Social Development Policy Paper on "Ageing and its economic implications"

Social Development Policy Paper on "Ageing and its economic implications"

Date: 
Tuesday, April 14, 2020
Type: 
Public information and advocacy materials
Abstract

Population ageing is a global phenomenon with significant impacts on sustainable development. While being a positive outcome of economic and social development, population ageing will require new economic and social policies if countries are to achieve the 2030 Agenda. Using simulations, the paper shows the impact of different policy options to maintain economic growth in ageing societies in Asia and the Pacific, using China, Indonesia, Japan, Philippines, Republic of Korea, and Thailand, as examples. For each country, the effect of different mitigating policies that seek to stimulate the economy by affecting demography, labour force participation, and productivity are discussed, along with actionable policy recommendations which can be applied to other countries or areas in similar circumstances. The recommendations include increasing labour force participation of older persons, in particular women, to maintain growth and contain the relative size of spending for high-income countries, and to generate growth and provide the fiscal means to finance social protection for upper-middle income countries. Recommendations for lower-middle income economies, particularly for those countries that run the greatest risk of becoming old before they become rich, include investing in productivity enhancement. This involves investing in health and education, ensuring adequate physical capital infrastructure, and a concerted plan to increase the formalisation of the workforce. Recommendations also include measures how to increase labour force participation of women and older persons and on strengthening pension systems.

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