Japan’s Last Chance to Boost Its Birth Rate (A Warning For the World)

japan is on the verge of whether we can continue functioning as a society.” these are the words of the distressed prime minister of japan, fumio kishida. While addressing the island country’s strikingly declining population, one could clearly witness the urgency in mr. Fumio’s 45-minute speech.The threat of japan’s population dropping from 125 million today to 88 million in less than half a century is terrifying. But japan is not alone when it comes to declining birth rates and an aging population. Developed countries across the world are facing the very same population crisis.And japan’s ‘last chance‘ to boost its birth rates is sending shock waves worldwide, warning of a similar fate in the foreseeable future.

Japan’s demographic crisis explained

The worrying trend of falling population growth has persisted for decades. Japan’s annual births have almost halved since the recorded high of 1.5 million in 1982. Birth Rates in Japan With the fertility rate at 1.3 (well below the 2.1 needed for a stable population), the leaders are now facing a ballooning elderly population.The death rate has outpaced the birth in the island country for over a decade now. In addition, overwhelming funds requirements for the aging population’s health care and pensions further put immense strain on the already shrinking workforce.

Exploring the reasons behind low birth rates in japan

One primary reason behind japan’s current demographic crisis is the high cost of living that makes it difficult for couples to raise children.According to jefferies’s research, japan ranked amongst the top three most expensive places to raise a child after china and south korea. Even though the country’s economy has stalled since the early 1990s, with the average annual household income declining to $43,000 in 2020 from $50,600 in 1995, the cost of raising children has only increased.

High cost of raising a child in japan

The financial burden is further exaggerated by the gender pay gap, with japanese women earning 26% less than their male counterparts.Furthermore, japanese women are torn between raising a family or building a fulfilling career. And the skyrocketing cost of raising a child coupled with almost stagnant salary growth, more women lean towards a child-free life, enjoying their career and freedom above getting married and having children.All the above and much more complicated reasons have discouraged coupled from starting families – leading to falling birth rates.

Japan in search of solutions

According to fumio kishida, 2030 is the ‘last chance’ for japan to reverse its sharply declining birth rates. That’s why his government is strongly encouraging couples to start new families. In addition, establishing a child-first social economy is at the top of kishida’s plans, which will be detailed more in the coming months.The prime minister has also promised to double childhood spending by increasing after-school care initiatives and childcare initiatives. In his recent news conference, kishida said that his government also plans to provide housing assistance and childcare allowances along with reducing the cost of education and raising the wages of younger individuals.In the fiscal year 2023, the government allocated 4.8 trillion yen ($36 billion) to a new agency created for children and their families.But, only some think the policies will be effective.

The world on the path to a demographic crisis

The declining birth rates in major developed countries, including japan, china, and the us, is a mild way to describe what could become a global demographic crisisAt 0.79 births per woman, south korea has the lowest birth rate, followed by china and japan. Western nations, including the us, with 1.64 births per woman, also witness a fast-aging population.Therefore, it’s high time for governments to start looking for short-term and long-term solutions.China’s three-child policy and japan’s child-first nation are the aging countries’ attempts to reverse their declining birth. And while the youth population in the developing world is still growing, many countries like india struggle to create enough jobs for their working people. Here, the immigration economy can be an obvious short-term solution. But its political implication can be hard to overcome.In the long term, the government must form deeper structural systems to help improve childcare and the cost of raising children

The uncertainty of a better tomorrow

The falling birth rates bring an existential threat to the world – especially at a time when the majority of women face complications during pregnancy.But the sad reality is the majority of the world is following the same steps as south korea and japan. The skyrocketing cost of living isn’t the only reason. The younger generation doesn’t feel the world is safe, given the uncertainty of a better tomorrow (owing to climate change, threats of nuclear war, and more).How successful japan’s new child-first social economy will be decided in the future. But despite the current policies, it’s tough to comeup with a sustainable solution when you leave out 50% of the population (women) out of the decision-making process.