Unions' role in Argentine and Chilean pension reform

The 1981 privatization of Chilean pensions created immediate winners and ob servable benefits. It also created a model for Latin American pension refor m. This study compares the Chilean and Argentine experiences by using polit ical economy models of social welfare development as a framework for discus sion. We suggest privatizing pensions could divide workers or create opport unities for unions to garner control over financial capital investments. Th e Argentine pension reform may diverge substantially; if unions increase th eir participation in the pension fund management and worker education. (C) 2000 Elsevier Science Ltd. All rights reserved.