population promote economic development

POPULATION GROWTH PROMOTES ECONOMIC DEVELOPMENT

PRESENTATION BY YASSER POSWAL

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 population. To determine whether there has been population growth, the following formula is used: (birth rate + immigration) - (death rate + emigration). 

World bank

WHAT IS ECONOMIC DEVELOPMENT Economic development is referred to as the

quantitative and qualitative changes in an existing economy.

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 IndiaPopulation 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. FERTILITY

MORTALITY

MIGRATION These three components are precisely measured to calculate the magnitude of change in population

How Population leads to Economic GrowthIncrease 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 economy.Large Market: 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 Health: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 and science.

Increased Innovation: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 ConsumeLarge population creates more consumption which leads multiplier effect on economic growth

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In nutshell population growth:attracting investors and multinational companies. 

stimulating investment in knowledge.

generating more new ideas which improve productivity.

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 effective people

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 and services.

increased national savings  

What happens if population growth declines

Population age pyramids of INDIA and UNITED STATES

Lewis Model of Development with Surplus Labour:

Lewis Model of Development with Surplus Labour:

CONCLUSION:-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.

Thank You

. Myth: As long as there is no social security system, people will have many children to support them in their old age.

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)