Population: the long view Population workshop, St John’s College, Oxford, 16 – 17 September 2013 Can the ‘West’ survive demographic marginalisation? 1 Department Stuart Basten 1,3 David Coleman 1, 2 of Social Policy and Intervention, University of Oxford 2 St. John’s College, Oxford 3 Nuffield College, Oxford The Death of the West: an enjoyable demographic disaster scenario An extensive literature, mostly US, on an unwelcome geopolitical revolution: Europe irretrievably shrinking on the world stage. Europeans obsessed with welfare, not production (or reproduction). Too idle and secularised to be bothered to reproduce; prefer pets. Destined to be crippled by population ageing and decline. To be displaced by vigorous immigrant, mostly Muslim populations. Dependent on US for defence, prefer to sit out crises in their wine cellars. True - the demographic future is not European (smaller, older)…. Population estimates and projections, selected countries 1950-2050. UN 2008-based medium variant projections 2000 Brazil China India Sub-Saharan Africa Europe Northern America Japan 1800 1600 1400 1200 Estimates Projections 1000 800 600 400 200 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 0 And the EU only ‘grows’ by adding demographically failing countries, while the US grows by adding people. Population projections, Europe, EU27 and United States (millions), 2010 - 2060. Sources: Eurostat 2010 Convergence projections, United Nations 2012-based World Population Prospects, United States Census Bureau 2012 National Population projections. 800 700 600 500 400 Europe EU27 300 USA 200 2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 ‘Fewer’- Projected population decline, selected European countries 1960 - 2060 Actual and projected population, 1960 - 2060, selected countries (millions). Source: UN 2013, 2012-based medium variant. 70.0 60.0 50.0 40.0 Bulgaria Greece Italy Portugal Spain 30.0 20.0 10.0 0.0 2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 ‘Older’ - old-age dependency ratios (constant ratio (65+/ 15-64)*100), selected low-fertility European countries 1960 – 2060. 80 Old-age dependency ratios, selected countries, 1960 - 2060. Source: United Nations 2013, 2012- based projections, medium variant. 70 Portugal 60 Spain Italy 50 Greece Bulgaria 40 30 20 10 0 2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 The coming eclipse Diminution of Europe, and the ‘West’ more broadly, on the world stage Demographic ‘decline’ and welfare/ageing burdens Military security; energy security; geopolitical ‘clout’. Marginalisation of EU by US Marginalisation of EU and US by ‘The Rest’ Economic/geopolitical future is Chinese (Jacques 2012). Or Indian? Latin American? African? Europe’s demographic challenges – some other details Diminished productivity of older workforce (Skirbekk 2008). Pension costs higher than expected: greater human capital, much longer lifespans (Ediev 2012, 2013). Erosion of democracy: reaction to austerity to sustain pensions. (Cincotta 2012) Immigrant integration: uncertain outcome (Caldwell 2009). Female educational superiority: lower birth-rate through male marriage squeeze (van Bavel 2013). Purely economic challenges: to pensions systems and elderly care. Not all that bad? an upbeat view of ‘Western’ birth rates. Upward trend in period fertility, (recession notwithstanding ?) Recuperation (Bongaarts and Sobotka 2012) and intensification (Burkimsher 2013) of fertility. Robust cohort fertility in NW Europe (Andersson 2009). Upward projection of cohort fertility (Myrskyla et al. 2012) Favourable relationship of fertility with female workforce participation, human capital and – possibly - education, GDP and HDI (Myrskyla et al. 2009) Positive (though variable) effect of higher education on second birth intensity (Klement and Puur 2013). Positive effect of education on projected labour force productivity (Loichinger 2013). Birth rate increase through differential growth from religious conservatism? (Kaufmann and Skirbekk 2012). Population reproduction powerfully augmented by immigration, to replacement levels and beyond in EU15 (Ediev et al. 2013, Wilson et al. 2013). Fertility in Europe has not been declining....TFR trends, major European regions and USA, 1950 – 2010. TFR trends Major Regions 1950 - 2010 3.5 unweighted means. Source: Council of Europe, Eurostat, national statistical offices CEE unweighted mean Southern unweighted mean FSU unweighted mean (excluding Moldova) Northern Europe Western Europe USA 3.0 2.5 2.0 1.5 2010 2007 2004 2001 1998 1995 1992 1989 1986 1983 1980 1977 1974 1971 1968 1965 1962 1959 1956 1953 1950 1.0 The prospect of population replacement. Sweden, stable completed family size, women born 1870 – 1967. Source; Statistics Sweden 2013, p.12. Possibly an increase? Trends and projections in cohort fertility, women born 1950 – 1979. (1) . Shaded area is projected. Source: Myrskyla, Goldstein and Cheng 2013, Figure 1. Ageing trend is not forever - projection of Potential Support Ratio, UK 2011 – 2086 on different definitions of aged population. Source: based on ONS 2010-based Principal Projection. 6.0 Aged Potential Support Ratio 5.5 APSR 20-75 (graduated) 5.0 APSR 20-69 4.5 APSR 15-64 4.0 3.5 3.0 2.5 2.0 1.5 2086 2081 2076 2071 2066 2061 2056 2051 2046 2041 2036 2031 2026 2021 2016 2011 Broader considerations: advantages from European demographic and political ‘maturity’? Low fertility past its worst – prospect of increase, better ageing outlook? Gradual acquisition of democratic, non-theocratic political institutions and consensus, welfare systems, ‘civil society’, trust. Therefore social resilience (not much in post-Soviet countries). Demographic and democratic transitions and social, economic development slow, kept pace with each other. Relatively stable demographic and political regimes. Less severe climate change outlook than in ‘global South’? Who are ‘The Rest’? BRICs no longer a coherent concept Russia: demographic (etc.) basket case South Africa: disappointed expectations Core members: Brazil, India, China In the wings: Mexico, Turkey, Indonesia NE and SE Asia Gulf states – rentier economies: small, rich, peculiar. Africa (increasingly an extension of Chinese mineral resources?) The developing world – some stumbling blocks on the road to world dominance? Fertility may fall lower than W. Europe, ageing (eventually) therefore worse. Some countries (e.g. China) ‘old before rich’ (Bloom et al. 2011)? Some (e.g. China, India, Brazil) too big to be ‘rescued by migration’ from population ageing (Coleman 2009). 3W ‘demographic’ transition might only lead to ‘democratic’ transition via political instability? Problems of resource adequacy from large size and continued population growth. Most severe climate change challenges in ‘global South’? (e.g Beardson 2013, Littwak 2012, Mirsky 2013, Schumbaugh 2013, mostly concerning China). A reversal of fertility patterns already in progress? Some contrasting total fertility levels. 2011 - 2012 The West TFR stable or increasing Developing world TFR mostly going down. Some higher TFRs Some lower / declining TFRs Ireland Iceland New Zealand France UK Sweden Australia US Norway Finland Belgium Netherlands Lithuania Denmark 2.05 2.04 2.03 2.00 1.91 1.90 1.89 1.89 1.88 1.83 1.81 1.76 1.76 1.73 Sri Lanka Turkey Nicaragua Karnataka Vietnam Chile Iran Uzbekistan Brazil Lebanon Kerala Tamil Nadu Thailand China Source: Eurostat, national statistical yearbooks. 2.17 2.13 2.08 2.00 1.89 1.87 1.87 1.86 1.82 1.76 1.70 1.70 1.66 1.55 East Asia TFR very low, little change Japan S. Korea Taiwan Singapore 1.39 1.23 1.01 0.78 Some ‘rising’ (and waning) powers. TFR 1990 - 2012 6.00 Bangladesh 5.00 Brazil Cambodia China 4.00 India pTFR Indonesia Japan 3.00 Korea, Rep. Mexico Myanmar 2.00 Russia Singapore Taiwan Thailand 1.00 Vietnam 0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Most severe case so far outside China. Trends and projections in cohort fertility, women born 1950 –1979, East Asia. Shaded area is projected. Source: Myrskyla, Goldstein and Cheng 2013, Figure 1 UN projections: developing world may face decades of subreplacement fertility (for example, China, Iran, Thailand, Indonesia). Source: UN 2010 probabilistic projections. Expert views of low fertility for China, 1990 - 2050 Estimated and projected period TFR in China through 2050: Expert-based projection (main estimate and 80% confidence interval) as compared with three rounds of UN projections and estimates (From Basten et al. forthcoming) Might fertility recovery not happen? Emergence of subreplacement fertility ideals. Desired / ideal family size (almost) always above 2. But no longer in Taiwan, Hong Kong, China (Basten 2013). Chinese urban generations free to have two children do not want two or have two. Pattern now seen more widely: Thailand 1.85; Urban India vanguard groups up to 25% desire one-child family No stigma of ‘One Child Family’. Has China, and others, fallen into a ‘low fertility trap’ (Basten, this workshop). Why is this happening? some factors reinforcing low fertility. ‘Culture matters’: authoritarian, familist, low trust (e.g. Almond and Verba 1963, Landes 1998, Harrison and Huntingdon 2000, Billari 2013). Incomplete gender revolution of public and private roles for women. Obsessive investment in education in East Asia; an extra burden on women (Lutz, Rios-Neto 2013; Tan, Morgan et al. 2013) Urbanisation: crowded mega-cities; very small familyunfriendly apartments. Retreat from marriage, but marriage still key to reproduction Ineffective family policies. Familism against the family: a partly-baked idea: Familist societies have low fertility when modernising – dual burden on women (hence low TFR Southern Europe, ?East Asia). Many societies outside NW Europe are ‘familist’ in some sense. If such societies modernise, fertility falls to a low level. Slow cultural change prevents rapid recovery. Long period of damaging population ageing, possibly eventual decline. But evidence? Not much so far.. Consequences? developing world ageing can overtake ageing in NW Europe. Age Dependency Ratios ((pop 65+ / pop 15-64)*100), selected European and developing countries 2010 – 2060. 80 Spain Germany 70 Source: UN 2012, medium variant. Age dependency ratios, 2010 - 2060, selected developed and developing countries. Source: UN 2012 medium variant. China Iran 60 France UK 50 Brazil Sweden 40 Turkey Mexico India 30 20 10 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Can developing world economic growth catch up? Selected developed and developing countries, 2005 and 2050, projected GDP per capita in PPP terms . Source: Price Waterhouse Coopers 2013 figure 8. http://www.pwc.com/gx/en/world2050/pdf/world2050emergingeconomies.pdf Old before rich? Which trajectory for the ‘rest’? Age dependency ratio and per capita GDP (1000$ PPP). Selected European and (currently) developing countries 2050. Per capita GDP (1000 US$ PPP) and age-dependency ratio, 2050, selected countries. Sources: World Bank, UN, Price Waterhouse Coopers 80 Japan 70 Spain Italy Population65+ per 100 15-64 60 Korea Germany 50 France China 40 Canada Mexico Brazil 30 UK USA Australia Turkey Russia Indonesia India 20 10 0 0 10 20 30 40 50 60 Per capita GDP, 1000US$ PPP 70 80 90 100 Potential non-demographic difficulties Serious environmental pollution, especially water. Centralised economic policy, corruption, low economic freedom, handicapped economic growth (e.g. energy in India); lumbering policy change. Extreme economics (debt, investment, growth) Wasted ‘demographic dividends’: job-poor growth Most severe climate change in ‘global South’? Will China rule the world? Will India be the next superpower? Biggest Population, biggest consumer of resources, biggest economic surplus and reserves . GDP one-sixth of US, 90th in world p.c. Huge economic, social growth 2002 –11: Projected urban growth 380 million – 600 million 2030, energy demand 3x by 2030.. 80% of India unbuilt. Demography Population ageing problem, solution not in sight. No ‘rescue’ from migration. ‘Lewis point’ exaggerated. Population homogeneous, minorities small. Demography Environment Worst global environment. Biggest greenhouse contributor. Unsafe water, air, food, medicine. Water shortage in North. Climate change threats: 150 million people in LECZ. Politics Rigid party control ; Corruption and local oppression, inequality, environment, eventual political instability? Isolated internationally, influence through money, Population growth problem. No ageing problem yet. Uneven regional transition. Environment Nearly worst global environment 125th / 132 in 2012 GEP Index Water insecurity, 4% of world’s fresh water with 17% of population Resource consumption unsustainable. Climate change threat: (hotter, wetter). Politics Plus: judiciary, press, democracy, civil society, unity despite diversity Minus – corruption at all levels, clientism, subsidised prices, heavy bureaucracy. ‘Permit Raj’ lives; high and growing inequality Conclusions 1: Reports of the Death of the West somewhat exaggerated West’s share of world population, power and wealth must decline. But demographic outlook more stable and sustainable than supposed. Positive outlook does not apply to all European countries, (or East Asia). Anglosphere and NW Europe in most favourable position. Sustainable fertility levels re-establishing? With immigration, population reproduction positive in some countries Management of ageing slowly developing? Economic, political maturity? Manageable environment. Conclusions 2 – ‘The Rest’ have problems but must not be exaggerated. Developing world must cope with problems. But few insurmountable? Faster transitions from initially higher fertility levels, therefore faster ageing. Persistent traditional, authoritarian or ‘familist’ cultures dissonant with economic growth and with non-family adaptations to population ageing. Substantial population growth in environmentally vulnerable areas. Less developed politics, worse environment. Resource problems, exposure to more severe climate change.