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Friday, August 5, 2011

The Devil is in the (Demographic) Details

By Julia Kiewit and Henry Potrykus, Ph.D., Staff

Despite critiques of the U.N.’s world population predictions, a recent Wall Street Journal article by Jonathan Last could have gone even further in pointing out how bleak the developed world’s demographic picture is.

This past May, the U.N. released its latest report on world demographics, saying that Italy, Poland, and the European continent as a whole, have rosy demographic futures. Mr. Last correctly takes issue with these predictions, saying that in order for the world to actually achieve the U.N.’s projected numbers, one big assumption had to be made: That “starting tomorrow, every country in the world with fertility below the replacement rate of 2.1 will increase its fertility. And this rise will continue unabated, year after year, until every First World country has a Total Fertility Rate (TFR) near replacement.”

Mr. Last reasons that this projection is dubious, in part because the U.N.’s model was based on data taken from a small group of mostly Scandinavian countries that have “recovered (sort of)” from sub-replacement fertility. Last highlights Sweden, saying that its story is a complicated one, “involving pro-natalist policies, culture and not a little luck”—but somehow, the U.N. assumes that all low-fertility, industrialized countries from Russia to Italy to South Korea will follow this pattern.

While Last does highlight the dubious nature of the U.N.’s projections, he has not gone far enough in emphasizing exactly how incorrect they are. His suspicion was correct that other countries will not necessarily follow Scandinavia’s supposed trend. Though it (reportedly) experienced positive fertility results, even if Sweden’s success were based on culture and policies, these are not universal. However, the fact of the matter is that any projection made based off the “success” of these countries will be incorrect.

Focusing on Sweden, the story of their fertility rates must differentiate between the fertility of nationals and the fertility of foreigners (immigrants). According to the Vienna Institute of Demographics, from 1986-2008, the increase in the total fertility rate of Sweden’s nationals went from 1.76 to 1.85, a difference that is statistically insignificant, and is actually because the ‘dip’ to 1.76 in 1986 was a TFR underestimate! The total fertility rate of foreigners ranged from 2.24 (1986) to 2.55 (2008)—a range that is above both the replacement level, as well as the level of Swedish nationals. Any increase in Swedish fertility levels must be understood with this division in mind, with the result that Sweden would not experience population increases of its young for any reason other than immigration. This casts the U.N.’s model into question, as immigration is not a true account for the increase in a country’s fertility. Furthermore, immigration depends strongly on (relative) economic factors, something that varies between countries and is difficult to predict.

Additionally, we all know that Rome was not built in a day—it takes around 20 years before our newborns are ready to enter society as adults, and cultures change about as quickly. Why then should the U.N. anticipate that Italy, Poland, Japan or any country would change overnight? There is no reason to suspect that we will see a drastic positive change in the fertility habits of individuals (and, thus, nations) any time soon. On the contrary, anti-natal trends are alive and well in the West when cultures are spawning no-kids-allowed movements: Malaysia airlines banned babies from many of their first-class cabins; McDain’s Restaurant, in Pennsylvania no longer allows children under 6 to dine; Double Windsor bar in New York bans babies after 5 p.m.; a Central Florida homeowners association is considering a ban on children from playing outside, and the examples continue.  All of this is strong indication that the trend we’re seeing, and one modeled by more serious demographers than those at the U.N., is here to stay.

We are still slouching into a demographic crisis, and Mr. Last is right to highlight economic concerns that will spin off from low fertility rates.

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