Changes in Age Structure Posing Challenges to Social Governance

Abstract

After more than 30 years of Reform and Opening Up, China has made remarkable achievements in its economic development and became the world’s second-largest economy. The achievements also help China accelerate its economic restructuring and improve the people’s living standard. China’s social structure, as well as its economic development, underwent great changes. The government’s family planning policy (or the one-child policy) together with the people’s attitude and behavior changes in giving birth created a “demographic dividend.” During this period, as the birth rate remained below the replacement level, the child dependency ratio (CDR) declines rapidly and the percentage of working-age population continues to rise. The abundant labor force and low dependency ratio thus boosted the economy. According to experts’ calculation, the “demographic dividend” contributed to over 1/4 of China’s economic growth in its takeoff stage (Cai Fang and Wang Dewen 2005). Obviously, the changes in China’s social structure, especially those in its population’s age structure, had a large influence over its economic development. However, behind the “demographic dividend” also hid a serious social problem—the aging of the population.