demographic trends and implications for development
TRANSCRIPT
Demographic Trends and
Implications for Development
John Bongaarts
Population Council
Outline
• Background: population growth and fertility
• Consequences of demographic trends
• Policy options
Population growth rates 2005-2010
-2
-1
0
1
2
3
4
0 2 4 6 8Gro
wth
rate
(%)
Births per woman
Population growth by fertility level
1.High fertility/growth
2. Intermediate fertility/growth
3. Low fertility/growth
Group 1
Demographic consequences of high fertility
• Rapid population growth
• Young age structure
0
20
40
60
80
100%
of p
opul
atio
n
Population by age (<25,>25)Age
>25
<25
0
2
4
6
8
10
12
1950 1975 2000 2025 2050
Rat
io (1
950=
1)
Youth (15-25) by country
Nigeria
Pakistan
India
China
Group1: Consequences of High fertility and rapid population growth
• Governmental: Lagging investment in education, health services and infrastructure
• Economic: Low wages, unemployment, poverty
• Environmental: Depletion of natural resources, pollution
• Political: Rising political unrest and crime
• Health: High maternal and child mortality
Group 2: Intermediate/ declining fertility
• Declining population growth rates
• Fewer young people, more workers
• Demographic dividend
Population by age: Mexico
Demographic Dividend:
Boosts growth in GDP/cap by raising
1) Relative size of workforce
2) Women’s participation in paid labor force
3) Investments in human and physical capital
30
40
50
60
70
1950 1975 2000 2025 2050
% o
f pop
ulat
ion
Working age population (%)
Developed world
Demographic Dividend
Developing world
1950 1975 2000 2025 2050
-%
Gro
wth
rate
GD
P/ca
p
+
Impact of demographic dividend on economic growth rate (GDP/cap)
Developing world
Developed world
Group 2: Consequences of Intermediate/declining fertility
• Governmental: Large investments in education, health services and infrastructure
• Economic: Demographic dividend
• Environmental: Depletion of natural resources, air, water and soil pollution
• Political: Inequality and disaffected voters
• Health: Declining maternal and child mortality
Group 3: Low fertility
• Near zero or negative population growth rates
• Rapid population aging
Population by age: Italy
0
0.2
0.4
0.6
0.8
1
1.2
1975 2000 2025 2050
Retirees/Worker
ItalySpainGermanyJapanFranceCanadaUKChinaUSA
0
0.2
0.4
0.6
0.8
1
1.2
1975 2000 2025 2050
Rat
ioPop 65+/Pop 20-64
Japan
Italy
Spain
Germany
France
Canada
China
UK
USA
Group 3: Consequences of low fertility
• Economic
Unsustainable health and pension costsRising governmental budget deficits
• Political Rising voting power of the elderly
Slower economic growth Slower growth in GDP/capSlower growth in worker productivity (?)
• Governmental
A. High fertility countries
B. Very low fertility countries
Policy options :
• Family planning programs to reduce
unplanned pregnancies
• Investments in human capital (e.g. girls
education)
• Delay childbearing
A. Policy options in high fertility countries:
B. Policy options in aging societies
Demographic optionsEncourage childbearing; permit more immigration.
Pension system options Reduce benefits; raise contributions; raise age at
eligibility; encourage private savings.
Labor force optionsEncourage higher labor force participation
and later age at retirement.
Conclusions
• Very high and very low fertility have net adverse effects
• Declining high fertility brings multiple benefits for human welfare and the environment
• Policies are available to maximize positive effects and minimize negative effects