Lessons for the PPK reforms: The successful case of the "cédula viva" pension regime

Ninguno

February 23 , 2017

An article in the recent issue of our journal Apuntes analyzes how the pension regime called "Cédula viva" ("Living decree") was eliminated and, based on this experience, provides lessons for future reforms such as those currently pursued.

Health, pension and employment reforms have always been difficult to implement owing to political, social and/or economic costs. However, there is one that has been successfully carried out and deserves to be analyzed in a context in which the Social Protection Commission - created by the Government - must present reforms in these areas. We refer to the elimination of the pension regime under Decree Law No. 20530, called "Cédula viva" ("Living decree"), which took place in 2004.

In the latest issue of Apuntes: Revista de Ciencias Sociales, a study that, based on this successful case, provides lessons for future reforms such as those sought today was published. As it should be remembered, the "Cédula Viva" ("Living Decree") was a regime that included senior public officials with the right to exorbitant pensions. And its growth was so deliberate that it caused severe damage to the fiscal coffers, which triggered its end.

What strategies and resources were effective in ending this regime? What actors led the reform and what were their limitations? Under what institutional and political context was its scope determined? In the study “Capacidad y estrategia en la reforma del régimen pensionario del Decreto Ley N° 20530 o «cédula viva» en el Perú”("Capacity and strategy in the reform of the pension system under Decree Law No. 20530 or "living decree" in Peru), Carlos Alza Barco and Henry Dyer Cruzado - researchers at PUCP - answer these questions through a historiographical, technical, social and political analysis.

The researchers, for example, highlight the visibility strategy called "sabotage from within the State", whose objective was to prioritize in the media the cases that caused more scandal in society; that is, the high pensions for civil servants. A necessary reading for these times of reforms.

(Photo: Andina)

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Revista Apuntes Investigaciones PPK

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