Criteria for Sustainability of Old- Age Pension System Based on the NDC Principles

The topicality of the research subject. The foundations of the old-age pension scheme based on notional accounts, also referred to as the "notional defined contribution" or "non-financial defined contribution" (NDC) old-age pension scheme, were laid in Sweden in 1994, when the prevailing view was that a sus­tainable defined-contribution PAYG old-age pension scheme is impossible.Since then, the NDC system modifications have been implemented in several countries; since 2000, this scheme is also part of the Latvian pension system and works significantly better than the other part of the pension system - the funded pension scheme. However, the sustainability of NDC scheme is still being questioned.To prevent the NDC pension system sustainability problems, the authors (Pukis, M., & Dundure, I., 2012) in their publication "The Sustainability of the Pension System in Latvia" and (Dundure, I., 2015), the article "Sustainable Old-age Pension System by Developing Notional Defined Contribution Pension Scheme" have proposed a modified NDC model that provides sustainability of the pension system considering the known risks inherent in the pension system.The aim of the paper is to research and analyse the conditions for building a sustainable pension system by developing a Notional Defined Contribution pension scheme and working out an adjusted (modified) old-age pension calculation formula.In order to achieve the above mentioned aim, the authors set the following tasks:Define the old-age pension system based on NDC principles;Define the primary objectives of pension systems and perform analysis of pension adequacy;Define the conditions for achieving a sustainable old-age pension system based on NDC principles;Develop an adjusted (modified) old-age pension calculation formula based on NDC principles.In order to achieve the established aim and tasks, the following scientific research methods have been used in the work: analytical method, comparative method, logically and abstractedly constructive method.The analytical method and the comparative method are employed for conducting pension adequacy analysis and examination of pension capital indexation and indexation of pensions after retirement, as well as for the purpose of studying the Notional Defined Contribution pension system. The logically and abstractedly constructive method is employed for making forecasts and defining the main research results – the conditions for ensuring pension system sustainability that have been determined by the authors in the course of the research.The authors proved that by basing on the principle of generation solidarity and equity and through improvement of NDC pension calculation formula, it is possible to create the old-age pension system, which would be capable of excluding the old-age pension instability causes

Local Government Networks for Sustainable Growth of Local and Regional Economy

The objective of the paper is to evaluate opportunities of the Latvian variant of local governments' bench learning system to facilitate sustainable growth of local and regional economy. The research is performed by applying several policy analysis methods. There are several obstacles for local governments to facilitate local economy: influence of neo-liberal approach on EU and national legislation, which minimize opportunities of flexible decisions, based on local circumstances; influence of normativism, which is expressed in over regulation of the majority of local government competences; insufficient motivation of local executives to be creative; insufficient performance capacity.Latvian variant of local governments bench-learning is under implementation by Latvian Association of Local and Regional Governments performing project "Smart Governance and Performance Improve­ment of Latvian Municipalities". Model is based on the developing of the experience of the Norwegian Association of Local and Regional Authorities (KS) and the Association of Polish Cities, During the implementation of the project, a benchmarking data base is elaborated; the data base will enable application of quantitative methods and the best practice of the world in the governance of the municipalities, it further will be used for a range of additional activities with a positive impact on the social and economic development of the municipalities and the State. The second main activity – elaboration of cooperation network on the basis of bench-learning concept. In the cooperation network, the representatives of the municipalities help each other by giving advice, discuss different solutions known in Latvia and in the world. During project implementation, the skills of network coordinators to organise and serve the networks are developed. Main thesis: Bench-learning system is powerful instrument to facilitate local initiative to invent and implement innovative methods; suitable for diversification of local economy, therefore facilitates bet­ter developing and applying of local and regional human resources; useful for central government to co-operate for better regional policy and organisation of supervision on the basis of applying principles of subsidiarity and proportionality

Parskats par publiskas parvaldes sistemu tris nozares

Available from Latvian Academic Library / LAL - Latvian Academic LibrarySIGLELVLatvi

Sustainable Development Model of EU Cities Compliant with UN Settings

Nowadays, the globally accepted UN concept of sustainable development (SD) is gradually transferred to the city level, including small and medium-sized cities. The implementation of SD settings requires regular measurement of developmental progress to monitor the level achieved in statics and dynamics, and to make strategic decisions for the next period. The existing urban SD indicator systems and indices are not well-suited for the monitoring of specific cities. Benchmarking algorithms and mathematical modelling procedures were applied to create a methodology and mathematical model for measuring the achieved urban SD level and to ensure the most objective selection and proportions of key performance indicators (KPIs) to be included in the model. The model (1) complies with the UN concept, (2) is usable for any EU city, (3) reflects the level of quality of life achieved, and (4) includes a limited number of KPIs related to municipal functionality. Mathematical computation of the (1) causality between the KPIs, (2) selection and proportions of KPIs, and (3) the general level of urban SD, as well as the reasonable combination of universality, accuracy, stability, and simplicity are strong advantages of the model. Using the published mathematical expressions of the model, calculation of the SD level does not require specific skills; the performed stability test also confirms that annual calibration of the model is not necessary. The index will help municipalities in planning and managing SD, and in the rational use of their usually limited resources. As a pilot project, SD level values are calculated for several cities

Funkciju izpildisanas optimizesanas modela izveidosana

Available from Latvian Academic Library / LAL - Latvian Academic LibrarySIGLESecretariat of Minister for Special Assignment on Public Administration Reform, Riga (Latvia)LVLatvi