Switzerland Aiding Pensions Sector of 5 ADB Member-Countries
MANILA, PHILIPPINES - The Government of Switzerland is assisting five developing member-countries of the Asian Development Bank (ADB) in expanding their pension industries to meet the needs of growing elderly populations. The assistance will cover India and People’s Republic of China, as well as Indonesia, Philippines, and Viet Nam. ADB will administer the $210,000 grant. “The overall goal of the assistance is to support capacity building in the pension industries of the chosen developing member-countries. It will focus on enhancing investment performance and improving standards in managing assets,” said Daniel Wiedmer, investment specialist of ADB’s Private Sector Operations Department. A study by the United Nations Economic and Social Commission for Asia and the Pacific in 2002 showed that the proportion of the population aged 65 and older is expected to more than double between 1995 and 2050 in the region. The United Nations projects Asia’s proportion of the world’s population aged 60 and older will be 58% in 2050. Declining birth rates mean fewer offspring to provide direct support to parents who rely on them for care in their old age. Fewer children will also result in a smaller workforce generating lower tax revenues, at a time when the introduction of social security schemes may be critically needed. Pension systems in most developing member-countries still have limited coverage and rigid payment terms. As a result, many systems suffer from high rates of payment evasion and low participation. Many public pension systems in the region also have significant liabilities and face serious future funding problems, made worse by the 1997-1998 Asian financial turmoil. ADB will help address the problem in conjunction with the Association for Sustainable & Responsible Investment in Asia. "We look forward to working with the Association for Sustainable & Responsible Investment in Asia. This is a not-for-profit association dedicated to promoting corporate responsibility and sustainable and responsible investment in the Asia and Pacific region. It has a broad reach and credibility in sustainable and responsible investment in Asia." About ADB | 
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