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A Bolivian Christmas?
Carlos Valdez of Bloomberg reports, Bolivia cuts retirement age, nationalizes pensions:
Bucking a global trend, leftist-led Bolivia is lowering its retirement age and nationalizing its pension funds.
Bolivia's
Congress approved legislation early Friday to make Bolivians eligible
for full pensions at age 58. The country's 70,000 miners will get to
retire two years earlier.
The previous retirement age was 65 for men and 60 for women.
Bolivia's
decision to lower its retirement age runs counter to a global trend to
raise retirement ages as life expectancies rise, birth rates drop and
national treasuries come under strain from pension obligations. France
raised its minimum retirement age to 62 last month -- full benefits
aren't available now until 67 -- while Greece is drastically cutting
back early retirement opportunities.
President
Evo Morales had pushed hard for the pension reform law, which also
brings the landlocked Andean nation's pension system under state
control and extends pension protection to the 60 percent of Bolivians
who work in the informal sector and currently lack pensions.
Morales is expected to sign the law, which is scheduled to take effect in mid-2011.
Bolivia's
Federation of Private Employers opposed the law, expressing skepticism
the new system will be sustainable. Thirteen years ago, Bolivia
privatized its pension funds after a state-run system collapsed.
The
country's two privately run pension funds -- covering 1.2 million
workers and run by Zurich Financial Services and the BBVA bank -- will
now revert to state control.
The
law creates a "solidarity fund" into which workers and companies will
pay. It will provide minimal pensions to informal sector workers who
make voluntary contributions of their own for 10 years.
Bolivia's
worker's federation, known by its Spanish initials COB, has been a
strong supporter of Morales, a former coca growers' union leader who is
also the country's first indigenous president.
And there you have it. While austerity and right-wing economic policies
are being implemented in countries struggling to reduce their debt, the
little tiny nation of Bolivia decided to buck the trend, lower the
retirement age, and nationalize pensions. I know a lot of you are
thinking "what's President Morales sniffing?", but maybe he's onto
something (or at least he thinks so -- this is just an extreme case of
pension politics). In any event, Christmas came early to Bolivia this
year, but it remains to be seen how well this "solidarity fund" will do
in the future. Nationalizing pensions buys you some votes and some time,
but it will ultimately fail because of massive corruption and total
lack of governance.
»
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Great stuff indeed, I am happy to find it. Thanks for information.
Who gives a shit? I mean other than you Leo. This is like having a celebration for putting the cart before the horse. Why don't you wait 10 years to see if the move helps the retirees? Then pander your Socialist love affair under American noses so we can smell the shit.
Fox or MSNBC news type crap article!
Some of you really need to read between the lines. I'm not a socialist, nor a right-wing nut, and I edited my comment to explain that this is just another case of extreme pension politics which is doomed to fail.
I posted before the edit (and my morning coffee) it seems. I retract my snarly, ass, statement. Please forgive my rudeness?
Dare I say it, forgive me as well, Leo?
If you had wanted your article to convey an ironic or satiric tone, however, you might want to not veil it quite so thickly next time. I do not consider myself the most obtuse reader by any means, but your intended satire flew right past me.
.
Yea the govt control is working out real good for Venezuela.... Bolivia just wanted to get their hands on the money. Check out how many time the US govt raided SS trust fund...now it is trashed. But if you think this is a great idea...move down there and let us know how it goes.
cods tongues and cheeks with scrunchens and onions with hard bread and lots of potatoes. you have relatives in bolivia leo. maybe in the resturant business?
All of you need to chill! It was written tongue & cheek!!!!!!
Tongue in cheek, for the half dozen of us who still care about the King's English.
I stand corrected. Tongue in cheek. ;)
"All of you need to chill! It was written tongue & cheek!!!!!!"
It's hard to tell with you sometimes Leo.
One minute it's whatever the market will bear...the next it's taxpayer subsidized solars.
Bolivians may find, upon retirement, all they are "entitled to" is whatever government deems necessary to sustain life...which could be just bread & water and a six month wait to remove an inflamed gall bladder...LOL.
Don't cry for me Argentina ;-)
Short Zurich and BBVA for Monday morning?
Don't the Swiss have socialized health care? Those Commies!
Socialism and communism are not the same although they do have similarities .
No, they have insurance.
No... they have a mixed system which provides socialized care for the poor, private care for the rich. As those who can afford it have a choice, i would argue it is not communistic.
Don't forget the "bad" Dutch socialists either they alway go home with "a check": a paycheck or unemployment check or disability check or sick-leave check, or social security check and some of the best (legal) pot just to pass the day. Hm...?
Correct me if I'm wrong, but...
These are State administered pensions which was only 'administered' by two private companies working on behalf of the government.
I see this less as a 'takeover', and more like the government cutting out the middleman... something the doomers here seem to beg for in their mindless drivel against "the bankers."
Evo and Hugo Chavez are more like the leaders the doomers cry for than they'll ever admit. Chavez has been fighting the "bankers" before it became vogue among the doomers.
Admit it, most doomers are commies at heart who love their entitlements, and cry when the austerity they love so much in slogans actually touches themselves personally.
Evo and Chavez are fighting against the elite class in their own countries because these very same elite benefitted from the exploitation of their countries by the IMF and corporations, also many other institutions that supposedly want to help. These elites own media and use it to their advantage. The common people are tired of being exploited by the U.S., IMF, World Bank, puppet leaders, and even NGOs. The South Americans, Africans, ME, and many poor countries all over the world are aware of this game and are saying no.
Commies at heart? It seems the elites are the spoiled ones and want their continued control and advantages at the expense of the common people. The leaders before Evo and Hugo didn't decrease the poverty or improve their countries, but they managed to privatize their natural resources and exploit the people for the benefit of a few corporations and the elites.
Let's get things nice and sparkling clear.
So I'm guessing you're a 'Trickle-Downer'? Curious, are the wealthy 'entitled' to pay a much, much lower rate of tax than the working class? Are the military contractors 'entitled' to a trillion (geez, I still have a hard time with that number, I must be getting old) bitz of paper every single year?
'Cuz, yah, I'm kinda feelin' that somebody who pays into a pension plan every working day of their lives is 'entitled' to that money once they retire.
Leo, at the very least this article shines a nice bright light on some ZH members' 'true colours'.
Like Argentina, take existing legally required fully funded commercial pensions, and convert THEM into worth-less, Government Promises...including re-distributiion of the net gain to the rest of the working population
....NOW THAT THERE APPEARS THAT A REAL WORKING POPULATION OF MINERS, and all the accessory, support, etc workers...WHICH 'REST' will be funded on the Lithium mining of the dry lake beds..5.4 million tonnes...a finite amount, however..but...'in the long run...we are all dead..' anyway...next generation...For the actuarial moment, it might just work out...enough for everyone..
According to the U.S. Geological Survey, 5.4 million tons of lithium could potentially be extracted in Bolivia, compared with 3 million in Chile, the current leading producer. Japanese companies, like Mitsubishi and Sumitomo are interested in extracting Bolivian lithium, as are European consortiums and other companies. But the Bolivian government under President Evo Morales is wary of outside exploitation, especially from the United States.
Morales said in his second-term inauguration speech that Bolivia, South America's poorest nation, will develop the lithium on its own, to ensure that the benefits will be reinvested in the country and the region. Bolivia is moving ahead with a pilot program, but there are still many obstacles for the country to overcome before it can begin to extract the element and reap the rewards.
And the Miners, by age 55+ will be physically worn-out equipment, NEED to be retired, prohibited from launching 'old-age-discrimination' claims...
Bolivia is another Socialist experiment doomed to fail its people and cause years of pain.
Every country that tries this crap always has terrible things happen. And Bolivia is the 2nd (approx.) poorest country in Latin America. Well, they voted him in, as they did Hitler and Hugo Chavez.
Norway calls bullshit on you there Don. As a matter of fact, most of the countries with the top ten standards of living are mixed economies, and all of them have socialized medicine. Some of them also offer some of the world's most well respected tertiary educational institutions too, and they are tuition-free for any of their citizens that can make the grade.
As for Bolivia's current poverty: give 'em a chance, it takes awhile to get Gold mines up and running. And their population has been dissed, decimated, demoralized, divided, disenfranchised, for so long, it can take generations to overcome centuries of brutal oppression, no?
They like Evo, he doesn't have any plans for herding any religious groups into cattle cars and constructing gas chambers to accomodate them, and neither does Chavez for that matter so lay off Godwin's Law, it's just stupid and it makes you seem like either a duped American or worse.
Norway has a nearly monolithic culture and a democratic tradition. Oh, and they have lots of oil, so OK, Norway "beats" us. Lousy weather though.
Bolivia has indeed had terrible governance for centuries. Evo included. And if you think CHAVEZ ia anything but bad, then I have to call BS on you. I have been to both Bolivia and Venezuela (twice each, to sell auto parts). Chavez is ruining his country even with all that oil. Their oilfield engineers are working in ALBERTA now fer chrisssakes...
And if is Evo is such a saint, why won't he let culturally different Eastern Bolivia go? Eh? Andean Bolivia has plenty of resources (world's largest deposits of lithium, among other things).
Evo is just another dumbass tinpot Socialist wanna-be dictator. Go there and check it out for your self.
I wish the best for poor benighted Bolivia, they have really poor people there. They will not advance with Chavez's local tool running the country.
You state your opinion, but you don't give any evidence or first hand examples. How is Chavez and Evo bad for their countries?
I think the Bernank & the Kitener should start rolling up some USA grown weed in all of those new trillions were printing and sell the doobie$ to the whole fucking world at say $2-3 dollars each. Might help get us out of the surging Black Ho, and everyone would be "HAPPY", no? just an idea................
Nice to see your contributions to ZH Leo.
"Nice" was having had tapeworms and giardia --- at the same time!
Seeing Leo's ragingly statist, conventionalistic, pro-authority, pro-establishment drivel here on ZeroHedge is even less welcome than a return visit by my former intestinal helminthic and amoeboid guests.
Leo, it absolutely fascinates (and appalls) me that you think that there is ANY possible outcome other than miserable failure for this ludicrous experiment in fuzzy-headed (and patently UNsustainable) socialistic fantasy. But we have long ago come to expect nothing less from you than pure credulity and automatic deference to neo-Keynesian bullshit and statist coercion of all kinds.
And maybe he works differently in Canada, Leo, but here in the USA I never saw Santa Claus hold a gun to anyone's head and demand their life savings.
Sovereign wealth funds, if managed properly (IE NOT by GS) can reduce a country's tax burden and/or provide funding for social programs.
Bolivian Life expectancy is 67.
http://www.indexmundi.com/bolivia/life_expectancy_at_birth.html
The average Bolivian miner doesn't even live to see retirement. Why not give the poor devils a couple of years to grovel in poverty before a miserable death. FYI...Bolivia's per capita GDP is $4700.
http://www.aneki.com/south_america_richest.html
Having lived there, I can tell you the article is misleading and is a disgrace to professional journalism. Those people re-define the definition of poverty. The average Bolivian in La Paz lives a miserable and very hard life.
... because for so long their country has been horrifically raped by Spanish colonialism, followed by the U S A, or its proxies.
Have you guys been exposed to any history other than "Max the 2000 Year old Mouse"?
http://www.youtube.com/watch?v=hISplszY0B0
I'll admit iggy, you do seem quite euphoric. MB you're moniker is right.
My guess, ultimate corruption, thievery and inevitable bankruptcy!
Don't tell me the Bolivians are planning on allowing the Americans to manage their accounts again!
Heh, I wrote 'allowing'...
Morales must have just found all the gold the Nazis brought to La Paz and has decided to redistribute.
You might not be too far off the mark there, Bolivia is literally sitting on a gold mine.
If you really believe this is going to help anyone...
The government in this case is SEIZING private funds, paying it out to their current crony partners in crime....so if you're say 40 you will not see any retirement payment at 58 nor 65 for that matter.
So, again, you're seriously totally into this shit? This is good eh?
Remains to be seen? What remains to be seen? How dumb your next "contribution" is?
Yes, it is an obvious looting expedition to pay off Morales' supporters. After that, money printing, hyperinflation, and chaos. Morales, Mugabe....Obama?
Wait, is this some kind of Cocaine reference?
Jackson Browne Lyrics - Cocaine You take Sally and I'll take SueTheir ain't no difference between the two
Cocaine, running all 'round my brain
Headin' down Scott, turnin' up Main
Looking for that girl that sells cocaine
Cocaine, runnin' all 'round my brain
Late last night about a quarter past four
Ladanyi come knockin' down my hotel room door
Where's the cocaine--
It's runnin' all 'round my brain
I was talking to my doctor down at the hospital
He said, "Son, it says here you're twenty-seven,
But that's impossible
Cocaine-- you look like you could be forty-five"
Now I'm losing touch with reality and I'm almost out of blow
It's such a fine line-- I hate to see it go
Cocaine, runnin' all 'round my brain
"Wait, is this some kind of Cocaine reference?
Jackson Browne Lyrics - Cocaine"
LOL...maybe Taj Mahal.
http://www.youtube.com/watch?v=h986aTCAo4w
From:
http://globalis.gvu.unu.edu/indicator_detail.cfm?IndicatorID=116&Country=BO
Life expectancy at birth (male)
1970 - 43
1980 - 48
1990 - 55.6
2000 - 60.1
2010 - 64.52 [1]
[1] http://www.indexmundi.com/bolivia/life_expectancy_at_birth.html
yeah, with Greece and Ireland taking IMF debt and doing austerity, and now third world is implementing policies that did European countries so well for so many years, the world is flipping
South America has stuff everybody wants, and it's getting so you can't just kill the natives and steal it anymore, sorry North America and your Manifest Monroe Doctrine Destiny.
Its inspirational how the people in these countries have stood up to the foriegn corporations. IMF got Hugo Banzer to privatize water and Bechtel recieved the contract. It was illegal to even try and capture rain water or water from runoffs you were forced to use their water system at rates the people couldn't afford. People protested and riots ensued eventually causing Bechtel to pack their bags and leave. Bechtel turns around and sues them thru the World Bank for 25M then upping it to 50M, and after a few yrs. agrees to drop it. The World Bank/ IMF/ USAID/ U.S. government, and corporations all work together. This is just one example of the many battles they have been in. This is happening and has been happening for a long time all over the world.
Nevermind
lol, im not trying to be an ass when i say this. but 80%+ of the united states has no clue what the Monroe doctrine is or how it came to be, or how it was expanded upon during the bush administration and i say this as an american.
your comment is valid, but im afraid is was loss in the morass of the masses.
i've mentioned it in conversation only to be met with "i didn't know Maroline Monroe was into politics"