There are a few policy areas which seek to curb the escalating cost of the social security system. One of them is related to a further reduction of social security benefit levels and coverage. In the realm of medical care services , cost-containment policies such as the diagnosis-related group (DRG) approach, the acceptance of the euthanasia concept, and the recognition of brain deaths are conceivable options facing Japan. To reduce the man-power and financial requirements for bedridden patients and those suffering from senile dementia, modern technology such as "telemedicine" (a computerized diagnostic system linking homes and hospitals) is now being used experimentally in selected areas . If these policies are to be implemented, however, they may lead to a shortening of the Japanese life expectancy and the loss of the human touch in medical care services.
Although the scope of this paper is confined largely to the Japanese context, Japanese experiences of population aging and policy responses seem to be useful in formulating suitable policies in many developing countries currently undergoing rapid demographic transformations, particularly in Asia. Furthermore, in the face of her fast economic development, Japan has retained some of her traditional cultural values, so that the Japanese model may be of relevance to policy makers in developing regions interested in combining the best of traditional and modern approaches in order to provide support to the elderly.
