Economic foundations for creative ageing policy, volume II putting theory into practice

The journey related to this book included searching for a variety of innovative practices that integrate older adults in active, creative, and productive ways as well as initiatives that

Putting Theory

for Creative

for Creative

Volume II

Andrzej Klimczuk Economic

Foundations

Ageing

into PracticePolicy

Economic Foundations for Creative Ageing

Policy, Volume II

Economic

Foundations for Creative Ageing Policy, Volume II

Putting Theory into Practice

ISBN 978-1-137-53522-1 ISBN 978-1-137-53523-8 (eBook) DOI 10.1057/978-1-137-53523-8

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Collegium of Socio-Economics

Warsaw School of Economics

Warsaw, Poland

In Gray Dawn, a book published in 1999, the author, Peter Peterson,

warned that as the result of population ageing, a gigantic wave of greedy geezers was rising that was threatening to sink the economy of many coun-tries and disenfranchise subsequent generations.1 Peterson’s main culprits were governments, especially in the USA and in Europe that had over-promised a level of benefits to the elderly that was economically unsustain-able A grim picture of the results of greater longevity!

Ten years later, in 2009, another book was published, with the title A Long Bright Future.2 This book, by Stanford Professor Laura Carstensen, also focused on the challenges of ageing societies but offered a much more optimistic view of the consequences of an ageing society Professor Carstensen is best known as the developer of the theory of socioemotional selectivity that explains why older adults, on the whole, are happier and more contented than younger people and illuminates the notion that we

do, in fact, develop a kind of wisdom about life as we get older She is also the founder of the Stanford Center on Longevity whose mission is

to develop appropriate responses to the challenges of an ageing society.3

In her book, she offers suggestions for how we individually and tively can make the most out of the “extra years” provided by increased longevity

collec-These two books, published a decade apart, provide nearly cally opposed viewpoints about the implications of population ageing But which is more likely to be correct?

diametri-If we confine our perspective to the responses of national governments,

we may have reason to be pessimistic For much of the twentieth century,

the main focus of policy in relation to later life in many countries was the establishment of entitlements intended to support the financial and physi-cal well-being of older citizens The USA, for example, introduced Social Security in 1935 to provide old age benefits for almost all of its citizens In

1965, the Medicare system was set up to comprehensive health care age for those over age 65 And that same year, the Older Americans Act provided federal funding for a variety of community-based social services for the elderly delivered through a national “ageing network” of local agencies

cover-Much the same thing happened in many other countries during the past century

These programs have been successful in increasing the quality of life for older adults The poverty rate among seniors has fallen even as the life expectancy has increased with healthier lifestyles and the availability of life-extending medical care

But as we moved into the twenty-first century, we have entered a time

of greater concern about the specter of public debt and the “burden”

of ageing populations As Peter Peterson puts it, “graying means ing” in terms of greater national expenditures for pensions and health care According to the Organisation for Economic Co-operation and Development (OECD), public spending for these purposes will increase dramatically in virtually every developed country: from 10.5 percent of gross domestic product (GDP) in 1995 to 17.0 percent in 2030 in the USA; from 17.3 percent to 28.8 percent in Germany; and from 19.7 per-cent in 1995 to 33.3 percent of GDP in Italy in 2030.4 Peterson also points out that “the developed countries have accumulated massive unfunded pension liabilities on a par with the debt burden of nations at war”—amounting to 113 percent of GDP for the USA, 157 percent for Germany, and fully 242 percent of GDP for Italy.5

pay-Given these daunting numbers, it is unrealistic to expect any new scale programs to benefit the elderly in any of these countries As best, they will struggle to meet their existing obligations So where can we look for evidence to support an optimistic outlook about the future of ageing?The good news is that in the place of new or expanded major national programs, a wave of entrepreneurially driven innovation in ageing has begun to emerge, mainly at the local level, to respond to the evolving needs of the elderly Some of these have been led by non-governmental organizations (NGOs), others by local government agencies, and yet oth-ers by public–private partnerships

large-Let me give a couple of examples of the kinds of innovative grassroots initiatives that have appeared across the globe in recent years In 2002,

a group of older residents of the historic Beacon Hill neighborhood of Boston, Massachusetts, got together to see what they could do to help themselves to “age in place” instead of having to move to a retirement community They ended up creating Beacon Hill Village, a membership program that facilitates access to the services they need to continue to live independently (ranging from pet sitting to home health care).6 This con-cept proved so successful that it began to spread to other communities.Another example of inspired local innovation is Old’Up, an organiza-tion founded in Paris in 2008 to give a voice to older people (age 75+) who want to continue to play a meaningful role in society.7 Following the motto of “Plus si jeune, mais pas si vieux” (“No longer young, but not

so old”), the group’s members provide mutual support to each other and pursue opportunities to make meaningful contributions

Equally creative projects can be found in many other locations In Palo Alto, California, for example, a local medical group concerned about the well-being of its older patients has sponsored a time bank to enable seniors’ trade services with one another.8 In Westchester County, New York, the local Area Agency on Aging is helping to set up “Care Circles” that recruit volunteer caregivers for seniors who need support with every-day activities.9 In Tuymazy, Russia, a group of older volunteers produce a twice-monthly local TV program titled “Studio 50+” that explores issues

of concern to older people and profiles elders who continue to do esting work.10 In many towns in Australia, England, and Ireland, Men’s Sheds have been set up to enable older men to work on building projects for themselves or for the community.11

inter-Moreover, around the world, cities such as Oslo, Norway, Barcelona, Spain, Medellín, Columbia, and Qiqihar, China, have qualified to be des-ignated as “age-friendly” communities Launched by the World Health Organization (WHO) in 2010, the movement encourages communities

to listen to the needs of their ageing residents, to promote healthy and active ageing, and to support the full participation of older people in civic life.12

Each of these projects is responding to specific local needs Many are designed to encourage older adults to do as much as possible for them-selves and for their peers and neighbors, largely on a voluntary basis.Worthy as these local initiatives are, they raise the question of how can

be scaled up to meet the needs of all elders in the same way that large

national programs are inherently able to do One promising answer is the emergence of what I describe as “networks of innovation” that take advan-tage of the Internet and other modern tools to spread the word about successful local programs For example, a Village-to-Village Network was established in 2010 to help existing villages to exchange best practices and help new villages under development.13 Today, the network has more than 200 members in the USA, Australia, and the Netherlands Men’s Sheds Associations were founded to promote the concept in Australia, New Zealand, Ireland and the UK, where there are now more than 1000 local sheds in operation.14 A Global Network of Age-Friendly Cities and Communities (GNAFCC) set up by WHO now include more than 280 places in 33 countries.15 And a new web-based resource called the Pass It

On Network, created and run entirely by older volunteers in a half-dozen different countries, provides a simple way to share ideas internationally about projects that promote positive ageing.16

Even if these creative local responses can be effectively scaled up, they will never entirely replace national programs that provide a vital safety net

of financial security and other social benefits For example, one-quarter of Americans over age 65 depend on Social Security payments for nearly all

of their income, and half of all seniors in the USA rely on Social Security

to provide 50 percent of their total income.17 However, national programs could and should do more to support the growth of local initiatives and encourage the development of mechanisms for replicating local successes more widely It is through a combination of established national support programs—which must be maintained—and innovative local initiatives that we will ensure that ageing populations will enjoy a long, bright future rather than herald the coming of a gray dawn

Richard AdlerInstitute for the Future  Palo Alto, CA, USA

For a cultural producer like myself to be invited to produce a foreword for

a volume with the phrase “economic foundations” in its title is as rare as it

is welcome It is a practical example, as well as an entertaining indication,

of the thought and thoroughness of Andrzej Klimczuk’s approach

It is self-evident that the scale of change created by longer-living lation demand intelligence be applied to understanding the shifting demo-graphic It is obvious the consequences of life with increasingly older populations worldwide require immediate, meaningful action What is less evident is how this can best occur

popu-Historically unprecedented longer-living populations are establishing a new societal landscape There is a need for fresh thinking, creative prac-tice, new alignments, innovative paradigms, and original policy There is also need for clear and precise questioning How, for example, is it pos-sible to articulate the unique potential arising from this evolution?

In a process that mirrors recent changes in the environmental ment, those most engaged with the growth in longer-living populations are witnessing a welcome change in narratives

move-Previously described negatively in terms of crisis, demand, and drain

on resources the language surrounding the emerging ageing demographic

is becoming more nuanced and informed These volumes are a welcome addition to this process

As they detail ageing populations demand innovation, which ate opportunity and encourage growth However, to pursue these

cre-we must firstly confront misconceptions and reframe much-existing understanding

The new landscape needs exploring while the vehicles with which

to navigate it are being built The demarcation between previously tinct areas of expertise is beginning to blur as successful responses are informed by collaborations between specialized areas that previously operated alone

dis-For example, in my work with Creative Aging International, there are

often occasions to reflect on Richard Smith’s observation in the British Medical Journal that “If health is about adaptation, understanding and

acceptance, then the arts may be more potent than anything that medicine has to offer.”18

However, even a brief perusal of innovative arts practice engaged with ageing and older populations brings the observer to recognize the equal wisdom in Grayson Perry’s statement: “Artists should not claim sole rights

to creativity.”

In fact, the case could be made that what marks out the best creative responses to ageing populations is their ability to convene, to cross over, and to hybridize

Which is welcome

Contemporary old age is complex Part individual journey, part lic health success, it is the place where changes to a life course are hap-pening in parallel with changes in generational succession Here issues

pub-of place-making are meeting those pub-of intergenerational solidarity In our communal day after tomorrow, the issues and concerns of public health and architecture, social services, and transport need to align to determine how ageing populations might continue to live well

Increasingly the cultural sector is becoming the area that may offer totype mechanisms to suggest how this can occur Creative practices that demonstrate a deep understanding of collaboration have much to offer the navigators of this changing of the social landscape

pro-If successful social levers are as likely to be found by the government

as markets, to be delivered by social organizations or networks, through formal or informal organization or territory, how best to nurture?

Which brings challenges to policy structures grown in other eras and,

in turn, demands new leadership skills

Who is in the best position, through what agency, to deliver practical policy locally, nationally, and internationally for a population whose imme-diate geography might today be global but tomorrow rapidly reduces to the size of the table on their hospital bed?

Transitions of this type are a central feature of individual ageing To live well throughout requires an acknowledgment of change, acceptance, and moving on A process improved by the imaginative skills of improvisation,

by the ability to respond creatively to change in a circumstance, not with disappointment but with “and yes.”

Perhaps wisely improvisation is not a value sought from the policy We value consistency So how to build flexibility? How to be truly responsive?Ageing populations are diverse The 50+ demographic includes within

it the wealthiest generations in human history and those among the most vulnerable and most fragile It includes the independent and the reliant, the highly educated and the abandoned, those confident of ageing well and the fearful

It is a familiar diversity because we are those ageing populations It

is important to remind regularly ourselves that there is no “them.” This older population is “us,” just a little time later

Which is where previously valued demarcation between public and vate, between personal and political become more ambiguous It is where all of our intelligence and experience need to be present It brings the navigator to the site within the landscape where steps should perhaps be made with the greatest care

pri-Simply by waking to another day, people may eventually arrive, with adult awareness, to require the care indivisible from that afforded to the smallest most vulnerable of children Continuing along current trajec-tories populations may arrive in ever greater numbers to dated systems straining under ever-reduced resources

Therefore, in this world considered from the perspective of old age, it

is required to think more carefully about “value,” a term those laboring in economics and culture find equally challenging

What is it? Where and how might it be explored, constructed, lated, and supported? How is it best approached and how might learning

articu-be exchanged?

Which perhaps articulates the greatest potential growing within the lives of increasingly older populations through these approaches reflected

in the term “creative ageing.”

It might be that old age is a form of temporal common ground, arrived at through maturity, where experience and learned expertise are equally valuable

“Old age” might be where we can meet Where we are able to bring the best of ourselves to exchange with each other

So I invite you to bring to your reading of this volume all of you, both the personal and the professional In doing so, you might reflect on two critical questions common to all experts from all fields of expertise,– What kind of old do you want to be?

– What kind of a world do you want to grow older in?

Dominic Campbell

Creative Aging International 

Dublin, Ireland

an ageing population and to disseminate the “bottom-up” approach rather than “top-down” approach The journey related to this book included searching for a variety of innovative practices that integrate older adults in active, creative, and productive ways as well as initiatives that focus on the implementation of codesign and establishing platforms to provide innova-tive social, health, and care services and programs for older adults.

Having said that, writing of this book was mostly a very long journey through the diversity of ideas, concepts, and attitudes Thus, I want to give thanks especially to my family and friends, for understanding both long weeks of my work in silence and travels related to my studies on old age and ageing Actually, this book was also written in parts in various cre-ative spaces Traveling between more and less known regions of countries

of the European Union was both time-consuming and inspiring Thus, I would also like to thank all the people from all continents that I met dur-ing my travels and exchanged ideas with

Writing of this book would not have been possible without the help of the librarians and databases of schools at which I studied, namely the Warsaw School of Economics, Poland; the Cracow University of Economics, Poland; and the University of Białystok, Poland I also need to underline

that some of my ideas will probably not come to live and grow without

my experience of collaboration with the institutions that supported my research in the field of creative industries and social policy, in particu-lar, the University of Białystok Foundation, the SocLab Foundation, the Białystok Foundation of Professional Training, the Ortus Foundation, the Activation Foundation, the Academy for the Development of Philanthropy

in Poland, the Lesław A. Paga Foundation at the Warsaw Stock Exchange, the community of the Babele.co, and the Le Mat Europe I would also like to thank the staff of the Polish Ministry of Labour and Social Policy and the European Commission, which invited me to work as an outside expert The opinions expressed in this book are personal and should not

be associated with the institutions at which I work

I would also like to say thank-you to Professor Piotr Błędowski at the Warsaw School of Economics, Poland, for continuous support dur-ing consultations on social gerontology I would like to thank again two anonymous reviewers of this book proposal whose comments helped me

to improve the quality of the manuscript Writing of the second volume of

the Economic Foundations for Creative Ageing Policy was also highly

influ-enced by the discussions organized after publishing volume one Thus,

I would like to thank the Oxford Institute of Population Ageing, the European Sociological Association—the Research Network on Ageing in Europe, the AGE Platform Europe, the Salzburg Global Seminar, partici-pants of an international symposium on the European Intergenerational Field in Amsterdam, the Eastern Economic Congress, and the Polish Institute of the Silver Economy for giving me opportunities to present some of the ideas included in the book and to rethink them after getting critical feedback

I would like to thank all the researchers, whose work I quote in this book I also ask for their understanding if I misunderstood, misinter-preted, or simplified their thoughts so that they might fit into my theo-retical model I would also like to thank Leila Campoli, Sarah Lawrence, Leighton Lustig, and Allison Neuburger of Palgrave Macmillan, who saw the strengths in my manuscript and for helpful responses during the manuscript preparation and the publication process I am grateful to Ranganathan Vijayalakshmi and the copyediting staff at SPi Global for improving the readability of the text

Andrzej KlimczukBiałystok-Warsaw, Poland 

1 The Politics of Ageing and the Challenges

of Ageing Populations 1

2 Understanding Public Policy on Ageing 17

3 Sociological and Gerontological Perspectives

on Ageing, Creativity, and the Third Age 35

4 Diversity of Ageing Policy Concepts 55

5 The Emergence of the Creative Ageing Movement 103

6 Aims and Challenges of the Creative Ageing Policy 167

7 Principles, Governance, and Coproduction of

the Creative Ageing Policy 191

8 Organizational Forms and Management for

the Building of Creative Capital of Older People 207 Conclusion 251 Afterword by Andreas Hoff and Kurt Lüscher 259 Afterword by Suchandrima Chakraborty 263 Afterword by Jorge Felix 267 Glossary 273 Bibliography 299 Index 343

AAAs Area Agencies on Aging (United States)

AARP American Association of Retired Persons (United States) ACP Arts Alive’s Art Communication Project (Japan)

ACAH Australian Centre for Arts and Health

ADLs Activities of Daily Living

AIUTA International Association of Universities of the

Third Age (France) AoA Administration on Aging (United States)

ARA Alliance for Retired Americans (United States)

B2B Business-to-Business

B2C Business-to-Customer

BAGSO Bundesarbeitsgemeinschaft der Senioren-Organisationen

(Germany) BRICS the countries of Brazil, Russia, India, China, and

South Africa C2C Customer-to-Customer

CASA Consortium for Assistive Solutions Adoption

CCS Cross-Cultural Solutions (United States)

CELADE-ECLAC Latin American and Caribbean Demographic

Centre—Population Division of the United Nations Economic Commission for Latin America and the Caribbean

COP Community of Practice

CORAL Community of Regions for Assisted Living

EPALE Electronic Platform for Adult Learning in Europe ESTA Elders Share the Arts (United States)

GAROP Global Alliance for the Rights of Older People

GNAFCC Global Network of Age-Friendly Cities and Communities GSAP Global Strategy and Action Plan on Ageing and Health

IADLs Instrumental Activities of Daily Living

IAHSA International Association of Homes and Services

for the Ageing IBK Institute for Education and Culture (Germany)

ICTs Information and Communication Technologies

IFA International Federation on Ageing

INSII International Network for the Study of Intergenerational

Issues—Generationes

KIIT + O Design and Creative Centre Kobe (Japan)

LGBT Lesbian, Gay, Bisexual, and Transgender

LGNSW Local Government of New South Wales (Australia) LLIs Lifelong Learning Institutes (United States)

MINT the countries of Mexico, Indonesia, Nigeria, and Turkey

MIPAA Madrid International Plan of Action on Ageing

(United Nations) MIT Massachusetts Institute of Technology (United States)

NCCA National Center for Creative Aging (United States)

NCOA National Council on Aging (United States)

NCSC National Council on Senior Citizens (United States) NEA National Endowment for the Arts (United States)

NESTA National Endowment for Science, Technology and the

Arts (United Kingdom)

NIH National Institutes of Health (United States)

OAA Older Americans Act (United States)

OECD Organisation for Economic Co-operation and

Development PAYG Pay-As-You-Go

R&D Research & Development

RCAC Research Center for Arts and Culture (United States)

RSVP Retired Senior Volunteer Program (United States) SAFCC Smart and Age-Friendly Cities and Communities

SEN@ER Silver Economy Network of European Regions

SHRCs Silver Human Resource Centers (Japan)

SMART Objectives that are Specific, Measurable, Assignable,

Realistic, and Time-related

SWOT Strengths, Weaknesses, Opportunities, Threats

UNAR-CFTC Union Nationale des Retraités (France)

UNCROP United Nations Convention on the Rights of Older People UNCRPD United Nations Convention on the Rights of People

with Disabilities UNECE United Nations Economic Commission for Europe

US or USA United States of America

WCMT Winston Churchill Memorial Trust (United Kingdom)

WHCOA White House Conference on Aging (United States)

Fig 7.1 Proposed principles of the creative ageing policy 201 Fig 8.1 Inputs, outputs, outcomes, impact, and equity in the

Fig 8.2 Selected potential benefits and outcomes of the creative

Fig 8.3 Basic stages of the creative ageing programs 236

list oF Figures

Table 1.1 Comparison of the “old” and “new” ageing interest groups 8 Table 3.1 Selected theories for the analysis of ageing policies at various

Table 4.1 Types and characteristics of ageing policy concepts 59 Table 5.1 Selected features of the creative ageing movement 146 Table 6.1 Selected aims of the creative ageing policy 179

Table 8.1 Types of entities and programs related to the creative

Table 8.2 Ageing services and health care programs in the

Table 8.3 Arts, education, and community building programs

Table 8.4 Creativity and innovation programs in the creative

list oF tables

Abstract: This chapter describes the theoretical and methodological

approach used in the book The introductory chapter provides basic nations and evidence for undertaking the theme of creative ageing, the scope and limits of the research, the principal hypothesis of the book, the target audience of the book, and the potential benefits for readers This overview covers the description of the structure of the book as well as a

expla-discussion of topics and themes analyzed in the following chapters.

Keywords: Capabilities approach; Creative ageing; Design; Innovation;

Population ageing

The main goal of this book is a better understanding of the assumptions

of existing innovative public policy ideas that may be used to construct positive answers for an ageing population

The first volume of the Economic Foundations for Creative Ageing Policy highlighted the unprecedented scale of population ageing in the

early twenty-first century Population aged 60 or over is the fastest ing both in countries of the Global North and the Global South Thus, there is a clear need to research and construct the solutions that will be reducing ageism and negative risk related to intergenerational tensions and conflicts In fact, in recent years all over the world, many grassroots initiatives focused on technological innovations (such as gerontechnolo-gies) and social innovations for ageing societies have been already estab-lished These “bottom-up” actions, organizations, and non-formal groups are not waiting any longer for public policies implemented from “top-down” by international, national, regional, and local authorities that will simply work for the common and public good Connections, cooperation,

grow-and coordination between these two approaches are needed to increase the quality of human life, that is, both for older adults and younger but already ageing generations.

At this point, we need to underline the relationship of an ageing lation with the advent of groundbreaking socioeconomic changes One of the important phenomena of the twenty-first century will be the emergence

popu-of “aged economies.” The Latin American and Caribbean Demographic Centre—Population Division of the United Nations (UN) Economic Commission for Latin America and the Caribbean (CELADE-ECLAC) described this process on the basis of the UN population projections and the National Transfer Accounts (NTA) project.19 CELADE-ECLAC by using data about consumption patterns by age estimated the aggregate amount consumed by the population aged 60 or over in comparison to amount consumed by youth (ages 0 to 19) As a result, it was found that

in 1980 there were no aged economies on the globe, while in 2010 there already existed 23 economies that were characterized by higher resource consumption devoted to older adults than to youth These economies are located only in Europe and Japan However, it is anticipated that in 2040 the number of aged economies will increase to 89 and in 2070 to 155 The phenomenon of aged economies is still new; thus, not many distinct characteristics of their consequences were described so far, for example, economic growth, social inequalities, intergenerational relations, sustain-ability, pension systems, health care systems, and political stability

The uncertainty is also associated with responses to the challenges of an ageing population How many of aged economies will be organized in a way that will create complex and cohesive systems of the “silver economy” that will not be limited only to an affluent consumer market? How many

of these economies will be able to use the perspectives of a mixed economy

of welfare (mixed welfare systems) and multisectoral analysis in order to combine the silver economy, the social and solidarity economy, and the creative economy to increase the availability of products and services for older people and ageing societies? Moreover, how many of aged econo-mies will be characterized by insufficient levels of health financing, service delivery, and age-friendly infrastructure as well as problems with trans-forming the workforce, ensuring access to technologies, and undertaking the mainstreaming ageing into various national, regional, and local strate-gies and to improve leadership, citizen involvement, and governance?Many experts assume that older consumers will reorganize markets due

to high and less or more conscious demand for various new

technolo-gies.20 Examples include wearable technologies, 3D printing, technologies for smart homes and cities, mobile health services, autonomous cars, and cars with easy entry and exit However, not everyone will have the access

to all these solutions Everett M Rogers already in the 1960s showed that the diffusion of innovations is always characterized by the groups of the “late majority” and “laggards.”21 The first group has a high degree of skepticism to new solutions, lower socioeconomic status, and less financial resources The second group has an aversion to change agents, focuses

on traditions as well as having the lowest socioeconomic status and ficient financial resources or is poor

insuf-With reference to Guy Standing’s concept of “precarization,” we also need to highlight that the future generations may be characterized by social, health, and economic inequalities in old age that have not been seen in the past The precarity refers to low income associated with low level of financial security for retirement observed at the beginning of the twenty-first century This phenomenon among older adults has an influ-ence on the loss of behavioral, social, and psychological resources, health, well-being, everyday life, discontinuity of identity, and problems with time control.22 What if such issues will not be resolved in the near future? So-called sharing economy (or “collaborative consumption”) is spreading all over the world in recent years and triggering a “creative destruction” or

“disruption.” This business model is a good example that without latory activities the precarization will be further expanding For exam-ple, online services of companies such as Uber and Airbnb are criticized because they are changing full-time work of traditional businesses in the taxi industry and the hospitality industry into part-time employment with the use of sharing of cars, homes, and free time owned by users of these online services.23 At the same time, some older adults are already trying to work for additional money by driving their cars for Uber and renting out free rooms in their homes for Airbnb Such “commercialized sharing,”

regu-“platform capitalism,” the “freelance economy,” the “gig economy,” or as some even think “techno-feudalism” is already sometimes confused with the social economy and the solidarity economy (described in volume one) that are actually inverted in the aims and tools

Another process that needs to be taken into consideration by social theories of ageing is emergence of a “labor-light” economy, also called

a third or fourth industrial revolution, that is, economy characterized by widespread use of automation, robotics, artificial intelligence, digitization, developments in genetics, nanotechnology, 3D printing, smart technolo-

gies, and biotechnology that is rearranging work, the rewards for skills and talent, and may lead to increasing concentration of wealth and power and further inequalities.24 The redistribution of profits of such an economy as well as reconsidering and reorganizing of education, leisure, the civil soci-ety, the social security system, and taxation (including intellectual property rights [IPR]) will be important issues in upcoming years According to Nicolas Colin and Bruno Palier, the social policy and the welfare state need evolution or restructuration in order to provide support to people who will not only lose the jobs due to technological development, digital divide, and robotics divide but also those who will be working poor and affected by precarization.25

In the described context the ageing policy should take into account also a distinction between the “economics of capabilities” (Amartya Sen, Martha Nussbaum, Sudhir Anand, and others) and “traditional welfare economics” (Alfred Marshall, Vilfredo Pareto, Arthur C Pigou).26 The

“capabilities approach” focuses on the human and social capital, ment and fostering of capability set, that is, freedom, opportunities to choose between different ways of life and support for healthy and creative lives This approach was disseminated, among others, by the UN’ Human Development Index (HDI) The latter “traditional welfare economics” focuses simply on commodities, consumption and its utility, income, bud-get set, and economic growth However, the functioning of goods and services achieved by their users may not be sufficient to improve their overall quality of life Thus, the knowledge about the person’s capability is needed to understand the functionings that the individual may achieve.27

measure-For example, we need to know if older adults have the opportunity to consume, create, choose various lifestyles, to undertake public and cre-ative activities or if they do not have such opportunities or advantages due to insufficient resources of knowledge, skills, adequate income, socio-economic position, mobility, safe neighborhood, social support, or other barriers.28

With reference to capabilities approach, technological change, and the emergence of information or knowledge-based economy and an informa-tion or knowledge society, Pekka Himanen argues that the dignity should

be the fundamental value and a goal for the future development.29 Dignity refers to the worthiness of every human being and thus it provides the basis for values such as freedom, justice, and life Himanen shows that on the individual level the dignity is related to freedom and represents a cul-ture of freedom or culture of creativity and sustainable economy On the

community level, the dignity is related to justice, a “culture of caring,” and sustainable well-being The last level is humanity on which the dignity

is combined with life, a “culture of life,” and sustainable environment The most important to the topic of this book is a “culture of creativity” that is an assumption that all people regardless of age should have the opportunity to implement and present their inner potential and capacity

to the fullest extent

At this point, we should recall a broad concept of the creativity used

in this book The creativity may be defined as the ability to create ideas and solutions that are new and appropriate to a particular context.30 Two familiar concepts are innovation and design.31 The main difference is that innovation refers not to the process of generation of new ideas (the cre-ativity), but to the exploitation of them to change a concept into new products, services, management models, or social processes Finally, the design is understood as the process that combines creativity and innova-tion It serves to shape ideas in ways that will be useful and attractive offers that address the needs and values of users, customers, or citizens Kathryn Best shows that design as a problem-solving process leads to the use of various opportunities, new approaches, and involvement of differ-ent stakeholders.32

Thus, it should not be surprising that after the global financial crisis of

2008 and “austerity measures” (such as budget cuts), an exploration of cost-effective ways of delivering public services as well as generating bet-ter social outcomes accelerated.33 The concepts of citizens’ engagement, user-centered design, participatory design (codesign), and coproduction

of public services and policymaking are more often discussed in the ture about the public policy than in the past The instruments related to the creativity, innovation, and design management are currently reinter-preted so that they may be useful for finding new ways of delivering more for less, using new technologies, and involving and empowering to play more active role in the design and implementation of public policies and solving local problems

litera-The challenges of the ageing population also need more creativity, innovation, and design The search for new tools of government may increase the chances of a positive answer to these challenges and ensure inclusion of dignity in the development Such new tools that emerged from the growing interest in social entrepreneurship, “sustainopreneur-ship,” social innovation, and public sector innovation may be divided into

at least five categories.34 The first refers to the new management

mecha-nisms such as electronic voting, electronic petitions, direct democracy, distributed authority, transition management, wikis, folksonomies, open data, data mining, crowdsourcing, mobile applications, digital visualiza-tions and issue mapping, streaming of meetings and events, citizen speak-ers’ corners, forums, and juries, “complaints choirs,” “unconferences,”

“forum and legislative theaters,” ideas banks, suggestion boxes, steering and advisory groups, international guidelines and standards, and third-party certification

The second category includes new financial instruments such as social impact investing or socially responsible investing, participatory budget-ing, open budget tools, crowdfunding, alternative currencies, philanthro-capitalism, open-source auditing, artists or thinkers in residence programs, A-teams programs, vouchers, microcredits, peer-to-peer lending, licens-ing, payment by results, outcomes-based commissioning, e-auctions, and e-procurement

The third category refers to new regulation instruments such as ioral economics, “nudging,” outcome benchmarks, social franchising, prizes (e.g., the Silver Economy in Europe award, Social Innovation in Ageing—The European Award, the Access City Award, and the AAL Smart Ageing Prize), and gamification (the use of “serious games” and game mechanics) The fourth category of new tools of government refers

behav-to new organizational forms such as social enterprises, self-organizing social movements, innovation hubs, innovation networks, media labs in various configurations, coproduction, and place-based approaches

The fifth category focuses on impact tools and includes, among others, marketing materials, “white papers,” annual reports, impact assessment tools, randomized controlled trials (RCTs), social return on investment (SROI) analysis, internal learning, surveys, methodological briefs, per-formance management instruments, balanced scorecards, news and case studies, trade journals, consulting reports, and media coverage The fol-lowing chapters will provide examples of such new tools related to the ageing policy

In this book, particular attention is paid to the activities of tions and people who are disseminating the concept of creative ageing and activities in the field of arts and ageing At this point, we need to underline that the notion of creative ageing was used already in the 1960s by geron-tologist Edward L Bortz,35 whereas in the 1970s, groundbreaking initia-tives of making art with older adults have been introduced in the USA by artists including Susan Perlstein (founder of Elders Share the Arts36 and

organiza-the National Center for Creative Aging [NCCA]37), Bonnie L. Vorenberg (founder of Arts for Elders and the Oregon Senior Theatre), and Liz Lerman 38 (founder of the Dance Exchange39).40 In the same period edu-cational initiatives were established such as the Elderhostel (from 2010 known as “Road Scholar”)41 that was funded in 1975 at the University of New Hampshire in the USA and the network of the Universities of the Third Age started in Toulouse, France, in 1973 by Pierre Vellas and later continued by the International Association of Universities of the Third Age (AIUTA).42 These social movements expanded rapidly and globally

in recent years and supported older people in their search for the fulfillment of creative expression Moreover, described initiatives represent innovative approaches to meet the need for effective and low-cost services that may support traditional and public social care and health care systems

self-as well self-as improve the quality of human life As already shown in ume one, a significant role in the development of the creative ageing field was played by Gene D. Cohen, whose studies and books from 2000 to

vol-2005 suggested that arts and creative activities may lead to positive health outcomes for older people and to a lower incidence of illness and injury because the arts and creative activities allow the further development of the brain in old age.43

Economic Foundations for Creative Ageing Policy focuses on the possible

inclusion and engagement of creative ageing initiatives in public policies

on ageing Volume I presented social gerontology issues and cal and economic theories related to creative ageing Volume II focuses

sociologi-on ageing policies, the management of creative ageing programs, and an overview of the best practices around the world Thus, this book discusses creative ageing in the context of cultural management, art management, institutional change, the silver economy, the social and solidarity economy, and the creative industries The book was written mainly for students and scholars working in the fields of social gerontology, social policy, sociol-ogy, cultural economics, anthropology, cultural studies, and urban plan-ning It may be used as a book for part of a course in social gerontology, a course in the sociology of ageing, or a course in the economics of ageing The book may be interesting also for policymakers and advisers working

in the fields such as social policy, health policy, innovation policy, cultural policy, and regional policy Some concepts described in the book may also

be useful for practitioners in the fields of ageing services and health care programs, education and community-building programs, and arts and creativity programs, such as social workers, educators, teachers, and the

managers of cultural institutions, creative institutions, and lifelong ing (LLL) institutions.

learn-In this book, the creative ageing policy is defined as a process of ing older adults in creative activity, which aims to shift from highlighting their problems to indicating their potential (capital) The creative age-ing policy contains strategies, programs, and projects that mix art with LLL, community integration and rehabilitation, therapeutic activities to improve physical and psychosocial conditions, the building of awareness, promotion of the experience of older people, and the transfer of their heritage to the younger or future generations The creative ageing pol-icy focuses on creating opportunities, technological innovations (geron-technologies), and social innovations for all older adults, and not only for those who have had careers as entrepreneurs, managers, employees, workers, or artists in cultural and creative industries It supports a creative approach to leisure time in old age, regardless of whether it is a profes-sional or amateur activity

engag-Collecting and mixing of the best practices of activity of older adults and for ageing societies around the world that may be disseminated internationally is one of the assumptions used in this book The book is based on the use of an interpretative approach and methodology based

on a qualitative literature review This approach takes into account the fact that the concept of the creative ageing has been mainly discussed in countries characterized by Anglo-Saxon capitalism and the welfare state model, such as the UK, the USA, Canada, New Zealand, Australia, and Ireland Notwithstanding, the analysis undertaken in this book expands the notion of creative ageing by also including various similar concepts that have been developed in other parts of the globe Examples include the concepts of “active ageing,” “the solidarity of generations,” and the

“social and solidarity economy” in continental Europe, which is terized mainly by the use of mixed economy models (so-called Rhine cap-italism, for example, Germany, France, Belgium, and the Netherlands), and in Nordic welfare states At the same time in the Asia-Pacific region, especially Japan, China, and South Korea, many ideas, products, and ser-vices have been created with reference to “silver markets,” the “silver economy,” and robot caregivers for supporting older adults This volume deepens the discussion of the diversity of ageing policy concepts as well

charac-as aims, principles, and potential benefits and outcomes of the creative ageing policy

The theoretical model of the creative ageing policy presented in the first volume is based on the assumption that older adults are both the owners and the users of various potentials and capitals Older people gather and use resources of capital, which may be analyzed in forms such as human capital, social capital, cultural capital, and creative capital Gathered capitals may help people to prepare for old age throughout their lives Moreover, each type of capital may be used by a different type of economic system Thus, the human capital of older people (a mere fact of being an older adult) corresponds to the silver economy The social capital (as relation-ships, trust, and cooperation) corresponds to the social and solidarity economy The cultural capital (cultural education, consumption, lifestyles) and the creative capital (art education, forming talents, and creative atti-tudes) together correspond to the creative economy Each of these sys-tems is related to various solutions, products, and services that are used to construct positive answers for an ageing population Nevertheless, none

of these systems alone can meet all the needs of ageing populations There

is a need to support and use the theory of the mixed economy of welfare, which offers a multisectoral approach to the challenges of the ageing pop-ulation This mix underlines not only joining various economic systems, but also activities and interventions from the public sector, the private sector, the non-governmental (NGO) sector, and the informal sector The described approach does not support only a focus on research and devel-opment (R&D) in terms of technological innovations but also potentially cost-effective social innovations for ageing societies These innovations are often generated at the intersection of various sectors within the different forms of hybrid organizations and cross-sectoral cooperation

“Volume II: Putting Theory into Practice” of the Economic Foundations for Creative Ageing Policy focuses on translating the general policy ideas

to the regional and local initiatives, programs, and projects This volume consists of eight chapters The first chapter focuses on the importance and notions of the politics of ageing and public policy on ageing Chapters

2 and 3 describe theoretical frameworks for the analysis of ageing policy Chapter 4 discusses the features of concepts of ageing policy, such as suc-cessful ageing, productive ageing, healthy ageing, active ageing, positive ageing, ageing in place, and intergenerational policy Chapter 5 presents general ideas of the creative ageing policy in the context of international and national strategies, and overviews the best practices at regional and local levels Chapters 6 and 7 describe the aims, challenges, principles,

governance, and coproduction of the creative ageing policy Chapter 8

shows selected tools that may be used for the management, tional forms, and elements of the creative ageing programs Conclusions focus on the description of some potential research directions, barriers, and suggestions related to the implementation of the creative ageing policy

organiza-Every chapter of this volume includes exercises and assignments, gested readings, relevant websites, and key terms This additional con-tent may be useful for both students and those who want to implement described concepts in practice Exercises and assignments include recom-mended discussion topics for students as well as possible tools and solu-tions for organizations’ leaders to promote and support older persons’ creativity The final part of the book is a glossary that was extended in comparison to volume one and that includes basic definitions used in this volume

1 Peter G. Peterson, Gray Dawn: How the Coming Age Wave Will Transform

America-and the World (New York: Times Books, 1999).

2 Laura L. Carstensen, A Long Bright Future: An Action Plan for a Lifetime

of Happiness, Health, and Financial Security (New York: Broadway Books,

6 “Beacon Hill Village,” accessed April 2, 2015, www.beaconhillvillage.org

7 “Old’Up,” accessed April 2, 2015, www.oldup.fr

8 “LinkAges TimeBank,” accessed April 2, 2015, ages.org

https://timebank.link-9 Mae Carpenter, Colette Phipps, and Debra Finn, “Care Circles Are a Step Forward in Giving Back,” American Society on Aging, accessed April 2,

2015, www.asaging.org/blog/care-circles-are-step-forward-giving-back

10 “Wisdom Ripening: Tuymazy Age-Friendly City,” accessed April 2, 2015, http://wisdomripening.org/tuymazy-age-ffriendly-city/

11 “Men’s Sheds,” accessed April 2, 2015, www.mensshed.org

12 “Age-friendly World,” accessed April 2, 2015, http://agefriendlyworld org/en/

13 “Village-to-Village Network,” accessed April 2, 2015, www.vtvnetwork.org

18 Richard Smith, “Spend (Slightly) Less on Health and More on the Arts:

Health Would Probably Be Improved,” British Medical Journal 325, no

7378 (2002): 1433.

19 See United Nations Population Fund, Ageing in the Twenty-first

Century: A Celebration and a Challenge (New York: United Nations

Population Fund, 2012), 50; Tim Miller, “Population Aging and its Economic and Fiscal Impacts in Latin American and the Caribbean: Presentation 13 November 2011, Mexico City,” accessed January 20,

2015, www.paho.org/hq/index.php?option=com_docman&task=doc_ view&gid=15867&Itemid =; CELADE-ECLAC, “Población mundial Y

de américa latina Y el caribe: Transformaciones Y nuevos (des) librios [World population and Latin America and the Caribbean popu-

equi-lation: Changes and new (im) balances],” Astrolabio, no 8 (2012):

29–58.

20 David Sinclair and Helen Creighton, Opportunity Knocks: Designing

Solutions for an Ageing Society (London, 2015).

21 Everett M.  Rogers, Diffusion of Innovations (New York: Free Press of

Glencoe, 1962).

22 Guy Standing, The Precariat: The New Dangerous Class (London:

Bloomsbury Academic, 2011); Catrinel Craciun, Paul Gellert, and Uwe Flick, “Aging in Precarious Circumstances: Do Positive Views on Aging

Make a Difference?,” The Gerontologist Advance Access (2015),

doi: 10.1093/geront/gnv135

23 Steven Hill, Raw Deal: How the “Uber Economy” and Runaway Capitalism

Are Screwing American Workers (New York: St Martin’s Press, 2015).

24 Erik Brynjolfsson and Andrew McAfee, “Will Humans Go the Way of Horses?,” Foreign Affairs, accessed July 17, 2015, www.foreignaffairs com/articles/2015-06-16/will-humans-go-way-horses

25 Nicolas Colin and Bruno Palier, “The Next Safety Net: Social Policy for a Digital Age,” Foreign Affairs, accessed July 17, 2015, www.foreignaffairs com/articles/2015-06-16/next-safety-net

26 Cf Milorad Kovacevic, “Added Value of Composite Indices for Policy Makers: Paper from the International Seminar “Building Evidence Base for Active Ageing Policies: Active Ageing Index and its Potential, Brussels,”

accessed February 23, 2015, www1.unece.org/stat/platform/download/ attachments/100303133/02%20Milorad_HDRO_Brussels_16%20April pdf?version=1&modificationDate=1429712293041&api=v2

27 Basu Kaushik and Luis F. Lòpez-Calva, “Functionings and Capabilities,”

in Handbook of Social Choice and Welfare: Volume II, ed Kenneth J. Arrow,

Amartya Sen and Kotaro Suzumura (Oxford, Amsterdam: Elsevier, 2011), 154–155.

28 Rose Gilroy, “Taking a Capabilities Approach to Evaluating Supportive

Environments for Older People,” Applied Research in Quality of Life 1,

3–4 (2006): 343–356.

29 Pekka Himanen, “Dignity as Development,” in Reconceptualizing

Development in the Global Information Age, ed Manuel Castells and Pekka

Himanen (Oxford: Oxford University Press, 2014), 292–299.

30 Ian Stuart-Hamilton, The Psychology of Ageing: An Introduction, 4th ed

(London: Jessica Kingsley, 2006), 262.

31 Kathryn Best, Design Management: Managing Design Strategy, Process and

Implementation (Lausanne, Switzerland, La Vergne, TN: AVA Academia,

2006), 18.

32 Kathryn Best, The Fundamentals of Design Management (Lausanne, La

Vergne, TN: AVA Academia, 2010), 9.

33 Christian Bason, “Introduction: The Design for Policy Nexus,” in Design

for Policy, ed Christian Bason (Burlington, VT: Ashgate, 2014), 2–4.

34 Cf Policy Horizons Canada, Driving Policy on a Shifting Terrain:

Understanding the Changing Policy Environment Amid 21st-Century Complexity (Ottawa: Policy Horizons Canada, 2012); Robin Murray, Julie

Caulier-Grice and Geoff Mulgan, The Open Book of Social Innovation (London: NESTA, 2010); Lester M.  Salamon, ed., New Frontiers of

Philanthropy: A Guide to the New Tools and New Actors that Are Reshaping Global Philanthropy and Social Investing (Oxford, New  York: Oxford

University Press, 2014).

35 Edward L. Bortz, Creative Aging (New York: Macmillan Reference USA,

1963).

36 “Elders Share the Arts,” accessed October 5, 2015, http://estanyc.org

37 “National Center for Creative Aging,” accessed October 5, 2015, www creativeaging.org

38 “Liz Lerman,” accessed October 5, 2015, http://lizlerman.com

39 “Dance Exchange,” accessed October 5, 2015, http://danceexchange org

40 Joan Jeffri and Gay Hanna, “National Center for Creative Aging,” in The

Wiley Blackwell Encyclopedia of Adulthood and Aging, ed Susan

K.  Whitbourne (Chichester England: John Wiley & Sons, 2016), 968–972.

41 “Road Scholar,” accessed July 10, 2014, www.roadscholar.org

42 “AIUTA,” accessed May 18, 2015, www.aiu3a.com/indexen.html

43 Gene D.  Cohen, The Creative Age: Awakening Human Potential in the

Second Half of Life (New York: Avon Books, 2000); Gene D. Cohen, The Mature Mind: The Positive Power of the Aging Brain (New York: Basic

Bonks, 2005).

© The Author(s) 2017

A Klimczuk, Economic Foundations for Creative Ageing Policy,

Volume II, DOI 10.1057/978-1-137-53523-8_1

The Politics of Ageing and the Challenges

of Ageing Populations

This chapter introduces a brief overview of core topics discussed in the fields of, and the politics of, ageing and the economics of ageing (some-times also called as economic gerontology) These topics are often seen as the main “threats” of an ageing population However, as already described

in volume one, the approach of the creative ageing policy considers ageing

as an occasion to increase the quality of human life Thus, social, cal, and economic problems are seen here as “challenges” or “puzzles” that may be solved with a various multisectoral, creative, and innovative initiatives

politi-The topics undertaken in this chapter are usually seen as the main reasons for the implementation of public policies on ageing, as the main themes in the political debates on demographic change, and topics related

to ageing interest groups For example, such issues include costs of health care, social security, and retirement

The PoliTics of Ageing, The Ageing Policy,

And The PoliTicizATion of Ageing

Generally, we may suppose that politics is usually understood as the cess that allows groups of people to make decisions Political choices are reflected values, norms, and ethics of groups According to the frame-work of a representative democracy (or indirect democracy) citizens vote for politicians and political parties who will change the status quo by the

pro-implementation of political programs Thus, elected officials are

represent-ing citizens The separation of powers (the trias politica principle) leads

to the governance in which the state is split to separated and independent branches and fields of responsibility and at the same time different official actors of public policy Thus, the power is divided into a legislature (that enact, amend, and repeal policies, legislature, and other regulations; for example, congress, parliament), an executive (executes or enforces the law, the daily administration of the state; for example, the prime minister as the head of government and the president as the head of state), and a judiciary (system of courts for the resolution of disputes, interprets and applies the law; for example, supreme court, constitutional court)

The important thing is that not all issues important to the citizens become social, political, or economic problems Personal troubles expe-rienced by individuals are not the same as social issues that are concerned with a large number of people who need to be changed mainly by the state Sometimes this process is called as “politicization” and refers to the change of the problem into a political issue that is incorporated into the political system; becomes a subject of political debate; has a regular and active interest to policymakers, the media, and the public; and is con-sidered demanding government response, thus becoming the subject of public policy.1 The political process requires time, resources, and an insti-tutional infrastructure so that the dispute or political conflict involving various political actors will allow building consensus on the response to the state or the content of the public policy Moreover, the transformation

of the problem into the political issue may be affected by many factors that are objective (e.g., influence on the socioeconomic development of the country) and subjective (e.g., raising awareness by media, political mobili-zation of the electorate, or building position of interest groups that want

to benefit themselves by legal solutions)

Another approach to the politicization of social problems was described

by James M. Henslin He argues that social issues usually go through four stages.2 The first includes defining the problem, the emergence of leaders who want to crystallize the issues, and organizing various stakeholders around the issue The second stage is the development of official response from public authorities The third phase is reacting to the official response that usually does not end with a social problem or is an indirect or a limited attempt to resolve issues The last phase is developing alternative strategies toward a social problem by the state, those who are affected by the problem and those who are, for example, against spending money

on solving the problem due to moral or financial reasons The process of emerging policy problems also shows that there are a variety of unofficial actors in public policy, such as individual citizens, interest groups, social movements, political parties, think tanks, research organizations, commu-nications media, and issue networks.

At this point, we may define ageing policy (public policy on ageing) as a set of systematic actions to respond to the challenges of the ageing popula-tion that include relations to fields such as economic policy, technology policy, health policy, housing policy, and social policy.3 The ageing pol-icy is horizontal policy; thus, it is not limited to one selected ministry or department of government In other words, this policy is characterized by

a governance approach that includes various formal or informal tions and coordination techniques at various levels of society Sometimes the ageing policy is also called the “senior policy.” The ageing policy is also seen as a combination of the “policy on old age” or “old age policy” with the “policy on older people.” The former focuses on the stage of life

organiza-or life course The latter focuses on policy actorganiza-ors as stakeholders, target groups, and partners for public, commercial, and NGO entities.4 The age-ing policy is not the same as the population policy that aims to modify and ameliorate the course of national demographic trends, for example, population ageing together with fertility trends and migration trends.5

We may also try to formulate the politics of ageing (or the politics of old age) as the analysis of processes in which interest groups collaborate and compete with each other, which leads to the distribution of resources bro-ken down by age groups.6 These politics are socially constructed by older adults and other political actors who have their own objectives We need to repeat here that in this book the term “older people” is used in reference

to persons who have reached “old age,” that is, according to the World Health Organization (WHO) criteria the age of 60 or 65 in countries of the Global North and 50 years of age and more in the Global South.7 The term “older people” is used here interchangeably with terms such as “older adults,” “older persons,” “old people,” “seniors,” and “senior citizens.”Agenda setters in politics are continuously changing Some issues and decisions related to older persons are raised by institutions at the national level (e.g., the organization of social security and health care systems) while others at regional or local levels (e.g., long-term care) The politici-zation of population ageing begins with the realization by political actors for its validity and the potential impact of decisions taken in this area to gain or maintain power The awareness of the negative impact of demo-

graphic processes gives political elites rise to undertake activities that in accordance with their ideological profile and the program allow inhibiting

or alleviating the adverse consequences of population ageing The creation

of proposals that may respond to the challenges needs an explanation for the public about the impact of changes in the social security and socioeco-nomic development For example, the politicization of population ageing may begin when the candidate for Prime Minister puts the issue in a key-note address (expose) or when social movements are created around needs for social security and pensions The next stage is formulating answers to population ageing in the strategic documents of the government, creating programs dedicated to the issue at the state, regional, and local levels as well as proposing new legislation and regulations

The politicization of ageing issues began in different countries at ous periods Generally, here we may assume that first modern pension systems and state social policies were pioneered by Otto von Bismarck and William Beveridge Solutions introduced by these politicians are two extreme poles of the development of the welfare state.8 Bismarck as the first Chancellor of Germany created a conservative regime of social secu-rity, in which people received the help that depended almost entirely on their contributions In the 1880s, he introduced old age pensions, medical care, and accident insurance For example, at the beginning the system was obligatory only for about 40 percent of employees and workers could receive benefits after completing 70 years of age, but in those days this age reached approximately 20 percent of workers In the years 1880–1914, these solutions had been disseminated in most European countries The primary objective of the conservative regime was to reduce the strength of the socialist opposition, to decrease the outflow of migrants from Germany

vari-to the USA, and vari-to improve the loyalty of society vari-to the state

The second pole of the development of the welfare state had been defined in 1942 by the report of William Beveridge in the United Kingdom (UK).9 His report included a proposal to organize existing forms of assis-tance and identify solutions to eliminate the five problems that were aggravated by the Second World War: disease, ignorance, poverty, unem-ployment, and deprivation Beveridge proposed a system to provide an adequate income, health care, education, housing, and employment This approach was more concerned about meeting the needs, than the ways

of funding, and was implemented through a series of Acts of Parliament aimed at the relative cheapness of universal benefits Beveridge ideas con-tributed to the rise of minimal or liberal welfare regimes (in the Anglo-

Saxon countries) and more generous social-democratic regimes (in the Nordic countries) The liberal regime is also represented by the USA.10

In 1930, Francis E. Townsend, a physician, started a social movement of older adults to foster the development of “old age pension” that influ-enced the establishment of the Social Security system He argued that the increased spending by older consumers would lift the economy from the crisis.11 Franklin D. Roosevelt’s New Deal implemented by the state administration during the Great Depression was aimed at reduction of unemployment, but also included some of Townsend’s ideas; thus, it is sometimes seen as the first example of the triumph of the “gray power” or

“gray lobby.” The New Deal included the introduction of retirement sions, partially free health service, unemployment insurance, welfare for the physically challenged and children in single-parent families, minimum wages, public works; a guarantee of the labor unions’ freedom; banned child labor; and limited the workweek

pen-In some countries, the politicization of the ageing issues took place recently at the end of the twentieth century and is more or less compre-hensive or selective For example, public policies on ageing sometimes focus only on pension systems, health promotion, employment of older workers, and anti-discrimination legislation that promotes equal treatment and prohibits discrimination based on age or disability.12 At the same time, various countries in Africa, Asia-Pacific region, Europe, and Western Asia still do not have policies, legislation, and institutional arrangements clearly related only to issues of older citizens.13 However, progress has been made because 48 countries have established national policies on ageing and ten have passed overarching legislation on ageing between 2002 and 2010 A lack of consistency and continuation in political activities after elections and change of governments, including focusing on the short-term and long-term effects, is also an important issue that inhibits the implementation of effective responses to the challenges of an ageing population Thus, further development of coordinated and cross-sectoral responses to ageing and fostering mainstreaming ageing to all fields of public policy is still needed

The sociAl, PoliTicAl, And economic chAllenges

of Ageing PoPulATions

The above discussion leads to the conclusion that social problems related

to population ageing are in fact also economic challenges concentrated mainly on the risk of further increasing of health care and social security