Population Aging, Economic Growth, and Old-Age Income Support in Asia
Keywords:
Aging, Demographic Transition, Economic Growth, Productivity, AsiaAbstract
Developing Asia is facing the challenge of the aging population, as well as falling fertility. These twin phenomena now threaten the economic progress that the region has enjoyed the last few decades. However, its rising proportion of the elderly may come with the benefit of having a high saving rate that can be channeled to investments. This paper discusses the ongoing demographic transition, population aging, demographic dividend, and how it will affect the economic prospects of developing Asia going forward. A sound approach to sustaining economic growth and providing economic security for the elderly would strike the right balance between assets and public transfers while promoting high rates of human capital investment through investing in physical capital and human capital coupled with technological innovation.
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