Don’t look now, but it seems there is another key challenge the world is facing aside from the impending war of the superpowers over tiny reefs and islets in a waterway believed to be a rich source of minerals, fuel, and gas.
As the United Nations commemorated the World Day of Social Justice last 20 February, an equal concern is now focused on the gradual and irreversible shift towards an older population. Yes, the world is aging, so much so that the number of persons aged 65 and older is expected to double over the next three decades, reaching 1.6 billion in 2050.
Figures released by the United Nations Population Division show that Asia is at the forefront of this trend with Hong Kong, South Korea, and Japan expected to have the highest share at roughly 40 percent of their populations aged 65 and older by 2050.
While Japan is famous for its aging citizens and was already topping the list since last year, other Asian economies appear to be catching up in a significant shift that could very well define future strategies.
This is a huge difference from the levels currently observed in other highly developed regions of the world where the share of older people is just in the low 20 percent.
Across Europe, there has been a drop in fertility leading to an aging population. This can cause problems that can arise at both ends of the age structure.
An increased population of older people means an increased demand for health and social care. It becomes increasingly difficult for governments to provide satisfactory pensions, which are ultimately funded by taxes paid by the working population.
On the other hand, the reduced number of babies and children in a declining population also means that there is less need for schools and teachers. Industries that provide products for children may suffer. In the longer term, companies may have difficulty recruiting young workers.
The economically active group gets smaller and must support a growing dependent population.
There are many other social and economic risks that we can expect as the global population continues to age. The “Squeezed Middle” — with more people claiming pension benefits but fewer people paying income taxes, the shrinking workforce may be forced to pay higher taxes.
The Philippines, luckily, is not among the frontline nations with an aging population.
In 1800, the population of the country was approximately only 1.89 million. This grew steadily throughout the 19th century, reaching almost 6.5 million people by 1900. Following its independence in 1946, the Philippines experienced a post-war baby boom as economic aid from the United States and expansive modernization projects by the government led to a significant rise in the standard of living.
This growth would remain steady well into the 21st century, and while the rate of population growth has fallen somewhat in recent years, the country’s population is expected to continue its increase.
In 2020, the Philippines was estimated to have a population of just under 110 million, less than 12 times the population in 1920.
One of the main challenges for countries with aging populations is to ensure that the economy can support the consumption needs of a growing number of older people.
This can be done by raising the legal retirement age, removing barriers to voluntary labor force participation of older people, or ensuring equitable access to education, health care, and working opportunities throughout the life span, which can help to boost economic security at older ages.
It would do well for the Philippines, at this stage, to plan and implement the right measures that would effectively manage the challenges that come with an aging population.