Population Growth and Economic Development - 2581 Words

POPULATION GROWTH AND ECONOMIC DEVELOPMENT The consequences of population growth on economic development have attracted the attention of economists ever since Adam smith wrote his Wealth of nations. It was only Malthus and Ricardo who created an alarm about the effect of population growth on the economy. Population and Economic Development However, the consequences of population growth on the development of LDCs are not the same because the conditions prevailing in these countries are quite different from those in the developed economies. These economies are poor, capital scarce and labor abundant. Population growth adversely affects their economic development in the following ways, first faster population growth makes the choice more†¦show more content†¦These have to be imported which accentuate the balance of payments difficulties. Thus growth of population retards agricultural development and creates a number of other problems discussed above. Population and Employment A rapidly increasing population plunges the economy into mass unemployment and underemployment. As population increases the proportion of workers to total population rises. But in the absence of contemporary resources, it is not possible to expand jobs. The result is that with the increase in labor force unemployment and underemployment increase. A rapidly increasing population reduces income, savings, and investment. Thus capital formation is retarded and job opportunities are reduced, thereby increasing unemployment. Population and social Infrastructure Rapidly growing population necessitates large investments in social infrastructure and divers resources from directly productive assets. Due to scarcity of resources, it is not possible to provide educational, health, medical, transport and housing facilities to the entire population. There is overcrowding everywhere. Population and Labor Force The labor force in an economy is the ratio of working population to the total population. Assuming 50 years as the average life expectancy in an underdeveloped country, the labor force is in effect the number of people in the age group 15 – 50 years. During the demographicShow MoreRelatedPopulation Growth and Economic Development1152 Words   |  5 PagesDO LARGE POPULATION A KEY TO ECONOMIC PROGRESS Introduction: Thomas Malthus in his published book â€Å"An Essay on the Principle of Population† claimed that there is a tendency for the population growth rate to surpass the production growth rate because population increases at a geometrical rate while production increases at an arithmetic rate. Thus, the unfettered population growth in a country could plunge it into acute poverty. 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If â€Å"handled wellRead MoreComparing Tokyo And Auckland s Development1569 Words   |  7 Pagesdiscuss Tokyo and Auckland’s development (1880-1930), outlining pressures and opportu nities created by technology advancements and how Tokyo is caused by urbanisation, comparing with Auckland. Tokyo’s population is approximately 13.35million with rapid urban growth. The land area of Tokyo is approximately 2,187km2. Tokyo was first established in 1869. Tokyo was originally named Edo (small fishing village) in early 1800’s. Tokyo was a part of the Musashi Province development. The early-18th century,