520R Journal #4 Ji Min

Summary of 'Globalization in an Aging World'


In 'Globalization in an Aging World', Serdar Sayan, who is the reporter of Korea Herad, reveals that the graying population in developed countries will deeply affect on not only themselves, but also developing countries. UN revealed that the world’s population will grow to 9.3 billion while graying population will grow up to 2 billion and especially the population of over 80 will increase dramatically, account for 19 % of over 60 populations by 2050. Dropping birthrate and long life expectancy are main reasons of the growing aging population. Rich countries are more largely affected by these reasons than poor countries. In developed countries, workers who support pensioners by paying taxes are decreasing promptly. It requires demands welfare systems and causes lack of government money. Developed countries will be in difficulties with insufficient labor, economies and resources allocation, and that situation will affect on developing economies. Migration of the largely growing population of developing countries can help lacks of labor in developed countries. In case of Japan, to maintain enough labor, 10 million immigrants per year will be need until 2050. However, it needs very large scale of immigration. Importing manufactured products from developing countries can help the aging population in developed countries because rich countries have powerful economy to deal with trade with poor countries. The increasing graying population in developed countries will has effects on global capital movement, especially raise the interest rate because the elders in rich countries spend lots of money, but don’t save it. It will restrict the relative abundance of capital available to poorer economies. Combining globalization and aging let underdeveloped economies more dependent upon developed countries.


Reference: http://www.globalpolicy.org/globaliz/econ/2002/0820aging.htm