Elderly people dance and take photos at the beach in Sanya, south China's Hainan Province, December 17, 2023. /CFP
Editor's note: Ruqiya Anwar, a special commentator on current affairs for CGTN, is a PhD scholar of Media and Communication Studies in Pakistan. The article reflects the author's opinions and not necessarily the views of CGTN.
China stands at the forefront of a demographic shift that offers a unique opportunity for the country's socioeconomic development. As the nation's elderly citizens increase in number while its population declines, China is set to leverage the silver economy as an impetus for unparalleled prosperity and growth. China has the potential to turn demographic challenges into opportunities, leading to global economic innovation.
China's demographic landscape has transformed rapidly, with the number of elderly over the age of 65 reaching 14.9 percent. When combined with negative population growth, this prompts a strategic reevaluation of economic objectives. Despite a dwindling labor supply and slower potential growth, China's vast population base ensures that the impact on total demand is limited, giving a perfect canvas for innovative solutions.
By proposing a proactive national policy to address population aging, the central authorities are demonstrating foresight. The government intends to capitalize on the aging population's potential by emphasizing the enhancement of labor productivity, which underlines China's dedication to sustained economic growth.
Improving workforce quality is crucial for leveraging the demographic dividend. China recognizes the need for educational reform, prioritizing creativity and practical skills. This move equips China to meet the changing demands of a maturing labor market.
China also recognizes the importance of equal access to educational resources to bridge the urban-rural divide. Adopting distance education modes guarantees that educational opportunities are available to all, creating inclusivity and addressing disparities among regions.
Acknowledging the changing needs of the labor market, China is emphasizing the significance of vocational education. The emphasis moves from generating general-purpose graduates to fostering skilled professionals, closing the gap between demand and supply in the labor market.
Rather than seeing the aging population as a burden, China sees it as an opportunity to establish a "silver economy." A plan for the development of the country's elderly care services system during the 14th Five-Year Plan period (2021-2025) underlines the possibilities of merging eldercare with other industries such as the cultural entertainment industry, tourism and universities for the elderly. This method not only improves the well-being of senior citizens, but also emerges as a new driver of economic growth.
Doctors provide free clinics for the elderly on a street in Lianyungang, east China's Jiangsu Province, October 19, 2023. /CFP
China understands the need for a flexible pension insurance system that allows individuals to select plans that are suited to their specific needs, such as payment services, savings programs, wealth management, insurance and mutual funds. Financial institutions play a crucial role in the development of retirement financial products that meet the different needs of the elderly. This benefits retirees while also easing the strain on the government and contributing to the economy's general stability.
As senior citizens enjoy more leisure time after retirement, the tourism sector is positioned for growth. China's dedication to expanding tourism facilities for the elderly benefits not only the sector's development but also the aging population's overall quality of life.
The Chinese government's commitment to using digital technology is critical to increasing labor productivity and maintaining long-term economic growth. It is also crucial to eliminate employment discrimination and maintain a fair and equal work environment. Ensuring that workers are not discriminated against because of their gender or other reasons contributes to a vibrant and inclusive labor market.
Through regulatory incentives and market supervision, the Chinese government plays a critical role in supporting these initiatives. Offering tax incentives for financial products geared toward the elderly and encouraging the healthy development of the pension insurance business fosters an atmosphere conducive to economic longevity.
Population aging and negative population growth, instead of being hindrances, can be considered as accelerators for innovation and growth. Integrating the eldercare industry with other sectors and satisfying the different needs of the elderly might not only improve their well-being but also open up new avenues for economic development.
The integration of medical and eldercare services appears as a significant feature of the silver economy. Focusing on disease prevention among senior citizens and chronic disease treatment allows the healthcare sector to thrive overall, contributing to both economic development and enhanced quality of life for the aging population.
China's approach to an aging population demonstrates a noteworthy blend of vision and proactiveness. By embracing the silver economy, investing in education, and improving pension systems, China is not only navigating demographic shifts but also unleashing new potential for economic growth. As the silver economy takes center stage, China is set to lead the way in crafting a dynamic, inclusive and sustainable future.
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