Question

China: the challenges of an ageing population An ageing population is one usually associated with developed economies. Falling birth rates and increased life expectancy in many European countries and Japan has created a situation in which younger generations are facing the prospect of caring for an ageing population. This demographic situation is now a major problem in China. The origin lies in China’s one-child policy which has restricted the number of children that most urban families could have and was originally designed to reduce the rate of growth of a booming population. There havebeen positive outcomes from this policy. At present more than 70% of the population are able to work and produce goods – fuelling China’s high level of economic growth. Fewer new workers are now joining the labour force and many of those who are do not want to take on the low paid, unskilled jobs of the previous generation. In addition, China is facing a substantial increase in the number of old people, resulting in additional pressures on health and social care facilities. Projections suggest that the impact of demographic change could have an even more adverse eff ect on the economy. Historically, production in China has exceeded consumption, resulting in substantial trade surpluses with the rest of the world. In contrast, over the next few decades consumption may exceed production; what is certain is that by 2050 China will have far more elderly people than any other country, 26% of the total population.

Suggest the likely eff ects of these changes on
decisions concerning:
a what to produce
b how to produce
c for whom to produce.

Answer 1

A. China should produce crops which are easily cultivated in its environment such as wheat, rice, buckwheat, maize. More focus on producing food crop instead of producing other types of crop, only can solve this issue. When larger area and larger population of farmers would be dedicated in producing the easily produced food crop, only then the consumption demand would be fulfilled.

B. Advanced technologies should be incorporated in the production process to produce more efficient produce. The technology should be relevant to the type of crop for example drip irrigation could be used for wheat but rice needs steady accumulated water for its production. High breed seeds should be used. Soil should be regularly tested to know what minerals are lacking in it. Then, the produce would be larger in quantity and better in quality.

C. The production should be done keeping in mind the whole number of population because every citizen should get food to eat. But the demanded quantity and quality of the working class should be kept under more consideration as they are the major buyers.