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Demographic Dividend Video Lecture | Indian Economy for UPSC CSE
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FAQs on Demographic Dividend Video Lecture - Indian Economy for UPSC CSE
| 1. How does demographic dividend impact a country's economy? |  |
Ans. Demographic dividend refers to the economic growth potential that arises from changes in a population's age structure. When a country experiences a decline in fertility rates and a subsequent increase in the working-age population, it can benefit from a demographic dividend. This demographic shift can lead to increased productivity, higher savings rates, and a boost in economic growth.
| 2. What factors contribute to the demographic dividend? | |
Ans. Several factors contribute to the demographic dividend. Firstly, a decline in fertility rates leads to a decrease in the dependency ratio, meaning that there are fewer dependent individuals (such as children and elderly) relative to the working-age population. Additionally, investments in education and skill development are crucial for harnessing the demographic dividend as a well-educated and skilled workforce can enhance productivity. Lastly, favorable government policies, such as job creation and labor market reforms, can also positively impact the demographic dividend.
| 3. Are all countries able to benefit from a demographic dividend? | |
Ans. Not all countries are able to benefit from a demographic dividend. It primarily depends on how a country manages its population transition. Countries that fail to invest in education, healthcare, and job creation may not be able to fully reap the benefits of a demographic dividend. Additionally, countries with a high proportion of unemployed or underemployed youth may face challenges in harnessing the potential of their working-age population.
| 4. What are the potential challenges associated with the demographic dividend? | |
Ans. While the demographic dividend presents an opportunity for economic growth, it also comes with challenges. One challenge is the need to create enough jobs for the growing working-age population. Failure to provide sufficient employment opportunities can lead to unemployment and social unrest. Additionally, if investments in education and skill development are inadequate, the potential of the demographic dividend may not be fully realized. Furthermore, an aging population can pose challenges in terms of increased healthcare costs and pension obligations.
| 5. Can a country sustain the benefits of a demographic dividend in the long term? | |
Ans. Sustaining the benefits of a demographic dividend in the long term requires careful planning and strategic policies. As the working-age population eventually ages, it is essential to invest in healthcare and social security systems to support the elderly population. Furthermore, continuous investments in education and skill development are necessary to ensure a well-prepared workforce for future economic demands. Additionally, diversifying the economy and promoting innovation can help maintain economic growth beyond the demographic dividend phase.
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Nov 21, 2024 Last updated |
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