Our co-investigator and ADB's Chief Economist Prof. Yasuyuki Sawada's statement has been included in a recent press release by the Asian Development Bank (Dec. 13), which focused on the potential of new technologies to boost productivity of aging societies and was issued in connection with the publishing of the Asian Economic Integration Report (AEIR) for 2019 and 2020. (ADB press release: https://www.adb.org/news/technology-could-make-aging-silver-dividend-asias-economies-adb)
Prof. Sawada, who participates in our project's research on the impact of population aging on the economy, remarked that the aging trend is irreversible in much of Asia and the Pacific, but that the governments could derive economic gain from population aging known as the‘silver dividend’ (or, the "third demographic dividend"). The silver dividend is the positive effect on the economy that can be achieved by including retired healthy workers into the labor market or extending the working years of older workers.
"Today’s elderly are better educated and healthier than in the past. The right policies on technologies could extend working lives, generating a substantial contribution to the overall economy,”said Prof. Sawada.
According to the ADB press release, the average healthy life span in the economies in Asia and the Pacific increased by nearly 7 years from 57.2 to 63.8 years between 1990 and 2017. The average years of education among those aged 55 to 64 also jumped from 4.6 in 1990 to 7.8 in 2015.
The exact measures that should be implemented in each country depend on the pace of population aging and the educational attainment of the population in them. However, the AEIR report suggests that, regardless of the aging and education profile, opportunities for lifelong learning should be provided and technologies that make working conditions more suitable for older employees introduced. In addition, undertaking labor market, social security and tax system reforms, as well as introducing policies that enable easier movement of capital, labor and technology across borders could enable Asia-Pacific countries, which are at different stages of demographic transition and technological development, to make economic gains despite population aging.