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Consequences Of The Demographic Crisis

Author

Listed:
  • Liviu Radu

    (Nicolae Titulescu University, Bucharest, Romania)

  • Carmen Radu

    (Nicolae Titulescu University, Bucharest, Romania)

Abstract

Major dysfunctionalities can arise from the demographic decline, both on a social level and from the perspective of the economic-financial evolution of the world’s states. The obvious aging of the industrialized states’ population overlapping the import of cheap workforce in the developing countries can start mutations whose consequences are somewhat predictable but discouraging. An accelerated urbanization of the states is foreseen, as well as the decrease of birthrates, negative external migration, increase of mortality and its stagnation in a larger value than that of the birthrate, and not least the population’s aging will hinder a part of the developing countries to sustain a high rhythm of long-term economical increase. The social-economic consequences will be reflected in the labor market, the householders’ amount of income as well as in the education’s level. All of these aspects call for a rethinking of the public politics, especially of the social insurance’s system and of the education, a reorientation of the economy based on the increase of specializing in production and productivity, as well as a financial stability unburdened by the politics’ interference in the business environment.

Suggested Citation

  • Liviu Radu & Carmen Radu, 2014. "Consequences Of The Demographic Crisis," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(2), pages 161-172, November.
  • Handle: RePEc:ntu:ntugeo:vol2-iss2-14-161
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