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Título del libro: Covid-19 And Economic Development In Latin America: Theoretical Debates, Financing Dilemmas And Post-Pandemic Scenarios
Título del capítulo: They Win in Mexico: Pension Funds and Financial Benefits during the Pandemic*

Autores UNAM:
MONIKA RIBEIRO DE FREITAS MEIRELES;
Autores externos:

Idioma:

Año de publicación:
2023
Resumen:

Ever since the pension privatization model took place in Latin America, the financial sector has attained more decision-making power. The actors of the financial sector are the main ones responsible for the portfolio management of the assets whose performance will be the basis for the payment of future pensions. Also, institutional investors are relevant figures and great beneficiaries of the profits obtained in the capital markets. In the current pandemic, we have also seen that the returns obtained by pension funds ? the Retirement Fund Administrators (Afores) in the case of Mexico ? unlike other financial entities, have shown a positive trend, despite the economic crisis as a result of the widespread health crisis that we are experiencing. However, this does not mean that the capital gains achieved by mutual and pension funds ? in the recent bubble in the world?s stock markets ? will be mirrored in workers? savings for their retirement. Thus, this chapter seeks to discuss how and why, amid a health emergency of the new coronavirus, a boom occurs in the securities market, highlighting that the ?good? performance of a fund portfolio does not mean a proportional increase of resources for the next generation of Latin American retirees. In short, we seek to discuss the following paradox: the increase in the present value of the portfolio of pension funds ? due to the boom in the value of shares ? does not ensure the sustainable growth of these resources in a context of radical uncertainty, because of the fragility of its attained worth, potentially jeopardizing the deferred payment of pensions for the working class. © 2024 selection and editorial matter, Monika Meireles, Bruno De Conti and Diego Guevara.


Entidades citadas de la UNAM: