Shinzo Abe may draw inspiration from his Nordic hosts to tackle three of his country’s biggest problems: chronically slow growth, an aging population and a stubbornly high gender gap (Spoiler alert: The solutions are closely related).
The Japanese prime minister will be paying a visit to Sweden, Finland and Denmark after attending the Group of 20 summit in Hamburg. It’s unclear if any major business will be conducted (he’s just reached a major free trade agreement with the European Union), but that doesn’t make the two-day visit less interesting.
While in Stockholm, for instance, he may want to take a close look at how Sweden has successfully boosted short-term growth while also laying the groundwork for higher expansion rates in the future. The key is population growth.
Sweden breached the landmark figure of 10 million inhabitants in January, with the total projected to reach 13 million in 2060, according to Statistics Sweden. Japan’s population, in contrast, is expected to drop. A young and growing population is key to maintaining a generous welfare state (the number of Swedes aged 65 and above will account for a quarter of the total population by 2060). In Sweden’s case, it has also helped boost growth via extra investments, for instance in housing.
Sweden’s growth is fueled by two factors: Immigration (the country received one of the highest proportions of refugees per capita in Europe in 2015) and a birthrate that’s one of the highest in the continent.
One good way of boosting the birthrate in a mature economy is to empower women. On this front, the Nordics are the experts.
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