In the third episode of the #GlobalTalks strand, part of the SGcHat series, the guests behind the microphones were Robert Holzmann, former Governor of the Austrian National Bank, and Prof. Agnieszka Chłoń-Domińczak, Vice-Rector for Research at SGH Warsaw School of Economics.
The conversation took place during the 4th NDC Conference at SGH, dedicated to global demographic trends and the future of pension systems. The NDC (Non-financial Defined Contribution) system – a pay-as-you-go system with defined contributions – combines features of the classic public pension system with individual pension accounts and is recognised as a model that automatically adapts to demographic changes.
The experts explored why the NDC system – considered one of the fairest and most transparent pension models – has not been more widely adopted around the world. Robert Holzmann explained that much depends on politicians, and politicians do not like perfection. For them, NDC is a constraint because they cannot easily promise extra benefits before elections. This system is watertight: what you pay in is what you get out. That is why, instead of fully implementing NDC, countries often draw only selected inspiration from it.
The conversation also touched on demographic challenges (rapid population ageing) and emphasised that NDC requires a formalised labour market. That is why, in developing countries, it rarely works in its pure form.
Spotify: https://open.spotify.com/episode/6SYye9IMHUpPvwoniUmeqX
Youtube: https://youtu.be/Xi4j0dRswAM
