JAPAN AGING POPULATION - IMPLICATIONS FOR HEALTH-CARE

In the early years of the next century, the Japanese population may we ll become the oldest in the world. The Japanese government's concentra tion on post-World War II economic expansion meant that the government only fully woke up to the financial implications of having a large el derly population when oil prices were raised in the 1970s, highlightin g Japan's economic dependence on global markets. This article explains the process by which policy regarding japan's elderly developed both before and after these oil price increases. The measures of healthcare cost containment that the government introduced in response to the in creased financial pressure are described, with a particular focus on p harmaceuticals. This article shows that the government has achieved a degree of success in terms of containing pharmaceutical costs, but tha t future effects on the quality of healthcare are uncertain. Ultimatel y a wider application of a per diem fee in place of the prevalent fee- for-service system, and the realisation of plans to improve the social service infrastructure, would be the best path for policy to follow.