No. 113: Pension Reform

Author(s): Gayane Shakhmuradyan, Alexandra Aroshvili, Tornike Chivadze, Gubad Ibadoghlu
Series Editor(s): Martin Brand (Special Editor), Lusine Badalyan, Bruno De Cordier, Farid Guliyev, Diana Lezhava, Lili Di Puppo, Jeronim Perović, Heiko Pleines, Abel Polese, Licínia Simão, Koba Turmanidze
Series: Caucasus Analytical Digest (CAD)
Publisher(s): Center for Security Studies (CSS), ETH Zürich; Research Centre for East European Studies (FSO), University of Bremen; Caucasus Research Resource Center (CRRC-Georgia); Center for Eastern European Studies (CEES), University of Zurich; German Association for East European Studies (DGO)
Publication Year: 2020

The topic of this issue is pension reform. Firstly, Gayane Shakhmuradyan argues that despite the continued public disapproval of the mandatory funded scheme, the Armenian pension system is now more sustainable and robust, and economic inefficiencies are being overcome. Secondly, Alexandra Aroshvili and Tornike Chivadze point out that the privatization of the Georgian pension scheme cannot adequately meet the needs of current and future pensioners. Their main criticism is that there is neither a basic pension nor any redistribution mechanism, which leads to injustice between the generations. Thirdly, Gubad Ibadoghlu provides an overview of the current state of the pension system in Azerbaijan. He believes that the current pension system in Azerbaijan is not sustainable in the long run and should be reformed. In particular, the social security principle should be strengthened, and non-insurance benefits by the state should be reduced.

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