Learning Objectives Explain the relationship between population growth and the rate of increase in per capita income. Explain what is meant by a demographic transition, and describe how it has proceeded in very different ways in developed versus developing countries. It is easy to see why some people have become alarmists when it comes to population growth rates in developing nations. How will we cope with so many more people?
Population Growth and Economic Development of a Country! When population grows faster than GNP, the standard of living of the people does not improve. In fact rapid population growth has been obstructing economic growth in developing countries like India where since population has been growing at a relatively high rate.
It will be seen that sincepopulation has been growing at about 2 per cent or more. In other developing countries such as Pakistan Bangladesh, rate of population has been growing at about 2 per cent or more. In other developing countries such as Pakistan Bangladesh, rate of population has been greater than that of India.
However, it may be noted that over-population and rapid the population rate is especially an Asian problem. The developing countries of Latin America and Africa do not face this population explosion problem. But for developing countries like India, population growth has to be checked if gains of development are not be nullified by it.
It is worthwhile to note here that it is only China which has brought population growth rate quite will under control by adopting one child per family norm. Population Growth in India since But, to show how rapid population growth retards economic development, it is necessary to mention that by economic development we mean not only increase in national income GNP or per capita income, but also reduction in unemployment as a result of the growth of employment opportunities and reduction in poverty and inequalities of income.
Since economic growth depends on rate of saving and investment and productivity of labour, we will discuss the impact of population growth on these factors.
It has been argued by some that population growth leads to increase in labour force which is an essential productive resource. By increasing a productive resource population growth will help in producing more output.
As someone has remarked population growth brings in more hands to work for production and therefore contributes to economic growth. Secondly, it has been pointed out that the increase in population leads to the increase in demand for goods.
Thus growing population means the growing market for goods is enlarged, they can be produced on a large scale and thus economies of large-scale production can be reaped.
The economic history of USA and European countries shows that population growth in them contributed greatly to the increase in their national output.
But wheat has been true of USA and European countries may not be true in case of other countries. Whether or not the growth of population countries to economic growth depends on the existing size of population, the available supplies of natural and capital resources, and the prevailing technology.
In the United States, where supplies of natural and capital resources are comparatively abundant growth in labour force caused by increasing population raises national output. Unemployed people do not add to national output. As for the argument that population growth leads to increase in demand or market for goods, it may noted that the demand or market for goods increase if the real purchasing power in the hands of the people increases.
The mere growth of unemployed or paupers cannot lead to greater demand for goods or expansion in their markets.Introduction In this chapter we want to go beyond the description of the demographics and analyze the relationship between population growth and economic development: what causes what?
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1. Introduction. From the time of Malthus onwards, economists, demographers and other social scientists have been debating whether and how high fertility and rapid population growth affect economic outcomes and vice versa. With all donor efforts to help Palestine build its institutions and strengthen its economy, Israeli efforts, on the other hand, are focused on destroying the impact of the donors’ sincere efforts through measures of siege on Gaza, closure of Jerusalem, as well as prohibiting any public or private investments in area (C).
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