OECD officials elaborated on this first aspect:“An important justification for pension reform in Latin America has been its expected benefits for capital markets. The growth of pension funds... can help make capital markets more resilient and dynamic... Deep and liquid domestic capital markets can also help curtail dependence on foreign capital, and thus reduce the economy vulnera­bility to external shocks...”(Gill, Packard, and Yermo, 2005: 57). The Mexican Reform Law claimed in its preamble that pension privatization would promote domestic savings and the local capital market, which in turn should promote growth and employment. b) Significant reduction and eventual elimination of fiscal costs generated by public PAYG systems. c) Evasion: In defined benefit systems,“high-rate taxes lead to evasion thereby defeating the purpose of the mandatory scheme. They also lead to strategic manipulation that enables workers to escape much of the tax, but still qualify for benefits—causing dif ­ficulties for the broader economy...” As an alternative,“mandatory savings schemes may be privately and competitively managed, in which case they are likely to have fewer… incentives for evasion[and] allow the reduction of effec ­tive tax rates”(WB, 1994: 224, 202).“Because pension benefits in defined-ben ­efit PAYG systems often have little relationship to mandatory contributions, both workers and firms can view contributions to these systems as a tax rather than as savings. In developing countries with dual[formal and informal] labor markets, this perceived tax creates incentives for evasion, thereby reducing participation[payment of contributions] in the pension system and lowering coverage-levels”(Gill, Packard, and Yermo, 2005: 97). Piñera(1992: 17) ratified that the private system is an incentive for the contribution:“It forces workers to make a minimum effort every month.” d) High capital returns: An individual fully-funded system“also allows workers to increase their returns and insure against political or other country-specific risks through international diversifi ­cation of investments… The rate of return to workers in the Chilean system has been much higher than in countries with centrally managed mandatory savings pillars”(WB, 1994: 213, 244). e) Protection against aging:“The PAYG system is practically unfeasible… for strictly demographic reasons… the system is bound to finance the pensions of a growing group of pensioners with the imposition of a contingent of workers that is growing in smaller proportion. At the beginning, 91