Aging
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Korea introduced three major health-care reforms: in financing (1999), pharmaceuticals (2000), and provider payment (2001). In these three reforms, new government policies merged more than 350 health insurance societies into a single payer, separated drug prescribing by physicians from dispensing by pharmacists, and attempted to introduce a new prospective payment system. The change of government, the president’s keen interest in health policy, and democratization in public policy process toward a more pluralist context opened a policy window for reform. Civic groups played an active role in the policy process by shaping the proposals for reform —a major change from the previous policy process that was dominated by government bureaucrats. However, more pluralistic policy process also allowed key interest groups to intervene at critical points in implementation (sometimes in support, sometimes in opposition), with smaller political costs than previously.

Strong support by the rural population and labor unions contributed to the financing reform. In the pharmaceutical reform, which was a big threat to physician income, the president and civic groups succeeded in quickly setting the reform agenda; the medical profession was unable to block the adoption of the reform but their strikes influenced the content of the reform during implementation. Physician strikes also helped them block the implementation of the payment reform. Future reform efforts in Korea will need to consider the political management of vested interest groups and the design of strategies for both scope and sequencing of policy reforms.

Soonman Kwon is Professor of Health Economics and Policy, and Director of the BK (Brain Korea) Center for Aging and Health Policy in Seoul National University, South Korea. After he received his Ph.D. from the Wharton School of the University of Pennsylvania, he was assistant professor of public policy at the University of Southern California in 1993-96. Prof. Kwon has held visiting positions at Harvard School of Public Health (Fulbright Scholar and Tekemi Fellow), London School of Economics (Chevening Scholar), Univ. of Trier of Germany (DAAD Scholar), and Univ of Toronto. He is on the editorial boards of Social Science and Medicine (Elsevier), Health Economics Policy and Law (Cambridge U Press), and Health Systems in Transition (HiT, European Observatory). He has occasionally worked as a short-term consultant of WHO, ILO, and GTZ (German Technical Cooperation) on health financing and policy in China, Cambodia, Lao PDR, Malaysia, Mongolia, Pakistan, Philippines, and Vietnam. He has also been a consultant of Korean government for the evaluation of its development aid programs in North Korea, Ecuador, Fiji, Mexico and Peru.

Philippines Conference Room

Soonman Kwon Professor Speaker Seoul National University
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Karen Eggleston
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The Asia Health Policy Program has launched a new working paper series on health and demographic change in Asia with a working paper on informal caregiving for the elderly in South Korea. Authored by Young Kyung Do, the inaugural postdoctoral fellow in comparative health policy with the Asia Health Policy Program, the first working paper provides evidence to inform elderly long-term care policy in South Korea.

As Dr. Do notes in the abstract of his paper, informal care is embedded in traditional culture perpetuating family-centered elderly care and is still viewed as a family or moral issue rather than a social and policy issue in South Korea. Using newly available microdata from the Korean Longitudinal Study of Aging, the study investigates the effect of informal caregiving on labor market outcomes in South Korea. It fills a gap in the international literature by providing results from an Asian country. Empirical analyses address various methodological issues by investigating gender differences, by examining both extensive and intensive labor market adjustments with two definitions of labor force participation, by employing different functional forms of care intensity, and by accounting for the potential endogeneity of informal care as well as intergenerational co-residence. Robust findings suggest negative effects of informal caregiving on labor market outcomes among women, but not among men. Compared with otherwise similar non-caregivers, female intensive caregivers who provide at least 10 hours of care per week are at an increased risk of being out of the labor force by 15.2 percentage points. When examining the probability of employment in the formal sector only, the effect magnitude is smaller. Among employed women, more intensive caregivers receive lower hourly wages by 1.65K Korean Won than otherwise similar non-caregivers. Informal care is already an important economic issue in South Korea even though aging is still at an early stage.

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Karen Eggleston
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Demographic change and long-term care in Japan, chronic non-communicable disease in China, national health insurance in South Korea, TB control in North Korea, pharmaceutical policy in the region and global safety in drug supply chains -- these are some of the topics explored in a new Stanford course: East Asian Studies 117 and 217,  "%course1%." Taught in fall 2008 by Karen Eggleston, Director of the Asia Health Policy Program, the course has enrolled students not only of East Asian studies but also other undergraduate majors as well as graduate students from the School of Education, School of Medicine, and Graduate School of Business.

 

The course discusses population health and healthcare systems in contemporary China, Japan, and Korea (north and south). Using primarily the lens of social science, especially health economics, participants analyze recent developments in East Asian health policy. In addition to seminar discussions, students engage in active exploration of selected topics outside the classroom, culminating in individual research papers and group projects that present findings in creative ways. For example, several students prepared an overview of health and healthcare in North Korea; three MBA students prepared a proposal for a healthcare venture in China (+PPT+ 1.2MB); and others attended related colloquia, interviewed researchers, and prepared summaries for public posting, such as the article on gender imbalance in China.

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Fast Forward: Uncertainties, Risks and Opportunities of Rapid Aging in China, Japan, and Korea will be an innovative, invitation-only scenario planning exercise. Our goal is to develop a broader understanding of how population aging could affect the social, cultural, economic, and security futures of Asia over the next ten to twenty years. We’ve invited a select group of leaders from business, government, and academia with an interest in various aspects of Asia’s growth to identify key uncertainties and assess possible outcomes. This highly interactive session will be moderated by the Global Business Network, the world’s leading scenario consultancy.

This scenario planning workshop is part of a two-day conference at Stanford, Aging Asia: Economic and Social Implications of Rapid Demographic Change in China, Japan, and Korea. The first day, Aging in Asia Today: What the Experts Know, will feature keynote presentations and academic panels on the impacts of rapid aging in these countries, focused on four topics: economic growth, social insurance programs, long-term care, and health care.

Bechtel Conference Center

Conferences
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This conference, sponsored by the Asia Health Policy Program at the Walter H. Shorenstein Asia-Pacific Research Center and the Global Aging Program of Stanford Center on Longevity, explored the impact of rapid aging on economic growth, labor markets, social insurance financing, long term care, and health care in China, Japan, and Korea.

Bechtel Conference Center

Michael H. Armacost Speaker
David Bloom Speaker Harvard University
Judith Banister Speaker The Conference Board
Naoki Ikegami Speaker Keio University
Soonman Kwon Speaker Seoul National University
Shripad Tuljapurkar Speaker Stanford University

428 Herrin Labs
Department of Biological Sciences
Stanford University
Stanford, CA 94305-5020

(650) 725-7727 (650) 725-7745
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Burnet C. and Mildred Finley Wohlford Professor of Biological Sciences
Director of the Morrison Institute for Population and Resource Studies
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MS, PhD

Marcus Feldman is the Burnet C. and Mildred Finley Wohlford Professor of Biological Sciences and director of the Morrison Institute for Population and Resource Studies at Stanford University. He uses applied mathematics and computer modeling to simulate and analyze the process of evolution. His specific areas of research include the evolution of complex genetic systems that can undergo both natural selection and recombination, and the evolution of learning as one interface between modern methods in artificial intelligence and models of biological processes, including communication. He also studies the evolution of modern humans using models for the dynamics of molecular polymorphisms, especially DNA variants. He helped develop the quantitative theory of cultural evolution, which he applies to issues in human behavior, and also the theory of niche construction, which has wide applications in ecology and evolutionary analysis. He also has a large research program on demographic issues related to the gender ratio in China.

Feldman is a trustee and member of the science steering committee of the Santa Fe Institute. He is managing editor of Theoretical Population Biology and associate editor of the journals Genetics; Human Genomics; Complexity; the Annals of Human Genetics; and the Annals of Human Biology. He is a former editor of The American Naturalist. He is a fellow of the American Academy of Arts and Sciences and of the California Academy of Science. His work received the "Paper of the Year 2003" award in all of biomedical science from The Lancet. He has written more than 335 scientific papers and four books on evolution, ecology, and mathematical biology. He received a BSc in mathematics and statistics from the University of Western Australia, an MSc in mathematics from Monash University (Australia), and a PhD in mathematical biology from Stanford. He has been a member of the Stanford faculty since 1971.

Stanford Health Policy Associate
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Marcus W. Feldman Speaker Stanford University
Naohiro Ogawa Speaker Nihon University
Andrew Mason Speaker University of Hawaii
Shanlian Hu Speaker Fudan University
Edward Norton Speaker University of Michigan
Shuzhuo Li Speaker Xi'an Jiaotong University
Maria Porter Speaker University of Chicago
Meng Kin Lim Speaker National University of Singapore National University of Singapore
Kai Hong Phua Kai Hong Phua Speaker National University of Singapore National University of Singapore
John C. Campbell Speaker University of Michigan Emeritus
Byongho Tchoe Speaker Korea Institute for Health and Social Affairs
Young Kyung Do Speaker Asia Health Policy Program
Jian Wang Speaker Shandong University
Dolores Gallagher-Thompson Speaker Stanford School of Medicine
Conferences
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Rose McDermott is a Professor of Political Science at Brown University.  She is currently a fellow at the Center for Advanced Studies in the Behavioral Sciences at Stanford University.  She holds a Ph.D. in Political Science and an M.A. in Experimental Social Psychology, both from Stanford University. She held a National Institute on Drug Abuse Post Doctoral Fellowship in Substance Abuse Treatment Outcome Research at the San Francisco VA through the University of San Francisco Psychiatry Department.  Professor McDermott has also held fellowships at the John M. Olin Institute for Strategic Studies and the Women and Public Policy Program, both at Harvard University. Professor McDermott's main area of research concerns political psychology in international relations. She is the author of Risk Taking in International Relations: Prospect Theory in American Foreign Policy (University of Michigan Press, 1998), Political Psychology in International Relations (University of Michigan Press, 2004), and Presidential Illness, Leadership and Decision Making (Cambridge University Press, 2007). She is co-editor of Measuring Identity: A Guide for Social Science Research, with Rawi Abdelal, Yoshiko Herrera, and Alastair Iain Johnson (Cambridge University Press, forthcoming).

She has written numerous articles and book chapters on experimentation, the impact of emotion on decision making, social identity, and evolutionary and neuroscientific models of political science.  She is currently involved in a series of projects investigating the endogenous sources of aggression, and a book project on pandemic disease.

Herbert Abrams is a professor of radiology, emeritus, at the Stanford School of Medicine and a member-in-residence at CISAC, where he directs the Project on Disabled Leadership. He was Professor and Director of Diagnostic Radiology at Stanford from 1960 to 1967, and was then appointed and served as Philip H. Cook Professor and Chairman of Radiology at Harvard University from 1967 to 1985. He returned to Stanford in 1985 as Professor of Radiology in order to spend most of his time in research in CISAC. Dr. Abrams' present focus is on presidential disability and its potential impact on decision making.

Reuben W. Hills Conference Room

Rose McDermott Visiting Fellow, Center for Advanced Study in the Behavioral Sciences, Stanford University; Professor of Political Science, University of California, Santa Barbara Speaker
Herbert Abrams Professor of Radiology, Emeritus and CISAC Member-in-Residence Commentator
Seminars

Decisions are made for two general purposes. A choice is determined either to obtain a desired outcome or to gather new information about other (perhaps more desirable) novel actions. These two motivations are generally referred to as exploitation and exploration, respectively. When confronted with a novel environment, the strategy employed to balance these two demands has tremendous consequence on performance. This study aims to understand how exploration-exploitation strategies change across the life span.

Most Americans fail to save enough money to maintain their pre-retirement standard of living after they retire-presumably because they steeply discount the value of future outcomes relative to present ones. To explain the steepness of such discounting, we note past research suggesting that people often think of their future selves as though they are other people rather than extensions of themselves in the present.

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On October 2, 2008, Dr. Marcus Feldman of Stanford's Biology department delivered the first colloquium in the series on "The Implications of Demographic Change in China," co-sponsored by the Asia Health Policy Program and the Stanford China Program. Dr. Feldman discussed the sex-ratio imbalance and gender studies in China.

As Dr. Feldman noted, the total fertility rate in China has dropped dramatically in recent years, due in large part to the Chinese government's One Child Policy, which was introduced in 1979. In the early 1970s, the fertility rate averaged almost 6 births per woman, dropping to about 1.6 after the year 2000. China's sex ratio of males to females at birth (SRB), meanwhile, has risen. In 1975, the SRB was about 106 male births per 100 female births, and in 2005 had climbed to over 120 male births per 100 female births. When parity (birth order) is taken into account, the ratio becomes even more startling; for the first birth, the ratio is close to even (about 108 in the year 2005), but exceeded 145 in 2005 for the second birth and even higher for the third birth (almost163 in 2005). Research indicates that the imbalanced SRB is largely concentrated in the lower coastal regions of mainland China, where the population is predominantly Han. Shaanxi, Anhui and Jiangxi Province have the highest ratio of male to female births.

Evidence of gender imbalance is not merely limited to the ratio at birth; high ratios of male to female children are seen through ages 0-4, indicating that son preference affects not only which children survive birth, but also the survival rate of females in early childhood. In fact, research indicates that while excess girl child mortality (EGCM) has decreased for infants less than a year old in the period between 1973 and 2000, it has become increasingly pronounced for children between the ages of 0-4 and 5-9, with EGCM rates increasing every year.

Two Studies

Two studies were carried out in 1997 and 2000 by the Institute for Population and Development Studies of Xi'an Jiaotong University to investigate the causes of gender imbalance. The 1997 study focused on the cultural transmission of son preference, and the 2000 study on marriage form and old age support.

Three counties were chosen as sites, and the studies were a combination of surveys, in-depth interviews and focus group discussions. The first county, Sanyuan () in Shaanxi province, is a medium-developed region whose principal agricultural product is wheat. Fertility is high in Sanyuan, which is characterized by the dominance of virilocal marriage (in which the bride joins the family of her husband) and strict patrilineal family systems. The second county, Lueyang () in Shaanxi province is an underdeveloped mountainous region in which the patrilineal family system is more relaxed, fertility is lower than in Sanyuan, and there are diversified forms of marriage. The third site, Songzi () in Hubei province, is a well-developed rice- and cotton-producing plains region, with low fertility, relaxed family systems and diversified marriage. The results of household surveys showed a strong preference among parents in both Sanyuan and Lueyang to live with their sons in old age, which was not surprising, but a surprising result was found when parents were asked about the primary benefits of having a son. The most-reported reason was for carrying on the family name, which shows that traditional (Confucian) values played a bigger role in son preference than practical considerations such as labor or old age support. Overall, Lueyang was shown to have a much higher rate for transmitting no son-preference than Sanyuan, with older women slightly more likely to transmit no son-preference.

The marriage study found that rates of uxorilocal marriage (in which the groom joins the family of his wife) have, for the most part, been dropping in both Lueyang and Songzi since the 1970's. In Sanyuan, where uxorilocal marriage has been traditionally uncommon, the rates have remained steady at around 5 percent since the 1950's. The researchers calculated children's odds ratios of providing financial help to parents based on marriage form, and found the net ratios highest for women in virilocal marriages and sons in uxorilocal marriages.

Mechanisms of gender imbalance

There are several likely factors for the imbalanced sex ratio at birth in China. Underreporting of female births, infanticide, and sex-selective abortion (post-pre-natal gender testing) all contribute to this syndrome. Furthermore, poor nutritional and medical care for girls in their younger years can further skew the gender balance by exacerbating excess female child mortality. At the basic source of this issue, however, remains a fundamental gender bias that dates back historically and philosophically through Confucian culture and traditional patriarchal structures.

If the SRB, EFCM, TFR (total fertility rate) were all to remain at their early 2000s levels, then by 2030 the total population of China would be 84.2% of what would normally be expected at the current fertility rate (potentially causing economic welfare issues for the elderly, along with a work force deficiency). Moreover, there would be an excess in the male population of 20-21% (relative to females), essentially making it mathematically impossible for this proportion of the male population to marry. Needless to say, the possibility of such a severe "marriage squeeze", and the general top-heavy ratio of aging population to young working population are very problematic prospects for China's population and for the government's endeavors to promote both economic growth and social stability.

Examples of government efforts

The government is considering several policy options to try to avert this potential crisis. Stronger punishments were suggested at the 2008 National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) for non-medical sex identification and sex-selection abortions (both of which can be obtained for relatively cheap rates within the country, despite being illegal). More proactively, an experimental program called "Care For Girls" was implemented in 2000 in Chaohu (a city in Anhui province). This program includes: financial help for 1- and 2-daughter families; sponsoring of girls' educational fees and increased pensions to families with daughters; and the promotion of uxorilocal marital structures. Since the introduction of the program, the local SRB went from 125 in 1999 to 114 in 2002. In response to this apparent success, the government expanded the "Care For Girls" program to 24 counties with high SRB rates in 2003-2004, and saw the average SRB in those counties drop from 133.8 in 2000 to 119.6 in 2005. Stipulation and initiation of a national "Care For Girls" campaign occurred in January 2006 - July 2006, with the goal of bringing the national SRB average to normal levels within 15 years. In January 2008, the government expanded on this effort by launching the "Care For Girls Youth Volunteer Action", beginning with more than 1000 students (mostly at the university level) directed at engaging in promotional activities and data collection (under the Chinese Communist Youth League). These policies are part of a comprehensive aspiration on the part of the PRC government towards the "construction of a new reproductive culture."

Son preference among migrant workers in Shenzhen

With the Chinese economic reform of the early 1980s, millions of laborers have been migrating from rural to urban areas. After migration, rural-urban laborers have to familiarize themselves with the rules and customs of their new locations, rebuilding their social networks in the process of adapting to their new occupations and habitation. But how do individual characteristics (i.e. gender, education level and the time of residency), restructured social networks, and the experiences of migration influence migrants' attitudes and behaviors regarding son preference? These questions were examined in a 2005 study conducted in Shenzhen.

Shenzhen is the first Special Economic Zone in China to implement economic reform and has since developed from a small fishing village into a modern coastal city. According to the 2000 Population Census, the total population of Shenzhen is 7,008,800, and the ratio of migrants to permanent urban residents is 4.77:1.

The Shenzhen study seemed to indicate initially that only a small minority of migrants (7% of total respondents) expressed a strong attitude towards son preference. However, the actual childbearing behavior of rural-urban migrants was remarkably different compared to their reported attitudes. The sex ratio of migrant children is as high as 163 male births per 100 female births, and the later in the birth order, the higher the sex ratio for the child, i.e., the sex ratio is 1.52 for the first birth and rises steeply to 1.80 for the second birth, peaking at 1.94 for the third and above birth. Thus the results suggest that migrants' childbearing behaviors actually suggest a strong son preference.

The Shenzhen study also found that three major determinants, namely social networks, migration history, and individual factors, all have significant effects on son preference among rural-urban migrants.

First, weak ties (formed by friends, bosses, and fellow workers) in social networks affect the attitude of son preference among rural-urban migrants. That is, the risk of having son-preference tends to decrease when the overall influence of network members is positive (without son preference). Moreover, increasing social contacts with network members will reduce the dependence upon strong ties (formed by family members and kin) and thus decrease the traditional culture of "rearing a son to support parents in their old age" and familial pressures to have more children.

Second, the duraction of residency in an urban area has a significant effect on the attitude of son preference among rural-urban migrations. The longer the migrants live in an urban area, the more likely that their attitudes of son-preference will adapt to urban reproductive norms. For example, the data indicated that ratio of male and female birth is more balanced among those living in urban areas for 8 years or longer. However, rural-urban migrants still exhibit a strong overall behavior of son preference. In other words, the change in childbearing behavior in terms of birth patterns still lags far behind the apparent change of attitudes.

Age and education are identified as factors affecting son preference among rural-urban migrants. For instance, an increase in age relative to initial migration will often decrease the imbalance in the sex ratio.

An additional study on rural-urban migrants examined the relationship between the gender of married migrants and their provision of financial support to parents and parents-in-law post-migration. The results showed, in fact, that female migrants are more likely to give financial support to their parents-in-law after migration.

Even today, the patrilineal conception of support for elderly family members is still very prevalent in rural China. Sons are expected to provide fundamental support to their parents, while daughters tend to provide supplementary and emotional support. This traditional old-age support pattern of reliance on sons can often intensify the syndrome of son bias among rural or traditional Chinese. However, the results here proved that if aging parents are more likely to receive sustenance from married daughters compared to married sons, the dominant son-preference in rural China could be logically undercut and eventually the traditional patrilineal conception of old-age support, and resulting gender bias, could be ameliorated and even eliminated.

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