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Under conditions like those in India population growth therefore actually impedes economic development rather than facilitate it. As effective policy measure to check the growth of population, compulsory Sterilisation has been suggested by many. Companies will try to sell to this market, the largest in the world, and tailor their products to … In fact, the name of the ministry has been changed from Ministry for Family Planning to Ministry of Family Welfare. In view of this much of our investment efforts are directed at ‘absorbing the growing labour force in productive employment, our ability to raise productivity of labour is severely constrained. Therefore, in the absence of employment opportunities outside agriculture, much of the additional labour force is forced to remain in agriculture and allied activities. 5. In India, after the experience of several years, there has been some reconsideration of the various aspects of the family planning programme. 0000005276 00000 n But even with this considerably fertility decline, population growth will still be over 2% per year in 2045-50 and Uganda’s population is projected to stabilize at a population of some 200 million only in the 22nd century. startxref ���;w ���#LQNU]���Ӹvon���s�98d7Ї�T��x-SL�ѽ��{ٷ���k�Rө-�� ~�L���f9j9�A�Rv����Y&��}�e��3��p��c��底���z`�UtS��0w=kp���|xJή�㢕{'e��XpU���8��Z�[��p�Rw��97�C�����Q. Luiz Felipe Castro/Moment Open/Getty Images. 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. In the opinion of the present author if the population growth in India has remained virtually unchecked in spite of a nationwide family planning programme, the fault does not lie solely with the programme but to a much greater di! Average annual growth in national income and per capita income in various Five Year Plan Periods in given in Table 41.2. Population Growth and Economic Development of a Country! Disclaimer 9. In India where supplies of other economic resources, especially capital equipment, are relatively search in­crease in population or labour force does not lead to the employment of all due to scarcity of capital resources. Since independence, Tanzania undertook census enumerations in 1967, 1978, 1988 and, most recently, in 2002. This will discourage the employed women to bear more children. To the Greek philosophers, about 2,500 years ago, population growth was undesirable as it adversely affects economic development. Such a trend would make India one of the youngest nations in the world. Under family planning programme various contraceptive devices and health services are provided to encourage the couples to adopt small family norm, that is, to have fewer children. ple may have to be supported by a smaller active labour force. Thus, policies that have to be adopted to check population growth should aim to reduce the birth rate, the increase in birth rate is ruled out for obvious reasons. 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. As a result of this explosive increase in labour force demographic pressure on the economy has increased resulting in increase in backlog of unemployment and under- unemployment at the beginning of each successive Five Year Plan. Little wonder, the official over-enthusiasm and excesses made the whole programme highly unpopular and this was one of the main causes of Congress Party’s utter rout in the Northern States in Lok Sabha Elections of March, 1977. According to Thomas Malthus the principle is that Human populations grow exponentially while food production grows at an arithmetic rate. Table 41.2. Various economic models have attempted to establish the relationship between different demographic dynamics and economic growth (Barro 1991, p. 87). Through various communication media a wide publicity is given that couples should go in for only two or three children and no more. In the name of motivation campaign, family planning camps were set up where people were forcibly driven to undergo operation. High Population growth rate is a burden on economy of the developing country. 71 15 depend on overall economic development in coming decades as well as government efforts to support a fertility decline.   As its people get richer, they will consume more. It has been said that “development is the best contraceptive.” This implies that with social with and economic development, the birth rate will go down, as people with higher levels of living prefer to have fewer children. To maintain the integrity of a nation during war, the government necessitates these services among public. Two general schools of thought surround the perceived effects of population growth. While projected income changes have the highest partial impact on per capita food consumption levels, population growth leads to the highest increase in total food production. 1. 0000003046 00000 n Economic growth normally implies a process where rural land is converted to urban uses, such as industrial, residential and commercial, this is a transition from agrarian-based economy to a more urban economy based on services and industry (Irwin, 2004). Admittedly, this is a drastic measure, but is considered very effective in the context of the failure of voluntary family planning programme. Economic growth is dependent on a wide array of factors that range from technology to capital. Thus. This study aims to analyze the impact of the development and stability of the financial sector on economic growth on the basis of the quantitative methods that produce robust results. It follows from above that labour force consequences of population growth are to a good extent responsible for huge unemployment and underemployment prevailing in India. The cause of food problem in India is the rapid growth in population since 1951. Disentangling the long-term impact of population growth on economic growth from other more short-term influences (such as pres ence or absence of conf lict, economic … Rapid growth in population in an already over-populated country also raises the problem of food security in the country. By increasing a productive resource population growth will help in producing more output. assumptions to consider the impact of population growth on achievement of the development vision. %PDF-1.4 %���� Population Growth and Marketed Surplus of Food-grains: Another way in which growth in population is impeding economic development is its effect on marketed surplus of food-grains. Per capita income (at 2004-05 prices) grew at the rate of 4.6 per cent in the Eighth Plan period (1992-97), 3.5 per cent in the 9th plan period (1997-2002), 5.9 per cent in the 10th plan period and 6.3 per cent in the 11th plan period. Of all the measures involving several incentives and disincentives proposed the most controversial is the proposal of compulsory sterilisation. In fact coercion came to be used on a large scale, especially in the States in the North, so that the programme was voluntary only in name. Widespread unemployment, a high degree of socio-economic tensions if current explosive growth in population is not checked. By Staff Writer Last Updated Apr 14, 2020 5:04:12 AM ET. Pakistan needs to control the growth rate by providing awareness to the people through its family planning program. Prohibited Content 3. (4) Allotment of scarce public houses, housing plots, flats etc. Ambitious targets were laid down which were successively revised upwards. The census projection report shows that the proportion of working age population between 15 and 59 years is likely to increase from approximately 5 8 per cent in 2001 to more than 64 per cent by 2021. (2) The establishment of old-age social security provisions, such as old-age pension. An appeal is made to them that their life would be happy and prosperous they have small family. Image Guidelines 5. According to them, rapid population growth forces the country to make non-productive investment, that is, to invest in duplicating certain social welfare facilities such as the construction of parks, houses, social buildings, sanitation works. Unemployed people do not add to national output. Rapid Population Growth as an Obstacle to Economic Growth. Different Views on the Role of Population Growth: Population growth plays a conflicting role in the development process of a country. Content Filtrations 6. Since population growth reduces savings and investable resources, it is very difficult to withdraw any significant number of workers from agriculture so as to equal, them with the required capital to provide them productive employment outside agriculture. On the other hand, more recent theories suggest that population growt… xref Suppose population of a country A is increasing at 1 per cent per annum and that of a country B at 3 per cent per annum. Deforestation: An increase in population tends increase in the demand for land, for shelter food, increased demand for energy which led to deforestation, cutting of forests. In the long run, ARDL results show that the population growth has a positive and statistically significant impact on economic development. Many of these authors emphasize the importance of age structure for economic development. 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. Family planning programme would now be an integral part of comprehensive family welfare policy covering education, health and child care, family planning and women’s rights and nutrition. Disguised unemployment means more workers seem to be employed in it but quite a large number of additional workers do not add to agricultural output, that is, marginal productivity of workers in agriculture is zero or nearly zero. Further, it is important to note that the bulk of this increase is likely to take place in the relatively younger age group of20-35years. In India, in several years, increase in agricultural output has not been enough and further that the rapid growth in population has tended to reduce the growth of marketable surplus. The mere growth of unemployed or paupers cannot lead to greater demand for goods or expansion in their markets. This prevents the living standards of the people to rise rapidly. It should be speeded up but strategy of development should be such as will promote employment opportunities for the poor especially landless labour, marginal and small farmers. Some theoretical analyses argue that high population growth creates pressures on limited natural resources, reduces private and public capital formation, and diverts additions to capital resources to maintaining rather than increasing the stock of capital per worker… Where 0 stands for output of food-grains, and C. for consumption of food-grains by the fanners themselves. 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. Now, marketed surplus of food-grains is the difference between the output of food-grains by the agricultural population and their consumption of them. 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. For these land reforms measures and income redistribution policies should also be effectively implemented. The positive impact of economic development: Threshold: With a formalized economy in place, manufacturers can manufacture goods and market the same to get the highest price possible for the same. Dr. Ashish Bose, an eminent demographer, has pointed out that India’s family planning campaign has been severely handicapped because of the slow rise in the literacy level. Brahmananda writes, “A stationary economy with an open ended population expansion angle II be the greatest permanent disaster for the country. It also helps pay for social welfare programs. 4. 0000000915 00000 n However, in some cities, rapid growth leads to skyrocketing housing prices and unmanageable traffic. It should be ensured that fruits of economic development should reach these poor people. Such practices do not take place in countries with high … Copyright 10. The rapid growth of population has direct impact on the environment and economy. The larger the size of population, the larger will be the labor force. Investible Resources and Raising Per Capita Income: While on the one land rapid growth in population reduces investible resources for accelerating capital formation, it raises the requirements for investment to achieve a given target increase in per capital income. India is the first country in the world to adopt family planning as a state policy. Instead of focusing on adding to the population, cities like Huntsville, … This gives rise to a huge problem of properly feeding and clothing them. The educated men and women accept small family norm and more readily take family planning measures such as use of contraceptives. This increase in population in the agriculture raises the consumption of food-grains, i.e., Cs in the above equation and therefore reduces the marketable surplus, if output remains the same. In Table 41.1 we present population growth in India. In addition, the country undertook Demographic and Health Surveys in 1991–1992, 1996 and 2004–2005 and the … At present about 50 Per cent of India’s population is below 20 years of age. <<3a46da547fab2847a34c29736d36b6ce>]>> Recieved 24 October, 2016; Accepted 6 June, 2017 The reasons behind the debates and discussions on population growth and the impacts on economic, All hopes of improvement in living standard even at the meagre levels, of vast masses will have been forever dashed to pieces. But such a method of adjustment is not easy to achieve in India. Due to explosive growth in population in India labour force has been increasing rapidly since 1951. Keywords: Population Growth, Economic Development, Environment, and Poverty ... the preventive check and positive check. 0000001256 00000 n Since rate of growth in national income is given by the rate of investment multiplied by the output-capital ratio, la will signify the rate of growth of national income. There are two schools of thought regarding this issue. As a result, demographic pressure on land and agriculture increases resulting in the severe drop in the net sown area per capita. Thus, while the aggregate national income of India went up by 3.6% per annum in the First Plan period and 4.1% per annum in the Second Plan period, per capita income rose by only 1.8 per cent and 2 per cent per annum respectively. Due to lack of investible resources caused partly by population growth, it has not been possible to extend irrigation facilities to the currently known irrigation potential. However, this also poses a great challenge; its benefit will be realised only if our population is healthy, educated and appropriately skilled. It may be noted that during fertility rate in under­developed countries is quite a formidable task. imae source: … endstream endobj 72 0 obj<> endobj 74 0 obj<> endobj 75 0 obj<>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 76 0 obj<> endobj 77 0 obj<> endobj 78 0 obj[/ICCBased 85 0 R] endobj 79 0 obj<> endobj 80 0 obj<> endobj 81 0 obj<> endobj 82 0 obj<>stream The decline in number of poor people to 260 million in 1999-2000 is doubtful’ because of the change methodology made in NSS of 1999-2000. This higher proportion of young labour force in India has a great production potential and has therefore been called ‘demographic dividend’. But is this growth always a good thing?   China contains about 20% of the world's population. Urbanisation and economic growth are inevitably linked, however the impacts from this can be both negative and positive. Marketed surplus of food-grains = (0 – Cs). Explosive growth in population has caused serious unemployment and under-employment problem in India. This is because in the modern times man can produce little with bare hands. Rapid population growth leads to lower productivity which causes poverty, poverty causes high infant mortality rate which in turn causes high population growth. Secondly, it has been pointed out that the increase in population leads to the increase in demand for goods. Malthus talked about Economic development and he emphasized on the short-term development instead of long-term development. As is well known, in poor countries like India, people have a tendency to bear more children so that in their old age security be ensured. (Harvard … … It helps economic development and it retards economic development. That the population growth prevents the rapid rise in per capita Income and therefore rise in living standards of the people can be expressed by the following growth formula. But wheat has been true of USA and European countries may not be true in case of other countries. And these are states where the progress of family planning is slow. Population growth has a substantial impact on economic development. 0000005949 00000 n Deforestation restrictions strongly impact the price of land and water resources but have little consequences for the global level of food production and food prices. The check on the growth of population is therefore absolutely essential if we want to solve problems of mass poverty and widespread unemployment. The existing state of knowledge does not warrant any clear-cut generalization as to the effect of population growth on economic development in today's less developed areas. population growth: Positive or negative impacts on economic, social, political, natural resources and environmental developments Kiros Abeselom Wolaita Sodo University, P. O. A vicious circle of poverty operates in this regard. Report a Violation, Differences between Economic Growth and Economic Development. 73 0 obj<>stream Pakistan has failed to provide basic necessities such as education, employment and health services to its people and the reason behind these problems is the high population growth rate. It will be seen that since 1951, population has been growing at about 2 per cent or more. In 2020 average Indian will be only 29 years old. Population Growth in India since 1951: A democratic country like India can­not adopt coercive methods to control population. Secondly, they come to prefer “quality” of children to rather than “quantity”. Population growth helps the process of development in certain ways and hampers it in certain other ways. That is, each family should have smaller number of children. Accordingly, if population is to be effectively checked not only the tempo of economic development. Table 41.1. Additional people provide a workforce necessary to generate goods and services. When a country grows and accelerates its pace of industrialization, it requires food-grains to feed the workers who are employed in industries. When birth rates decrease, the strain on younger workers can be immense. This is clear from the fact that as large as about 18 million people over and above one billion populations estimated on March 1, 20.01 are being added to our population every year as per 2001 census. H��WɎ����+� Since all must consume, in the absence of increase to productivity, saving per person must fall. In other words, a high rate of increase in population swallows up a large part of the increase in national income so that per capita income or living standards of the people do not rise much. Population growth can be reduced by reducing the birth rate. This worsened the balance of payments problem of the country. If we want that future generations should have at least as much good prospects of living as the present generation we must control population growth. 0000001124 00000 n And growth of population and labour supply has all … Population Growth: Paragraph on Population Growth! As someone has remarked population growth brings in more hands to work for production and therefore contributes to economic growth. In fact rapid population growth has been obstructing economic growth in developing countries like India where since 1951 population has been growing at a relatively high rate. Population Growth and Rate of Saving and Investment: Economic growth requires increasing supplies of capital goods. So their impact (or lack of it) on the national birth rate is bound to be significant.” It, therefore, follows that efforts to educate the people especially women, both formally and informally, be strengthened to achieve the target of reduction in birth rate. %%EOF Positive effects of population growth: Population growth contributes to the new inventions and growth of a country. Moreover, when there is several contraceptives available, recourse to compulsory sterilisation is not needed. �Q�a��˕{Lٝo�� ��i���W.סzUOzG_���{z)��;��W�������-����G~��\Q0�����n ?��Q-c?��%�瞕5�wX������(�l!�"IP͏M�I�`���Wnϕ1N5��"J���8�� �4�"�mQ���oB�p����dZ5�&���k/O���Ou 8"�[b;�d����(�˙�����H����AL��l,�9�̕�r4�l�2&� ���|T[���tzRo5�粩��ek�ʻѷ�����$�ɀ���A���67Q3Q�4I)�?|7q�(D.�D@.f�_6�l��TD���&_�e~8+ưzo-�0�,��r���}��aVLYx*O@Z�V���S���z������` ��&!m�~&6I��p�[ٜ�X,�*O�/I"#�q�{���I�9bsډ�.�vBv"�Vt�T�7��M��*;I]�>YYȒѺo8eԧ7u����-С쨕�d��^_?������ ��� ��R����U��e��8�\�\ʸr � Further, as has been explained in detail in the above sections such large increase in population and consequently huge increment in labour force lowers our capacity to make productive investment and thereby to increase productivity of labour to ensure eradication of poverty Prof. K. Sundaram rightly writes, “the size of increments to population is itself of some consequence. ���:C�o���CUY��:�-��O�N�HN���g���q�"~bKj��4D��b����k�/y�m=DV3�g��qfK�����YR�],�-���%IxM��+���f In agriculture, self-employment is predominant and the joint family system prevails under which both household’s income and work are shared among the family members. Population Growth and Unproductive Investment: In his study of population growth and economic development in India Coale and Hoover focussed on the adverse effect of population growth on the resources a variable for productive investment. Stressing the importance of controlling population growth in India characterised by w economic growth, the existence of mass poverty and unemployment. :�2�tDN���a�ZD�m���Ç1�&���,nb0ouw�U�M#�O�2̦BL�c�����gN�N�����l�����Џ���3 '��U�Q2‰�ɭ�!�S�2!Q��t�PPPlw�5j��?H�@�s'��vh7&Ux@�76��n'N>�$�d4�0'�#KA�!79�^���$�#�2 ��; �6� -t�?�. Public opinion is strongly opposed to it. 2. extent with the character of social and economic development in India which has failed to remove mass poverty and improve the levels of living of the poor and weaker sections of the society. Forty-three percent … India’s population which is presently about 1027 millions is increasing at a rate of about 2 per cent per annum. Thus rapid growth of population by causing lower rate of savings and investment tends to hold down the rate of capital formation and therefore the rate of economic growth in developing countries like India. This higher per capita income growth rate since 1991 has tended to raise the standard of living of the people higher than before. 71 0 obj <> endobj He further adds, “Such an atmosphere cannot be conducive for economic progress. In other developing countries such as Pakistan Bangladesh, rate of population has been greater than that of India. 0000002801 00000 n Privacy Policy 8. It is the population growing at 2 per cent per annum or more during the planning period that has caused per capita income to rise much less than the increase achieved in national income. Plagiarism Prevention 4. Of particular interest is the rate of population growth vis-à-vis economic growth and development. 0000002528 00000 n But for developing countries like India, population growth has to be checked if gains of development are not be nullified by it. This demographic dividend provides India large productive opportunities for rapid economic growth. Prof. P.R. Thus is because the resource requirements of feeding and clothing even at the current low levels are such that the incremental population itself constraints the ability of the economy to raise the living standards of the existing population.”. What Are Some Positive Effects of Population Growth? The population growth is swallowing up a large part of the gains in national income brought about by planned economic development. Population growth depends on the fertility rate (birth rate) and death rate. Introduction. This is because, as has been pointed out by Kuznets, “in under-developed countries people have an intense tendency to have more children because under the economic and social conditions large proportions of the population see their economic and social interests in more children as a supply family labour, as a pool for a genetic lottery, and as a matter of economic and social security a non-protecting society.”. The economic history of USA and European countries shows that population growth in them contributed greatly to the increase in their national output. ��"� ��������AD���ջ.��3'�fЦ��.���_k������ޭF� �?�,xZc�u�N��/��^@kq� R?p��,�s��Ԛ��Ÿ�E�z��,Yg~ 0000003122 00000 n As a result sufficient amount of foreign exchange to import materials, machines and equipment for our industries could not be made and this obstructed the growth of industrial output. There are several reasons why population growth in developing countries is today a greater economic burden than it once was in today's developed countries: Population growth is now much more rapid. Content Guidelines 2. Now, an important question is what policies can be adopted to control population. The accent in new policy is on integrating contraception with public health, medical care, material and child health and nutrition. Hence, a large number of our present population will live to see by the middle of the 21st century the disastrous consequences such as acute poverty conditions. where g stands for the rate of growth of per capita income, I represents rate of investment, a stands for output-capital ratio (or productivity of capital) and r represents rate of population growth. First, people with a higher level of living do not need children to supplement the family’s meagre income. This is precisely what has happened during the planning era in India. Effects of Rapid Population Growth While population growth is at times a beneficial thing for a species, there are many factors that define when growth becomes detrimental. It will be seen from this table that the annual growth in per capita income has been much less than the annual growth rate in that national income. To a certain extent lack of capital may be made up by harder work by workers in a country like India. In order to overcome the shortage of food-grains and to prevent the occurrence of famines in the country, India was forced to import food-grains and spend a good amount of valuable foreign exchange on them. Demographic Changes in India and Population Dividend: India is passing through a phase of unprecedented demographic changes. In developing areas of the world, population growth can seem to have a positive effect on local economies. 0000000995 00000 n Some researchers maintain that population has a negative impact on economic development while others are convinced that the effect is positive. Positive Effects Of Population Growth On The Economy. Now, increase in population by adding to the number people whose requirements of “feeding and clothing” have to be met which tends to raise consumption and, therefore, lowers both saving and investment. In the opinion of the present author, the policy of forced sterilisation is quite inhuman; it is treating human beings as animals. Annual Average Growth Rate (at 2004-05): However, since 1991 population growth rate has been less than 2 per cent, it was 1.93 per cent between 1991 to 2001 and 1.6 per cent between 2001-2011, on the one hand and growth rate of national income was much higher on the other (see Table 41.2). the relationship between population growth and economic development. The general effect of population growth depends on the contribution of population and human capital of the economic development. Impact of population growth on Development January 11, 2018 Population Growth is the increase in the number of individuals that reside in a country, state or city. Effects of Population Growth on the Economic Development of Developing Countries By RICHARD A. EASTERLIN * ABSTRACT: The existing state of knowledge does not warrant any clear-cut generalization as to the effect of population growth on economic development in today's less developed areas. 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