· 9 min read
The extraordinary ageing of societies and the pressing need for environmental sustainability are the two main challenges facing humanity in the twenty-first century. These seemingly unrelated problems are actually intricately linked, necessitating a comprehensive and creative strategy that goes beyond conventional economic paradigms. As the world's population ages and the strain on social safety nets and healthcare systems grows, the earth also has to deal with the fallout from unsustainable patterns of production and consumption. Our ideals, economic models, and strategy for international cooperation must all be fundamentally rethought in light of the confluence of environmental and population challenges.
Our current financial systems, which are primarily motivated by the need for unending expansion and short-term profits, frequently fail to meet the long-term needs of a stressed planet and an ageing society. Financial capital is usually given precedence over social and natural capital in this debt-fuelled economy, which results in underinvestment in vital sectors like ecological restoration, renewable energy, and elder care. We must set out on a path of change, rethinking how we relate to value, money, and one another in order to traverse this complicated terrain and guarantee a future in which human and planetary well-being flourish.
The looming crises
The greying of the globe:
The rate at which the world's population is ageing is unparalleled. One in six persons worldwide will be over 65 by 2050, up from one in eleven in 2019, with developing nations seeing the biggest increases. The healthcare system, labour markets, and social security institutions are all facing significant challenges as a result of this demographic shift. The growing proportion of working-age people to retirees is posing a challenge for traditional pension systems, which were created with a younger population in mind. The World Bank predicts that in high-income nations, the old-age dependence ratio will double by 2050. The worldwide financial stability of pension funds is under risk due to this demographic pressure, low birth rates, and longer lifespans.
Japan, which has the oldest population in the world, is experiencing financial difficulties with its social security system, which is causing benefit reductions and a rise in poverty among the elderly. This circumstance highlights the pressing need for creative ways to guarantee the well-being and financial stability of ageing populations.
Planetary boundaries:
The Earth is also dealing with the fallout from unsustainable patterns of production and consumption. According to the Global Footprint Network, annual human consumption is currently equal to 1.7 Earths. Depleting natural resources, upsetting ecosystems, and accelerating climate change are all consequences of this ecological excess. The Amazon's deforestation, which is motivated by temporary financial gain, is a prime example of this unsustainable trend, endangering biodiversity and accelerating climate change.
From extreme weather events to resource scarcity and biodiversity loss, the effects of pushing the boundaries of the earth are becoming more and more obvious. Due to the serious risks these environmental issues represent to societal well-being, economic stability, and human health, immediate action is required to move towards a more sustainable course.
Reimagining value:
Beyond GDP:
We must radically reconsider how we define value in order to solve these interrelated problems. Gross Domestic Product (GDP) has been the main indicator of success for far too long, frequently at the expense of environmental and social well-being. Alternative metrics that take into account a wider range of goals, such as intergenerational justice, environmental sustainability, and social well-being, must replace this limited focus.
A more comprehensive view of societal progress is provided by the Genuine Progress Indicator (GPI), the Inclusive Wealth Index (IWI), and the Happy Planet Index (HPI), which are all worthwhile substitutes for GDP. Bhutan's emphasis on Gross National Happiness (GNH) is a powerful illustration of putting people's welfare ahead of just economic expansion. We can more accurately evaluate the genuine costs and benefits of economic activity and make better decisions that advance the welfare of people and the world if we take a more thorough approach to assessing progress.
Value of care:
It's critical to acknowledge the enormous benefit of caregiving in both the family and professional contexts. In order to support people, families, and communities, caregiving—which is frequently underappreciated and underpaid—is essential. We need to establish social support networks, fairly reward carers, and advance laws that recognise caring as an essential social function. Sweden is a good example of a country that supports caregiving because of its extensive parental leave regulations and strong social safety net.
To guarantee the wellbeing of the young and old, investments in care infrastructure—such as childcare facilities, senior care facilities, and community-based support networks—are crucial. We can improve social ties, advance gender equality, and build a more compassionate and welcoming community by appreciating and encouraging caregiving.
Pricing externalities:
Promoting sustainable practices requires that market prices take into account the social and environmental costs of economic activity. The 'externalities' of production and consumption, like pollution, resource depletion, and social inequity, must be taken into consideration. Internalising environmental costs can be achieved through carbon pricing mechanisms like carbon taxes and cap-and-trade schemes.
We can encourage sustainable patterns of production and consumption by fairly representing the true prices of goods and services. This necessitates a change to a circular economic model, in which items are made to be durable and recyclable, waste is reduced, and resources are used effectively.
Rethinking finance:
Long-term investment:
To address the enduring challenges of sustainability and an ageing population, we must promote long-term investments in ecological and social infrastructure. This includes sustainable transport networks, renewable energy initiatives, and elder care facilities. Achieving this shift requires reorienting financial incentives from short-term speculation to wealth generation with lasting value. Norway’s sovereign wealth fund is an example of this approach, with investments in sustainable projects and renewable energy worldwide.
Governments and financial institutions can play a critical role by providing tax incentives, creating green investment funds, and supporting the development of sustainable technologies.
Impact investing:
Impact investing directs capital to projects that address societal needs and promote sustainable development. This approach generates both financial returns and positive social or environmental outcomes. Social impact bonds are a compelling example of aligning financial incentives with social benefits.
By quantifying social and environmental impact alongside financial gains, we can foster a more equitable and sustainable investment landscape.
Green finance:
Innovative financial products like sustainability-linked loans and green bonds are crucial to financing the transition to a low-carbon economy. These products support the research and development of clean technologies and sustainable infrastructure. The rapid growth of the green bond market indicates increasing investor interest in sustainable finance.
Governments can further stimulate green finance by setting clear environmental policies, offering tax incentives, and encouraging the creation of green financial products.
Embracing non-financial instruments:
Time banking:
Time banking systems, where people exchange services based on time rather than money, promote community-based caregiving, social connections, and reduced reliance on traditional financial resources. Time banks, from Japan to the United States, foster mutual aid and social unity within communities.
By valuing and rewarding time and skills, we strengthen community bonds and build a more resilient and inclusive society.
Community currencies:
Local currencies can support social care programs and stimulate economic activity, reinforcing community ties and fostering cooperative responses to regional issues. Successful local currency systems include the Ithaca Hours in New York and the Brixton Pound in London.
Community currencies can empower small businesses, encourage responsible consumption, and retain wealth within local economies.
Knowledge sharing:
Facilitating the sharing of best practices, knowledge, and skills in sustainability and caregiving is essential for accelerating the shift towards a more sustainable future. This includes promoting global cooperation, community-based projects, and intergenerational learning. The Global Ecovillage Network is an example of a community-driven network that connects people to share sustainable practices.
By establishing forums for collaboration and exchange, we foster a global culture of learning that accelerates the spread of innovative ideas.
Fostering collaborative systems thinking:
Intergenerational equity:
Framing ageing and sustainability through intergenerational equity highlights the responsibility of the current generation to safeguard the well-being of future generations. This approach promotes intergenerational dialogue and cooperation to address shared challenges. Initiatives such as intergenerational day care centres, where young people and the elderly interact, can help bridge generational divides.
Encouraging intergenerational understanding and collaboration fosters a more cohesive and sustainable society.
Systems thinking:
A systems-thinking approach, which recognises the interdependence of social, economic, and environmental systems, is key to developing holistic solutions to complex challenges. This includes understanding the links between resource depletion, climate change, and ageing populations. The concept of a circular economy embodies this approach by promoting waste reduction and efficient resource use.
By understanding these interdependencies, we can develop more durable solutions that address root causes rather than just symptoms.
Global collaboration:
Tackling global issues such as resource scarcity, demographic shifts, and climate change requires international cooperation. Collaborative efforts involve sharing best practices, technology, and expertise to support sustainable development and ensure a fair transition. The Paris Climate Agreement is a prime example of international collaboration to confront a shared challenge.
Through cooperation and shared resources, countries can accelerate the transition to a more sustainable and just world.
Call to action: A roadmap for ASEAN
With youthful populations and rapid economic growth, ASEAN economies are well-positioned to lead in addressing the intertwined challenges of sustainability and ageing. By adopting a comprehensive and forward-thinking approach, ASEAN can set an example for sustainable development that prioritises human and planetary well-being.
Here’s a roadmap for action:
- Invest in human capital: Prioritise social protection, healthcare, and education to create a resilient and adaptable workforce. This includes strengthening social safety nets, expanding access to healthcare, and promoting lifelong learning.
- Promote sustainable consumption and production: Implement green policies, encourage eco-labelling, and support circular economy models. Invest in green infrastructure, sustainable transport, and renewable energy to reduce carbon emissions and improve resource efficiency.
- Foster regional cooperation: Strengthen collaboration on climate change mitigation, resource management, and environmental protection. Support transboundary projects, share best practices, and facilitate technology transfer.
- Embrace innovation: Foster a culture of innovation and entrepreneurship to develop sustainable technologies and solutions. Encourage research in green building, sustainable agriculture, and renewable energy.
- Empower communities: Enable local communities to participate in decision-making and implement grassroots solutions. Support social entrepreneurship, community-based projects, and a shared sense of responsibility for environmental stewardship.
Conclusion: Embracing the symbiotic dance
The convergence of environmental sustainability and ageing populations represents one of the defining challenges of the twenty-first century. This challenge calls for rethinking our economic models, redefining our values, and embracing a new era of collaboration and innovation. Recognising the interdependencies between these issues allows us to find synergistic solutions that enhance human and planetary well-being.
This journey goes beyond mitigating risks or minimising harm. It offers an opportunity to create a future that is more prosperous, just, and equitable—a future where societies respect planetary boundaries while valuing the contributions of older generations, where economic success is measured by human and environmental well-being rather than GDP alone.
ASEAN, with its dynamic economies and youthful populations, is poised to lead this global transformation. By taking a holistic and forward-looking approach, ASEAN can demonstrate that economic growth and environmental sustainability are not conflicting goals but complementary paths to a shared future of prosperity and well-being.
This is a call for ASEAN governments, businesses, and citizens to embrace the interwoven dance of sustainability and longevity, to empower communities, foster innovation, strengthen regional cooperation, invest in human capital, and support sustainable production and consumption.
Let’s meet this challenge with courage, creativity, and a common vision for a world that benefits both people and the planet. Now is the time to act. We hold the power to shape the future.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
