Growing Old Gracefully: How Can the G7 Mitigate the Effects of Its Ageing Populations? HANNAH Mclennan the University of Sheffield

G7 Charlevoix Summit, June 2018 Growing Old Gracefully: How can the G7 Mitigate the Effects of its Ageing Populations? HANNAH McLENNAN The University of Sheffield Executive Summary health. Finally it will turn to this year’s With more people now aged over 65 summit and how Canadian Prime than under 15 across the G7 nations, Minister Justin Trudeau grappled with the major economies in the West face the topic in both the lead up to a unique challenge. The task of filling Charlevoix and at the final summit. the gap left by seniors as they leave the workforce, coupled with the Background decreased ability for an older The dilemma of ageing populations generation to find new jobs in the age presents a multitude of problems of automation, means the G7 is facing across the G7 states. The economic nothing short of a crisis. This policy effects of having a large gap in the brief explores how the 44th G7 Summit workforce as seniors leave will be in Charlevoix handled the topic of worsened by the need to pay state population ageing. It provides a pensions to a growing number of background to the demographic time people. In the UK, the state pension bomb in the West and discusses why age has rapidly increased in the last ageing populations are a problem ten years and current predictions specifically relevant to the G7. It also suggest most Britons will retire in their notes how the issue of an ageing 70s, if they can retire at all. population has been discussed at Furthermore, the rise of automation previous summits, paying particular poses a risk for the older generation’s attention to the 2016 Ise-Shima ability to thrive in the jobs of the future. Summit in Japan at which the topic At the moment, there are about 9 featured heavily within the context of million workers in the US aged 65 and G7 Charlevoix Summit, June 2018 over – this figure is expected to triple transformation has been very narrow by 2050. Many of these will be unable in scope. The G7 has the ability to take to live off their pension alone and will the lead in driving this debate and struggle to adapt to the so-called ensure a wealth of opinion and fourth industrial revolution. Therefore, experience is expressed in the there is a real risk of a new, jobless process. generation emerging. Coupled with increased healthcare costs to the Previous Summits state, governments are likely to face The first major reference to ageing huge pressure on budgets in future populations at the G7 summit was in years. Toronto in 1988, where it featured in a half-day discussion on economic The G7 countries are all uniquely issues. Evidently, the late 1980s were linked by this crisis. While the problem when concerns surrounding an ageing itself does not necessarily need to be population first entered both the dealt with on the international stage, political and academic agenda. Since there is certainly an element of then, frequent concerns have been collaboration that makes it useful for raised regarding how the G7 intends to countries to discuss it within the setting deal with its elderly without any real of the G7. In particular, the soft power solutions emerging. The 2017 influence of the G7 makes it more Taormina Communiqué discussed the likely for the topic to be raised ‘specific attention’ that needs to be nationally once the agenda has been paid to older workers, but did not go set at the international level. As John any deeper. Beard and David Bloom note, evidence suggests that many of the To date, the only worthwhile challenges associated with population discussion on the topic was at the G7 ageing can be addressed by changes Health Ministers’ meeting in Kobe in in policy. Yet, to date, the debate on 2016, where it was framed within a how best to achieve this larger discussion surrounding global G7 Charlevoix Summit, June 2018 health. Evidently its prevalence at this ‘Abenomics’ revival program with an summit was due to Japan’s own emphasis on new medical population crisis; people over the age technologies, including experimental of 65 make up 40% of its population regenerative medicine and cell and this top-heavy demographic therapy. The hope is that by creates huge challenges for commercialising technologies more government and the economy. The quickly, the Japanese government can Health Ministers’ meeting discussed save money on future health care the need for continued research to costs while spurring the creation of a manage the well-being of ageing valuable new industry. Therefore its populations worldwide. Specifically, G7 Presidency allowed the Japanese Japan committed to sharing its own government to showcase its work to a knowledge and experiences in selection of the world’s most influential addressing population ageing with the leaders while making a valuable other G7 nations. Professor Nanako argument in favour of investing in the Tamiya observes that the Japanese elderly. government supplements its national pension plan with ‘one of the most The 2018 Charlevoix Summit generous long-term-care systems in In the lead up to the 2018 G7 summit the world in terms of coverage and in Charlevoix the themes of ‘Preparing benefits’, making Japan an excellent for Jobs of the Future’ and ‘Investing in leader in sharing its own experiences. Growth that Works for Everyone’ made it clear that the summit would frame The 2016 Ministers’ meeting also the issue of ageing population through featured a comprehensive discussion a wider discussion on employability surrounding dementia and dementia and investment. The Ministerial briefs research, alongside the necessity for a discussed the need to close global movement towards finding a generational differences and ensure cure. This reflects Prime Minister Abe members of disadvantaged groups are Shinzo’s commitment to the so-called able to realise their potential and G7 Charlevoix Summit, June 2018 contribute fully to the economy. The learning. It concludes that ‘closing Charlevoix Common Vision for the gaps in access to learning among Future of Artificial Intelligence – under-represented groups is vital for released on the final day of the summit promoting a real and fair chance at – also had an optimistic focus on success for all’. It was enthusing to ‘empowering the elderly’, ‘supporting see education and investment lifelong learning and education’ and discussed within the context of an promoting labour market policies for ageing population, as generally these ‘those at risk of being left out’. discussions are only made in relation to the young. However, it was the report on Achieving Growth that Works for In the final communiqué, the Everyone that pays particular attention discussion on population ageing was to creating an economic environment largely relegated beneath the issue of that supports an ageing population. It gender equality, which dominated notes that while unemployment rates most of the summit. However, ageing are at or near multi-decade lows in a populations are an inherently female number of G7 countries, access to problem. In 2013, the UN announced good, well-paying jobs remains that the global sex ratio was 85 men unattainable for older workers. per 100 women in the age group 60 However, it boldly states that solutions years or over, and only 62 men per ‘lie within our reach’. It also suggests 100 women in the age group 80 years that the G7 countries can ensure that over. Across the G7 countries, women citizens have the tools they need to are substantially more likely than men succeed in the jobs of today and to be widowed, to live longer, to live in tomorrow, but only if they invest in a poor health, to deal with financial wide range of educational and training problems or live in poverty and are opportunities including vocational usually more vulnerable to learning and apprenticeships, and discrimination. By investing in women, various forms of college and university the G7 countries are also investing in G7 Charlevoix Summit, June 2018 the vast majority of their older Health Ministers’ meeting in Kobe, the population. While this link should have inclusion of older people in the been more explicit, the inherent discussion surrounding jobs of the connotations suggest that the global future was clearly positive. However, crisis is finally being dealt with. as with many of the issues discussed at the G7, it would have been more Conclusion encouraging to see actual promises Overall, the G7 approach to an ageing being made or policies planned. population has been more radical this Nevertheless, one should not year than in previous years. While underestimate the soft power of the there are few actual promises to which G7, and at the very least the topic the leaders can be held accountable, remains as relevant now as ever. there is certainly the general recognition of the urgency needed to deal with the global crisis. Although the Hannah McLennan is a final-year BA topic was discussed more thoroughly International Relations and Politics in the context of health at the 2016 student at the University of Sheffield. .

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