Abstract 

The world is changing, not least in terms of demography.  The high level of fertility encountered during the previous century was replaced by the global demographic aging in the modern period, which is the prerequisite of the severe deficit of the population possessing work capability. The first demographic deficit is complemented and substituted by the second demographic dividend which comprises the retirement age population. As a result of the aging of the population, the social price of the demographic deficit increases. This creates significant problems not only in allocating budgetary funds aimed at the healthcare and social care of the population, but also in the political and socio-economic development of the country. In order to solve the above-mentioned issue, scientists came up with the idea of establishing the newest field of economy in the form of “the silver economy”, which signifies the economy for and with the elderly individuals.

The formation of concrete decisions and fulfilment of target marketing strategies for those products and services that meet the needs and preferences of the elderly has a crucial importance in the economy of aging. On the other hand, it aims at fostering an active participation of the elderly in the labor market.

The article takes Georgia as an example and discusses the problem of demographic dividend as one of the postulates of “the silver economy”. It is stressed that the continuity of the aging of the population determines, under conditions of decreasing workforce, the resupplying of the decreased first demographic dividend, which exists in the form of the population possessing work capability, with the aged population as the second demographic dividend.

It is supposed that the aging of the population by a year causes nearly a 2,5% decrease in the production potential of the Gross Domestic Product. If the age structure of the Georgian population now were at the level it was at the beginning of the 1990s, Georgia would, additionally, be able to produce 3.2 billion GEL more (by 15%) Gross Domestic Product than it does today, and help the state budget accumulate approximately 800 million GEL more funds than today and at the expense of this, in essence, double the average pension.

The amount of the hired workforce outside the borders of Georgia exceeds the number of such workers inside the country. It can be deemed as one of the exporters among the European countries in terms of demographic dividend. The number of the hired workers in the country is nearly 860 000 individuals (according to the latest data), whereas 950 000 individuals are hired to work outside the country. The main reason for this situation is the fact that Georgia, in comparison to the highly-developed countries, is characterized by the high share of labor and low market payment compared to the capital. In contrast to the beginning of the 1990s, the population of Georgia has decreased by nearly 2 million as of 2020. The bulk of this reduction (82.5%) falls on the decrease of the hired workers. Nowadays, the share of the hired workers in the country is, approximately, 2 times lower than it was at the start of the 1990s. The population aged under 15 will decrease to 16.4% in the total number of the population by 2030 and the share of those aged above 65 will increase to 16.9%. This speaks to the growth of the expected aging of the population, which will be 2.4 times higher by 2030 than it is today.

The demographic pressure for the elderly will further increase under conditions of demographic deficit caused by the expected decrease of the working age population. In other words, by 2030, 100 individuals possessing work capability must provide for 20 men and 45 women aged above 65. Subsequently, the social price of the demographic deficit will grow and create substantial problems in the process of population healthcare and allocating budgetary funds for social care.