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Population ageing is a complex problem in a number of economies today. It is an outcome of
economic growth which is treated as a means to reach higher standard of living. However, it
creates negative effects on growth (the solution). Growth increases the proportion of the old-age
population which contributes to the increase in public spending on health which results in the
expansion of the public sector. In the analysis of the population ageing, there are some important
aspects that one needs to be familiar with. This paper examines and highlights some of such
striking features of the population ageing by reviewing literature and examining relationships
between variables in the light of secondary data. To avoid the expansion of the public sector, the
paper proposes imposing a payment on children so that their old-age parents could lead better
lives. Also, the paper recognizes the population ageing as a cost of growth and emphasizes the
analytical tools to be used for countries where direct approach to welfare is adopted. Finally the
study highlights a greater volatility in economic growth than in life expectancy as another issue
and lower levels of labour force in developing Asian countries than in developed economies in
the region which may create rigorous problems for these developing nations once their income
increases in the future.
