Falling fertility rates, once of interest mainly to demographers and actuaries, are now a global concern. Together with longer lifespans, they are driving profound demographic change that will impact all countries. Two-thirds of humanity lives in countries with fertility below the replacement rate of 2.1 children per family.

To address this new reality, policymakers and businesses must invest in technology and boost productivity growth, adapt to an older and more concentrated workforce in today’s developing countries, and engage senior consumers creatively. Policymakers can collaborate with businesses to innovate in areas like pensions, retirement savings, urban design, and public health to support healthy aging. To explore the implications further, MGI hosted a virtual event on the themes of a new report, Dependency and depopulation? Confronting the consequences of a new demographic reality.

The session began with an overview of the report findings with authors Chris Bradley and Anu Madgavkar, followed by a panel discussion moderated by Olivia White with:

• Richard Baldwin, Professor of International Economics, IMD
• Susie Cranston, President and Chief Operating Officer, Cresset
• Jesús Fernández-Villaverde, Howard Marks Presidential Professor of Economics, University of Pennsylvania

Questions discussed during the event include:

• Why are fertility rates falling, and can they revert to higher levels without policy intervention? Which policy interventions have best chance to be effective – and which have not worked?
• What role can automation, AI, and other technologies play in offsetting demographic drag in advanced economies?
• Considering demographic shifts, what are the top things that business leaders can do to prepare?

For more on this topic, please watch the virtual event recording and read our report, Dependency and depopulation? Confronting the consequences of a new demographic reality.