TSKB Publishes its Report Titled "Industry and People: Revisiting Development in an Aging World"

The report titled "Industry and People: Revisiting Development in an Aging World," prepared by TSKB Economic Research, examines the future of industrial production through labor force and demographic projections. The report highlights that in the new phase of industrialization, “the skills and the quality of workforce” is the key determinant.

TSKB Economic Research has shared its report titled "Industry and People," which places people at the center of development. The report examines the major changes in industry and society, explaining how Türkiye can turn its rapidly aging population into an opportunity with a 'New Industry' approach, and how this process can be managed effectively.

Examining the future of industrial production through labor force and demographic projections, the study emphasizes that “the skills and the quality of workforce” is the main determinant in the new phase of industrialization. It argues that, for sustainable growth in the face of Türkiye's rapidly aging population, industrial policies need to be redesigned with a human-centered approach.

The main findings of the report are as follows:

• In the new phase of industrial production, the importance of labor is increasing again. Now, what product will be manufactured by the machine system and how it will be produced is shaped and even determined by the creativity of the workforce.
• While New Industry intersects with traditional industrial and manufacturing processes at many points, it possesses a significant difference: a high need for skilled labor. Therefore, we must design a policy focused on New Industry, placing people at the center of this process, and discussing the relationship between Industry and People.
• Industry, technology, and society are not independent fields; on the contrary, they are three fundamental structures that constantly interact and transform each other. Today, all three fields are simultaneously undergoing a profound process of change.
• Addressing demographic transformation within the framework of the new industrialization model and the triple transformation requires developing a holistic approach through healthy and active aging, skills, education, and social networks.
• Projections indicate that Türkiye will enter an increasingly rapid aging process over the next 25 years. This means Türkiye will age every year, and this process will accelerate until 2050. This points to a rapid social transformation unlike anything experienced by high-income countries. For this very reason, preparing for this transformation is not only important but also a pressing agenda item.
• Middle-to-high income countries will reach the same level of old age as high-income countries but with a lower level of income. This indicates that countries like Türkiye are facing both a faster aging process and may have more limited capacity to manage this process.
• Policies related to demographic pressures will, and should, draw strength from industrial policy practices.
• Supporting the creation of highly skilled jobs is also a measure to reduce skills mismatch and, as such, should be part of industrial policy.
• The spread of new industrial practices and the formation of a corresponding social culture emerges as a crucial area to manage in the process of demographic transition.
• Development banks accelerate not only physical capital investments but also human, social, and/or environmental investments in the projects they fund, depending on the development theme they focus on. The distinguishing aspect of development banks in this regard lies in their focus on contributing to more than one of these goals simultaneously. Through this role, development banks have the potential to make a significant contribution to slowing down/reversing the decline in potential growth. The New Industrial Policy points to a framework in which the roles and functionalities of development banks will increase.

The full report is available here.