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Hugo Fazio and Manuel Riesco
The Chilean Pension Fund Associations
Chile’s system of privately managed pension funds, which has now grown to quite impressive global proportions, appears to be a technically astute—if not, of course, socially neutral—solution to the far-reaching crisis of state pensions. The man who originally devised it, José ‘Pepe’ Piñera, is the foremost of the ‘Chicago Boy’ economists, minister of labour under the Pinochet dictatorship and now advocate-general for the pensions system. Clearly he has reason to feel proud of its incredible success.
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