1887

OECD Economic Surveys: Czech Republic 2006

image of OECD Economic Surveys: Czech Republic 2006

This 2006 edition of OECD's periodic review of the Czech economy finds that economic growth prospects have improved and that monetary conditions are good, but that much work is needed in public spending reform, improving the labour market, and enhancing the business environment. Special chapters examine pension reform, fiscal sustainability of state and municipal governments, modernising the education system, and boosting innovation.

English French

.

Ensuring fiscal sustainability: assessing recent proposals for pension reform

The Czech Republic faces one of the largest demographic challenges in the OECD area and making sure the public pension system is able to cope with rapid growth in older cohorts is important for long-term fiscal stability and social welfare. This chapter assesses five proposals for pension reform made in 2005 with a view to helping progress towards a final decision on reform. The proposals cover a wide range of options: only parametric change of the current pay-as-you-go (PAYG) system, systems combining a PAYG pension with a second-pillar (definedcontribution), a flat-rate pension and a system of notional accounts. The analysis uses OECD simulation models to compare the proposals in terms of fiscal sustainability, safety nets, early retirement incentives, diversification into private provision, simplicity and the pensions-earnings link.

English French

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error