Not be outdone, the Form 4 Geography class have been tweeting the Japanese Government's official twitter account to warn them about the population problems that the country continues to face. A few sample tweets are included below.
The issue that the class are referring to is Japan's high dependency ratio (A high number of economically inactive people such as pensioners and school children that need to be supported by the working population). As a stage 5 country in the demographic transition model, Japan has had a long period of low birth rates and a high life expectancy. Consequently it has a high number of retirees compered to the numbers who are economically active. This puts a significant tax burden on those working who need to pay for the pensions and care that the elderly receive.The diagram below explains more.
By comparison Brazil is a stage 3 country in the demographic transition model. It has a high birth rate, lower life expectancy and a higher relative percentage of the population that are economically active, this means that the dependency ratio is lower. In addition, as a higher percentage of the population still work in subsistence agriculture and the informal sector there is also a lower percentage of the population drawing on pensions and elderly care provided by the state. These two factors mean that the tax requirements per worker are lower.
Why should Japan be concerned? Below is an EDpuzzle that the class worked through. It outlines some of the problems presented by having a high dependency ratio. For example lower GDP growth and the increased need for migration to maintain numbers of in the workforce. This need for migration is something that Japan is finding difficult as it remains a very racially homogeneous society as compared to other MEDCs.
There are also less obvious problems, such as the break-down in the traditional family unit and an increase in elderly crime as this 2008 article from the Daily Telegraph explained. Needless to say Japan makes a fascinating case study for a country with a high dependency ratio.
