Pension reform and the development of pension systems: An Evaluation of World Bank Assistance

This evaluation presents an independent assessment of the World Bank’s support for pension reform activities focusing on the period from 1994 to 2004. This report is the first comprehensive Independent Evaluation Group (IEG) evaluation of the Bank’s involvement in pension reform, assessing the implementation of the Bank’s strategy and the resulting development outcomes. Since 1984 the Bank has assisted 68 countries with reform of their pension systems through more than 200 loans and credits. In addition, the Bank has issued over 350 papers and publications on pension reform. This report analyzes the Bank’s assistance to support pension reform to determine if the Bank’s strategy was relevant and if it was followed. The evaluation assesses whether pension reform decisions reflected best practice guidelines at entry, and whether Bank-assisted reforms achieved their social, macroeconomic, and finical objectives. The report also evaluates the Bank’s assistance in building institutional capacity, coordinating within the Bank, and cooperating with other international organizations. Finally, the evaluation summarizes these findings and presents specific recommendations for the future. The evaluation is based on a compilation, developed by IEG, of all Bank lending and economic and sector work on pension reform, case studies for 16 countries, Financial Sector Advisory Program (FSAP) assessments, economic indicators, desk reviews, and interviews with Bank staff and external organizations. The report was circulated to Bank management involved in pension reform, the Human Development Network, and the Operations Policy and Country Services Department. The country case studies were also distributed to the relevant Country Directors.