Lecture 5 - Population Growth and Economic Development ECF 600 – UNILUS – Stage 2 Overview Historical Growth of World Population Structure of World Population Demographic Transition Causes of High Fertility Consequences of High Fertility Theoretical Perspectives Some Policy Approaches Lessons from China and India Changing role of women in development How Big is Big-Population Debate China and New Zealand China Population 1.3 billion 20 percent of world population Chinese Leader Mao Zedong How Big is Big-Population Debate China and New Zealand China Population 1.3 billion 20 percent of world population In 1949 China pop was 540 mil to 940 mil in 1976 Chinese Leader Mao Zedong In 1965 he encouraged Chinese to have more children as this increases power of a country. This prevented the rise and introduction of family planning. The Increase of Population In China led to problems Detrimental Living Conditions Pollution Degradation resources of land and Post Mao Zedong Era After Maos death in 1976, his successors saw that population growth consumed more than half of the yearly increase of China’s GDP. It was then that China introduced the two child per family policy Introduction of One Child Policy The one-child policy was a program in China that was implemented nationwide by the Chinese government in 1980 in order to limit most Chinese families to one child each. The policy was enacted to address the growth rate of the country’s population, which the government viewed as being too rapid. Architect of Modern China Deng Xiaoping was a Chinese politician who was the paramount leader of the People's Republic of China from 1978 until his retirement in 1992. After Chairman Mao Zedong's death in 1976, Deng gradually rose to power and led China through a series of far-reaching marketeconomy reforms, which earned him the reputation as the "Architect of Modern China. The central issues of our time is how the world addresses the problem of ever expanding numbers. Economic development may be far from the best contraceptive but social development, especially women’s education and employment can be very effective indeed. Amartya Sen –Nobel Prize Lauraete At the current levels of economic growth- do Developing countries have the capacity to improve the levels of living for their people How will DCs cope with vast increases in labour forces ? What are the implications for population growth on poverty Will DCs have the capacity to extend health and education coverage to everyone Is there a relationship between poverty and family size Is pursuance of affluence by the rich more detrimental in raising the living standards for the poor. Rate of Population Increase The growth rate of a population is calculated as the natural increase after adjusting for immigration and emigration Natural Increase This is the difference between the birth rate and the death rate Crude birth Rate The number of Children born alive each year per 1,000 population Death Rate The number of deaths each year per 1000 population Total Fertility Rate The number of children that would be born to a woman if she were to live to the end of her child bearing years and bear child in accordance with prevailing age specific fertility rates. Life Expectancy at birth The number of years a newborn child would live if subject to the mortality risks prevailing for the population at the time of the child’s birth Population Pyramid A graphic depiction of the age structure of the population with age cohorts plotted on the vertical axis and either population shares or numbers of males and females in each cohort on the horizontal axis. Development vs population growth Population growth and impact on labour markets Implication of pop growth on poverty Ability to improve access to Health & Education Relationship between Poverty and Family Size Bridging the gap between the rich and poor of poverty. • Past and Current population growth are very different every second, on average 4 or 5 five children are born, somewhere on the earth , in that same second, two other people die • • • • • World Population approaching 7 billion 12,000 years ago Pop was 5 million Most population growth in developing countries World Pop growth rate stands at historically high rate of 1.1 per year Projections for 2050 are that world population may reach 2050 18,217,013 est.) estimates for this country explicitly take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality, higher death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected This is the population pyramid for Zambia. A population pyramid illustrates the age and sex structure of a country's population and may provide insights about political and social stability, as well as economic development. Current Population -13,046,508 Annual pop growth rate is 2.8 percent Population density presently stands at 17.3 persons per square kilometer Lusaka Province has highest density at 100.4 from 63.5 in 2000 Copperbelt Pop density is 62.5 from 50.5 persons per square km Western Province has lowest increase from 6.1 persons in 2000 to 7.0 persons per sq km. Lusaka Province has highest pop at 2,198,996. Lusaka Province has an average growth rate of 4.7 percent Copperbelt is second highest at 1,958,623. The annual growth rate is 2.2 percent Western province has a pop of 881,524 with an annual growth rate of 1.4 percent N/Western has lowest population at 706,462. The annual growth rate is 1.9 percent Population growth rates by Province Copperbelt increased from 0.8 to 2.2 Eastern from 2.6 to 2.7 Lusaka from from 3.4 to 4.7 Northern from 3.1 to 3.4 Southern from 2.3 to 2.9 Central, Luapula, N/Western, Western registered a decline in pop growth rates over the period 2000-2010 Definition: Demographic transition refers to the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system. This is typically demonstrated through a demographic transition model. ... The three stages of modern Population History Stage 1 : High Birth Rates and High death rates Stage 2 – Marks beginning of Demographic Transition : improvements in public health, healthier diets led to reduction in mortality, raised life expectancy and decline in death rates was not accompanied by decline in fertility. This led to sharp increases inn population Stage 3 – This was when modernization and development caused the beginning of a decline in fertility, falling birth rates and this converged with lower death rates leaving little or no population growth. Stage 1 Stage 2 Stage 3 Stage 4 Death rates and birth rates are high and are roughly in balance. Death rates drop rapidly due to improvements in food supply and sanitation, which increases life spans and reduces diseases. Without a corresponding fall in birth rates, the countries in this stage experience a large increase in population. Birth rates fall due to access to contraception, increases in wages, urbanization, an increase in the status and education of women, and other social changes. Population growth begins to level off. Birth rates and death rates are both low. Birth rates may drop below replacement level, leading to a shrinking population. Death rates may remain consistently low or increase slightly due to increases in lifestyle diseases due to low exercise levels and high obesity. The Economic Theory of fertility assumes that the household demand for children is determined by family preferences for a certain number of surviving children The effect of social and economic progress in lowering fertility in developing countries will be the greatest when the majority of the population and especially the very poor share in its benefits I. Population Growth is not the Problem, instead the following four (4) issues are what needs to be addressed: (a) Underdevelopment (b) World Resource Depletion and Environmental Destruction (c) Population Distribution (d) Subordination of Women • - Its a deliberately Contrived False Issue Linked to neo-colonial dependence theory of underdevelopment That population control efforts by rich nations are deemed racist to reduce the relative of the poor who may pose a threat to the welfare of the rich Its a desirable Phenomenon (a) Population growth stimulates economic development (b) That many rural regions in developing economies are under-populated and much of the arable land could yield large increase in agricultural output if only more people were available to cultivate it. Population poverty cycles theory is the main argument advanced by economists who hold that too rapid population growth yields negative economic consequences and thus should be a real concern for developing countries The basic Model used is a simplification of the standard Solow Type Neoclassical growth equation Y = f ( K, L, R, T) Standard Production function that output is a function of capital, labor, resources and technology) Potential negative Consequences can be divided into seven (7) categories and its impact on the following:- : 1. Economic Growth 2. Poverty and Inequality] 3. Education 4. Health 5. Food 6. Environment 7. International Population Growth is not the primary cause of low levels of living The problem of population is not simply one of numbers but involves the quality of life and material well being Rapid Population growth does serve to intensify problem of underdevelopment and makes prospects for development that much more remote. 1. 2. 3. 4. 5. What Developing Countries Can do Advocate for smaller families Enhance family planning programs Remove incentives for having children Legislate for smaller families through coercion Raise social status of women and create conditions for delayed marriage and lower fertility rates Population Growth and Economic Development , , Lacker, C P B UNFPA, (1992) Statement on Population Growth and Economic Development Bloom D E, (1987) Economic development and the timing and components of population growth Coast E (2002) Population Trends in developing countries Bloom D and Freeman (1997) Demographic Transition and Economic miracles in emerging Asia World Demographic and Ageing Forum – (wdaforum.org or www.wdaassociation.org Population Issues (1999) – Population and Sustainable Development Trang P, Hieu T, (2011) Effects of Population Growth on Economic Growth in Asian developing Countries UNFPA, (2002) Macroeconomics, Poverty, Population and Development