Japan is aging at the fastest speed in the major countries. Why aging in Japan has been rapid? Why the birth rate declined to such a low level of 1.3?
Since the Japanese public pension system had been a typical pay-as-you-go system, it was vulnerable to the aging of population. The financial position of the public pension fund has been weakening in spite of the accumulation made during the time of steady increase in the working population.
Similarly, the aging problem have created difficulties in the financing of medical care programs and nursing care of elderly, because these programs have been also based on the transfer of resources from the active generation to retired generation. The massive budget deficit complicated the situation in spite of the government's effort to reform the pension system and medical care programs in 2003 and 2004.
What is the necessary policy response to this situation? Present administration is proposing a program that combines radical social security reform with tax reforms. Is this a meaningful option?
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Prof Yoichi Okita, Academic Fellow, Emeritus; Professor, National Graduate Institute for Policy Studies (GRIPS)
- Tuesday, 18 January 2011
- 5.15 p.m. - 6.30 p.m.
Seminar Room 3-1
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road