‘Population dividend’ refers toa) total number of populationb) youthf...
Population dividend or Demographic dividend refers to a period - usually 20 to 30 years - when fertility rates fall due to significant reductions in child and infant mortality rates. It occurs when the proportion of working people in the total population is high because this indicates that more people have the potential to be productive and contribute to growth of the economy.
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‘Population dividend’ refers toa) total number of populationb) youthf...
Understanding 'Population Dividend'
The term 'population dividend' refers to the economic growth potential that can result from shifts in a population's age structure. Specifically, it highlights the advantages of having a youthful age structure.
Youthful Age Structure
- A youthful population implies that a larger percentage of individuals are in the working-age group (typically ages 15-64).
- This demographic profile can lead to increased productivity and economic output, as there are more people available to work and contribute to the economy.
Economic Benefits
- With a higher proportion of working-age individuals, countries can experience rapid economic growth due to increased labor supply.
- More workers mean more innovation, greater consumption, and higher tax revenues, which can facilitate investments in infrastructure and social services.
Social Implications
- A youthful population can also lead to enhanced social dynamics, encouraging creativity, entrepreneurship, and social mobility.
- However, it is crucial that there are adequate resources, such as education and healthcare, to support this population and harness its potential.
Challenges
- While the population dividend presents opportunities, it also poses challenges. Countries must ensure that there are sufficient jobs and social support systems to prevent youth unemployment and social unrest.
- If not managed well, this demographic advantage can turn into a demographic burden, leading to issues like increased unemployment and underutilization of the workforce.
In summary, option 'B' accurately describes 'population dividend' as it emphasizes the benefits of a youthful age structure, showcasing its potential to significantly impact economic growth and development when properly harnessed.