population promote economic development
By Yasser Poswal
Published on: Mar 4, 2016
Transcripts - population promote economic development
What is Population Growth?
population growth is the increase in the
number of individuals in a population.
The "population growth rate" is the rate at
which the number of individuals in a
population increases in a given time period,
expressed as a fraction of the initial
To determine whether there has been
population growth, the following formula is
used: (birth rate + immigration) - (death
rate + emigration).
WHAT IS ECONOMIC DEVELOPMENT
Economic development is referred to as the
quantitative and qualitative changes in an
Economic development involves
development of human capital, increasing
the literacy ratio, improve important
infrastructure, improvement of health and
safety and others areas that aims at
increasing the general welfare of the citizens.
Demographic figures of India
Population 1,236,344,631 (July 2014 est.)
Density 383 people per.sq.km (2011 est.)
Growth rate 1.25% (2013) (94th)
Birth rate 20.22 births/1,000 population (2013 est.)
Death rate 7.4 deaths/1,000 population (2013 est.)
Life expectancy 68.89 years (2009 est.)
• male 67.46 years (2009 est.)
• female 72.61 years (2009 est.)
Fertility rate 2.3 children born/woman (SRS 2013)
Infant mortality rate 40 deaths/1,000 live births (2013 est.)
COMPONENTS OF POPULATION GROWTH:
The following are the factors which are responsible for
growth of population.
These three components are precisely measured to calculate the
magnitude of change in population
Increase in Labour Market:
Increasing population ensures increase in the labour force. Lack of
growth in the labour force will make a country static, retarded and
gets to equilibrium at less than full employment level of the
Investors would like to invest in a country with a large population.
As the population continues to grow so will be the growth in
demand for food, shelter, clothing etc.
Population Growth as a Sign of Social
Although not a direct effect of population growth, growing societies
often signify healthy societies. For instance, population growth
often signals lower mortality rates through advances in medicine
Population growth opponents often have decried the burden on
resources. However, Danish economist Ester Booze has argued that
growing populations pressure society to innovate in order to better serve
the masses. For instance, high-yield crops were developed to increase
food production largely in response to growing populations.
Effect on Marginal Propensity to
Large population creates more consumption which leads multiplier effect
on economic growth
In nutshell population growth:
attracting investors and multinational companies.
stimulating investment in knowledge.
generating more new ideas which improve
market size stimulates innovative activities.
a big home market that is an attractive prize for
successful new products.
greater economies of scale (less cost in production
per unit with increase of volume)
an absolutely larger number of outstanding, highly
increasing learning-by-doing due to pressures of
increased production volume
more young people energizing the economy
Large population protect country from external
threats e.g. War
increased consumption driving manufacturing
increased national savings
What happens if population growth declines
Population age pyramids of INDIA and UNITED STATE
Lewis Model of Development with
Lewis Model of Development with
Some demographers had said - "Population is not a
burden in itself"
It means that a large population is not a burden on its own.
A large population can be turned up as an asset for the
country. The way we see the big population of India today is
not exactly what it is in all the cases. The biggest example
we can cite is China. It has a bigger population than even
India has, but we can see the level of development that
China has when compared to India. It does not take its
population to be a burden. does not get tensed and does not
think about what to do with such a big population, but it
uses its population as an asset.
. Myth: As long as there is no social
security system, people will have many
children to support them in their old
Economists advocating the positive side to population growth, said that the
population growth creates problems in the short run that include poverty, famine
and unemployment. Yet, they also state that in the long run, it leads to new
developments through advancement in technology that leave countries better off
than if the problems never occurred. On the positive side, there is a chain reaction
of events caused by population growth. According to the neo-classical growth
model, population is beneficial to an economy due to the fact that population
growth is correlated to technological advancement. Rising population promotes
the need for some sort of technological change in order to meet the rising
demands for certain goods and services. With the increased population,
economies are blessed with a large labour force, making it cheaper as well, due to
its immense availability. An increase in labour availability and a low cost for
labour results in a huge rise in employment as businesses are more inclined to the
cheap labour. Low labour costs results in a shift of money usage from wages into
advancement through technology (Coale and Hoover, 1958)