The Implications of Aging Populations in the World
Introduction to the Concept of Aging Populations
We have chosen to research ‘aging populations in the world’ as our global indicator. “Population ageing is characterized by an increasing proportion of older people while the proportion of younger people declines” (Alvarado and Creedy, 1998). This phenomenon is a result of advancements in health care, improved sanitation and nutrition habits; all of which have contributed to lower mortality rates (specifically infant mortality) and longer life spans. Another significant factor includes reduced birth rates due to innovations in birth control methods and changing lifestyles, particularly in developed countries. Thus, population growth is decreased, creating gradually older populations. (Global Population Aging in the 21st Century and Its Economic Implications P.1). “By 2025, the World Health Organization estimates that there will be over 1.2 billion people over the age of 60—more than double that of today.” (Tretheway and Mak, 21).
This phenomenon brings about several future concerns, as outlined in the International Monetary Fund’s video on Global Aging (See video 1 above):
Economic Impacts: Growth, savings, debt, investment, consumption, labor markets, pension, taxation
Societal Impacts: Family composition, living arrangements, housing demands, migration trends, health care
Political Impacts: Voting patterns, political representation
Of particular concern is the increasing old-age dependency on a decreasing working adult population. “As more time passes and an increasing portion of the population enters retirement, the old-age dependency ratio—the number of old people supported by the average working-age adult—tends to rise.”(Global Population Aging in the 21st Century and Its Economic Implications,16)
This is of great concern as it will impact the current generation’s expenditure on its own needs - education, health, technology as well as its children’s future.
In the Global Sense...
“Population aging is a global phenomenon in the sense that nearly all countries are undergoing a demographic transition that is likely to leave them, in time, with larger and much older populations than they started with.” (Global Population Aging in the 21st Century and Its Economic Implications, 17)
At first glance, the global indicator of population aging is easily attributed to the fact that it is a worldwide phenomenon. However, more subtle links can be found within several sub-themes and aspects impacted by aging population. We have decided to focus on two industries to illustrate the global effects of population aging: the booming industries of health care and tourism. These sectors touch on elements of technology, culture, political and economical systems.
The transition of changing demographics create many impacts on one country, which through globalization, create a ripple-effect on other countries. These international impacts can further offset or intensify the effects of aging populations. (Global Population Aging in the 21st Century and Its Economic Implications, 31)
“Based on the premise advanced by a number of scholars (Cohen, 1988; Mackay, 1997; Marconi, 2001; Tapscott, 1998) that membership of a specific generation has an effect on a person’s consumption patterns there is reason to believe that the demand for tourism goods and experiences changes as members of specific generations reach consumption and life cycle milestones. These milestones commonly include starting a family, reaching career highs and retiring” (Salt, 2003).
The Health Care Industry
According to a report of the United Nations (2006), "the world's population has
continued on its remarkable transition path from a state of high birth and death rates
to one characterized by low birth and death rates." The main reason for this
development is the intense growth of elderly people, which was never experienced
before in history. It is remarkably that women dominate with 55% among the ageing
population aged 65 and over and even 65% among the people aged 80 and over.
Furthermore, there exist geographic differences among the ageing population as
"one out of five Europeans, but one out of twenty Africans, is 60 years or older."
A recent publication from the Euromonitor (Travel and Tourism World, 2007)
illustrates the demographic trends worldwide by saying that while
birth rates recovered in the US, the EU shows only a birth rate of 1.5.
According to the `Foresight' (2006), life expectancy has worldwide increased during
the past decade, whereas there is a huge diversity among older people as they can
not be treated as a homogeneous group because of differences in gender (more
women in older age groups), disposable income, culture, socio-economic group or
social class.
Concerning the pharmaceutical industry it can be said that there exists a growing
demand due to the aging population in many developed economies. (The
Economist The World in 2007, 113). Both, the micro and the macro environment of these two industries are influenced by the aging population. The macro environment is often examined with the PEST analysis, which incorporates "the political and economic, social (including legal and cultural) and technological environment." (Hooley et al, 2004, p.94)
Nevertheless,the micron environmental forces, which consist of competitors, customers, dealers, suppliers and distributors, are influenced by the changing demographics (Kotler and Keller, 52).
The Pharmaceutical Industry
The pharmaceutical industry is highly dynamic and profitable but also "consists of
thousands of companies" and the leading `Big Pharma', "a dozen or so multinational
firms", which "account for roughly half of the world's $55o billion retail drug market."
(El Feki, 2005, p. 3) According to `The Economist' (The World in 2007, p. 113)
The sales of pharmaceuticals will increase by 10.4 % in 2007 which represents double the world GDP growth rate. The phenomenon is due to the ageing populations in richer
countries, which "are getting older, and many people suffer form chronic
conditions." (El Feki, 2005, p.3) However, it can be assumed that the ongoing
developments will encourage governments to put pressure on the pharmaceutical
companies to reduce drug prices.
When taking the US as an example, it can be analysed that almost 10 million people
suffer from osteoporosis and another 32.9 million from low bone mass which could be
a beginning stage of osteoporosis. These facts offer massive opportunities to thepharmaceutical industry as the treatment is extremely costly. In fact, global
treatment requirements are expected to double from US $ 5.5 billion in 2001 to over
US $ 10 billion in 2008 due to the aging population and the rising awareness of the
illness. (Wood, 2006) Considering the micro environment, it is obvious that the
demand is increasing constantly through the ageing population. On the other hand,
competition is most likely to increase as well, especially in the prescription drug
business, as many big drug companies such as Boots International and Bristol-Myers
Squibb decided to exit the OTC healthcare market in order to concentrate more on
the more profitable prescription drug market. (Euromonitor OTC Healthcare USA,
2006).
When looking at the UK, it can be assumed that several environmental issues are
caused by the ageing population, such as the increased need for social care.
Pressure is put on the government to provide an appropriate social system and to
cover the increasing costs for healthcare spending. The percentage of the
population over 65 is growing constantly and the power they have can not be
underestimated and should be taken very critical by political parties and their
decision on political objectives and choices. , As a matter of fact, 75% of the voting
population during the General Election in 2005 were people aged 65 and over,
which illustrates the political power this generation has as they assumingly prefer to
vote for the party which offers the most pension health care and pharmaceutical
support. (Age Concern, 2006)
Healthcare Spending
The total global expenditure for health is now more
than US$4.7 trillion a year, according to the World Health Organization, and
health expenditure as a percentage of GDP has been increasing among all major
economies.
Spending on healthcare varies widely from country to country, as do outcomes. Nor is there necessarily a correlation between the amount of money spent and the effectiveness of the healthcare system. The United States spends more on healthcare than any other country, in both relative and absolute terms, yet its healthcare system scores poorly in terms of its overall performance, according to the Commonwealth Fund Commission, a US private foundation that supports independent research on healthcare issues. The Fund produced a report on the performance of the US health system in 2008 (The National Scorecard on US Health System Performance, 2008). The scorecard aimed to measure and monitor healthcare outcomes, quality, access, efficiency, and equity in the United States. It ranked the United States last out of 19 countries on a measure of mortality amenable to medical care.
This poor performance may reflect the nature of healthcare provision in the United States. The country has several types of privately and publicly funded insurance plans that provide healthcare services. However, the
private sector dominates healthcare and the United
States is the “only wealthy, industrialized nation that does not ensure that
all citizens have coverage” (that is, some kind of insurance), according to the
Institute of Medicine, a non-profit organization for science-based advice on
matters of biomedical science, medicine, and health.
By contrast, a publicly funded healthcare system, the NHS, dominates healthcare in the United Kingdom,
Table 1. Total healthcare spending as a percentage of GDP, 2007.
By contrast, a publicly funded healthcare system, the NHS, dominates healthcare in the United Kingdom,
Table 1. Total healthcare spending as a percentage of GDP, 2007.
Country
|
Healthcare spending, % of GDP
|
Australia
|
8.9
|
Canada
|
10.1
|
France
|
11.0
|
Germany
|
10.4
|
Italy
|
8.7
|
Ireland
|
7.6
|
Japan
|
8.1*
|
Portugal
|
10.2*
|
Spain
|
8.5
|
Sweden
|
9.1
|
Switzerland
|
10.8 (est.)
|
United Kingdom
|
8.4
|
United States
|
16.0
|
* 2006 data; est.: estimate
Japan spends around 8.1% of its GDP on healthcare, almost half the amount of the United States. Yet the Japanese have the longest healthy life expectancy on the planet. Diet and lifestyle clearly play a key role, but the country’s universal healthcare system may also be an important factor. Everyone in Japan is required to take out a health-insurance policy, either at work or through a community-based insurer, according to Key Note. The firm adds: “The government pays for those who are too poor. However, 80% of Japan’s hospitals are privately owned—more than in the US—and almost every doctor’s office is a private business. The Japanese Health Ministry tightly controls the price of healthcare, down to the smallest detail. Every two years, the healthcare industry and the health ministry negotiate a fixed price for every procedure and every drug.”
The Travel Industry
The global tourism industry is a significant one, with a share of 9% of global GDP and 235 million people working in the sector. (Global Travel and Tourism Summit)
One can say that the global travel industry has been aided by the advancements in logistics in Globalization 4.0, which is enabling more growth and opportunities for exports around the world (Brutton). International logistics and tourism are significantly linked and are affected by similar effects of global changes. For instance, the 2001 terrorist attacks, which characterized Globalization 3.0, “slowed the march of globalization” both in reduced travelling around the world and more intense scrutiny of international package deliveries. Now, with the “world becoming flatter” in Globalization 4.0, international business and trade is becoming increasingly more important, thus creating a need for more advanced logistics. These improvements in logistics “will continue with new technologies and processes for moving goods efficiently across borders. In fact, logistics is the key to ensuring that global trade continues to expand and thrive.” (Brutton). This will also directly impact the travel industry due to its similarities and create greater opportunities in the sector.
However, recent studies and analyses have shown a global downturn in tourism due to the state of the economy. Plunkett Research has analyzed the current state of the industry and has found the several key aspects:
“Both the lodging and airline industries suffered from recessionary cutbacks in business travel. Hotels saw lower occupancies and were forced to lower prices in order to stay competitive, while many routes in airline travel had to be reevaluated due to fall in demand. But seizing this opportunity, online reservation services have prospered and grown to be a major source of traffic. Discount airlines such as Southwest (LUV) and JetBlue (JBLU) gained market share while other airlines cut back services. The symbiotic relationship between the two has helped both services weather the recent economic storm. The silver lining of the industry has seen cruise liners become ever more popular. With 12 new ships launched this year, they look to expand even further once the economy rebounds.”
The rebounding economy should enable the industry to recover its losses. But the economy is not the only element influencing tourism. Many factors impact global tourism namely eight which have been identified by the World Tourism Organization: economics, technology, demography, infrastructure and facilities, politics and legislation, environment, international trade, and safety and security (World Tourism Organization 1995). However, another factor should be taken into consideration: that of population aging due to its effect of significant demographic and social changes. (Glover & Prideau, 27)
“Tourism demand is a function of the availability of personal time, financial resources and destination attractiveness. It is also influenced by social and economic change, domestic and international political considerations and new technology. As one of the variables that defines social change, population ageing determines patterns of demand” (Glover & Prideau, 35).
Many forecasts of the tourism sector suggest that population aging will have a major impact on the industry in the upcoming years (Klaus Weiermair, 2). Demographic observations of the travel industry in developed countries demonstrate that an aging population appears to result in higher travel expenditures, especially beginning at age 45 and until age 75, when the rate of tourism spending decreases. (Tretheway & Mak, Emerging tourism markets: Ageing and developing economies, 20)
“The older population has the time to travel and experience the world that may have eluded them during the years of raising a family or pursuing career commitments. Higher income enables greater exploration. […] Demographics are changing with ageing populations in the developed world as well as in economies such as China. The older tourist will seek a different experience than the younger tourist” (Tretheway & Mak, 21).
“Demographic characteristics play an important role in the choice of tourism activities and destinations and are usually included in visitor surveys” (Glover & Prideau, 26). As demographic changes occur due to increased elderly age groups, this would inevitably impact the demand in the tourism sector. This creates a need to modify characteristics of products and services as the population ages, to attract the most numerous group.
Tourism demand will be impacted with changes in demography. Leisure activities are dependent on the availability and usage of time, money and space, according to Martin and Mason’s model (1998). These resources are furthermore influenced by changes in technology, society and economy, which create new trends in activities and demand patterns (26). An increasing number and proportion of older individuals in a society suggests that the older generations’ consumption patterns and preferences will have a significant influence on overall tourism demand. An aging population is likely to create changes in the patterns of demand for the choice of activities and destinations. As a consequence, tourism demand is likely to change over time.
“The group that currently drives population ageing is the baby boomer generation. The size of this generation, coupled with increased life expectancy and low fertility rates, has led to a dominance of the baby boomers’ values, beliefs and demand patterns making this generation an important target market. The first of the baby boomers are now entering retirement and as they do so, their impact on the demand for travel products is likely to be felt by many destinations and suppliers” (Glover & Prideau, 28).
Baby boomers are shown to travel more frequently than previous generations due to several factors: higher disposable incomes, improved transportation, better accessibility of destinations, their better health due to advanced health care and need for social belonging and interaction. These factors overshadow the price of a leisure trip – they are more likely to disregard high cost and consider other elements when planning a trip. “In addition to active holidays those who have the financial resources also seek meaningful, significant and authentic experiences, which can range from adventures such as trekking through the Himalayas to educational cultural explorations including study-tours to historic sites in Europe and Asia” (Glover & Prideau, 30).
There are two trends within the industry characterized by global aging. The first trend reveals that as they grow older, baby boomers demand the same type of products as before but the product features need to be adapted to their new position in the life cycle, new family situation and older age. The second trend shows that baby boomers display differing tourism demand patterns from the previous generation. “Destinations that focus on the older traveler need to adapt to these changes and cater for a younger audience of seniors in order to remain competitive.” (Glover & Prideau, 35)
There are several implications in the international management context. The aging population’s impact on tourism must be taken into consideration for managers, not only in the tourism industry, but also in companies in which travel is necessary to conduct business. For managers in the travel and tourism industry, two main decisions will need to be considered: first, if their product and marketing should be focused towards an aging population (which will require frequent modification of their product package over the years) or a fixed age group; second, if their products and services should be adapted to meet changing demand. The first decision requires analysis of current target markets and their future profitability; as well as the own company’s ability to service its customers. The second decision involves greater implications in the fact that modification of tourist products will require change of the destinations themselves, as the products are inseparable from places they are consumed. This creates cultural, social and economical impacts in the local destination, should the managers decide to modify their tourism products in order to attract more tourists – the elderly generation.
This second decision also impacts international managers unrelated to the tourism industry but who require travel in order to conduct business. With changes made to the industry to accommodate the aging population, several features are impacted: the means by which they travel as well as the destinations to which they travel. For instance, airports and other modes of transportation (train, boat…etc.) could be tailored to mostly fit the needs of the elderly. Furthermore, changes to the destinations themselves could be done to accommodate older tourists, which could directly impact the local business and indirectly influence the way in which business is conducted for the managers. (Glover & Prideau, 27)
“It is apparent that destinations and tourism suppliers need to develop products and services that have the capability to appeal to multigeneration markets rather than focusing only on one generation” (Glover & Prideau, 31). Should managers not take the aging population in consideration, an important segment will be overlooked. In order to remain successful in the promotion of their product and services, they must consider the differences in the demand profiles of specific generation groups. “The development of products of this nature will need to be undertaken within a number of parameters including: many baby boomers will have greater financial resources as a result of personal investments or superannuation funds; they will have more time available and seek to travel more often; they are likely to be fastidious about their destination choice as a result of past travel experience; and they will search for different activities and experiences due to their values, beliefs, state of health, education, and travel experience” (Glover & Prideau, 34).
Managers must consider the customer’s travel knowledge and ensure that their products satisfy the older market’s expectations. International competition should also be considered. Baby boomers have been observed to prefer more exotic locations with lower concerns about security and unfamiliar territories that may not speak English. For example: destinations in the South Pacific which are “that are accessible by air, comparatively cheap and considered more exotic” can create a serious threat to similar destinations in Australia. Therefore, a unique selling proposition separating them from other destinations will need to be included (Glover & Prideau, 35)
However, a balanced approach must be taken in deciding on a product portfolio for a tourist destination and the management of tourist products, at the risk of a “product gap” occurring in the market, which would create a drop in profit (Glover & Prideau, 36).
Impacts of International Management in the Global Context
1. Government policy: The government is responsible for the health care of the elderly, which is a great expenditure. There is a need for government to implement types of policies that deal with this expense to follow with the aging population.
Examples in Hong Kong, U.S., China and Canada have been taken into consideration to illustrate this concept:
Hong Kong
It is estimated that only 4% of those over the age of 65 posses coverage at present. One of the reasons has been attributed to the rising premiums among the elderly population. In order to release the burden of growing aging population, the Hong Kong government announced an insurance subsidy scheme which intended to sweeten the voluntary health insurance coverage proposal. This scheme has been in debate for many years since 2008. Hong Kong government has made an agreement with the insurance companies by providing insurance plans with the guaranteed renewability and availability of packaged medical services at the city’s private medical facilities. It is expected that the scheme will cost HK$2 billion annually. However, Hong Kong government has already eased some parts of health care expense to the individuals themselves (Lamb, Public Health Insurance).
United States of America
For the case in the U.S., according to the Census Bureau data, it is estimated that 46 million Americans are without health insurance. Many young workers simply do not consider health insurance. 18.3 million of the uninsured are under age 34. This group of people will inevitably become old in the future, at which point they will have to become the responsibility of the U.S. government.
An act has been introduced (America’s Affordable Health Choices Act of 2009), with the aim of ensuring that 97% of the U.S. population receives health insurance by 2015. The bill of all Americans are to be covered by either private or government administered health insurance. Under the Affordable Health Care Choices Act, health insurance will be mandatory. Individuals who fail to carry adequate coverage will face a tax penalty of 2.5% of their adjusted gross income (Longley, About the U.S. Government)
China
China has been putting efforts on the social security protection of its citizens. Regarding pension, China has a system to ensure that its citizens are able to maintain some income after their retirement. Both employee and employer have to contribute a fee on a monthly basis. The portion contributed by the employees is placed into a personal fund, which individual can draw on after retirement; while, the contributions made by employers are placed into a social pool. Therefore, even if citizens have used up the personal portion of their pension, they will still have some income to support themselves.
In the medical insurance sector, employees and employers are required to make contributions in the medical insurance fund. Chinese citizens can defray some of the costs of medical expenses. Individuals can receive a small amount of money from their medical insurance card, though they will still need to bear a certain percentage of the medical fees (Livermore, Understanding China’s Social Security System)
Canada
Health care has been a dominant issue in Canada’s federal elections. The following are a list of different parties’ platforms on health care:
Liberal Party on Health Care
The Liberals support a publicly funded health care system with universal access.
• They have guaranteed that health transfers to the provinces will grow by six percent each year for the next 10 years.
• As a result of the 2004 Federal-Provincial Health Accord, the provinces have agreed to benchmarks for wait times for priority medical procedures.
• The Liberals are promising a Canada Health Care Guarantee, which includes $300 million to increase capacity in teaching hospitals to reduce wait times; $50 million to speed up wait list management; $10 million to Canadian Institutes for Health Research for development of future wait list benchmarks; 10 million for patient-management programs for doctors for wait list management and to help patients navigate the health care system; and $75 million for a Health Care Guarantee Fund to help patients with travel costs to receive treatment in another province.
• The Liberals are promising to invest $100 million over 5 years to bring 1000 new family doctors on stream.
• The Liberals will put $300 million over five years into a new National Cancer Strategy.
• The Liberals propose the establishment of a Canadian Mental Health Commission for information, knowledge exchange and public awareness, in cooperation with provinces and other stakeholders.
• The Liberals would also invest nearly $700 million into a Public Health Strategy to bolster the public health system, including support for new vaccine programs and preparedness for infectious diseases.
• The Liberals plan to provide $500 million in new support to assist Canadians with disabilities.
Conservative Party on Health Care
The Conservatives support "a mix of private and public health care delivery, as long as health care remains publicly funded and universally accessible."
• They will work with the provinces to develop comprehensive plans for cancer, mental illness and heart disease, including implementing a $26-million five-year Canadian Strategy for Cancer Control. • The Conservatives plan to immediately compensate all those who contracted hepatitis C from tainted blood.
• The Conservatives propose improving access to natural and complementary health products and supplements.
NDP on Health Care
The NDP want to stop the "creeping privatization" of health care in Canada and improve public health care.
• The NDP propose a Protection of Public Health Care Act. Through the legislation and agreements with the provinces, the NDP would make stable, long-term federal transfers for health care contingent on a commitment that the money would not be used for a profit-making insurance system covering medically necessary services.
• The NDP support investment in long-term care for seniors, starting with an expansion of 10,000 units in 2006 to a total of 40,000 new units by 2009.
• The NDP would work with the provinces and territories to phase in a national prescription drug program, beginning with coverage for key catastrophic drugs.
• The NDP would increase the coverage for home care.
• The NDP propose the establishment of a Health Care Provider Training Fund, with a goal of adding 16,000 health care providers to the system, especially nurses and nurse practitioners. (Munroe, Federal Health Care in Canada) The Canadian case illustrates that health care is not only an influential issue to government policy but also a critical political issue.
Overall, the increasing aging population around the world becomes a global management issue. Many countries are now managing their own social security health care system. Governments need a well-established system to ensure that the elderly are able to maintain their quality of life when they are retired. However, it is crucial that the system does not bring too much burden to the society. Hong Kong, the U.S.A, China and Canada have shown some examples of how governments are managing their health care system under the impact of global aging population. For example, policies are launched to make sure that each individual contributes in their medical insurance fund. This is important and essential to maintain long term economic stability in the country.
2. Domestic Medical Tourism
With the influx of an aging travelling population, it does not simply bring traditional tourists to the tourism. In fact, they also bring domestic medical tourism. For instance, some health care providers, within the U.S. actually market themselves as medical destinations. One American base provider - the Cleveland Clinic, welcomes thousands of patients, both national and international for treatment each year. In addition, there are many insurance companies such as AXA, which provides 24-hour international medical insurance assistance.
Medical tourism is a term coined by travel agencies and mass media to describe the rapid growth of travelling across international orders to obtain health care. High cost of health care, long wait times for certain procedures, the ease and affordability of international travel, improvements in both technology and standards of care in many countries are the factors that have led to the increasing popularity of medical travel.
“The cost of surgery in India, Thailand or South Africa can be one-tenth of what it is in the United States or Western Europe, and sometimes even less. A heart-valve replacement that would cost $200,000 or more in the US, for example, goes for $10,000 in India--and that includes round-trip airfare and a brief vacation package. Similarly, a metal-free dental bridge worth $5,500 in the US costs $500 in India, a knee replacement in Thailand with six days of physical therapy costs about one-fifth of what it would in the States, and Lasik eye surgery worth $3,700 in the US is available in many other countries for only $730. Cosmetic surgery savings are even greater: A full facelift that would cost $20,000 in the US runs about $1,250 in South Africa.” (University of Delaware publication, UDaily).
However, there are some concerns in legal and ethical issues.
Medical tourists may be subjected to some unfamiliar legal issues when receiving medical care abroad. Although some countries present themselves as attractive medical tourism destinations and provide some form of legal remedies for medical malpractice, these legal avenues may be unappealing to the medical tourist. Patients might not be covered by insurance or receive compensation via malpractice lawsuits when problems arise.
Besides, receiving medical care abroad can be subjected to ethical issues. One example is the illegal purchase of organs and tissues for transplantation in countries such as China. “China initially lacked appropriate institutions, effective laws and regulations to keep pace with its rapid economic development” (Hennig). Some doctors in China are corrupted with brokers to do organ transplantation. Patients, local or non-local, can receive organ or tissue transplantation only if they can provide higher compensation to the doctor.
These issues are crucial for domestic medical tourism. We are experiencing economic globalization. There are interrelationships of goods and services among countries. It is important that countries should work together to adjust their own rules or policies to meet the global economic demand. For the case of domestic medical tourism, governments may need to work together to collaborate a common rule or regulation so that the legal and ethical issues can be resolved (Chase-Dunn, Globalization: A World-Systems Perspective).
Conclusion
Our global indicator is aging population, which through the points discussed demonstrate the technological advancements leading to longer life spans. Aging population impacts the world, through our examples by increasing health care costs and greater global travelling. It is therefore important to manage the aging population internationally.
From the perspective of the government, policies are needed to ensure that the growing health care costs do not affect the living quality of the citizens. One more point is how the world is going to do with the medical travelling. Should there be any rules or agreements globally to protect citizens in their medical travelling? How are governments going to work with each other to management the aging population?
The blog provides a first glance at the aging population towards the globalization. The important thing is that we do not treat aging population as a problem or a burden to the society but as a solution or opportunity to the world. As the opening video demonstrated, the elderly bring legacy, wisdom, culture and many great values. We should focus on involving them in policies to better their lifestyles but also to provide insight for the future generations.
Extension:
Thank you for your great comments! We have addressed some
additional issues on the topic below:
I agree with the fact
that the ageing population will have a serious impact on tourism. In that
sense, managers will have to change their products in consequence. However,
according to my sources retired people go less in holidays than younger one
(http://hal.inria.fr/docs/00/06/89/13/PDF/espso_def.pdf). In your blog, you do
not define the age bracket in which your study is principally based. Are you
talking about retired? Or pre retired? If your based our study on retired
people, you have made a mistake. Thus, managers should not only focus their
decisions about ageing people. It is another market segment with opportunities
that should not be neglected, but the most part of the effort should go to
younger people.
To address your question, the study we looked at focused on
baby boomers (those born between 1946 and 1965) and seniors (no distinct
definition; varies between ‘older than 50 years’ or ‘over 65 years’). This
includes both the pre-retired and retired population. We wanted to look at your
source but the link did not work.
In conclusion, I would
have liked to see a more thorough discussions of how we should deal with these
demographic changes, and less recount of facts and illustrations of the current
state. Personal reflections on ethical dilemmas and concerns would be
interesting to read.
An aging population is
a sign of development for countries who are obviously increasing the quality
and quantity of life they are offering to their citizen but it could, according
to me, lead to major social distortions, frustrations and conflicts.
I feel surprised about
your team's point of view. Most people would think that the ageing people are
the burden of the society as they have no productivity to the community after
their retirement and they would cost a lot to the government such as the
medical cost and housing cost.
We understand your comments about the negatives of global
aging and concerns about how to handle the possible issues - our group decided
to originally take positive perspective on the matter as we knew that on the
surface, global aging appears to have many consequences:
-
Economic consequences – potential need to invest
heavily in future health care services
-
Effects on the wealth of nations
-
Elderly not contributing to the society anymore
-
Need for the young to take time to care for the
elderly – reallocation of resources to the elderly
Additional information on economic consequences: http://www.mrrc.isr.umich.edu/publications/briefs/pdf/rb068.pdf
As the elderly already face negative bias and stereotypes,
we decided to focus on a positive outlook and what they could contribute. But
it is true that many potential risks can arise from global aging phenomenon if
measures are not taken early on to deal with them.
“It's not just Europe -- China and other emerging-market
economies are aging fast, too. There are solutions, but it's time to act”
Possible solutions include:
Two important
elements of growth are increasing the labor force and productivity. Countries must
try to improve productivity to maintain current growth levels by maintaining
the size of their labor forces (they could persuade older workers to retire
later, encourage stay at home parents to find work or receive more immigrants.)
This is a challenge in Europe, where productivity growth has only averaged 1.3%
since 1995.
Policymakers
can try to boost private savings in stock and bond funds, find less expensive methods
to provide elder care, attract young immigrant workers, and encourage companies
to hire or retain elderly workers. For instance, in Finland, new government and
corporate policies are increasing the average retirement age.
“Around
the world, governments and businesses are searching for creative policies in
each of these areas as they come to grips with one of the most profound social
transformations in history. "Right now all of these issues are being dealt
with piecemeal," says Ladan Manteghi, international affairs director for
the Association for the Advancement of Retired Persons' global aging center. It
all adds up to a big agenda -- one that will determine whether the global
economy that achieved such astounding progress in the youthful 20th century
will continue to prosper as it matures in the 21st.”
References
Brutto, Dan. "The Gravity of Trade Has Shifted." Globalization 4.0 and the New Logistics. Foreign Press Association, New York. 22 Sept. 2010. Speech.
Chase-Dunn, Christopher. "Globalization: A World-Systems Perspective." Diss. Johns Hopkins University, 1998. Print.
Global Travel and Tourism Summit Advertisement. World Travel and Tourism Council. 22 Mar. 2010. Web. 10 Feb. 2012.
