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Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies
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Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

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Page 1: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Chapter 6

Population Growth and Economic Development: Causes, Consequences, and Controversies

Page 2: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-2

The Basic Issue: Population Growth and Quality of Life

Six major issues:– Will developing countries be able to improve

levels of living given anticipated population growth?

– How will developing countries deal with the vast increases in their labor forces?

– How will higher population growth rates affect poverty?

Page 3: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-3

The Basic Issue: Population Growth and Quality of Life

Six major issues (cont’d):– Will developing countries be able to extend the

coverage and improve the quality of health care and education in the face of rapid population growth?

– Is there a relationship between poverty and family size?

– How does affluence in the developed world affect the ability of developing countries to provide for their people?

Page 4: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-4

A Review of the Numbers: Population Growth—Past, Present, and Future

World population growth through history

Page 5: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-5

Table 6.1

Page 6: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-6

Figure 6.1a

Page 7: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-7

Figure 6.1b

Page 8: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-8

Table 6.2

Page 9: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-9

A Review of the Numbers: Population Growth—Past, Present, and Future

A brief history of human population growth Structure of the world’s population

– Geographic region

Page 10: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-10

Figure 6.2

Page 11: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-11

Table 6.3

Page 12: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-12

Figure 6.3

Page 13: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-13

A Review of the Numbers: Population Growth—Past, Present, and Future

A brief history of human population growth Structure of the world’s population

– Geographic region– Fertility and mortality trends

Page 14: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-14

Figure 6.4

Page 15: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-15

Table 6.4

Page 16: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-16

Table 6.5

Page 17: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-17

A Review of the Numbers: Population Growth—Past, Present, and Future

A brief history of human population growth Structure of the world’s population

– Geographic region– Fertility and mortality trends– Age structure and dependency burdens

Page 18: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-18

A Review of the Numbers: Population Growth—Past, Present, and Future

A brief history of human population growth Structure of the world’s population The hidden momentum of population growth

Page 19: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-19

Figure 6.5

Page 20: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-20

Figure 6.6

Page 21: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-21

The Demographic Transition

Stage I: High birthrates and death rates Stage II: Continued high birthrates, declining

death rates Stage III: Falling birthrates and death rates,

eventually stabilizing

Page 22: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-22

Figure 6.7

Page 23: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-23

Figure 6.8

Page 24: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-24

The Causes of High Fertility in Developing Countries: The Malthusian Model

The Malthusian population trap

Page 25: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-25

Figure 6.9

Page 26: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-26

The Causes of High Fertility in Developing Countries: The Malthusian Model

The Malthusian population trap Criticisms of the Malthusian model

Page 27: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-27

Figure 6.10

Page 28: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-28

Figure 6.11

Page 29: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-29

The Causes of High Fertility in Developing Countries: The Household Model

The microeconomic household theory of fertility

Page 30: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-30

Demand for Children Equation

nxtPPYfC xxcd ,...,1),,,,( Where

Cd is the demand for surviving childrenY is the level of household incomePc is the “net” price of childrenPx is price of all other goodstx is the tastes for goods relative to children

Page 31: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-31

Demand for Children Equation

nxtPPYfC xxcd ,...,1),,,,(

0Y

Cd

0

c

d

P

C

0

x

d

P

C

0

x

d

t

C

Under neoclassical conditions, we would expect:

Page 32: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-32

Figure 6.12

Page 33: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-33

The Causes of High Fertility in Developing Countries: The Household Model

The microeconomic household theory of fertility

The demand for children in developing countries

Some empirical evidence Implications for development and fertility

Page 34: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-34

The Consequences of High Fertility: Some Conflicting Opinions

Population growth isn’t a real problem Overpopulation is a deliberately contrived false

issue Population growth is a desirable phenomenon Population growth is a real problem The empirical argument: the negative

consequences of population growth

Page 35: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-35

Goals and Objectives: Toward a Consensus

Despite the conflicting opinions, there is some common ground

Page 36: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-36

Some Policy Approaches

What can developing countries do?

Page 37: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-37

Table 6.6

Page 38: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-38

Some Policy Approaches

What developing countries can do What the developed countries can do:

resources, population, and the global environment

How developed countries can assist developing countries

Page 39: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-39

Concepts for Review

Birthrate Death rate Demographic transition Doubling time Empowerment of

women Family-planning

programs

Fertility Hidden momentum of

population growth Infant mortality rate Life expectancy at birth Malthusian population

trap

Page 40: Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 Population Growth and Economic Development: Causes, Consequences, and Controversies.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-40

Concepts for Review (cont’d)

Microeconomic theory of fertility

Mortality Natural increase Net international

migration Population-poverty cycle Population pyramid

Positive checks Preventative checks Rate of population

increase Reproductive choice Total fertility rate Youth dependency

ratio