three models: a) Substitutive, which closed the public system and completely replaced it with a private system(Chile, Bolivia, Mexico, El Salvador, and the Dominican Republic); b) Mixed, which maintained the public system as a pillar and added the private system as a second pillar(Argentina, Costa Rica, Uruguay, and Panama); and c) Parallel, which kept the public system and added the private system, the two systems competing with each other (Colombia and Peru)(Mesa-Lago, 2008). The structural reforms listed by the year of entry into force were as follows: Chile(1981), Peru(1993), Argentina and Colombia(1994), Uruguay(1996), Bolivia and Mexico(1997), El Salvador (1998), Costa Rica(2001), Dominican Republic(2003), and Panama(2008). Table 1 shows the degree of privatization in the private system/pillar and the insured in the system/pillar or the remainder of the public system in the nine countries. In four of them, between 92% to 100% is in the private pillar(in the mixed models of Costa Rica, Panama, and Uruguay 100% is in the public pillar as all the insured must be there); in the parallel models of Colombia and Peru proportions are 71.3% and 65.7% respectively; and in Panama only 15.6%(see Figure 1). Table 1. Degree of Privatization in the Private System/Pillar in the Nine Countries, 2018-20 Countries a Mexico Chile El Salvador Dominican Republic Uruguay Costa Rica Colombia Peru Panama % in the System/Pillar Regarding Total Coverage Private Public b 100.0 0.0 99.5 0.5 99.0 1.0 92.2 7.3 78.4 100.0 d 72.0 c 100.0 c 71.3 29.7 65.7 34.3 15.6 100.0 d 19
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Evaluation of four decades of pension privatization in Latin America, 1980-2000 : promises and reality
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