Due to a falling marriage rate, or people waiting longer to get married, and a declining birthrate coupled with medical advances, increased living standards and longer life spans, Taiwan officially became an aged society in 2018.
Ministry of the Interior population statistics for the first eight months of this year show 116,389 deaths and 105,161 births, or a net population decrease of 11,128 — the first time a decline has been recorded.
Since Taiwan became an aged society, the annual average of childbirths has decreased by about 8,000 to 9,000 each year, while the number of people aged 65 or older has increased significantly, making Taiwan one of the world’s fastest-aging societies.
According to a National Development Council report on population projections through 2070, the decline began this year, two years ahead of what was expected.
Sixteen percent of the population is aged 65 or older and that is expected to increase to 20 percent by 2025.
If it does, Taiwan will officially have become a super-aged society one year ahead of projections.
An aged society with a negative population growth rate is likely to have important implications.
The demographic imbalance, due to a fall in the ratio of working-age population to old population, will have a huge impact on the economy and society, regardless of pension reforms and improved state finances.
For example, a low birthrate and longer lifespans will mean that spending from the Labor Insurance Fund will exceed revenue. It is estimated that the fund could go bankrupt by 2026.
The negative population growth rate and its effect on the labor force will result in a top-heavy, “inverted triangle” demographic.
The increasing number of older people, coupled with rapidly increasing demand for medical treatment and long-term care, will result in a shortage of medical resources and a lack of long-term carers, as well as shrinking government finances and tax revenue, and create a higher need for subsidies for poor and disadvantaged people.
On top of that, young people have to live with low salaries and are unable to afford property, which will contribute to their feeling of insecurity.
These factors will have a deleterious effect on Taiwan’s economy and society, to the extent that it is elevated to a national security problem.
The government needs to find an appropriate way to deal with the huge socio-economic impact that population decline will have on the nation.
For example, to address the effects of a rapidly aging society, the government needs to improve control of state finances to reduce the accumulation of debt.
On the problem of a declining labor force, it must explore ways to increase job opportunities for women, while allowing people to work until a higher age, which will increase the labor force participation rate.
The government must also investigate how to increase the use of smart applications and automation to supplement shortfalls in the labor force.
However, the most important challenge is to increase the birthrate, maintain the population and stabilize the nation’s demographic structure.
The government should establish a cross-departmental committee to propose concrete, viable policies to ensure the sustainable governance and security of the nation and its populace.
Lee Shen-yi is vice chairman of the Contemporary Taiwan Development Foundation.
Translated by Paul Cooper
There is a modern roadway stretching from central Hargeisa, the capital of Somaliland in the Horn of Africa, to the partially recognized state’s Egal International Airport. Emblazoned on a gold plaque marking the road’s inauguration in July last year, just below the flags of Somaliland and the Republic of China (ROC), is the road’s official name: “Taiwan Avenue.” The first phase of construction of the upgraded road, with new sidewalks and a modern drainage system to reduce flooding, was 70 percent funded by Taipei, which contributed US$1.85 million. That is a relatively modest sum for the effect on international perception, and
When former president Tsai Ing-wen (蔡英文) first took office in 2016, she set ambitious goals for remaking the energy mix in Taiwan. At the core of this effort was a significant expansion of the percentage of renewable energy generated to keep pace with growing domestic and global demands to reduce emissions. This effort met with broad bipartisan support as all three major parties placed expanding renewable energy at the center of their energy platforms. However, over the past several years partisanship has become a major headwind in realizing a set of energy goals that all three parties profess to want. Tsai
An elderly mother and her daughter were found dead in Kaohsiung after having not been seen for several days, discovered only when a foul odor began to spread and drew neighbors’ attention. There have been many similar cases, but it is particularly troubling that some of the victims were excluded from the social welfare safety net because they did not meet eligibility criteria. According to media reports, the middle-aged daughter had sought help from the local borough warden. Although the warden did step in, many services were unavailable without out-of-pocket payments due to issues with eligibility, leaving the warden’s hands
At the end of last year, a diplomatic development with consequences reaching well beyond the regional level emerged. Israeli Prime Minister Benjamin Netanyahu declared Israel’s recognition of Somaliland as a sovereign state, paving the way for political, economic and strategic cooperation with the African nation. The diplomatic breakthrough yields, above all, substantial and tangible benefits for the two countries, enhancing Somaliland’s international posture, with a state prepared to champion its bid for broader legitimacy. With Israel’s support, Somaliland might also benefit from the expertise of Israeli companies in fields such as mineral exploration and water management, as underscored by Israeli Minister of
RSS