Demographic Dividend Flashcards
Dependency ratio
Shows how many young people (under16) and older people (over67) depend on people of working age (16-64)
Working age earn money and pay taxes.
Now do you work out dependency ratio
%under 15 + % over 65
Divide that by
Working age population 15-64
Multiply by 100
The higher the dependency ratio ?
The more people who aren’t paying taxes and need looking after.
Less working population
How does working age depend in different counties?
In HIC you start work later on in life due to education.
May have part time job but don’t pay tax
Finish work earlier have pension
This may not apply to LICs
What is the dependency ratio like in uk?
For every 100 people working 59 are dependent on their earning.
It’s currently falling as in 2007 it was 60.68
More elderly dependents then Young depends
What are 3 problems of comparing dependency ratio data?
Differing retirement age
Age at which children work (LICs younger)
Productive of 65+ (LICs don’t have pensions)
What is the demographic dividend ?
Accelerated economic growth that may result from a decline in country’s birth and death rates and the subsequent change in age structure of population.
Fewer births each year = decline in young dependent population in relation to working population.
What does the population need to be to benefit from demographic dividend?
Good infrastructure
Healthy
Educated - attract investment. Financially stable. More women join work force
Good social and economic policies
Low fertility and child mortality rates
Need rich natural resources base to support growing demand eg China
How to countries create sustainably low fertility rates and infant mortality rates?
child survival and health programmes.
Family planning.
Reproductive health
Education - especially for girls
Which countries has the demographic dividend benefitted ?
Asia
Latin America
China
Thailand
Challenges of reaching demographic dividend?
Poor education
Lack of transparency/ democracy in government.
War
All of which will deter investment and lack of employment and emigration of young people
Family planning on LICs
1/4 women in developing countries want to avoid becoming pregnant / delay / Space births out but most not using family planning method.
They account for more than 80% of unintended pregnancies.
If women can chosen when and how often to become pregnant they’re more likely to have less children
Disadvantages of dividend
Boost in productivity creates extra demand for economy and may cause environmental degradation and pressure on natural resources.
Bulge will form ageing population eventually - pressure on health care
One time opportunity for most countries
Second demographic dividend
During stage4 more elderly dependents and a smaller working pop.
Ageing pop demands people work later in life. During long working life people built up assets eg house and saving and they can be used to support retirement.
2nd dividend transforms national wealth into personal wealth.
What happened in 2012 that helped the second dividend v
Work place pension
Every employer must provide private pension to top us stat pension
Government hopes it will encourage people to save more for retirement
