Taiwan’s declining birthrate has been a cause for concern among policymakers for several decades now. The emergence of an increasingly aging society has raised serious issues that will have far-reaching impacts on various aspects of Taiwan’s society and economy. The latest population projections published by the Cabinet’s Council for Economic Planning and Development have only served to highlight the urgency of addressing this issue.
The CEPD’s projections indicate that Taiwan’s transition to a graying society is happening at a faster pace than previously anticipated. Just two years ago, it was projected that Taiwan would reach zero population growth by 2022. However, the latest report has revised this figure, bringing it forward by four years. This unpredictability in forecasting birthrates is a challenge that policymakers must grapple with as they plan for the future.
Taiwan’s aging population is a growing concern, with the number of citizens over 65 years of age already representing around 15 percent of the total population. This figure has more than doubled since 1980, and the CEPD’s report predicts that it will continue to rise, reaching 20.6 percent in the next two decades. This rapid aging of the population will have significant implications for Taiwan’s economy and society.
The economic impacts of an aging society are already being felt in Taiwan, as seen in Japan’s experience with economic bubbles over the past 15 years. Low birthrates have led to a decrease in demand, which in turn has affected production outputs and prices. Furthermore, a decrease in the labor supply will result in lower productivity and higher labor costs, which could have long-term consequences for Taiwan’s economic development.
In response to these challenges, the Cabinet has outlined a series of policy directives aimed at addressing the needs of Taiwan’s aging population. These include stipends for elderly farmers, subsidies for seniors’ welfare, a new retirement system, second-generation health insurance policies, improvements to medical services, and the implementation of a national pension scheme. These measures are crucial in ensuring that Taiwan’s elderly population is cared for and supported in their later years.
The upcoming National Conference on Sustainable Economic Development will provide an opportunity to further discuss and address the issues surrounding Taiwan’s declining birthrate and aging population. It is essential that policymakers come up with innovative and practical solutions to ensure that Taiwan’s economy and society can adapt to the challenges posed by an aging population. By taking proactive measures now, Taiwan can better prepare for the future and ensure the well-being of its citizens.