Proceedings of the Internation Conference on "Humanities and Social Sciences: Novations, Problems, Prospects" (HSSNPP 2019)

Decent Pension VS Balanced Budget: The Russian Solution to the Dilemma

Authors
M.V. Bogatyreva, A.E. Kolmakov, M.A. Balashova
Corresponding Author
M.V. Bogatyreva
Available Online July 2019.
DOI
https://doi.org/10.2991/hssnpp-19.2019.156How to use a DOI?
Keywords
market reforms, "budget vs pensions" dilemma, "age vs pensions" dilemma, individual choice
Abstract
According to the internationally accepted practice, it is impossible to solve two problems simultaneously, i.e. both to balance the long term federal budget and to maintain the level of living standards for people after their retirement. The recent substantiating examples are the failures of the attempt to implement ambitious pension programs in Ukraine and in Greece, in particular. It is common for populist governments to adopt generous pension schemes under the influence of suddenly increased budget revenues (for example, due to promising changes in the global market). This can also result from the possibility to get low-interest credits at the global financial markets. The problem arises when the sources of pension funding appear to have been temporary. At this point, it is necessary to choose between the two harsh alternatives. The first option is a balanced budget, but tough and painful for the population pension reform implementation. The second variant is generous funding of pensions in the current period followed by a devastating level of hyperinflation in the future. The "budget vs pension" dilemma reinforces the fact that no one can overcome the dynamic budget constraint.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - M.V. Bogatyreva
AU  - A.E. Kolmakov
AU  - M.A. Balashova
PY  - 2019/07
DA  - 2019/07
TI  - Decent Pension VS Balanced Budget: The Russian Solution to the Dilemma
BT  - Proceedings of the Internation Conference on "Humanities and Social Sciences: Novations, Problems, Prospects" (HSSNPP 2019)
PB  - Atlantis Press
SP  - 812
EP  - 816
SN  - 2352-5398
UR  - https://doi.org/10.2991/hssnpp-19.2019.156
DO  - https://doi.org/10.2991/hssnpp-19.2019.156
ID  - Bogatyreva2019/07
ER  -