Growing number of elderly people: A new challenge
Tuesday, 23 November 2010
Gopal Sengupta and Avik Sengupta from Canada
We not only have the world's highest density of population, but also a sizeable share of people over 50. This means that Bangladesh must prepare to meet many age-related fiscal, social and productivity challenges. Addressing the needs of such a large population of retirees will put serious strains on the country's finances and health-care system, which many experts feel Bangladesh is unprepared for.
We are also well aware that failure to meet these challenges could threaten the underpinnings of the Bangladesh's economy and lead to widespread social unrest. Our elderly have traditionally been cared for by their extended family members, in a manner akin to other South Asian countries. However, given the two-child policy the current generation of young people will be faced with new phenomenon, a reference to two children having to look after four grandparents and two parents.
It is clear that the traditional reliance on family for old-age security will be inadequate. Developing a reliable social security umbrella to redress this crisis in-the-making has thus emerged as a matter of priority for the country. The means to achieve this, however, remain contested.
The government has no social security measures for those who are not covered by pensions. With the advent of western culture and breaking up of joint families, the fate of the old is increasingly becoming a question mark. Social customs need to be strengthened to protect our elders. Better access to health facilities and the overall improvement in the living conditions have considerably increased the longevity of people. But this has come at a price as is evident in Bangladesh, which is facing profound economic and social challenges because of an ageing population.
The fact that chronic health care problems are more common in old age and the diminished ability of the elderly to pay for medical care put Bangladesh's crumbling health-care system in the spotlight. The government's share in national health spending has plunged. Given its rapidly ageing population, the lacunae in the public health system are untenable if Bangladesh is to avoid the kind of social instability that could threaten the country. Thus, in the last two years renewed investment in health-care has emerged as a policy priority, with the present government spending. The main focus of health sector reform is on extending a pilot rural cooperative medical care system. Under this system, each individual contributes a small sum annually to which additional payments by union council, upazila, district and central governments are added. And while government assistance is intended to be the cornerstone of tackling the challenges of a greying population, Bangladesh is required also to look for private investment to take up some of the slack. Thus privately run old-age homes, privately developed pension schemes, and so on are a final aspect of Bangladesh's strategy to cope with its altering demography.
Therefore, it is essential to raise the retirement age of government servants, which is currently 57 years. We recommend a gradual increase of this age limit in order to ease pressure from the pension system. However, if implemented such a move would mean fewer job vacancies for young people who already face intense competition for employment. We will soon have to start thinking not only about the old, but also the oldest of the old.
gopalsengupta@aol.com avik.sengupta@mail.mcgill.ca
We not only have the world's highest density of population, but also a sizeable share of people over 50. This means that Bangladesh must prepare to meet many age-related fiscal, social and productivity challenges. Addressing the needs of such a large population of retirees will put serious strains on the country's finances and health-care system, which many experts feel Bangladesh is unprepared for.
We are also well aware that failure to meet these challenges could threaten the underpinnings of the Bangladesh's economy and lead to widespread social unrest. Our elderly have traditionally been cared for by their extended family members, in a manner akin to other South Asian countries. However, given the two-child policy the current generation of young people will be faced with new phenomenon, a reference to two children having to look after four grandparents and two parents.
It is clear that the traditional reliance on family for old-age security will be inadequate. Developing a reliable social security umbrella to redress this crisis in-the-making has thus emerged as a matter of priority for the country. The means to achieve this, however, remain contested.
The government has no social security measures for those who are not covered by pensions. With the advent of western culture and breaking up of joint families, the fate of the old is increasingly becoming a question mark. Social customs need to be strengthened to protect our elders. Better access to health facilities and the overall improvement in the living conditions have considerably increased the longevity of people. But this has come at a price as is evident in Bangladesh, which is facing profound economic and social challenges because of an ageing population.
The fact that chronic health care problems are more common in old age and the diminished ability of the elderly to pay for medical care put Bangladesh's crumbling health-care system in the spotlight. The government's share in national health spending has plunged. Given its rapidly ageing population, the lacunae in the public health system are untenable if Bangladesh is to avoid the kind of social instability that could threaten the country. Thus, in the last two years renewed investment in health-care has emerged as a policy priority, with the present government spending. The main focus of health sector reform is on extending a pilot rural cooperative medical care system. Under this system, each individual contributes a small sum annually to which additional payments by union council, upazila, district and central governments are added. And while government assistance is intended to be the cornerstone of tackling the challenges of a greying population, Bangladesh is required also to look for private investment to take up some of the slack. Thus privately run old-age homes, privately developed pension schemes, and so on are a final aspect of Bangladesh's strategy to cope with its altering demography.
Therefore, it is essential to raise the retirement age of government servants, which is currently 57 years. We recommend a gradual increase of this age limit in order to ease pressure from the pension system. However, if implemented such a move would mean fewer job vacancies for young people who already face intense competition for employment. We will soon have to start thinking not only about the old, but also the oldest of the old.
gopalsengupta@aol.com avik.sengupta@mail.mcgill.ca