This book explores the linkages between age-related pension expenditures and the fiscal space needed to fund them, as well as to organize the mix of financing methods with different risk-sharing arrangements. After critically assessing the existing models projecting age-related expenditure in the literature, the book focuses on the case studies of these inter-linkages in four highly-populated East Asian countries, namely China, Indonesia, India, and Japan. Nearly two- fifths of the global population live in these countries. Therefore, how these inter-linkages manifest themselves and the initiatives in these countries for finding fiscal space will have an impact on how the ageing issues are addressed globally.
This book does several distinguishing characteristics, including exploration of inter-linkages between age-related expenditure and fiscal space, and application of country-specific methods to explore these linkages, rather than relying standard macroeconomic model. In the process, the studies also bring out the limitations of standardized model used in the literatures. Scholars and policy makers interested in the subject will definitely find the book of valuable use.
Table of Contents
1. Age-Related Pension Expenditure and Fiscal Space. An overview, Mukul G. Asher and Fauziah Zen 2. Modelling Pension Expenditure. Selected issues, Junichiro Takahata 3. Public Pension System and Fiscal Policy Response in China, Jin Feng and Qin Chen 4. Age Related Pension Expenditure and Fiscal Space in India, Mukul G. Asher and Yutika Vora 5. Pension System and Its Fiscal Implications in Indonesia, Hefrizal Handra and Astrid Dita 6. Policy Challenges in Indonesian Social Security, Bambang P.S. Brodjonegoro, Suahasil Nazara, and Fauziah Zen 7. Japan’s Public Pension Expenditure Projections. When will the macro-economy indexation work?, Junichiro Takahata
Mukul G. Asher is a Professorial Fellow at the Lee Kuan Yew School of Public Policy, National University of Singapore. He specializes in social security issues in Asia and in public financial management.
Fauziah Zen is an economist at the Economic Research Institute for ASEAN and East Asia (ERIA). She is also an associate professor at the Faculty of Economics, University of Indonesia. She has been working with the governments in ASEAN in the field of fiscal policy, infrastructure issues, disaster risk reduction, and social security. She also serves as an advisor to the Finance Minister of Republic of Indonesia on the fiscal decentralization issue. She obtained her PhD from Hitotsubashi University, Japan.
'The book takes a vital step in exploring the link between age-related pension expenditure and the generation of ﬁscal space. The authors’ expertise in the area has provided readers of this book with a comprehensive analysis of pension systems in these countries, the predominant issues, the ﬁscal burden due to increasing costs, and how to generate ﬁscal space to maintain the viability of the pension systems. [...] It provides a comprehensive analysis and a great insight into a key area of welfare provision, which is signiﬁcantly important for many countries around the world. Discussions of the experiences and issues in developing countries and the analysis of the sustainability of these schemes provided in the book provide vital information and lessons for many emerging economies. [...] In conclusion, this book can be highly recommended for policymakers and researchers. It is a vital addition to the social security and pension literature.' — Asian Pacific Economic Literature, Volume 31 Issue 2
'In conclusion, this book provides a good explanation of the relationship betweeen public pension expenditure and fiscal space, especially in the four countries discussed'. — MULIADI WIDJAJA, University of Indonesia