The Economic Problem of Population Ageing

In the contemporary world, the economic problem of population ageing caused is revealing gradually. UNESCO provides a standard that a single country or region in the population over 60 years is more than 10% of the total population, which is into the aging of the population. Both of developed and developing countries in recent years have to face more serious aging impacts for economic progress. According to population prospects (2009), the whole world will accelerate the pace of ageing after 2010. More precisely, share of elderly people is 22% in rich countries and 8% in poorer countries, whereas these figures will rise to 33% and 20%, respectively. Why does aging become a problem? The U.S. Census study points out that the worldwide ageing of the population is not the history of emerging social phenomenon. Four reasons to explain it. Basically, this demographic shift springs from advances in medical technology, education and economic growth. The Economist (2009, p.2) notes that another passing cause is the baby-boomers who are going grey after the second world war The population structure change produce a series effects on employment, government finance and consumption level. As I see it, there are three potential crises in global economy which caused by graying.

Labour shortage

I focus on work force in graying countries. I put forward three reasons on this point. Firstly, increase in the proportion of the elderly and the reduction of newborn, leading to more work places no one succeed. Furthermore, an increasing number of elderly yearn for a happy and relaxed retire life ahead. In spite of retirement situation of each country is various, generally 55-70 years old. For instance, In Austria, the normal retirement age should...

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...development of ageing of the world economy has brought both opportunities and challenges. Despite this, the economic crises are still greater than business opportunities We should assume a positive attitude to face aging. There are some measures taken to help current troubles. Such as, re-employment workers, investing elder-friendly housing, to encourage investment and financial management. Economic problems caused by ageing will gradually arise in future.

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Bibliography

1.“World population prospects, A greying world forecast, United States, 2009.

2. The Economist , June 27th 2009, “A slow-burning fuse” ,

Available from: www.economist.com/specialreports

3. Chart source: OECD, 2009, OECD Pensions at a Glance

Published by : OECD Publishing

Available from: http://www.oecdbookshop.org/oecd/index.asp?CID=&LANG=EN

[Accessed 15 Oct 2009]