Some new insights into the demographic transition and changing age structures in the ESCAP region.

Abstract

In this paper the authors have analysed some of the important impacts of Asias age structural changes on the first and second demographic dividends by heavily drawing upon the computed results of the National Transfer Accounts collaborative project. The computed results on the demographic dividends for the developing countries in Asia indicate that the size of these two dividends is quite substantial in most of the countries. Although the awareness of these two demographic dividends is still fairly limited in Asia their effective use particularly that of the accumulated second demographic dividend which is likely to remain enormous for the next few decades appears to be an attractive policy option for some Governments of developing countries in Asia that wish to place their future economic growth on a steady path. One crucial question arises: how should Asians make use of their accumulated assets and wealth in the years to come? Depending upon how in what and where they invest their future financial resources Asias future economic growth performance is likely to differ considerably. It seems to be particularly important to observe that the timing of the first demographic dividend for selected Asian countries varies considerably as extensively discussed in present paper. In an era of globalization Asian countries where the first demographic dividend disappear will have the opportunity to invest their assets in dynamically growing economies in other parts of Asia and bring financial gains back to their home countries. Obviously to facilitate such international transactions proper institutional and legal arrangements need to be developed to protect the investors.