Abstract

Japan faces a demographic crisis. The rapid ageing of the country’s population, as well as the low fertility rate, means that Japan’s population will suffer a gradual and perceptible decline over the coming decades, unless bold moves are made to address this problem. In addition, the decline in the working age population relative to the large numbers of elderly will place enormous strains on the economy, hindering a sustainable recovery. The ageing problem is symptomatic of the general decline of Japan, with enormous strategic and political ramifications for East Asia.