Unfortunately, the Global South must develop a strategy for adapting to its aging population with inadequate resources, inadequate time to plan, and in the face of intense pressure by the World Bank to withdraw public safety nets. Other Factors Other factors contribute to the problem as well. Tax evasion in Latin America resulted in fewer contributions into the pension systems, as did corruption and mismanagement of pension systems around the Global South. Pensions in China and Eastern Europe do not index benefits for inflation. Both rural and urban elderly find it difficult or impossible to find jobs to supplement pension or social security benefits.
Jobs are scarce for all age groups.
In China, ageism is institutionalized, with scarce jobs reserved for the young, and older workers pushed out of the workforce. The first pillar of the proposed model provides a minimum benefit guaranteed through a mandatory and universal allocation plan financed by taxes and managed by the public sector. The second pillar involves individual savings plans, with defined contributions being managed by the private sector, subject to state regulation. The third pillar provides supplementary pensions based on defined contributions, and state-regulated, privately managed individual funds. The World Bank policies have resulted in privatizing public pension systems.