The objective of this class is to consider the role of pension privatization on financial market development and the role of the capital control. 

 

 

Assignment Sheet
Emerging Markets Finance

Class #4, Wednesday, October 26, 2005

Topic: Privatization of Social Security System

Case: Chile and the Tequila Effect (UVA-F-1113)
File: Chile-pension-return.xls

Assignment Questions:

  1. Is Chile different from Argentina, Brazil, and Mexico? How? 
  2. What role has privatization of the Social Security System played in Chile?
  3. Evaluate the performance of the pension funds. Compared with the performance of the U.S. equity market (say, the S&P 500 index), have Chilean citizens gotten a good deal?