IMPACTOS DE LA REFORMA PREVISIONAL EN EL CRECIMIENTO INCLUSIVO DE LA REPÚBLICA DOMINICANA

Abstract The paper studies the effects that individually funded pension schemes have on inclusive growth. For this, the reform introduced in 2001 in the Dominican Republic is analysed, one of the last to join the wave of reforms in the style of the “Chilean model” started in the eighties. Thus, it is found that the introduction of the individual savings system has led the Dominican Republic to grow more than one additional percentage point each year between the 2003-2019 period in its average estimates, which implies that for each point of growth it has experienced the Dominican GDP, 22% is explained by the operation of the private pension system. It has also been found that the annual impact on the saving-investment ratio has been 0.89% per year, which has resulted in the country's financial development index improving at an additional 0.21% per year and that the rate differential interest has been reduced by an average of 3.15% during the study period. As part of the virtuous circle fostered by the private pension system since its introduction, thanks to the operation of the private pension system, today the poverty rate is almost 4 points lower than in a scenario in which this reform had not been introduced. Keywords: private pensions, social security, economic growth, Latin America.