New Landscapes of Population Change: A Demographic World Tour
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New Landscapes of Population Change - Adele M. Hayutin
PART
I
INTRODUCTION
1 UNCHARTED TERRITORY
Long Slide Looms for World Population, with Sweeping Ramifications
New York Times, by Choe Sang-Hun, May 24, 2021
Stitched Up by Robots: The Threat to Emerging Economies
Financial Times, by Kiran Stacey and Anna Nicolaou, July 18, 2017
After Half a Century of Success, the Asian Tigers Must Reinvent Themselves
The Economist, December 7, 2019
A Shift in Global Power: Is It Time?
Forbes Business Council Post, by Sarah Dusek, June 5, 2020
THE SITUATION
We are in uncharted demographic territory. Across the globe, some populations are starting to shrink, and others are growing explosively. The world has more old people than ever before, and fewer and fewer children are being born. These demographic trends in population change and age structure have enormous implications for economic growth and stability, as well as for national power.
Already, many countries have more old people than children. Workforce growth is reversing in many places and slowing almost everywhere else. Indeed, we have begun hearing about worker shortages, and we have already read about the burdens of graying populations throughout the advanced economies. In reaction, we are seeing older people working longer even while some younger people disengage. Many countries have proposed politically fraught policies to raise their retirement ages, while others have encouraged greater immigration. Still others have adopted pronatal policies to increase the number of babies.
To make matters worse, this unprecedented demographic upheaval is occurring in a world grappling with political and economic turmoil. Global problems compound whatever national challenges countries already face within their own borders. Besides the threat of the COVID-19 pandemic, we face the existential threats of climate change and nuclear proliferation—not to make light of the great-power competition, the rise of China, cybersecurity threats, and political shifts all over the world, including threats to democracy and the specter of authoritarianism.
In this context of global turmoil, countries will be balancing their own priorities for economic growth and political stability. And as we think about our allies and adversaries, we must pay attention to their differing national priorities. Attention to the divergent demographics behind these priorities will be critical for our understanding of how the world is changing. It’s more imperative than ever to grasp the impact of the unprecedented demographic shifts under way around the world. And it’s especially important for us to appreciate how the changes affect our allies and adversaries.
The good news is that we have tools and forecasts that allow us to anticipate the coming developments. In fact, we have a reliable set of projections for navigating this uncharted demographic territory. These projections provide guideposts and warnings, and they help us identify the questions and uncertainties we need to address. Demographics can be a window into our future, and we should use it.
It is important to understand that many of the startling demographic changes now under way throughout the world stem from population trends set in motion as far back as the 1960s and 1970s. During those years, we saw dramatic declines in the number of births per woman, and at the same time, we also saw huge gains in life expectancy. These trends evolved differently around the world, with major variations in the timing and pace of change across countries.
In some places the impacts of these two fundamental trends are already evident, as reflected, for example, in the aging populations and slower-growing workforces in Europe. But in many places, the impacts are just starting to be felt, even though they have been unfolding over decades. China’s workforce decline is one example. In other places, the changes were more gradual, and therefore the workforce declines will also be more gradual, as in India and Mexico. While most of the future impacts can be anticipated, the speed of changes makes effective adjustments even more challenging. The burdens will be especially great for developing countries facing these rapid demographic shifts with limited economic and political resources.
These global changes in age structure are dramatic, unprecedented, and consequential. The well-being of millions of people and their homelands is at stake. For those who care about world events and the US role, it will be increasingly important to understand the demographics behind the news headlines. Such consideration will in turn shed light on the global transformation, and help cut through the ever-increasing volume of stories and opinions.
A GUIDEBOOK FOR UNDERSTANDING POPULATION CHANGE
To help you digest the flood of information, this book provides you with a framework for understanding the demography behind the news, and it provides a perspective for thinking about global developments through the lens of population. It will arm you with facts that should inform your opinions.
As you read, you will be guided through consequential demographic changes around the world—some that have already occurred as well as some that will soon unfold. The premise is this: to understand current global events, you should understand the demography of about 20 important countries, including the largest economies, selected emerging economies, fast-growing populations, and any major political hot spots. The book will take you on a demographic tour of those countries.
Rather than embarking on a single world tour from country to country, you will take several round-the-world tours, each with a different focus, and each using a comparative perspective. This will be useful for several reasons. First, using a comparative approach can be much more compelling than drilling down on an individual country. You can always access information on single countries, but understanding how countries stack up is an effective way to develop a broad global perspective and helps to illuminate different national priorities.
Also, because the demographics are evolving differently around the world, a comparative perspective will be useful for understanding the divergent changes. The regional and country comparisons illuminate some surprising and unexpected differences, as well as similarities among countries. The comparisons also provide a framework for digesting information and putting each country’s situation within a larger context. Considering countries in relation to each other helps you better understand each one and highlights the interconnectedness of the trends. Another advantage of this comparative approach is that it will help you deepen what you already know.
And last, besides being helpful, the comparisons can be fun, both fueling and satisfying your curiosity, as you gather pieces of information to fill in the puzzle.
The comparisons of China and India are particularly striking. By highlighting the demographic weaknesses and strengths of the world’s two most populous countries, the comparisons shed light on the different challenges faced by each: China is rapidly aging and faces a shrinking workforce, while India is still relatively young and growing. Both need to figure out how to leverage their changing working-age populations.
Another key feature of this book is its long horizon: it starts in 1950, highlights developments expected by midcentury, and extends to 2100. The historical framework illuminates the divergent timing of important changes and reveals how variations in the timing affect the nature of the population shifts now taking hold. Perhaps at first glance this seems to be too long a perspective based on our more immediate concerns, but the long-term projections serve to highlight some of the uncertainties we should consider, as well as underlying assumptions that we should question. Without this long horizon, you could well miss the major inflection points in workforce growth and population aging. These are events we can be preparing for now, but only if we see them coming. Furthermore, we can use the long-term projections to more fully understand what kind of world we are leaving for future generations. Baby boomer readers can calculate that your grandchildren and grandnephews and -nieces will be reaching their prime working ages around midcentury, and your great-grandchildren will be expected to live well past the end of the century.
The world tours in the book rely heavily on visual displays to synthesize the data and illuminate the comparisons. These graphics allow you to see the contrasts at a glance and to better understand the countries within a regional or global context. The visuals are designed to highlight the pace of change and the urgency of addressing the coming changes. To underscore the timing of these changes, most of the figures in the book include vertical indicators for the years 2020 and 2050. The 2020 vertical line marks the beginning of the projections, allowing you to clearly see how the future is expected to unfold differently from the past. Additionally, within the long perspective that takes us to 2100, the book focuses on changes expected over the 30 years from 2020 to 2050. The two vertical markers draw attention to those changes in particular while still illustrating the longer trajectory.
THE TOURS
Part I of this book starts with a population overview and highlights the overall population shift to Africa. Part II turns to the three demographic drivers—fertility, life expectancy, and migration. In Part III, the focus is on two critical challenges: population aging and shrinking workforces. Part IV gives you guidance for thinking about the future and outlines issues and uncertainties to watch for.
The tours follow a similar itinerary. Each one starts with a global overview that showcases key regional differences—for example, a shrinking Europe and an explosively growing Africa. It is revealing to see that Africa’s population at 1.3 billion in 2020 makes it smaller than China, but due to its high fertility rates, Africa will skyrocket past China’s population, nearly doubling to 2.6 billion by midcentury. Africa’s population is projected to triple to 4.2 billion by the end of the century, while China’s will shrink by one-quarter.
Following the regional overview, each tour looks at differences across the major income groups. We will see that today’s poorest countries are the world’s fastest growing and account for nearly all the projected population growth, while the rich countries are growing more slowly, shrinking in both size and share of world population. Surprisingly, the upper-middle-income countries—the economic core of the emerging economies—are also projected to lose population.
After these broad comparisons, each tour turns to focus on individual countries, grouped to underscore similarities and differences regarding the timing and pace of their changes. For example, we will see that China wasn’t alone in its steep fertility decline. Other countries, such as South Korea and Thailand, experienced significant declines around the same time, even without imposing draconian one-child policies. It’s surprising to see that Iran’s fertility decline was as steep as China’s, though it occurred 20 years later. The tours highlight different countries to illustrate particular trends, but always in a comparative framework.
TRENDS YOU WILL SEE ON THE TOURS
Globally, we are seeing fewer and fewer children, but the fertility declines across countries have been mixed. Most of the advanced economies have experienced decades of below-replacement-rate fertility, which has resulted in aging populations and slower workforce growth. In some of these countries, workforce growth has reversed, and total populations have already declined. Among the advanced economies, the United States has fared better than most, with immigration fueling its workforce and population growth.
In contrast, in many developing countries, including China, fertility rates have steeply declined, leading to dramatic slowdowns in working-age population. Although China only recently began promoting three-child families, many other countries have been trying for decades to boost their birth rates. At the same time, births per woman remain stubbornly high in many African countries, leading to continued explosive population growth in the poorest, least developed parts of the world. This shift in global population poses economic and political challenges we have not encountered before.
The global increase in life expectancy over the past century has been a remarkable success story, with more children surviving childhood and more people enjoying longer, healthier lives. Over the past decades, most countries have benefited from increasing life expectancy, even though the upward trend has been interrupted by wars, famine, and disease. Countries differ markedly in their responses to such disruptions. While some countries were able to get back on the same upward track after a temporary drop, others ended up on a lower trajectory. Even in the United States, life expectancy has declined for the last few years, due largely to the opioid epidemic. And now, due to the COVID-19 pandemic, we face the possibility that life expectancy could decline globally.
We know that the fertility and life expectancy changes already under way globally will shape the future in ways completely different from what we have come to understand from past demographic changes. It is clear that the future will not be a simple extrapolation of the past, but will reflect the divergent trends unfolding around the world. We already know that countries aren’t aging the way they used to. Today’s young countries are aging much faster than the old European stalwarts and the relatively young United States. The changes for these faster-aging countries will likely be much more disruptive to social cohesion and economic growth. Many of these youngster countries are on the cusp of economic development, just as they get their population growth under control. Yet, they are now said to be getting old before they get rich. But it isn’t too late. They still have time to prepare—many are indeed adopting education, immigration, and labor policies to meet today’s changing economic interdependence. Still, many of the world’s poorest countries with limited economic prospects continue to face the challenges of high population growth.
By the end of the tours, you will have a global perspective on the key demographic drivers and challenges. You will understand the competitive demographic advantage of the United States, as well as the major demographic challenges faced by China, Russia, and Iran. You will have a clear picture of how the population shift toward Africa is likely to unfold and why Nigeria will rapidly overtake the United States to become the world’s third most populous country. You will understand the way demographic drivers affect population aging and workforce changes, and you will also gain an appreciation for why the impacts that took so long to emerge now appear more sudden. You will see that demographics affects all aspects of our lives.
While the book doesn’t recommend particular policies, the tours will arm you with information and insights about the demographics that drive important key policy decisions, from migration and refugee policy to family-friendly policies such as day care assistance and home health care. You will be able to hone your opinions about pronatal policies, family-planning programs, free education, higher retirement ages, and increased migration.
To prompt your thinking, the book ends with a long watch list of questions you might want to consider as you read the news. The 11 categories of questions include education, economic growth, technology and innovation, migration, climate change, health care and wellness, the role of the family, population aging, women’s rights, national security, and governance and civil society. If you care about any of these topics, you will want to pay attention to demographics. Armed with such information, you will be able to foresee important changes. Most important, you will not be taken by surprise when you see alarming demographic headlines.
2 THE BIG PICTURE OF GLOBAL POPULATION GROWTH
This Century Will See Massive Shifts in the Global Population, Economy, and Power
SingularityHub, by Vanessa Bates Ramirez, July 16, 2020
World Population Likely to Shrink after Mid-century, Forecasting Major Shifts in Global Population and Economic Power
ScienceDaily, July 15, 2020
The African Century: Africa Is Changing So Rapidly It Is Becoming Hard to Ignore. Rapid Economic and Social Change Will Give the Continent a Bigger Role in World Affairs
The Economist, March 28, 2020
For years, many of us were panicked by population explosion, worrying that the world would become overpopulated, with insufficient resources to support everyone. Yet more recently, we’re being warned about just the opposite problem: shrinking populations. Whichever of these outcomes concerns you the most, you are right to worry. It turns out, paradoxically, we can expect a combination of both outcomes. Both of these startling trends are already under way in different regions and countries, and in combination, they will lead to population shifts that will have enormous social, economic, and political consequences. This chapter points to some of the more alarming changes we can anticipate.
Our world tour of global demographics starts with an overview of total population by region and country, highlighting broad changes we can expect to see over the coming decades. I use the wide lens of total population to show the outcomes you will see as the demographic drivers take hold in diverse ways around the world. I give you this big picture before delving into the details of how each driver works—and how they work together—to produce these changing population totals. I’m presenting the results to you in advance for several reasons. If you see the results first and understand the broad population shifts, it will be easier to develop your own view of how the world is changing. Equally important, you will have an overall framework for making sense of the coming changes, and you will better understand how the three demographic drivers—fertility, life expectancy, and migration—work together to produce these changes.
It’s true: total population has continued to expand, but as we will see, country and regional trajectories are unfolding differently than they have in the past. World population reached a milestone of 7 billion in 2011 and is on track to reach 10 billion by 2050 and 11 billion by 2100. However, while the total population continues to grow, the pace of growth is slowing dramatically, mainly due to the worldwide decline in births per woman. Despite this slowdown, the prospect of world population reaching nearly 11 billion by the end of the century elicits mixed reactions: many are worried about adding any more people to the planet, while others celebrate the remarkable success of more infants surviving into childhood and more people living longer. Still others recognize that the changing regional composition of the population and changing age structures will have important global consequences—some negative, some positive. For example, the further population shift to developing countries changes the global economic landscape by dramatically increasing labor supply in those regions, while aging populations and shrinking workforces threaten economic well-being in the advanced economies.
The trajectory to 11 billion has several notable characteristics. First, despite the continued population increase, the pace of growth will slow dramatically everywhere—although at different rates, as the impacts of declining and persistently low fertility rates take hold.
A second noteworthy element of the global trajectory is that Africa’s growth, though much slower than in the past, will still be much faster than growth in other developing regions. As a result, Africa will account for an increasing share of global growth. This global population shift toward Africa will accelerate from now through the end of the century.
Third, most of the global population growth will occur in the most vulnerable, least developed countries, those that have the fewest resources for adapting to the challenges of rapid population growth. Perhaps not surprisingly, most of these countries are African.
A fourth feature of the demographic trajectory is the upward shift in the age composition of the population. Populations around the world will see increased median ages as fewer children are born, and as more people reach older ages. As part of the upward shift in age, working-age population will increase more slowly, and, in many places, workforces will shrink, creating economic challenges for many countries. At the same time, there will be more older people than ever before, and their share of total population will increase dramatically.
Another important element of the global population shift is that an increasing number of countries will experience shrinking populations over the coming years. Population decline is uncommon in the modern world, and in the past has been associated with specific disruptive events, such as wars, famines, or epidemics. But the population decline projected for the coming years results, not from a particular event or series of events, but from longer-term structural demographic changes, including declining number of births and increased life expectancy. Most of our culture and our economic models have been built on the assumption of continued population growth, so this new structural impact is particularly challenging. The conventional premise was that continued population growth would fuel labor force growth, which would in turn fuel economic growth. Now, seemingly all of a sudden, the assumption of continued labor force growth is no longer justified. This shift will most certainly require adapting to and rethinking how we increase and maintain economic