During the final decade of the 20th century, many Latin American countries enacted sweeping market-oriented pension reforms, introducing, at least partially, private pension system based on defined contributions and individual capitalization. Lately, however, many of these nations have witnessed shifts in the reformed pension schemes. Why have these “re-reforms” occurred? Why have they taken different forms in different countries? This study explores the causes of divergent policy outcomes of Latin American pension re-reforms from a comparative perspective. My theoretical framework emphasizes the following two factors: (a) the type of compromise made under the first-generation reforms and (b) the pension policymaking process. The inquiry developed in this study demonstrates the importance of a balance of power among pension stakeholders, which emerged as a legacy of long-term political processes.

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