UN plans pension to reduce old age poverty
A universal pension offering of $1-a-day would reduce old age poverty in developing countries, said a UN report.
By Agencies |
UNITED NATIONS: A universal pension offering benefits equivalent to the extreme poverty line of $1-a-day would reduce old age poverty in developing countries, including India, which are expected to see the most rapid population aging in coming decades, according to a new UN report.
In most developing countries, even those with low incomes, the World Economic and Social Survey 2007 said a basic pension "represents an affordable option."
Undersecretary-General for Economic and Social Affairs Jose Antonio Ocampo said a minimum pension would achieve a long-term UN goal of eliminating extreme poverty "for all the older people now."
At a news conference launching the report, Ocampo said on Tuesday that the world is aging at unprecedented rates – "a phenomenon that is universal now" – with the population aged 60 and older expected to increase from about 670 million in 2005 to close to two billion in 2050.
"Although the phenomenon is more advanced in the industrial economies, it's going to grow at a much faster rate in the developing world," he said.
Besides, especially in low income countries, there may be competing demands for scarce government resources, the report said.
For example, in India, Cameroon, Guatemala, Nepal and Pakistan, the report said the cost of $1-a-day pension would represent as much as 10 per cent of total tax revenue.
Ocampo said financing a basic pension may therefore need to be closely coordinated with government spending for social programmes, including the use of international development assistance.
In most developing countries, even those with low incomes, the World Economic and Social Survey 2007 said a basic pension "represents an affordable option."
Undersecretary-General for Economic and Social Affairs Jose Antonio Ocampo said a minimum pension would achieve a long-term UN goal of eliminating extreme poverty "for all the older people now."
At a news conference launching the report, Ocampo said on Tuesday that the world is aging at unprecedented rates – "a phenomenon that is universal now" – with the population aged 60 and older expected to increase from about 670 million in 2005 to close to two billion in 2050.
"Although the phenomenon is more advanced in the industrial economies, it's going to grow at a much faster rate in the developing world," he said.
Besides, especially in low income countries, there may be competing demands for scarce government resources, the report said.
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For example, in India, Cameroon, Guatemala, Nepal and Pakistan, the report said the cost of $1-a-day pension would represent as much as 10 per cent of total tax revenue.
Ocampo said financing a basic pension may therefore need to be closely coordinated with government spending for social programmes, including the use of international development assistance.
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