How Changes in Age Structure can Impact Policy Making

In recent decades, the demographic transition has moved the majority of the world from high birth and death rates toward low birth and death rates. The differing speeds at which this transition is taking place produce the differing age structures of the global population, which in turn demand varied policy responses. Some developing countries may be able to take advantage of a “demographic dividend,” but need to encourage lower fertility rates and meet the ever-increasing social and economic needs of their growing populations. Most developed countries face an increasing proportion of elderly residents, requiring a balance between adequate social support and fiscally sustainable growth policies. This review draws attention to global differences, discusses projections for the next three decades, and highlights the policy relevance of the changing and contrasting global age structures.