How healthcare and policy reform can help increasingly elderly Hong Kong age gracefully
- Cultural and economic factors render the trend of an ageing population difficult to remedy, but Hong Kong can take steps to ease its burden
- Keeping the elderly working and socially active, reforming the healthcare sector and incentivising couples to have children are among the city’s options
For the better part of the last two decades, Japan has shown how little invigoration an increasingly grey population brings to the economy if demographics are allowed to run their natural course of decline. Its GDP has remained at similar levels of around US$5 trillion, with growth around 1 per cent year on year. Lack of demand and lagging innovation have dragged down even the most vibrant prefectures.
This demographic tide of senescence looms over Hong Kong. Cultural and economic factors render the trend difficult to remedy.
Hong Kong must consider its policy options.
A study published by the International Monetary Fund (IMF) shows chronological age correlates poorly with health and functional ability. For instance, a 60-year-old person beset by diabetic disease is barely ready to guard entrances, a task a physically fit 70-year-old person is more than capable of doing. Liberating the job market for the elderly appears to be a promising policy. Anecdotal evidence of older people who are physically fit enough to work as drivers or security guards abound.
Even better, the effect goes beyond productivity boosts. Those who remain in the workforce are likelier to spend, potentially unlocking their pension fund savings. Flagging domestic demand could be reversed.
This is helpful knowledge for Hong Kong. Though it has one of the world’s most efficient health systems, the Hospital Authority is plagued by inefficient resource allocation and sluggish innovation. Preventive medicine and primary care, areas that can provide the biggest bang for the buck, play an astonishingly small role.
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A disjointed health system is in part a corollary of specialists subspecialising and entrenching vested interests, not least in the private sector. “Social hospitalisation”, coined by health economics researchers to connote protracted hospitalisation for reasons other than medical need, is rife.
Constrained living space discourages families from receiving elderly people discharged from hospitals. Patients’ relatives might also see old-age homes as an unnecessary outlay when hospitalisation in public wards costs much less, all the while enjoying round-the-clock care by medical professionals.
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Another suggestion is to provide tax rebates for families with children, a boon for the middle class. Such suggestions are in line with what Xi has envisioned to be a middle class-driven economy.
It appears unlikely that Hong Kong can avoid having an ageing population altogether. However, we need not go gentle into that good night as we rage against the dying of the light.
Charles Ng is a medical doctor who holds a Master of Public Health from Johns Hopkins University. He is a member of the New People’s Party