In a recent commentary, Sridhar Vembu, founder of Zoho, emphasized the need for a cultural shift towards pro-family policies to combat the looming demographic crisis facing many nations, particularly in East Asia. He pointed to India’s current fertility rate of 2.01 children per woman — slightly below the globally recommended replacement rate of 2.1 — and warned that the situation is even more dire in countries like China, South Korea, and Japan, where demographic decline has already reached alarming levels.
Vembu highlighted that South Korea’s fertility rate is at a catastrophic 0.78, Japan’s stands at 1.26, and China’s rate is at 1.18 children per woman. He argued that these figures signal a profound societal and economic challenge, one that is driven by complex factors like rapid urbanization, the breakdown of traditional family structures, and the increasing dominance of the nuclear family model.
Reflecting on Japan’s technological rise and subsequent economic troubles, Vembu noted, “Japan reached its peak technological prowess around 1990, and discussions about it surpassing the US were widespread. However, its economic collapse, following the bursting of a real-estate bubble, coincided with a severe demographic decline.”
Vembu attributes this demographic downturn to years of societal choices focused on economic growth, but with little regard for the consequences of those decisions. “China, too, faces a demographic bust at least as severe as Japan’s,” Vembu remarked. “The demographic shift is a byproduct of rapid industrialization, lack of work-life balance, and the erosion of traditional culture and religious values.”
In response to these challenges, Vembu advocated for a return to traditional ways of life, emphasizing the importance of nurturing family life and fostering environments that support childbirth. He expressed his personal commitment to embracing rural living and preserving cultural values as a pathway to reversing demographic decline. “I want to pursue economic development that is pro-babies. In the long term, nothing else really matters,” he concluded, urging society to reconsider its priorities for the future.
Vembu’s call reflects broader concerns about the long-term sustainability of modern economies if fertility rates continue to decline. As many countries grapple with the consequences of shrinking populations, his remarks underscore the need for policies that encourage family growth and cultural preservation to safeguard future generations.
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