecicki, BRAAC Director.

2008-12-01

BRAAC Presented in Sumy the Brochure “Pension Reform: A Challenge for Ukraine"

Sumy, 1 December 2008 – the Blue Ribbon Analytical and Advisory Centre, a UNDP-led and EU-funded project, presented brochure “Pension Reform: A Challenge for Ukraine”, aimed to revive public debate on pension reform in Ukraine. Presentation in Sumy, co-funded by the Polish Aid Programme of the Ministry of Foreign Affairs of the Republic of Poland, continued a series of regional launches of the brochure and was organized by BRAAC with the support of the Ukrainian Academy of Banking of the National Bank of Ukraine and was attended by students, teaching staff of the Academy, interested experts etc. Ms. Inna Chapko, BRAAC analyst, Ph.D., outlined the key findings of the study and debated with participants the major issues arising in the course of pension reform in Ukraine, as well as possible models of the reform to be applied in the country.

2008-11-27

The Establishment of Agricultural Land Market is a Pre-condition for the Development of National Economy, say BRAAC experts

Poltava, 27 November 2008 - a round table on "Challenges of agricultural land market development and operation in Ukraine" initiated by the UNDP Blue Ribbon Analytical and Advisory Centre and supported by Poltava Oblast State Administration, was held in the premise of the "Palazzo" hotel conference-hall.

2008-11-17

BRAAC Presented in Lviv the Brochure “Pension Reform: Challenge for Ukraine"

Lviv, 14 November 2008 – the Blue Ribbon Analytical and Advisory Centre, a UNDP-led and EU-funded project, presented brochure “Pension Reform: Challenge for Ukraine”, aimed to revive public debate on pension reform in Ukraine. Presentation in Lviv was to continue a series of regional launches of the brochure, which was earlier presented to high level officials, experts, journalists and broad public in Volyn region at the meeting of the Verkhovna Rada Committee for Pensioners, Veterans and People with Disabilities, jointly with the Ministry of Labour and Social Policy of Ukraine, Pension Fund of Ukraine, at the events in Odessa, Kyiv and, Donetsk as well as at various round tables and conferences of employers and of trade unions. The presentation was organized by BRAAC in cooperation with the Oblast State Administration, Main Department of Pension Fund of Ukraine in Lviv oblast and Main Department of Labour and Social Policy in Lviv oblast and co-financed by the Polish aid Programme of the Ministry of Foreign Affairs of the Republic of Poland.

BRAAC Presented in Donetsk the Brochure "Pension Reform: A Challenge for Ukraine"

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