What Is Demographic Dividend UPSC?

The term “demographic dividend” refers to the potential for economic gains when the working-age population (1564 years) outnumbers the non-working age group.

When the proportion of working persons in the total population is high, a demographic dividend occurs, indicating that more people have the potential to be productive and contribute to economic progress.

Many feel that there is enormous potential for economic advantages due to the “demographic gift,” which is a dividend between young and old. To achieve economic growth, the younger population must have access to high-quality education, adequate nutrition, and good health, including sexual and reproductive health.

When a country transitions from a rural agrarian economy with high fertility rates to an urban industrialized one with low fertility and death rates, it experiences a demographic dividend. In the context of India, this article discusses the demographic dividend and the opportunities that come with it. Visit the linked link for additional information on the IAS Exam.

What do we mean by demographic dividend?

The demographic dividend is the potential for economic growth that might arise from changes in a population’s age structure, particularly when the working-age population (15 to 64) outnumbers the non-working-age population (14 and younger, and 65 and older).

What is demographic dividend India?

The median age of India’s population is between 28 and 29 years, according to the Population Foundation of India, and over 62 percent of the population is between the ages of 15 and 59. The potential economic growth from such a population structure is known as the demographic dividend. Another process that enables it is the occurrence of dropping fertility rates, which can be seen in the middle stages of a country’s demographic transition. Fertility and death rates are high in the initial stage, but they steadily fall in the latter stages, strengthening the growing workforce. Demographic dividends are realized when the country’s labor productivity and per-capita income rise.

Consider Japan, which, like most first-world countries in the late stages of demographic transition, had a Total Fertility Rate (TFR) below 1.5 in 2020. In Japan, high fertility rates in the 1930s led to a labor force expansion in the 1960s, resulting in rising income. In the 1980s, Japan reaped the benefits of its demographic dividend, becoming a major tech and financial center with the biggest per-capita GNP and the world’s second largest economy.

India has a TFR of roughly 2.2, which is expected to fall in the near future, and is in the midst of a demographic shift. Lower TFR encourages people to invest in their human capital, resulting in higher personal earnings. Individual workers can be more productive than in the past if suitable policies to support productive employment are in place, increasing per-capita income.

What is the importance of demographic dividend?

The demographic dividend has long been regarded as a key driver of economic progress, providing justification for measures aimed at achieving a more balanced age structure through birth control and family planning. Recent research has argued that the demographic dividend is tied to education and that enhancing education has a dominance over age structure when assessing the relative impact of age structure and improvements in human capital. For a panel of 159 nations from 1950 to 2015, we revisit the empirical relevance of shifts in the age distribution for development. The findings, which are based on a flexible model of age-structured human capital endowments, show significant interactions between age structure and human capital endowments, implying that arguments emphasizing education’s clear dominance over age structure are unwarranted and may lead to potentially misleading policy conclusions. In keeping with the common notion of a demographic dividend, an increase in the working-age population share has a large and considerable positive influence on growth, even if it is conditional on human capital. Only when combined with a right age structure does an increase in human capital have beneficial growth benefits. An increase in the number of people in the most productive age groups has a beneficial impact on economic performance. Finally, the findings reveal significant variation in the impact of age structure and human capital at various stages of development. To avoid the negative consequences of a one-dimensional focus on human capital without accounting for demography, successful programs for sustainable development should take this variation into account.

What is demographic transition Upsc?

You must read the three population growth theories in Geography Optional.

The relationship between economic progress and population expansion is studied by the demographic transition theory. It examines changes in the birth and death rates, as well as the population growth rate, in relation to the growth and development process. It’s also used to characterize and forecast a region’s future population.

According to the hypothesis, as society evolves from rural agrarian and illiterate to urban industrial and literate civilization, the population of any region changes from high births and high deaths to low births and low deaths.

These transformations take place in stages, which are referred to as the demographic cycle. In relation to the status of economic development, there are four stages of demographic transition.

“Demographic transition” is defined as a population cycle that begins with a decrease in the mortality rate, progresses through a period of fast population increase, and ends with a decrease in the birth rate, according to E.G. Dolan.

What is demographic dividend Class 12th?

Demography is the systematic study of a country’s, region’s, or community’s population. Demos (people) and graphein (graph) are two Greek words that make up the phrase (describe).
Demography is the study of population trends and processes, such as changes in population number, birth, death, and migration patterns, and population structure and composition, such as the relative proportions of women, men, and different age groups.
Formal Demography is a statistical analysis of the population, including the total population, the number of males and females, the number of youth, the working population, and the rural-urban divide (quantitative data)
Birth rate, mortality rate, and migration rates in a given society are all examples of social demography.
All demographic studies are based on counting or enumeration processes such as censuses or surveys that include the systematic collecting of data on the individuals who live within a given territory.
Demography played a significant role in the creation of sociology and its successful institutionalization as an academic field.
During the second part of the eighteenth century, two distinct phenomena occurred in Europe at roughly the same time: the emergence of nation-states as the primary form of political organization, and the beginnings of the modern science of statistics.
The contemporary state had begun to broaden its responsibilities and roles. For example, it had begun to take an active interest in the development of early forms of public health management, policing and maintaining law and order, agricultural and industrial economic strategies, taxation and revenue production, and city governance.
Demographic data are critical for the formulation and execution of governmental policies, particularly those aimed at promoting economic development and general well-being.
When they first appeared, social data also served as a compelling argument for the nascent study of sociology. Aggregate statistics, or numerical features that refer to a big collectivity of millions of individuals, provide a real and compelling explanation for social phenomena’ existence.
Separation of formal demography from the broader area of population studies (social demography)
Formal demography is concerned with the measurement and analysis of population change components. Its primary focus is quantitative analysis, for which it has developed a sophisticated statistical system for estimating population increase and changes in population composition.
Population studies, often known as social demography, investigates the broader causes and effects of population structure and change. Social demographers think that social processes and structures govern demographic processes, and they, like sociologists, are interested in tracing the social causes of population patterns.
He said that the rate at which human populations develop outpaces the rate at which human subsistence resources (mostly food, but also clothes and other agriculture-based products) can grow. As a result, humanity is doomed to live in poverty for the rest of its existence.
While population grows in a geometric (i.e., 2, 4, 8, 16, 32, etc.) pattern, agricultural productivity can only expand in an arithmetic pattern (i.e., like 2, 4, 6, 8, 10 etc.).
Controlling population growth is the only way to increase prosperity. Positive check and preventive check are two methods he identified for reducing population expansion. Positive check: Natural calamities result in a large number of deaths, and the population is naturally regulated. Nature will take care of you if you don’t, for example, earthquakes and tsunamis. Man-made preventive measures include late marriage, celibacy, contraception, and so on.
Theorists criticized Malthu’s argument, claiming that economic expansion may outpace population growth.
The historical experience of European countries supplied the most convincing rejection of his theory.
In the second half of the nineteenth century, the pattern of population growth began to shift, and by the end of the first quarter of the twentieth century, these shifts had become rather significant.
Birth rates had decreased, and pandemic illness outbreaks had been contained.
Despite the rapid growth of population, food production and living standards continued to climb, proving Malthus’ predictions incorrect.
Malthus was also chastised by liberal and Marxist scholars for claiming that population expansion was the source of poverty.
Poverty and starvation, opponents maintained, were caused by an unfair allocation of economic resources rather than by population expansion.
A social system that was inequitable permitted an affluent and privileged minority to live in luxury while the vast mass of the population was forced to live in poverty.
Every community follows a similar pattern of development-related population increase, and population growth is linked to overall levels of economic development.

1. Developing Countries in the Primitive Stage (Africa).

2. Developing countries (India, Pakistan) are in the second stage of their transition from underdeveloped to developed.

3. Countries in the Third Stage of Development (USA, UK).

Countries that are underdeveloped (stage 1)

Because people are uneducated and uninformed of the benefits of having small families, the birth rate is high.
The death rate is also high due to a lack of health and medical facilities. As a result, the population is small.
The birth rate is high because we live in a patriarchal society where males pick how many children to have and prefer male children.
Because health and medical services are available, the death rate is also low. As a result, the population is high, resulting in a population explosion.
When the working population grows faster than the nonworking population, a Demographic Dividend occurs.
The birth rate is low, people are well-informed and aware of contraception, and birth control is widely used.
Because of the abundance of health and medical services, the death rate is also low. As a result, the population is small.

Population explosion occurs when a country’s birth rate is high and its death rate is low due to the availability of health and medical services.

Death Rate: The number of deaths per 1,000 people. Also known as the mortality rate.
Natural growth rate: The difference between the birth and mortality rates in a given area.
Replacement is the same at the zero level. The term “stabilized level” refers to when the same number of people replace the same number of older generations (parents replaced by 2 children).
Level of negativity: The number of persons replacing the older generation is decreasing (parents replaced by child).
The elder generation is being replaced by a larger number of people, resulting in a population explosion. The working population outnumbers the dependents.
Fertility Rate: The number of live births per thousand women between the ages of 15 and 49.
Total Fertility Rate: The number of women in a certain location who give birth to children at a given age (15-49 yrs)
Infant Mortality Rate: Per thousand live births, the number of infants that died before reaching the age of one.
Maternal Mortality Rate (MMR) is the number of women who die during childbirth per 1,000 people.
Life expectancy rate: The number of years a person is anticipated to live based on statistics may be affected by their health, race, sex, age, or other demographic characteristics.
Age structure: The population’s age distribution (in India, 0-15 years = youth, 15-65 years = working population, and over 64 years = dependent population).
The amount of persons who are not working and rely on the working population is known as the dependency ratio. The proportion of those who are dependent on others to those who work is higher.
Demographic Dividend: When a country’s working population exceeds its dependent/nonworking population. Positive: The country’s economic growth, albeit in a transitory phase.
India’s population is incredibly large today, but it has not always been thus. There has been a lot of ups and downs in terms of growth.
Epidemics are diseases that spread widely and afflict thousands of individuals over a big area.

During World War II, for example, the Spanish influenza virus spread widely. The neck and cavity are affected, and you choke and die as a result. It is thought to have killed more people than any other conflict.

Because: I sanitary conditions were poor, it spreads quickly and is contagious.

(iii) Soldiers distribute it from one location to another; (iv) chemical explosions/fumes in the air.

In India, epidemics such as swine flu, chickenguniya, plague, malaria, and other diseases still exist.

1. Natural: a lot of rain, no rain, or a drought.

2.Man-made: overuse of pesticides and fertilizers, lack of transportation and communication infrastructure, government grain distribution is insufficient, and effective preventive measures should be done.

Amartya Sen, Ph.D. “A famine may not be caused by a lack of food grain, but it could be caused by inefficient distribution, entitlement failure, and people’s incapacity to buy or otherwise obtain food.”

I Improving transportation and communities to ensure efficient distribution of food grains.

(ii) Despite variable quantities of rainfall, the Green Revolution has improved the supply of food grains.

(iii) Medical facilities- When a region suffers from famine, the government takes precautions and measures to ensure that the people are provided with assistance.

NREGA-National Rural Employment Guarantee Act: Ensures that everyone is employed so that if a famine occurs, they can relocate and purchase food.

– A population explosion occurs when the birth rate is high and the death rate is low.

Uttar Pradesh has a very high replacement rate (4:1), which could indicate a healthy expansion in the youth population.
Kerala, Uttar Pradesh, Bihar, Rajasthan, and Madhya Pradesh are among the states that make up Tamil Nadu, Karnataka, Himachal Pradesh, West Bengal, Kerala, Uttar Pradesh, Bihar, Rajasthan, and Madhya Pradesh (Mostly northern states due to desire for male child).
Working population is higher than non-working population. Demographic Dividend: Working population is higher than non-working population.
Kerala: A good age structure, an increase in the working population, and a high literacy rate, so people are well-informed about economic growth.
Uttar Pradesh has a growing working population due to a large working young population and a shrinking elderly population.

Advantage: The current working population is considerable, and the elderly population is small.

Female infanticide is at an all-time high in prosperous regions like Punjab and Haryana, and there is a lot of burning because of it.

People only want 2 or 3 boys, so when they obtain a girl, they kill her and have a child.

The Prenatal Diagnostic Technique Act/Regulation and Prevention of Misuse Act was enacted in 1996 and became law in 2003.
Kerala has the highest literacy rate, whereas Rajasthan and the northern states have the lowest.

(ii) Social Group: Families with greater incomes had higher literacy levels than those with lower incomes. Reservation for SCs and STs is one way the government is attempting to close the gap.

(iii) Regions: Kerala has a high literacy rate, whilst Rajasthan and Bihar have a low literacy rate.

There is a migration from rural to urban areas due to increased work prospects and other factors.
Despite the fact that agriculture is the primary economic activity in rural areas, there are several non-agricultural industries such as post offices, teaching, small enterprises, transportation, and communication.

One of the causes of migration from rural to urban is a lack of awareness of the metropolitan region by the rural population.

Many of the rural areas’ resources are being taken away. I’m thinking of things like rivers drying up.

Megapolis: A city with infrastructure and suburbs, such as the National Capital Region (NCR).
It attempted to affect population growth rates and patterns in a socially desirable manner.

The population should be regulated, and awareness should be transmitted in a socially acceptable manner.

During Indira Gandhi’s emergency in 1975-76, all essential rights were taken away. The media was censored.

Sanjay Gandhi, the younger son of India’s then-prime leader, Mrs. Indira Gandhi, initiated a mass sterilization scheme to regulate the population.

Tubectomy for women and vasectomy for men were performed in an unplanned manner in this study.

The mass sterilization camp put all government teachers and doctors under a lot of stress.

People could only be sterilized if they agreed to it and signed a document stating so.

How do you use demographic dividends?

While child survival rates have improved in most nations, birth rates remain high in many of them, particularly in developing countries. As a result, these countries rarely profit from the so-called demographic dividend.

Demographic dividends are events that occur in a country that has seen rapid economic growth as a result of lower fertility and mortality rates. When a country has low birth rates and low mortality rates, it earns an economic dividend or gain from the increased productivity of the working population that results. The number of young dependents grows reduced in relation to the working population as fewer births are registered. With fewer people to support and more people in the work force, an economy’s resources are freed up and invested in other sectors, accelerating a country’s economic progress and the population’s future prosperity.

A country must move from a predominantly rural agrarian economy with high fertility and mortality rates to an urban industrial society with low fertility and mortality rates in order to receive a demographic dividend. Fertility rates fall in the early phases of this transition, resulting in a labor force that grows faster than the population depending on it. If all other factors remain constant, per capita income rises at a faster rate over this period. This economic gain is a country’s first dividend after going through the demographic transition.

What is demographic dividend PDF?

The term “demographic dividend” (DD) refers to the faster economic growth that a country can accomplish when it has a low dependency ratio, or when the proportion of its population that is working age is greater than the proportion that is not (e.g. children and the elderly)

Why India is regarded as a country with demographic dividend?

India is considered to have a “Demographic Dividend.” This is because. It has a large population of people under the age of 15. It has a large population of people between the ages of 15 and 64.

What is the first demographic dividend?

Demographic dividends deserve a lot of attention in talks on how population dynamics affect a country’s economy.

The first dividend happens as a result of the demographic transition, when the working-age population grows as a percentage of the total population and the percentage of young and old dependents drops.

Is demographic dividend boon or bane for India?

The demographic dividend will benefit India greatly if the country’s expanding working-age population can find productive jobs with reasonable pay. As a result, it will accelerate its economic and social development, similar to China.

There are various indications that this could happen. The democratic system in India is well-established. It has now overtaken the United States as the world’s fastest expanding economy. In 2018, foreign direct investment reached a new high of S$40 billion. During the last two decades, every major global corporation trying to expand has looked to India in some fashion.

What is population demographic?

Demography, in its broadest sense, is the study of population characteristics. It gives a mathematical representation of how certain traits develop over time. Any statistical component that influences population growth or decline can be included in demographics, although six characteristics are particularly important: population size, density, age structure, fecundity (birth rates), mortality (death rates), and the sex ratio (Dodge 2006). We’ll go over each of them one by one.