IMF Working Papers

Aging in the Asian “Tigers”: Challenges for Fiscal Policy

Author/Editor:

Peter S. Heller

Publication Date:

October 1, 1997

Electronic Access:

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Summary:

The paper assesses the government expenditure effects from changing demographics in the Asian “Tiger” economies through 2050. With some exceptions, their limited social insurance commitments initially suggest that aging populations may not adversely affect fiscal balances. Yet for all the Tigers, changing illness patterns and medical modernization may combine with demographics to intensify budgetary pressures. The paper notes the implications of the Tigers’ reliance on private sector pension and medical insurance systems; the need for an active public role; and the complications for fiscal analysis when private sector instruments are used, in a mandatory way, as public policy instruments.

Series:

Working Paper No. 1997/143

Subject:

Aging Expenditure Health Health care Labor Pension spending Pensions Population and demographics