Unions' Role in Argentine and Chilean Pension Reform

The 1981 privatization of Chilean pensions created immediate winners and observable benefits. It also created a model for Latin American pension reform. This study compares the Chilean and Argentine experiences by using political economy models of social welfare development as a framework for discussion. We suggest privatizing pensions could divide workers or create opportunities for unions to garner control over financial capital investments. The Argentine pension reform may diverge substantially if unions increase their participation in the pension fund management and worker education.