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One of the structural challenges for Latin America is that on average, nearly five out of ten people work in the informal economy and, therefore, do not contribute to the social Security. On the other hand, while in some countries conditions of access to benefits have been relaxed, the insufficiency persists: one in two over 65 does not receive a pension.
Despite the high level of informality, but thanks to the moratorium on pensions, Argentina is better positioned than its peers: contributors compared to the employed population reached 53.9% in 2015, after rising 10 points in 10 years, which led to above-average coverage rates. . In the measure, only 4% of the majors of 65 years received neither salary nor pension, because 81,8% received only pension; 9.1%, salary and pension, and only 5.1% salary
This was described by the International Labor Organization (ILO) in its report "Present and Future of Social Protection in Latin America and in the Caribbean ", indicating that the existing systems in the region are at a crossroads, marked by the need to meet the needs for coverage, sufficiency (level of benefits) and sustainability (ability to guarantee coverage and benefits ).
the proportion of contributors increased by eight points in ten years until 2015, but it has 44.6% of contributors. With this rate of increase in coverage, the region would take 70 years to reach almost total coverage
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The defense minister questioned the opposition to criticize the reform promoted by the government. "There are opponents who are very mischievous or uninformed, we change only one word," he said.
Meanwhile, across the region, 50% of people over 65 did not have access to a pension (51.6%) in 2015, although coverage increased by 6.3%. since 2005. This disadvantage is higher for women (56% do not receive a pension) than for men (39%)
"We are talking about 145 million workers who are not listed in a region where population is aging, which may affect their future and José Manuel Salazar-Xirinachs, ILO Regional Director for Latin America and the Caribbean, during the presentation of the report in Mexico City. "In recent years, undeniable progress has been made, but significant gaps in coverage persist and need to be addressed imperatively, "he said.
The report notes that the favorable economic situation has allowed the region to increase its social protection with non-contributory components, but it is reflected in an increase in the tax burden.
And that on average, social protection expenditures for the region (without health) represent 4.9% of GDP and in health, 3%. , 3% for 2015, when the OECD allocates respectively 14.5% and 6.2%.
The ILO is pessimistic that "informality indices may" drop significantly ", as it forces countries to increase their growth rate to 5 or 6 percent. a sustained way. "The effects could be amortized or postponed to the extent that formalization policies have been successful," he said.
He notes that in several countries there is a process of debate over pensions and their coverage
Other challenging structural factors include: employment growth in the service sectors, which have relatively less formal working conditions than industry; the growing participation of women in the labor market, which is disproportionately manifest in low-productivity and precarious occupations, the decline in the demographic premium and the aging of the population, dependence, the growth of the middle classes, who formulate greater demands for social protection, and weaknesses in institutional capacities.
And that adds challenges in the region: macroeconomic volatility and pro-cyclical spending, technological change, productivity and climate change.
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