Development Trends Of The Privatization Of The Pension Insurance

Since the 80s of the 20 century, the system of the endowment insurance has got the foundamental change in the Latin America and some western countries . The privatization of the endowment insurance is leading the trend. At the beginning of the 80s of the 20th century, Chile was the first crusader, then followed by Peru, Argentina, Columbia, Uruguay, Mexico, Bolivia, Salvador, and some of the other Latin American countries, In Europe, England, Sweden, Italy, Poland, Swiss, Holland and some of the other countries also took the idea of it. In February 2005,president Bush also set the plan in detail in his report. Many similar problems also existed in our country at the present time, such as the inconsistency of the pay-as-you-go mode in finance because of the aging of the population. Their measures are the good advice for us. There are many arguments to the future trend of it. This article is written base on the signification and the main content of the privatization of the endowment insurance, the root of the leading trend, and the problems existed.Part one is the signification and the main contents of privatization of endowment insurance. According to the data from different areas and 20 years' practice taken by Latin America and the western countries, I think the private ownership is said to carry out the personal bank account and establish the managing company of the annuities in private. The public to private change will be realized completely or step by step, and reduce the responsibilities of the government in order to make it personally and come to the market. The contents of endowment insurance including two parts, one is the way of financing of it, establish the system of individual accounts and turn the mode of pay-as-you-go to funding scheme into truth. The other is to reform the way of management of endowment insurance, establish the private managing company of endowment insurance and make the transit of management from state institution to the private company.The second part is the source of developing trend of the privatization of the endowment insurance. In this part, it is mainly analyzed in basic theory, and from the angle of society, economy and culture. The out-of-date Keynesism and the rise ofneo-liberalism are the basic theories of Latin America and some western countries, the aging of the population and the acceleration of the economic globalization are the source of social economy. The privatization of the endowment insurance is the practical choice, replying to the challenge of the aging of the population and the economic globalization, reducing the financial pressure and improving the national competition .At the same time, it is an efficient way to boost the system of endowment insurance too. On the other hand, viewed from further depth, this trend has its cultural source, it is the specific personification of the western culture in the field of endowment insurance.The third part is about the problems in the developing trend of the privatization of endowment insurance. It lies mainly in 3 parts, one is that it is turned away from the ideal of the system of endowment insurance, increases the social unjust and enlarges the distance between the aged rich and poor;the other is the cost of system change, it increases the actual financial pressure;the last is uncertainty of the revolution of private ownership, for example, the aging of the population is a possible element to have an effect on the funding scheme mode;the excessive management cost to the private endowment fund would increase the burdens of policy-holder;the business of capitalization of endowment fund has some risks, and it is uncertain whether the privatization of endowment insurance can enhance the economy.By the analysis above, it agrees that in the system of endowment insurance, completely and privately owned is the same with the government's over-control, both are not the sustained developing mode .The revolution of privatization of endowment insurance in Latin America and some western countries can't be regarded as a successful and feasible endowment insurance mode. At the moment of the pike of privatization of endowment insurance, the revolution shouldn't go to the extreme of privately owned and private control. The state should take irrevocable charge of it. In the process of the actual social development, facing series of social problems, it is not enough to rely on the revolution of endowment insurance only, they need the whole society to pay attention on it. Different countries should adopt suitable revolution scheme according to their national conditions and can't do the same blindly. To China,since the large part of population has not been covered in the scheme of common endowment insurance, in fact,the endowment insurance has been in a condition of privately owned. So, China should pay more attention on the privatization of endowment insurance.