SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

Legislation has a role
in correcting prejudices,
but may not be enough
to change employer
attitudes and practices
140
options for lifelong learning, and the reluctance
of companies to invest in training or hiring older
employees. These obstacles occur despite several
international agreements stipulating that older
persons have a right to decent work opportunities,
free from any form of discrimination. Older
workers often face discrimination at workplaces
particularly with respect to training and recruitment.
Preference is given to the recruitment
of younger workers who are assumed will stay
longer on the job.
While legislation has a role in correcting
prejudices, this may not be sufficient to change
employer attitudes and employment practices. 87
Practical considerations should be stressed as
well—China, for instance, will have a shortage
of 22 million skilled workers by 2020, despite
massive investments in education. 88
Low retirement age is a particular barrier,
because it may push people out of the workforce
even before they are ready. Among all global
regions, and for men and women, retirement ages
are lowest in Asia-Pacific, 89 currently ranging
from 55 years to 60 years. The gap between
life expectancy and formal retirement age is
noticeably large in several countries, almost 25
years for men in Singapore 90 and 25 years for
women in Viet Nam. 91 China, Sri Lanka and
Viet Nam still impose a lower retirement age for
women than for men. 92 This is discriminatory
and overlooks the reality that women generally
live longer than men, and may spend many years
in old age without employment or a spouse to
provide financial support.
Despite artificially low retirement ages,
many people have no choice but to continue
working, given the inadequacy of pensions
especially in developing countries, and the
general weakening of family-based support in
the region. Many end up in the informal sector,
where working conditions tend to be poor and
safety nets are typically tattered, if they exist at
all. While there is a pronounced preference for
early retirement in developed countries such as
Japan and the Republic of Korea, older people in
Indonesia and the Philippines fund two-fifths
of their consumption from their own labour
income. 93 In Indonesia and Japan, they provide
more support to their families than what they
receive from them.
The poor matching of life expectancy and retirement
age has implications for individuals and
societies at large. Skilled labour may go to waste,
and fiscal pressures linked to pension funds may
increase, blocking more productive investments.
Recognizing these risks, some countries have
begun to promote employment for older persons.
China’s Silver Age Action Programme organizes
retired intellectuals to apply their scientific and
technological knowledge and expertise to aid
the advancement of underdeveloped regions
of the country. Between 2003 and 2010, the
programme benefited an estimated 200 million
people and generated economic returns worth
five billion yuan. 94
The governments of Indonesia and the Philippines
have educational assistance programmes
that encourage senior citizens to pursue different
types of technical and vocational training. In
the Philippines, private companies are entitled
to a 15 percent reduction on income taxes paid
on behalf of older workers. 95 Indonesia has established
centres in almost all of its 34 provinces
that provide training to workers in the informal
sector, including older ones. In Viet Nam, the
2002 Labour Law guarantees older people the
right to decent work while receiving pension
benefits. 96
The workforce is only one channel for older
people to participate in their societies. Increasingly,
they are a powerful political constituency.
In some countries, they show up in large numbers
for elections, wielding significant political influence
that governments cannot afford to ignore. 97
Since the Madrid International Plan of Action,
many countries have formulated or revised
policies on national ageing policy, strategy or
plan. In Asia-Pacific, 40 percent of countries
have specific and overarching legislation on
older persons, 98 with recent examples including
the Senior Citizens Acts in India (2007) and
the Law on the Elderly in Viet Nam (2010). 99
These acts and regulations are meant to support
active ageing and ensure the full participation
of older adults in society.
Governments in Sri Lanka, Turkey and
Viet Nam have worked closely with civil society
organizations representing older persons on
national action plans on ageing. Both Indonesia
and New Zealand, under the aegis of govern-