Demography is Destiny

Question: Write the essay starting with the evidence-supported defense of your points and slowly transition into an address of opposing points. Answer: Introduction: Population explosion has been one of the thriving issues of the world. For the past two centuries the population of the world had been increasing mainly due to the advancement in the healthcare system, the science and technology (Kurth, 2003). The policies that would be formulated in the near future as well as the decisions that are relevant for the economies would consider the demographic issues. In the 19th century, Social scientist Auguste Comte framed the concept that Demography is Destiny, less did he realize that this is going to be the crucial aspect of the world economy. After his death the population of Europe doubled and with the abundance of labor and resources which augmented the global political, economic and technological supremacy in the 20th century (Griffin Pustay, 2003). The thesis statement of this paper is the role of the aging population on the competitiveness of the economies. In this paper the challenges of the ageing population faced by the companies are disc ussed. The evaluation of the one-child policy of China is made in this paper. Challenges of ageing population faced by international companies: The population explosion affects the international companies. The international companies can be from different field like the manufacturing, construction, genetic industries and the service sector which implies that the population explosion had impacted. The challenges of the aging population on the international companies vary from sector to sector. Some of the economists believe that the ageing population is a bigger threat than the financial crisis. The ageing workforce means that there is high demand for retirement and pension policy which is regarded as the greatest challenge in all the companies all over the world. One of the major challenges of the ageing population is that they are paid more income as compared to their productivity. In the business sector he salaries of the ageing population is more than the young population as these type of workforce has higher service years and greater experience (Glaser, 2014). On the other hand, as it is mentioned that their productivity is less than that of other young employees, it can be said that the old age population is less active and competitive as compared to the young workforce. The older employees have traditional business views and ideas which may no longer be appropriate for any business. It is the young employees who generate new ideas and knowledge. Moreover, the older employees are resistant towards change. This creates a problem for the international businesses (Zeng Wang, 2014). Impact of demographic changes on the countries competitiveness: The demographic changes will affect the country in a negative way. As the ageing population within the economy increases, the overall productivity of the country will decrease. The ageing population is less active and competitive which limits their efficiency in the workplace. if the efficiency of the ageing population decreases then there productivity would decrease and the national output of the country will fall. This implies that with the increase in the ageing population in the country the economic growth of the country will decrease. The younger population of the country on the other hand would prove to be beneficial for the country. The rise in the ageing population would means that the investment capital will flow from the country with high ageing population to the country with young population. And so the rewarding rate of the capital will be increase (Graff, Tang Zhang, 2012). The ageing population share ideas and knowledge which are not in compliance with the current busi ness operations which means that they would contribute least to the development of the organizations. Thus, the overall productivity of the industries will decline along with the competitiveness of the country. The countries with ageing population have high expenditure towards the health sector for the treatment of the old age illness (Pisano, 2014). Measures taken by Countries to deal with ageing population: The challenges that are posed by the ageing population on the international companies as well as on the competitiveness of the countries are discussed in the previous sections which means that there are different measures that must be adopted by the countries to combat with the ageing population (Tyers Shi, 2007). These are discussed below: The government of the countries may increase the retirement age limit from 65 to 70 which will generate more tax revenue. The increase in the retirement age implies that the government of the countries can delay the pension payments which would save substantial amount of funds. The labour supply would also increase due to the expansion in the retirement age. The increase in the tax would also be beneficial for the countries. The increased income tax would generate high revenue for the government which will augment the pension bill payment. The higher income tax can lead to low incentives to work which sometimes enables the ageing population to quit the job. Some of the ageing population also leaves the countries (Smith, 2011). The government can also encourage the private pensions and the pension burden of the government can be reduced. Evaluation of one-child policy of China: There are positive impacts and negative impacts that clarify the effectiveness of the one-child policy in China. Some of the positive impacts include that the individual savings rate has increased with increased the purchasing power of the Chinese households. The increase in the savings implies that there will be more investment in the country. The increase in the investment would generate economic development in the country which will increase the economic growth of the country (Hvistendahl, 2010). The policy had increased the savings as well as the investment which has caused a fall in the poverty rates in China. This implies that China had extracted positive impacts from the one-child policy. Among the negative impacts of the one-child policy includes the decrease in the demand of natural resources. The resource exploitation had decreased due to the decrease in the demand for goods due to the decline in the population of the country (Ouyang, 2013). Another negative impact of the policy is that the investments on the private education have decreased due to the fall in the turnout at schools. This has negatively impacted China. Conclusion: The major focus of the paper is the ageing population which affected the countries as well as the international companies. It is evident from the health conditions of the ageing population that they are inactive and not competitiveness. The impact of the ageing population on the economy is important as they generally tend to decrease the productivity of the country. The different challenges that affect the international business by the ageing population are discussed along with the easy in which the competitiveness of the countries are compromised. The competitiveness of the countries can be dealt with different strategies and measures which are also discussed in this paper. The analysis of the one-child policy was done in this paper. The lesson learned from this paper is that the old age population is a result of the advancement in the science and technology and also the healthcare system of the countries which proves that the economic growth and development in the country has improved. It is recommended that the countries must encourage the young population by providing them proper education and other facilities so that they would acquire skills to benefit the countries and the organizations with which they would be engaged. The ageing population must be provided with better healthcare services so that they can be healthy enough to increase their productivity in the workplace. References: Glaser, K. (2014). Global Ageing in the Twentieth-First Century: Challenges, Opportunities and Implications.Population Studies,68(2), 244-246. doi:10.1080/00324728.2014.890344 Graff, M., Tang, K., Zhang, J. (2012). Does Demographic Change Affect the Current Account? 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