Financial Systems to Make Savings Count

Andrew Powell and Eduardo Cavallo

Chapter 3 in Saving for Development: How Latin America and the Caribbean Can Save More and Better, 2016, pp 45-73 from Inter-American Development Bank

Abstract: Why should people--and economies--save? The typical answer usually focuses on the need to protect against future shocks, to smooth consumption during hard times, in short, to save for the proverbial rainy day. This book approaches the question from a slightly different angle. While saving to survive the bad times is important, saving to thrive in the good times is what really counts. People must save so they can invest in their own and their children's health and education, live productive fulfilling lives, and end their days in comfort and peace. Firms must save so they can grow productive enterprises that employ more workers in better jobs to produce quality goods for domestic and international markets. Governments must save to build bridges, highways, and airports that support a productive economy, to provide quality services such as education, health, water, and sanitation to their citizens, and to assure their senior citizens a dignified, worry-free retirement. In short, countries must save for a sunny day -a time when everyone can bask in the benefits of growth, prosperity, and well-being.

Keywords: Domestic Saving Rate; Household Saving; Pension funds; Pensions Systems; Infrastructure Investment; Tax Revenue; Productivity Growth; Income Tax; Private Investment; Public investment; Financial Intermediaries; Financial institution; Economic Growth; Financial Systems; DIA; poupança nacional; national saving; poupança informal; inversión en infraestructura; ahorros formales; productividad; desarrollo económico; fondos de pensiones; ahorro nacional; poupança formal; ahorros informales; informal saving; tasa de ahorro; formal saving; Desarrollo en las Américas (search for similar items in EconPapers)
JEL-codes: D91 E21 E22 F32 G2 J11 J26 (search for similar items in EconPapers)
Date: 2016
ISBN: 978-1-349-94928-1
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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