Achieving the second demographic dividend in large part relies on policy. In fact, for Asian policymakers, population aging gives rise to two major objectives that sometimes sharply conflict with each other. The first is to sustain strong economic growth over the next few decades, and the second is to develop social systems that will provide economic security to a growing number of elderly people. Success in achieving these two
objectives will require policies that promote saving, investment in human capital, well- functioning financial and labor markets, and macroeconomic stability. It will also require avoiding disproportionately large transfer programs for the elderly.
Achieving the second demographic dividend in large part relies on policy. In fact, for Asian policymakers, population aging gives rise to two major objectives that sometimes sharply conflict with each other. The first is to sustain strong economic growth over the next few decades, and the second is to develop social systems that will provide economic security to a growing number of elderly people. Success in achieving these twoobjectives will require policies that promote saving, investment in human capital, well- functioning financial and labor markets, and macroeconomic stability. It will also require avoiding disproportionately large transfer programs for the elderly.
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