NEOLIBERAL THINKING AND SOCIAL SECURITY FINANCE IN CHILE, 1981-2023
DOI:
https://doi.org/10.22370/pe.2023.15.4020Keywords:
Social Security, Social Policy Financing, Neoliberal Thinking, Industrial Organization, Health Economics, Pension SystemsAbstract
The irruption of neoliberal thinking on the financing of Social Security reforms in Chile, has been significantly sobering. It made totally clear that, reconciling neoliberal economic rationality with social security ethical rationality, is hard to meet.
This is shown by the results obtained in their capacity of third agents by both, the individual saving account managers (AFP - Administradoras de Fondos de Pensiones) in the field of retirement income and the individual health insurance (ISAPRES -instituciones de Salud Previsional) in the case of heath. Under the economic rationale of the neoliberal model when performing their threefold functions (protection, agent and access), the AFP ended cream skimming the old age population by their individual savings capacity and the ISAPRES the whole population, by risks, income and gender.
At last, the neoliberal experience on social security in Chile, ended creating two powerful and profitable industries, capable of recovering their capital in few years, but excluding more than 80 % of their target population. Far from allowing universal and asequible access to dignified benefits, as its expected from Social Security. Paradoxically, the neoliberal experience in Social Security in Chile teaches us, that it is only feasible if the State remains in charge of financing and providing a minimum floor of social protection for 80 % of the population. Neoliberalism for a few already wealthy and State supported minimum floor for the large majority.
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