Japan and Population Aging: Strategic Lessons for Colombia

By: Leslie Benitez, Business Consultant in Japan.

Population aging has become one of the most significant demographic transformations of the 21st century. Declining fertility rates combined with increasing life expectancy are reshaping societies, labor markets, and public finances worldwide. In this context, Japan stands out as the most advanced case globally, often described as a living laboratory for the future of aging societies.

Source: nikkei.com

In contrast, Colombia still benefits from a comparatively young population structure. However, demographic projections indicate that aging will accelerate over the coming decades. Examining Japan’s experience provides valuable insights for Colombia, particularly in terms of long-term planning, economic adaptation, and opportunities for bilateral cooperation.

Japan’s Demographic Reality: Key Figures

Japan currently has the oldest population in the world. As of 2023, approximately 29% of Japan’s population was aged 65 or older, while only about 11% was under the age of 15. Japan’s total fertility rate has remained persistently low, falling to around 1.26 children per woman, far below the replacement level of 2.1.

Life expectancy in Japan exceeds 84 years, among the highest globally. As a result, Japan’s total population has been shrinking steadily. In 2022 alone, the country lost more than 800,000 inhabitants, reflecting a structural demographic decline rather than a temporary fluctuation.

Fuente: World Bank.

Looking ahead, projections suggest that by 2040, nearly 35% of Japan’s population will be over the age of 65, significantly reducing the size of the working-age population. This shift places increasing pressure on pension systems, healthcare services, and public finances, while also constraining long-term economic growth.

Institutional and Technological Responses in Japan

In response to rapid aging, Japan has implemented a multifaceted strategy combining public policy reform, technological innovation, and social adaptation. One of the central pillars of this approach has been automation and robotics, particularly in healthcare, elderly care, and manufacturing. Japan is a global leader in assistive and care robots designed to support physical tasks, monitor health conditions, and improve the autonomy of older adults.

Labor market reforms have also played a key role. Japan has encouraged extended working lives, promoting the employment of older workers and gradually increasing the effective retirement age. At the same time, policies have sought to increase female labor force participation, addressing long-standing gender gaps in employment and leadership positions.

Although traditionally restrictive toward immigration, Japan has also taken cautious steps toward selective labor migration, particularly through technical intern and caregiver programs. These initiatives acknowledge the structural need for foreign labor in aging-related sectors while maintaining strong regulatory oversight.

Source: technologyreview.com

Social and Economic Impacts of Population Aging

Population aging in Japan has reshaped everyday life, consumption patterns, and urban planning. Cities have increasingly focused on compact urban design, accessible public transportation, and proximity-based healthcare services. From an economic perspective, the so-called silver economy—goods and services tailored to older consumers—has become an increasingly important component of domestic demand.

At the same time, aging presents serious challenges. Public spending on pensions and healthcare continues to rise, placing strain on fiscal sustainability. Meanwhile, labor shortages have intensified in sectors such as healthcare, construction, and services. These dynamics have forced Japan to rethink its growth model, placing greater emphasis on productivity, innovation, and institutional efficiency rather than labor expansion.

Source: thewire.in

Colombia: A Different Stage, a Converging Future

Unlike Japan, Colombia still has a relatively young population. Currently, only around 9% of Colombia’s population is aged 65 or older, and fertility rates, while declining, remain higher than those observed in Japan. Nevertheless, demographic projections indicate that Colombia will experience accelerated aging in the coming decades, narrowing the demographic gap between the two countries.

Japan’s experience offers critical lessons for Colombia. Early investment in healthcare prevention, pension reform, and age-inclusive labor markets can reduce future economic and social pressures. Moreover, Japan demonstrates the importance of integrating technology and innovation into aging-related policies, rather than relying solely on public expenditure.

From a bilateral perspective, this demographic context opens opportunities for cooperation in areas such as medical technology, elderly care services, smart cities, robotics, and active aging policies. For Colombian companies interested in the Japanese market, understanding these social transformations is increasingly essential.

Source: borgenproject.org

Conclusion

Japan’s aging population is not merely a national challenge but a global warning. Through a combination of technological leadership, institutional reform, and social adaptation, Japan has become a reference point for how societies can respond to profound demographic change.

For Colombia, observing Japan’s experience from a more favorable demographic position offers a strategic advantage. Learning from Japan’s successes and limitations can help Colombia design forward-looking policies, support sustainable economic development, and strengthen bilateral cooperation. For the Colombian–Japanese Chamber of Commerce and Industry, understanding these demographic dynamics is a key tool for anticipating opportunities and fostering deeper collaboration between both countries.

References

• Cabinet Office of Japan. (2023). Annual Report on the Ageing Society. Government of Japan.

• Ministry of Internal Affairs and Communications of Japan. (2023). Statistical Handbook of Japan.

• World Bank. (2023). Population ages 65 and above (% of total population).

• OECD. (2022). Working Better with Age: Japan.

• United Nations Department of Economic and Social Affairs. (2022). World Population Prospects.