Currently, Eastern Europe and Russia radically has changed. The essence lies in changes which will have long term consequences as as political and economic aspects of the last 17 years.
Researchers estimated that 2025 this region will become a grandfather and grandmother in the world’s richest. If you can trust the forecasts in these areas the population will decline by 24 million. ¼ of the population at the year 2025 of the former Soviet republics will be between the ages of 65 and more years.
This transition period with populations aging is a unique phenomenon. For the first time in the history market economy and social science institutions faced with the problem, which is difficult to evaluate analytically. In countries where free market economy is still in development process mostly exactly the opposite tendency is observed.
Economists estimate that Eastern European countries are at risk of huge spending increases of social welfare. This is because the number of people receiving pension will double. While the number of tax payers will fall. The latest World Bank report’s authors have expressed an opinion that the whole massive regions economic development is under the risk. Research findings should raise concerns in the West and East.
National governments should make economic reforms. Increase the age of pension, which in this area is quiet low. Provide support programs for people who take care of elderly at home, since hospitals are more expensive. If such long-term policies begin to realize today, many countries would be able to balance its budget so that the concerns about the aging population in the future will reduce.
For western politicians the former USSR and Eastern European countries with their aging population should also be considered as a serious threat. The biggest threat for old Europe countries is loss of labor force. It is based on a fact the in new European countries the level of life might raise and it will make emigrants return home. Germany as a result, may lose a large part of Polish migrant workers. While the British – construction workers, waitresses and hotel staff. It is very likely that the future EU politicians have to deal with workers searching elsewhere. The three most reliable sources of labor that might fill Europe’s labor market are Turkey, Central Asia and North Africa. There is still a very high birth rate and people seeking to leave for profit to the west.