|
|
Challenges and Opportunities for Economic and Social Sustainability
By Peggy L. Kelly
Topics
Update on review and appraisal activities
Specific focus on developed countries
Brief word about upcoming report of the SG on ageing
Introduction
During the Second World Assembly on Ageing in April 2002, Member States came together to share ideas and design policy solutions for the world’s ageing population. The documents that the Assembly produced — the Madrid International Plan of Action on Ageing and the Political Declaration — highlighted the views of the international community on the need for policy action at all levels to address ageing in a coherent and comprehensive manner. The point of departure was the acknowledgment that ageing represents more than just a “challenge”; it actually marks a tremendous social achievement and a milestone of human progress. The commitments made in Madrid make a compelling, practical framework for adjusting to an ageing world.
The basic premises, policy objectives and implementing actions of the Madrid Plan are tied to the current demographic shifts in the world leading to a growing share of older persons. Data compiled by the United Nations Population Division show that the number of persons aged 60 and over is expected to triple by 2050. Currently 1 person in every 10 is aged 60 years or over; by the year 2050 more than 1 in every 5 will be aged 60 years or over. In absolute terms the number of persons aged 60 years or over is estimated to be 673 million in 2005 and is projected to grow to 2 billion by 2050, at which time (for the first time in human history) the population of older persons will be larger than the population of children (0-14 years).
It is important to bear in mind that the socio-economic implications of demographic ageing go beyond issues of social welfare to socio-economic development in a broad sense, including issues of human rights, societal participation and acknowledgement of the real value that older persons hold for society. Reduction of poverty, a key goal on the international agenda, has a specific dimension in the context of ageing, since poverty among older persons remains high in many societies. Special efforts are needed to address that challenge.
Update on review and appraisal
The global first review and appraisal of the Madrid Plan took place from 2007-2008 during the 45th and 46th sessions of the Commission for Social Development. The preliminary results of this review and appraisal pointed to major developments and salient trends in the area of ageing during the first five years since the Second World Assembly on Ageing in 2002. These trends were also echoed in two major analytical reports prepared by DESA. The first publication, the World Economic and Social Survey 2007, was devoted to the theme Development in an Ageing World, and provided a comprehensive analysis of trends and issues pertinent to ageing and its implications for economic and social development. The publication Regional Dimensions of the Ageing Situation highlighted regional priorities as well as policy developments in the context of the implementation of the Madrid Plan in the five regions covered by the United Nations Regional Commissions. Both are available on the UN website.
Although there have been many worthwhile initiatives on ageing during the first five years of the implementation process, the review and appraisal revealed that progress in several crucial areas remains slow and insufficient. Among the areas of insufficient progress are mainstreaming of ageing into policy development, participatory involvement of older persons in implementation and evaluation of national activities, and evidence-based approaches to policy development, implementation and evaluation.
Challenges and opportunities of ageing
As I mentioned demographic ageing is a global phenomenon. However, the pace at which ageing is occurring varies considerably across different regions. The region covered by the Economic Commission for Europe is experiencing the most rapid ageing: the number of older persons already eclipses that of youth – so ageing is thus a high priority. The Asian and Latin American and Caribbean regions are undergoing a more moderate process of ageing, although certain countries within those regions are ageing quite rapidly – so ageing is a rising priority as the median age continues to mount. Ageing in Africa and Western Asia is a slower process because their populations still have large numbers of young people – so ageing holds low priority, with issues such as youth unemployment, HIV/AIDS, migration and conflict taking precedence. Regardless of its current stage of demographic ageing, each region will experience a significant expansion in its older population by the middle of the twenty-first century.
While they differ in stage of demographic transition, the regions nonetheless share many commonalities with respect to the ageing-related issues they confront. Universal to all regions are concerns over (1) sustainable systems of social protection; (2) the participation of older persons in the labour market; and (3) the growing demand for quality and accessible health care in general and long-term care in particular. More attention has also been given to the empowerment of older persons, including the protection of their rights, facilitation of their participation in society, and promotion of positive and balanced images of ageing.
Developed countries
I’ve been asked to say a few words in particular about the ageing situation in more developed countries, so I will try to do that here.
In November 2007, an Economic Commission for Europe Ministerial Conference on Ageing was held in León, Spain and adopted the Ministerial Declaration “A Society for All Ages: Challenges and Opportunities”. This was in follow up to the ECE Regional Implementation Strategy (ECE RIS) for the Madrid Plan of Action adopted in September 2002, which is a framework of ten commitments aimed at supporting Member States in their efforts to respond adequately to the challenges and opportunities of population ageing in order to achieve a society for all ages.
An analysis of national reports prepared for the review and appraisal revealed that while significant progress could be noted in fulfilling all 10 commitments of the strategy, some commitment areas received considerably more attention than others. The commitments which enjoyed most attention included social protection systems; quality of life, health and well-being; labour markets; and participation. I will briefly elaborate on these issues.
Pension reforms. The ageing of the population has put pressure on the sustainability of pension systems, which has led to numerous reform efforts throughout the region. Many of those reforms involve a change from defined-benefit to defined-contribution types of provisions, which shift more responsibility to current workers rather than future generations. The level of benefits is also on the decline as a result of reform efforts in some countries, which raises questions about the ability of public pension systems to reduce poverty among older persons. Women and low income earners are those most likely to suffer the adverse effects of reductions in the generosity of benefits, a factor deserving consideration from policymakers.
As pension systems begin to undergo reform, people may need to adjust their lifestyles, including by saving more and extending their working years, to adjust to these changes. Yet it is unlikely that pension reforms will have a particularly detrimental effect on the well-being of retirees, especially given the growth in the elder electorate. Reform policies must be politically and socially sustainable as well as fiscally sustainable. Aspects of pension reform that merit more attention are improved incentives for greater participation in pension savings schemes, as well as incentives for adding years of work.
Extending work life. Attempts to extend working life in developed countries have met with limited success, even though extra years of work can contribute to economic growth, competitiveness, prosperity and rising living standards, as well as enhance health, well-being and life satisfaction. The need to extend working life is particularly acute in Europe since the population of working age in the EU-27 will begin to shrink by 2012. A future reduction in the supply of labour could depress growth and increase the strain on public expenditures, not to mention the sustainability of public pension plans.
Early retirement remains the norm, however, in part because of the reluctance of employers to hire or retain older workers; age discrimination in the workplace; the lack of opportunities for older workers to engage in training and skills upgrading programmes; and poor, unsafe or unhealthy work environments. In order to encourage workers to extend their work life, an integrated set of policies is needed that includes lifelong learning, occupational training, workplace safety and health, age-specific adjustments to the work environment and flexible options for retirement. It is also important that pension schemes should also be adjusted so that added years of work actually “pay”.
Long-term care. The combined factors of the baby boom generation reaching retirement age in the coming years, along with the disproportionate increase in the population of the “oldest old”, mean that demand for health care and long-term care services will increase. Most of the demand will be for ambulant and home- or community-based care rather than residential care. Moreover, much of the care provided will probably be non-medical, including assistance with personal care services, domestic help and supported housing. Yet the capacity of current systems to meet those care needs, particularly for frail and dependent elderly, is questionable.
Funding for long-term care comes from a variety of sources, ranging from predominantly tax-financed systems to social insurance-financed schemes. All developed countries in the region operate pay-as-you-go systems. Although the overwhelming majority of older persons are taken care of at home – with individual, informal, unpaid family care accounting for about 80 per cent of all such care given – 90 per cent of public expenditures go towards providing care to the 3.6 per cent of older persons in institutions. Investing additional funds in community-based and home-care services would help to expand the options for this lower-cost alternative, as well as accommodate individuals’ preferences to remain in their homes while reducing the burden currently falling on family caregivers.
Aside from financing issues, an overriding concern with regard to long-term care is the need for quality development and quality assurances. Several countries have introduced accreditation systems that set standards to measure the eligibility and performance of service providers. These accreditation systems could help to ensure that older persons and their families are satisfied with the level of care and services provided, although extra costs are a likely outcome of improved access and quality.
Rights of older persons
I would like to wrap up here with a word about the rights of older persons.
The dignity of older persons is an important variable in all discussions on ageing, one that should not be overlooked. Human dignity has long been recognized as a key United Nations principle for older persons, and is at the core of all the major human rights texts. In whatever mode society views the dignity of older persons — as a value, a principle or a right — it could and should be a true measure of progress in countering stigma, discrimination and prejudice, thus deepening the meaning of “a society for all ages”.
That is why in the draft report of the Secretary-General to the 63rd session of the General Assembly, there is a recommendation that in the context of the celebration of the 60th anniversary of the Universal Declaration of Human Rights, the General Assembly may wish to request the Secretary-General to submit to the General Assembly at its 64th session a report specifically on the rights of older persons.
Closing remarks
The General Assembly has requested that the Secretariat prepare a strategic implementation framework for the consideration of the Commission for Social Development at its forty-seventh session in 2009. Such a framework would identify policy priorities for the future as well as measures for international cooperation to support national implementation activities. All major national and international stakeholders will be invited to cooperate with the Secretariat of the UN Programme on Ageing in developing the framework, and we welcome your suggestions and feedback.
The future strategic framework could include analysis of the major findings of the first cycle of the review and appraisal, together with the identification of principal advancements, as well as obstacles encountered during the first five years of the implementation of the Madrid Plan. Particular attention would be paid to detecting policies that work in different settings and developmental contexts, and to revealing replicable good practices. The implementation framework would also identify major prevailing trends on ageing and policy priorities to respond to the new and continuing challenges and opportunities of population and individual ageing.
In an effort to help Governments strengthen their capacity regarding their ageing policies, the Ageing Programme of DESA is working on a policy guide geared to supporting capacity development on ageing matters. The guide takes two broad approaches: (a) the development of effective age-specific policies and (b) the mainstreaming of ageing concerns into all aspects of development planning and policymaking. Major subsections of the guide cover such areas as: promoting a harmonious relationship between development and demographic change; making social protection (including retirement income support) work effectively for older persons; taking account of population ageing in health policy; exploring different aspects of care-giving and service provision in different settings, and last, but not least, ensuring the political inclusion of all older persons. The policy guide for national implementation activities will also incorporate the preliminary outcomes of the review and appraisal of the Madrid Plan during 2007–2008. I have a few copies of a CD of this Guide, and more should be available in the coming weeks.
Thank you for your participation and we look forward to your contributions to the strategic implementation framework to be submitted to the Commission for Social Development in 2009.
In November 2007, an Economic Commission for Europe Ministerial Conference on Ageing was held in León, Spain and adopted the Ministerial Declaration “A Society for All Ages: Challenges and Opportunities”.
The Economic Commission for Europe (ECE) recognizes both numerous challenges, as well as opportunities of ageing in the region where the proportion of older persons has been historically high and growing. To respond to the challenges that the ageing of population are posing for Governments, ECE was the first regional commission which developed a regional implementation strategy for the Madrid International Plan of Action. The ECE Regional Implementation Strategy (ECE RIS) for the Madrid Plan of Action was approved at the Ministerial Conference in Berlin, Germany, in September 2002, just five months after the Second World Assembly on Ageing. The ECE regional implementation strategy is a framework of ten commitments aimed at supporting Member States in their efforts to respond adequately to the challenges and opportunities of population ageing in order to achieve a society for all ages.
The ECE Secretariat has facilitated the implementation of the regional strategy through promoting partnerships with major stakeholders in the region namely; Member States, civil society organizations and academia. A network of national focal points on ageing was established in 2004-2006 to exchange experience and support capacity development throughout the implementation process. A partnership with the European Centre for Social Welfare Policy and Research (Vienna, Austria) has been established with the support of the Government of Austria to provide substantive input for monitoring the implementation of the regional strategy.
The analysis of 35 national reports received by the ECE Secretariat helped to reveal major achievements, as well as principal shortcomings of the implementation of the regional strategy. While significant progress could be noted in fulfilling all 10 commitments of the strategy, some commitment areas received considerably more attention than others. The commitments which enjoyed most attention, as reported by 35 countries, included commitment 4: Social protection systems (16 countries); commitment 7: Quality of life, health and well-being (12 countries); commitment 5: Labour markets (8 countries); and commitment 2: Participation (5 countries).
The great majority of the reporting countries have either adopted or been drafting comprehensive national programme documents on ageing.
Governments have emphasized the collaboration with civil society organizations, promoting a participatory approach to the implementation activities. Meanwhile, the application of the bottom up participatory approach for the review and appraisal exercise at the national level, as recommended by the Commission for Social Development, has been limited.
The deliberations of the Regional Conference in León have also helped to identify priorities for future action on ageing in the ECE region: mainstreaming of ageing across all policy areas; promoting a positive image of older persons; empowering older persons and promoting their full participation; adjusting social protection systems to prevent and reduce poverty and social exclusion and to improve the quality of life at all ages; promoting policies that enable people to reach old age in better health and security and to live independently and with dignity; developing higher quality, sustainable social services as well as health and long-term care for older persons in need; promoting economic growth in an ageing society by making full use of the experience and abilities that older persons have acquired throughout their lives; promoting intergenerational solidarity; and designing family-friendly policies aiming at the reconciliation of work with family life in order to address challenges posed by very low birth rates and population ageing in the future. All in all, the León Declaration renewed commitments to the Madrid and Berlin agendas and reinforced a holistic approach to a society of all ages presenting both challenges and opportunities.
Latin America
The Brasilia Declaration adopted by the Second Regional Intergovernmental Conference on Ageing in Latin America and the Caribbean on 6 December 2007, pledged to organize the necessary consultations with Governments in the region “to promote the drafting of a convention on the rights of older persons within the framework of the United Nations”.
|
|
