Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
About one-half of Africa’s population will remain below age 30 well past 2050,with relatively few aged 60 and older. Using Tanzania’s projected demographics and presenteconomic point of departure, this paper demonstrates how the implicit “double”de...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/262211556877980550/Harnessing-a-Young-Nation-s-Demographic-Dividends-through-a-Universal-NDC-Pension-Scheme-A-Case-Study-of-Tanzania http://hdl.handle.net/10986/31651 |
| Summary: | About one-half of Africa’s population
will remain below age 30 well past 2050,with relatively few
aged 60 and older. Using Tanzania’s projected demographics
and presenteconomic point of departure, this paper
demonstrates how the implicit “double”demographic dividend
can be harnessed to create inclusive growth. A Swedish-style
non financial defined contribution (NDC) system is launched
where the government can borrow funds from the future
through NDC “consol” bonds to transform individual savings
into human and physical capital to promote inclusive
economic growth. The consol bonds constitute a reserve to
cover pensions of the retiring “demographic bubble” in the
future as the dependency ratio gradually glides into
demographic equilibrium. Minimum transfers tothe current
elderly are also introduced with the phase-in. |
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