Brazil will be a poor country if pension reform passes, says economist



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247 – One of the main proposals for reforming the welfare system of Jair Bolsonaro's far-right economic team (PSL-RJ) is the capitalization scheme that did not work in the countries of Latin America where it was adopted as Chile, Colombia, Peru and Mexico. According to Unicamp economics professor, Eduardo Fagnani, the country will have a society of miserable and destitute, if this model of social security, which appears in the text of the draft amendment to the Constitution (PEC) published by the press this week, is adopted Brazil.

"The Brazilian pensioner who receives a minimum wage can often help the jobless child, finance the studies of his grandchildren and feed his family is an extraordinary protection that the Bolsonaro government wants to end" , did he declare.

According to a Unicamp economist, the capitalization scheme will put older Brazilians in the same state of misery as Mexicans and Colombians, where 7 out of 10 workers are at risk of not retiring. The teacher refers to the fact that in Mexico, the coverage rate of the social security system is slightly above 30%. In other words, about three out of three Mexican workers receive monthly social security contributions, which means that older people receive no badistance at the end of their lives.

Eduardo Fagnani also recalls that the Mexican government has reformed social security. in 1997, accepted World Bank taxation and implemented all required liberal economic reforms, forgetting that 60% of its workers already belonged to the informal sector.

He explains that Brazil has 50% informality making this huge mbad unable to contribute to social security for 30/35 years without interruption, as is the case in Mexico. For the teacher, the responsibility for this situation is the reform of the work promoted by the coup and the illegitimate Michel Temer (MDB-SP)

"The labor reform was so exclusive in the regulation of the work. informal activity, intermittent work, precarious work which prevents anyone from contributing to social welfare. "

A similar situation exists in Colombia. Today, the vast majority of older people live on the street by chance, depending on their children or social benefits that do not cover the most basic needs.

* From the information provided by the CUT

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