Increase of elderly poor in developing nations--the implications of dependency theory and modernization theory for the aging of world population
Osako, M.
Studies in Third World Societies 22: 85-113
1982
ISSN/ISBN: 1056-9189 PMID: 12266588 Document Number: 299339
Despite the growing number of elderly residents in developing countries, little is known about the impact of economic development policies on the elderly in these countries. In an effort to identify public policies which may have a beneficial impact on the elderly, the impact of development policies and of foreign aid on the elderly in Taiwan was examined. Information on the elderly in developing countries and in Taiwan was derived from reports of various international organizations and from social science literature. Between 1980-2000, the proportion of elderly persons in developing countries will increase from 6.1%-7.1%, and the absolute number of elderly will increase from 200 million to 350 million. In 2000, the proportion of elderly persons in the developed countries will be 18.2%, but the absolute number of elderly will be only 244 million. There is little information on the income of the elderly in developing countries , but the elderly are probably over represented among the poor in developing countries just as they are in most developed countries. A disproportionate number of the elderly live in the rural areas of developing countries. Structural changes which occur in developing countries under conditions of economic development may have a negative impact on the elderly. Little is known about the impact of foreign aid on the general population of poor people in developing countries and even less in known about the impact of foreign aid on the elderly. Neo-classical economic theorists argue that foreign aid has a trickle down effect and that the poor ultimately benefit from foreign aid and investment. Dependency theorists argue that foreign aid and investment slows economic growth, perpetuates a dual economy for the elite and the poor, and increases income differences between the poor and the elite. It is difficult to assess the validity of these theories in the abstract. The impact of foreign aid and other policies must be assessed in reference to specific countries. Taiwan shares with many other developing countries a background of colonialism and war. Between 1952-1963, Taiwan received massive amounts of US economic aid (US$1.7 billion) and of US military aid (US$2.3 billion). Despite this influx of aid, Taiwan achieved economic development without increasing income differences. Between 1953-73 the gross domestic product increased by 400%, while the Gini coefficient index declined from .56-.29. Furthermore, the elderly were not excluded from the development process. Taiwan's economic development was achieved by the adoption of policies which: 1) encouraged both agricultural and industrial development; 2) promoted cottage and small industries, as well as large industries; and 3) stressed labor intensive industries during the early phases of development. The government did not launch any major welfare programs. The stress on cottage and small industries, labor intensive industries, and rural development ensured that the elderly would remain in the work force. 51.4% of all males, 65 years of age or over, are economically active. This is a higher proportion than in most other countries. Given the lack of welfare programs, the elderly tend to live with their adult children. Those who are ill are cared for by their children. Those who are healthy are encouraged to undertake household and child rearing chores. The Taiwan experience indicates that foreign aid and policies that provide productive roles for the elderly and the poor, can have a beneficial impact on all segments of the population. The effect of these policies in all settings may not be equally beneficial.