The Georgian Dream of Pension Reforms

Author(s): Alexi Gugushvili
Editor(s): Denis Dafflon, Lili Di Puppo, Iris Kempe, Natia Mestvirishvili, Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines
Series: Caucasus Analytical Digest (CAD)
Issue: 60
Pages: 6-8
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen; Institute for European, Russian and Eurasian Studies, George Washington University
Publication Year: 2014

Although old-age benefits help to alleviate poverty in Georgia, the system does not satisfy its main stakeholders. Retirees believe that pensions are unfair and inadequate, while experts and governmental officials realize the growing burden of benefits for the countrys public finances. The past experience of pension (non) reforms suggest that changes are sensitive to the governments capacity to reform, the fiscal health of the economy, political stability and the ideological preferences of the ruling elites. The transfer of power through parliamentary and presidential elections in 2012-2013 opened an opportunity for reforming the pension system based on broad public consensus and economic sustainability.

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