Policy-making by Understanding the Generational Economy

Durr-e-nayab , Omer Siddique

Abstract


The current population age structure of Pakistan provides the
country an opportunity to reap the demographic dividend but there is no
concrete evidence on its magnitude. The National Transfer Accounts (NTA)
can fill this gap by quantifying the wealth flows taking place in a
population through an improved understanding of the generational
economy.2 The NTA provides estimates of people’s income and their
consumption at every age. What is more important, however, is that the
NTA helps to understand how do people, especially the young and the old
who consume more than they produce, support themselves. It sheds light
on whether it is through the private or public sources that the existing
deficit—the difference between income and consumption—if any is filled.
The estimation of the NTA for Pakistan, therefore, would strengthen our
understanding of the linkages between population dynamics and
development. The NTA for Pakistan provides the opportunity to look at
the economic indicators through the perspective of age. It can help
design public policies ranging from healthcare, education, gender
equality, reproductive health and social protection to economic, social
and political implications of population ageing and generational
equity.

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DOI: https://doi.org/10.30541/v60i1pp.93-97

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