ASIAN DEVELOPMENT POLICY REPORT 2024 (Syllabus: GS Paper 3 – Economy)

Context: The Asian Development Bank (ADB) recently released a report stating that the ageing population poses a challenge for developing Asia and the Pacific, potentially diminishing the demographic dividend in countries like India and Indonesia with younger populations.

Key Points of Aging Well in Asia: Asian Development Policy Report 2024

• Aging Population: The old age dependency ratio, representing people aged 60 years and older compared to those aged 15-59, is projected to notably rise by 2050 compared to 2022 levels.
• Regional Impact: This increase is anticipated not only for India but also for the broader region, as per the analysis of United Nations data.
• Indian Scenario: India's old age dependency ratio, slightly under 20% in 2022, is forecasted to surpass 30% by 2050, highlighting a significant demographic shift.

o India, already the world's most populous nation, faces additional challenges with this demographic transition.

• Future Aging Population: Over the next 25-30 years, India is poised to transition from having a predominantly middle-aged working population to a significant portion being elderly, akin to the aging populations in China and Japan.

  Asian Development Bank (ADB)

  • About: ADB is a regional development bank that provides loans for development projects in its member countries.
  • Formation: 1966.
  • Objective: It envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region.
  • Headquarters: Manila, Philippines.
  • Members: 68 members including India, China, and Pakistan.