For the last 50 years, the world has watched in awe as Japan has built a powerhouse economy that has dominated the world in the consumer electronics and automotive industries. In the next 50 years, they we will be watching to see how this efficient, well-managed society deals with an even bigger issue -- Longevity.

Today, Japan had the highest proportion of citizens over 65 of any country of the world. They also have the lowest proportion of children under the age of 15. Combine these figures with a restrictive immigration policy and you can see that the Japanese population is on an unprecedented, irreversible decline.

Current studies predict that by 2020 Japan will have an old age dependency ratio of 46%, the highest in the world. This means 46% of the population will be supported by the other 54%. An almost one-to-one ratio. By comparison, in that same year, through the US Social Security system, two workers will support one retiree.

310,000 Japanese Baby Boomers are expected to retire next year. Twice the number as this year. In 2009, that number will reach 410,000.

As it has in the past with other problems like air pollution, Japanese society will develop innovative methods for dealing with the impact of an aging society. Already, a number of NGOs have formed to leverage the intellectual capital of the older generation. The Japan International Cooperation Agency (JICA) works with business trade associations to send retired executives to developing countries, like Indonesia, where their business acumen can be put to use to solve local social problems. So far the volunteers have found the experience very rewarding and have signed up for repeated tours of duty.

Imagine the potential if, instead of playing golf everyday, future retirees from developed countries worked abroad to improve the lives of the rest of the world. Sort of like the Peace Corps with gray hair and lots of experience.

Let's see what other solutions the Japanese come up with.