Immigration doesn’t look like it solves our aging problem

Immigration may boost our work force and balance out our economically-active : elderly-persons ratio.  At least on paper it can, if you judge by statistics and population pyramids.

But Singapore does not work on a social welfare model — our social welfare is kept to the minimum. The elderly are expected to either depend on themselves, or on their families. This philosophy forms the basis for policies and legislation like the CPF, Reverse Mortgages and Parents Maintenance Act.

This means that although immigration balances out our young-old ratio, what happens in reality is that there will be many economically active immigrants without aged parents to support (or their money is shipped out of Singapore to support their parents back home), and there will be many elderly folk having to depend on themselves. The State of course continues to get tax revenue, while giving out minimal social benefits.

If the fertility rate of the immigrants is below replacement levels as well, the aging problem will be further magnified. If we do not award citizenship and somehow ensure they will return to their home countries by retirement age, they will take a large amount of savings along with them.

 

This is just a thought, would be nice to have feedback about whether my analysis/concerns are valid. I’ve no solutions, at least not yet.

Singapore’s policy responses to ageing, inequality and poverty

 

Singapore’s policy responses to ageing, inequality and poverty: An assessment

Mukul G. Asher ¹ and Amarendu Nandy ¹

  ¹ LKY School of Public Policy, National University of Singapore

Copyright Journal compilation © 2008 International Social Security Association

ABSTRACT

Abstract  Singapore represents an instructive case study in responding to rapid ageing, growing inequalities, and significant relative poverty. Unlike other high-income Asian countries, it has relied on single-tier mandatory savings to finance retirement, housing, and to a lesser extent, healthcare. To address the low fertility rates, it has permitted the share of the non-citizen population to triple between 1990 and 2005 to nearly 30 per cent. This is subtly altering Singapore’s socio-political dynamics, while assisting in sustaining growth and competitiveness. The paper argues that Singapore has the fiscal, institutional, and organizational capacities for a modern multi-tier social security system. Singapore is, however, determined to continue with current inadequate and inequitable arrangements, requiring individuals and their families to bear disproportionate risks in financing retirement, healthcare, and short-term income support. This reflects conscious policy choices arising from a Darwinist vision of society, and the need for socio-political control.

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Interesting paper to look at.

This link provides a ppt presentation of the paper:

www.econ.hit-u.ac.jp/~kokyo/sympo-feb07/paper/asher-Tokyo.pdf

The entire paper (20 pages) can be found here

http://www3.interscience.wiley.com/journal/119391592/abstract

If you have no access, but wish to obtain a copy, please email me here

mathialee@yahoo.com

I cannot post the full copy up here for copyright reasons.