In Argentina there was little public discussion and few debates in Congress on the re-reform, which was quickly approved by a significant majority of the government in Congress, supported by the two largest union federations, the opposition of employers and AFJP and with no input from experts, civil society, and other stakeholders. 79 Transferring the insured and the capital accumulated in the private pillar, respectively, to the public system(Sistema Integrado Previsional Argentino: SIPA) and the public PAYG collective fund (FGS) affected some 3.7 million insured individuals in the private pillar. Argentinean insured had not responded to previous legal options to be transferred to the public system, but unlike the massive street demonstrations held during the 2001 economic crisis(due to the banking“corralito”), the re-reform did not led to union protests or demonstrations against the aforementioned mandatory transfer of funds and insured individuals, other than a few unsuccessful lawsuits—an obvious behavior resulting from the flaws of the structural reform and the private pillar, as well as from their inability to obtain the support of society. The Bolivian government conducted extensive negotiations, granted concessions, and entered into an agreement with the most important labor federation(COB), but the employers’ federation and other relevant sectors were not consulted. A wide debate was held in the National Assembly and the law was approved by a two-thirds majority held by the government. 80 After the re-reform was approved, there were conflicts with the COB, which went on strike and received other concessions. In Chile, President Michele Bachelet appointed an advisory board with 15 representatives from all sectors of society to: study the re-reform, discuss it at numerous public meetings, and submit a report proposing changes to 79 Conversely, the 2005-2007 parametric corrections in Argentina were based on public discussions in 2001-2003, technical studies, and experts’ recommendations. 80 In a survey conducted in 2008 before the Bolivian re-reform, among affiliates, contributors, unaffiliated individuals, and pensioners, only 38% wanted to maintain the private system(these was the high-income group that wanted to keep individual accounts) and 61% supported a new system. 128
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Evaluation of four decades of pension privatization in Latin America, 1980-2000 : promises and reality
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