IPE 360: Financial literacy can lower political cost of pension reform

first_imgA good pension reform was one that triggered changes in behaviour to ensure that it lived on in society, according to Fornero.One of the reasons that reform was so difficult was because it had to involve reducing benefits for some and giving or reducing the burden on other generations, she said.“Don’t believe when they tell you that they’re doing a pension reform where nobody has to pay a price,” she told delegates. “It’s simply something that does not exist in nature.”Fornero said it was important to narrow the gap between the technical and the popular view of pension reforms. She did not like the view expressed by Jean-Claude Juncker, who once said: “We all know what to do, we just don’t know how to get re-elected after we’ve done it.” She and a fellow academic at the University of Turin, Anna Lo Prete, carried out research to test whether this view was empirically justified, and whether the political cost was reduced when people better understand the reform.She said the research, which analysed 20 years of pension reform in different countries, showed that implementing change reduced the chances of a government being re-elected, but that in countries with higher “economic financial” literacy, governments were penalised much less.“This is good news,” said Fornero. “We need to work on financial literacy programmes exactly because we need to involve people in social change.”Harking back to the situation in Italy around the time of the pension and labour market reform she introduced, Fornero said the political parties approved the reform but then attacked them in a bid to rebuild their reputation.“It was of course natural for them to say our work was so bad, which is exactly the opposite of the message that should have been given,” she said.The message should have been that the reform was done for the benefit of the country, and not for any single party, trade union, or interested parties, she said.“It’s difficult but it was worthwhile,” she said. “And the reform is still there.” Financial literacy can help reduce the electoral cost of pension reform, according to research carried out by economics professor and former Italian labour minister Elsa Fornero and a fellow academic.Fornero, who is professor of economics at University of Turin, was the labour minister in Mario Monti’s technocratic government from 2011 to 2013. She introduced a pension reform that helped save Italy from financial collapse, although it was seen by many as amounting to austerity.Speaking at the IPE 360 conference at the London Stock Exchange yesterday, Fornero said public pension systems were full of political risk, as it was easy for politicians to make big promises given that they have a short-term horizon but pensions are long-term.Today that short-term horizon favoured the older generation, she said.last_img read more

NegOcc permanently bans pork imports from Luzon

first_imgDuring the activity, Lacson led thesigning of the pledge of support to ASF-free Negros Occidental. Some officialsdonned shirts printed with words, “Let’s eat Negros pork”. In his message, Lacson hinted at apossible legal battle the province could face as some groups have expressedintention to legally question the ordinance. To promote its African swine fever-free pork industry, the provincial government of Negros Occidental holds a lechon eating on Nov. 26 at the Provincial Capitol’s Social Hall. Gov. Eugenio Jose Lacson and Vice Governor Jeffrey Ferrer officially signed Provincial Ordinance 2019-024, otherwise known as The ASF Prevention Ordinance. NEGROS OCCIDENTAL PIO Decena said there might be those whowill “test” the ordinance, but the province is “ready to face them.” Negros Occidental is the number onebackyard hog raiser in the country, and figures showed that the province’scurrent annual production for both backyard and commercial swine is 510,000heads. (With a report from PNA/PN) “This is very crucial, passing thisordinance. We all know that we have to save our hog industry. Through this, wehave strengthened our drive against ASF,” the governor said in his messageduring the program held at Capitol Social Hall. Lacson also declared Negros Occidentalas ASF-free province by virtue of Provincial Board Resolution 1042. Before the ordinance was passed, Lacson,who chairs the Provincial ASF Task Force, issued Executive Order 19-40temporarily banning pork products coming from Luzon for a period of 90 days,beginning Sept. 18. “When in doubt, inspectors can ship backthe pork products, including those mixed in other shipments like chicken andbeef. Across territorial and political boundaries, we will pursue theinspection and confiscation,” Decena said. The launching activity was also attendedby officers and members of Alliance of Hog Raisers Association of NegrosOccidental, personnel of concerned government agencies, and representativesfrom feed manufacturers, among others.center_img Part of the salient features is thecontinuation of the inspection and confiscation of pork products fromASF-affected areas that will be intercepted in ports, including those inBacolod City. BACOLOD City – The province of Negros Occidental has imposed apermanent ban of pork and related products from Luzon and countriesaffected by African swine fever (ASF). Several heads of lechon (roasted pig)and pork-based products such as ham and tocino were prepared to showcase NegrosOccidental as ASF-free. “There’s a possibility of legal battle.Whatever it takes, we will challenge any effort from those who will violate theordinance,” the governor said. On Tuesday afternoon, Gov. Eugenio JoseLacson and Vice governor Jeffrey Ferrer signed Provincial Ordinance 2019-024,otherwise known as ”The ASF Prevention Ordinance of Negros Occidental” to keepthe province free from the virus. Penalties range from P1,000 to P5,000,and one-year imprisonment, depending on the gravity of the offense. Dr. Renante Decena, provincialveterinarian and task force co-chair, said the ordinance is scheduled forpublication on Wednesday, after which its provisions will be enforced startingDecember 6. The ban covers live pigs, pork, porkproducts, and by-products from Luzon whether fresh, processed or canned whichcan carry the ASF virus.last_img read more