Abstract
Poland, traditionally a country with a Bismarckian pension system, implemented a reform in 1999 that transformed it into a multi-pillar system. However, some features of the new pension system are characterised by path dependent development. Privileges for certain beneficiaries, like a lower retirement age, were abolished in the new pension system, but were subsequently restored in part. This avoided the social and political costs that would have arisen if these privileges had been completely abolished. This paper analyses the process and outcome of the 1999 pension reform in Poland from the perspective of path dependence. It describes the political and economic framework in which the reforms took place, identifies the organised interests that were involved and argues that, while the introduction of the second and third pillar can be understood as path shaping, the change of the PAYG pillar is an incomplete path departure.
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