Connect with us

Newsdesk

Pensions reforms have slowed in OECD countries but need to continue

Newsroom

Published

on

Further reforms are needed across OECD countries to mitigate the impact of population ageing, increasing inequality among the elderly and the changing nature of work, according to a new OECD report.

Pensions at a Glance 2017 says that public spending on pensions for the OECD as a whole has risen by about 1.5% of GDP since 2000. However, the pace of spending growth is projected to slow substantially. 

 At the same time, recent reforms will lower the incomes of many future pensioners. People will live longer and to ensure a decent pension would have to postpone the age of retirement.

“The challenges of financial sustainability and pension adequacy mean that bold action from governments is still needed,” said OECD Secretary-General Angel Gurría. “The world of work is changing fast and policy makers must ensure that decisions made today take this into account and our pension and social protection systems do not leave anyone behind in retirement.”

 The net replacement rate from mandatory pension schemes for full-career average-wage earners entering the labour market today is equal to 63% on average in OECD countries, ranging from 29% in the United Kingdom to 102% in Turkey. On average, replacement rates for low-income earners are 10 points higher and range from under 40% in Mexico and Poland, to more than 100% in Denmark, Israel and the Netherlands.

 Over the past two years, one-third of OECD countries changed contribution levels, another third modified benefit levels for all or some retirees and three countries legislated new measures to increase the statutory retirement age. Under legislation currently in place, by 2060 the normal retirement age will increase in roughly half of the OECD countries, by 1.5 years for men and 2.1 years for women on average, reaching just under 66 years. The future retirement age will range from 60 years in Luxembourg, Slovenia and Turkey to 74 in Denmark, according to the latest estimations.

 The projected increase in retirement ages will be exceeded, however, by expected advances in longevity, meaning that the time people spend in retirement will increase relative to people’s working lives. Employment at older ages will need to increase further to ensure adequate pensions for many people, according to the report.

 Pensions at a Glance 2017 also looks at ways countries can meet the growing calls for more flexible retirement options. Rigidly set retirement ages might not be beneficial for society as a whole. Currently, only around 10% of Europeans aged 60-69 combine work and pensions. Of those that do work beyond the age of 65, half work part-time — a share that has been stable since the 1990s. Several countries including Australia, the Czech Republic, France and the Netherlands allow for early partial-retirement schemes.

 Obstacles to combining work and pensions after the official retirement age exist, for example through earnings limits in Australia, Denmark, Greece, Israel, Japan, Korea and Spain. Barriers to continuing to work beyond the retirement age also exist outside the pension system, especially through age discrimination from employers or in cultural acceptance of part-time work.

 Overall, for people with full careers, retirement is more flexible around the retirement age in Chile, the Czech Republic, Estonia, Italy, Mexico, Norway, Portugal, the Slovak Republic and Sweden.

 Policy makers need to ensure that postponing retirement should be sufficiently rewarding while not overly penalising people who retire a few years before the normal retirement age. In Estonia, Iceland, Japan, Korea and Portugal, the financial incentives to continue working after the retirement age are large but costly for pension providers. Flexibility should be conditional on ensuring the financial balance of the pension system, with pension benefits actuarially adjusted in line with the flexible age of retirement.

 Pensions at Glance 2017 provides comparative indicators on the national pension systems of the 35 OECD countries, as well as for Argentina, Brazil, China, India, Indonesia, the Russian Federation, Saudi Arabia and South Africa.

 Country notes are available for Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland, the United Kingdom and the United States.

 A recent OECD report, Preventing Ageing Unequally, also analysed the impact of rising inequalities and population ageing. It found that younger generations will face greater risks of inequality in old age than current retirees and for generations born since the 1960s, their experience of old age will change dramatically relative to that of previous generations.

Continue Reading
Comments

Newsdesk

UNIDO, Ethiopia and China agree to strengthen cooperation on agri-business development

Newsroom

Published

on

photo: UNIDO

Ethiopia, China and the United Nations Industrial Development Organization (UNIDO) have agreed today to further strengthen collaboration on improving the agricultural system in Ethiopia, in particular the livestock value chain development. This agreement will support Ethiopia in creating a modern and a highly productive agriculture system and promote trade.

A Joint Declaration was signed by Ethiopia’s Ministry of Agriculture (MOA), the General Administration of Customs of China (GACC) and UNIDO, with the overall objective of contributing to the Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development. The cooperation will focus on capacity-building for food safety; promotion of bilateral trade between Ethiopia and China; and knowledge sharing on relevant best practices, regulations and technical standards.

The cooperation is designed and to be implemented within the framework of the South-South and triangular cooperation (SSTC) and Ethiopia’s Programme for Country Partnership (PCP). It also aims to fulfil the Memorandum of Understanding signed between UNIDO and GACC on 26 April 2019 on enhancing cooperation, including within PCP framework to promote inclusive and sustainable industrial development (ISID) and trade facilitation in developing countries. Moreover, a livestock value chain development project in Ethiopia, which is being implemented by MOA, GACC and UNIDO, will also benefit from this enhanced cooperation. The livestock project is funded by the contribution of the Chinese government for South-South cooperation through UNIDO.

Continue Reading

Energy News

ADB, Gulf PD Sign Deal to Build 2,500 MW Power Plant in Thailand

Newsroom

Published

on

The Asian Development Bank (ADB) and Gulf PD Company Limited (Gulf PD) today signed a $180 million agreement to build and operate a 2,500-megawatt (MW) combined cycle gas turbine power plant in the Rojana Rayong 2 Industrial Park of Thailand’s Rayong Province, about 150 kilometers southeast of Bangkok.

Gulf PD is owned by Independent Power Development, a joint venture between Gulf Energy Development Public Company Limited (GED) and Mitsui & Co., Ltd. (Mitsui).

ADB’s support is composed of a regular loan of $50 million and a B loan of up to $85 million. ADB will also mobilize $45 million through the Leading Asia’s Private Infrastructure Fund (LEAP), established in 2016 and supported by the Japan International Cooperation Agency. ADB signed the loan agreement with its cofinanciers—the Japan Bank for International Cooperation and 12 other international and local commercial banks—playing an anchor lender role in the project by catalyzing up to $764 million in commercial cofinancing. The B loan will be funded by Singapore’s Oversea-Chinese Banking Corporation and Germany’s DZ Bank.

The agreement for the Eastern Economic Corridor Independent Power Project was signed by ADB Deputy Director General for Private Sector Operations Mr. Christopher Thieme and the CEO of GED Mr. Sarath Ratanavadi at a ceremony in Bangkok.

“The project will build the fourth-largest power plant and one of the largest combined cycle gas turbine power plants in Thailand, which will be key in the Eastern Economic Corridor (EEC) development plan, considered as the prime economic growth driver for the country until 2028,” said Mr. Thieme. “ADB is proud to play an essential role in this transaction, which will help provide reliable power to industry and households and boost Thailand’s economic growth and development prospects. We are particularly pleased to bring in additional cofinanciers to this transaction through our B loan program and LEAP, since the financing gap will be one of the major challenges for the success of the EEC development plan.”

The plant will be fully operational by 2024, delivering at least 16,000 gigawatt-hours of electricity to users. With the state-of-the-art combined-cycle gas turbine technology to be used at the plant, the project will mean 1 million fewer tons of carbon dioxide is emitted every year compared with current electricity grid emissions. The plant will be integral to sustaining Thailand’s energy security given that more than 8,500 MW of generating capacity—equivalent to about 20% of current national energy capacity—of aging power plants will be retired between 2020 and 2025.

Gulf PD was established in 2012 to develop, construct, own, and operate the 2,500 MW power plant. GED is a leading power generation company with the largest portfolio of contracted power purchase agreements in Thailand. Mitsui, established in 1947, is one of Japan’s largest trading companies involved in the development of more than 74 power projects globally.

Continue Reading

Human Rights

UNICEF reports uneven progress in 30 years of child rights treaty

Newsroom

Published

on

Although the world has made historic gains over the past three decades in improving children’s lives, urgent action is required if the poorest children are to feel the impact, a new UN report published on Monday warns.

The study by the UN Children’s Fund (UNICEF) calls on countries to recommit to promises made under the Convention on the Rights of the Child, adopted 30 years ago.

Henrietta Fore, UNICEF Executive Director, noted that while increasing numbers of children are living longer, better and healthier lives, the odds continue to be stacked against the poorest and most vulnerable.

“In addition to the persistent challenges of health, nutrition and education, children today have to contend with new threats like climate change, online abuse and cyberbullying,” she said.

“Only with innovation, new technologies, political will and increased resources will we help translate the vision of the Convention on the Rights of the Child into a reality for all children everywhere.”

Uneven progress, emerging threats

The Convention on the Rights of the Child is the most widely and rapidly adopted international treaty in history, and has been ratified by more than 190 countries.

It acknowledges childhood, which lasts through age 18, as a special time in which children must be allowed to grow, learn, play, develop and flourish with dignity. 

UNICEF reported that since its adoption, the global rate for under-five mortality has dropped by around 60 per cent, while the proportion of undernourished children has almost halved.

The Convention has also influenced numerous constitutions, laws and policies that reflect its guiding principles, which include non-discrimination, the right to protection and acting in the best interests of the child.

However, the report shows that progress has not been even.

UNICEF said the world’s children continue to confront age-old threats while new hazards loom over their future.

The poorest children are still likely to die from preventable causes before reaching their fifth birthday. Millions of the most disadvantaged are still at risk due to poverty, discrimination and marginalization. At the same time, cases of the childhood killer measles are on the rise as immunization coverage rates have slowed down since 2010.

Progress in education also is dismal. The report reveals that the number of primary level children out of school has remained static for more than a decade.

“Many of those who are in school are not learning the basics, let alone the skills they need to thrive in today’s economy,” UNICEF added.

In recent years, young people have been speaking up and calling for action to address climate change. UNICEF said they are the ones most at-risk.

“Rapid changes in climate are spreading disease, increasing the intensity and frequency of extreme weather events, and creating food and water insecurity. Unless urgent action is taken, the worst for many children is yet to come,” the UN agency warned.

Inclusive dialogue planned

UNICEF believes that where there is political will and determination, children’s lives improve, as documented by the report, which has been released ahead of World Children’s Day on 20 November.

The study calls for more data and evidence to accelerate progress and advance child rights, alongside recommendations such as involving young people in creating solutions.

UNICEF will use the coming 12 months to promote an inclusive global dialogue aimed at making the promise of the convention a reality for all children.

As Ms. Fore, the UNICEF chief, stated: “The Convention stands at a crossroads between its illustrious past and its future potential. It is up to us to recommit, take decisive steps and hold ourselves accountable.”

Continue Reading

Latest

Southeast Asia1 hour ago

Belt and Road Initiative: Challenging South and Southeast Asia

The euphoria about the Belt and Road Initiative (BRI) in Indonesia and elsewhere in South and Southeast Asia (SEA) has...

Russia3 hours ago

Russia, Africa and the Debts

Long seen as a strategic partner, Russia has opened a new chapter and started building better relations with Africa, and...

Newsdesk5 hours ago

UNIDO, Ethiopia and China agree to strengthen cooperation on agri-business development

Ethiopia, China and the United Nations Industrial Development Organization (UNIDO) have agreed today to further strengthen collaboration on improving the...

Defense7 hours ago

As Kashmir simmers the IOR too stands as a potential Nuclear Flashpoint

This year has seen tensions between Nuclear armed Pakistan and India reach unprecedented levels with both countries flirting with a...

Travel & Leisure9 hours ago

Five Reasons to Discover Kyoto’s Magic in Winter

Discover the hidden secrets of Kyoto in winter – the magical but least-known season that the locals love. From enchanting...

Americas11 hours ago

U.S.-Turkey relations: From close friendship to conflict of interests

Relations between the U.S. Turkey have strained since the failed July 2016 coup in Turkey. Now, the most important reasons...

Energy News17 hours ago

ADB, Gulf PD Sign Deal to Build 2,500 MW Power Plant in Thailand

The Asian Development Bank (ADB) and Gulf PD Company Limited (Gulf PD) today signed a $180 million agreement to build...

Trending

Copyright © 2019 Modern Diplomacy