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ISSUES RELATING POPULATION GROWTH TO ECONOMIC DEVELOPMENT

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Jemaica Sanota

on 3 October 2013

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Transcript of ISSUES RELATING POPULATION GROWTH TO ECONOMIC DEVELOPMENT

ISSUES RELATING POPULATION GROWTH TO ECONOMIC DEVELOPMENT
GROUP 2
SANOTA, JEMAICA
SEGISMUNDO, MADS
DOMINGUEZ, JASCA
RAMOS, MA. CELINA
SUCGANG, FRINCES
POTOT, NAZARENO
PRESENTE, JHON
MARAMAG, GRACE
ISSUES RELATING POPULATION GROWTH TO ECONOMIC DEVELOPMENT
In This Chapter:
1. We examine many of the issues relating population growth to economic development.
2. We present some well-known economic models and hypotheses regarding the causes and consequences of rapid population growth in contemporary LDCs.
3. We evaluate a range of alternative policy options that developing countries may wish to adopt to influence the size and growth of their population, as well as the industrialized countries can contribute to more manageable global population and resource environment.
World Population
August 7, 2013
7, 161, 570,333
Philippine Population
August 7, 2013
98, 651, 005
Births this year
1, 436, 583
Deaths this year
284,595
The Demographic Transition
The Causes of High Fertility in Developing Countries:
The Malthusian population trap
Population grows at a geometric rate and food supplies expand at an arithmetic rate.
Per capita incomes would fall to the subsistence level
The Malthusian population trap
Countries would be trapped in low per-capita incomes (per capita food), and population would stabilize at a subsistence level
Criticisms:
•Assumes decreasing returns to scale

•Assumes relation between population growth rate and levels of per capita incomes

•Focus on the wrong variable- percapita income
The Micro economic Household Theory of Fertility
Causes of High Fertility in Developing Countries
•Individual or family decision making is the principal determinant of family size
The interplay between microeconomic determinants of family fertility are understood using theory of consumer choice
Fertility decisions (family size) are taken at the microeconomic level by households. It is a rational economic decision of “demand for children.”
Why are there so many children in poor households?
Children are an “economic investment” rather than a “consumption good”
The “expected return of the investment” is given by child labor and financial support for parents in old age
In developing countries, parents have children up to the point at which marginal economic benefit = marginal private cost
A Review of the Numbers:
Population Growth—Past, Present, and Future
Population is not a real problem.
The consequences of high fertility
Some conflicting opinions
The problem is not population growth but other issues.
Population growth is a false issue deliberately created by dominant rich country agencies and institutions to keep LDCs in there underdeveloped, dependent condition
For many developing countries and regions, population growth is in fact desirable
Underdevelopment
World Resource Depletion and Environmental Destruction
Population Distribution
Views on population and economic development
Pessimist view
Population growth restricts economic growth
Underdevelopment
Resource depletion and environmental degradation
Population distribution
Neutralist view
No statistical relationship between population and economic growth.
Economic growth
Poverty and Inequality
Education
Health
Food
Environment
International migration
Negative consequences of population growth on:
Population growth promotes economic growth
Optimist view
Population is not the problem but the following are:
Population growth is independent of economic growth
Toward a Consensus
Goals and Objectives:
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?
Developing countries can take advantage of the demographic dividend.


To bring about smaller families through development-induced motivations,
family-planning programs providing both the education and the technological means
to regulate fertility for people who wish to regulate it
should be established.
In countries or regions where population size, distribution, and growth are viewed as an existing or potential problem, the
primary objective
of any strategy to limit further growth
must deal
not only with the population variable per se but also
with the underlying social and economic conditions of underdevelopment.
Developed countries should assist developing countries by:
providing curtailing their own excessive depletion of nonrenewable world resources
making genuine commitments to eradicating poverty, illiteracy, disease, and malnutrition in developing countries as well as their own
recognizing in both their rhetoric and their international economic and social dealings that development is the real issue, mot simply population control.
Stage I:

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

Falling birthrates and death rates, eventually stabilizing
Policies aim:
Eliminating absolute poverty
Lessen income inequalities
Expanding educational opportunities especially for women
Increasing job opportunities
Public health program
Improving maternal and child health (more food, better diets
Improved nutrition so as to infant mortality.

Specific policies to lower birthrates in the short run.
Persuade people to have smaller families
Establish family-planning programs
Manipulate economic incentives and disincentives
To coerce people
Raise the social and economic status of women

Simplify their own consumption demands and lifestyles.
Liberalize the legal conditions for the international immigration of poor, unskilled workers and their families from Africa, Asia, and Latin America to North America, Europe, Japan and Australia.

Willingness of the developed countries to help developing countries.
Genuine assistance not only expanded public and private financial assistance but also improved trade relations.
Whole area of research into the technology of the fertility control.
Financial assistance from developed countries for family-planning programs, public education and national population policy research activities in the developing countries.
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