Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania

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...

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Bibliographic Details
Main Authors: Larsson, Bo, Leyaro, Vincent, Palmer, Edward
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
PENSION REFORM
NONFINANCIAL DEFINED CONTRIBUTIONS
BOND MARKET
DEMOGRAPHIC BUBBLE
LABOR FORCE
EMERGING ECONOMIES
INCLUSIVE GROWTH
CONSOL BOND
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
id okr-10986-31651
recordtype oai_dc
spelling okr-10986-316512021-05-25T09:23:24Z Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania Larsson, Bo Leyaro, Vincent Palmer, Edward PENSION REFORM NONFINANCIAL DEFINED CONTRIBUTIONS BOND MARKET DEMOGRAPHIC BUBBLE LABOR FORCE EMERGING ECONOMIES INCLUSIVE GROWTH CONSOL BOND 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. 2019-05-07T20:25:38Z 2019-05-07T20:25:38Z 2019-04 Working Paper 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 English Social Protection and Jobs Discussion Paper,no. 1922; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Tanzania
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PENSION REFORM
NONFINANCIAL DEFINED CONTRIBUTIONS
BOND MARKET
DEMOGRAPHIC BUBBLE
LABOR FORCE
EMERGING ECONOMIES
INCLUSIVE GROWTH
CONSOL BOND
spellingShingle PENSION REFORM
NONFINANCIAL DEFINED CONTRIBUTIONS
BOND MARKET
DEMOGRAPHIC BUBBLE
LABOR FORCE
EMERGING ECONOMIES
INCLUSIVE GROWTH
CONSOL BOND
Larsson, Bo
Leyaro, Vincent
Palmer, Edward
Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
geographic_facet Africa
Tanzania
relation Social Protection and Jobs Discussion Paper,no. 1922;
description 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.
format Working Paper
author Larsson, Bo
Leyaro, Vincent
Palmer, Edward
author_facet Larsson, Bo
Leyaro, Vincent
Palmer, Edward
author_sort Larsson, Bo
title Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
title_short Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
title_full Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
title_fullStr Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
title_full_unstemmed Harnessing a Young Nation’s Demographic Dividends through a Universal NDC Pension Scheme : A Case Study of Tanzania
title_sort harnessing a young nation’s demographic dividends through a universal ndc pension scheme : a case study of tanzania
publisher World Bank, Washington, DC
publishDate 2019
url 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
_version_ 1764474796710559744

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