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In 2004, Japan still maintains its rank as No.1 of Human Development Index in the world for life expectancy at birth . Japanese government should find a way to increase the growth of population, otherwise the ageing population will cause decrease in productivity. This is because ageing people tend to be less productive and consumptive compare to productive age (between sixteen to fifty five years old). To encourage the population growth, the government should give awards for every citizen who gives birth and scholarship for elementary school children. However, in the short term, this incentive has potential weaknesses. Firstly, government has to give extra expenditure to pay for this incentive. Furthermore, in the long-term this will benefit Japanese government, as the population increase productivity of Japan is expected to
