Pension Funds Can Drive Domestic Growth Through Independent Governance

Pension funds can support domestic growth if they are large, independently governed, and prioritize financial returns for retirees. This approach ensures that broader economic development is a secondary benefit rather than the main objective.

To enhance their capacity for investment, pension funds should either form larger entities or collaborate through shared platforms to pool capital. This strategy allows for more substantial financial resources to be directed toward domestic growth.

Designing pension systems with targeted incentives can help include underrepresented groups, such as women and informal workers, in the capital pool. This inclusion is essential for expanding investment opportunities and promoting equitable growth.