why is population consider as the most important aspects for development? Give reasons
Answers
Answer:
Population can be a limiting factor to economic development because of the following reasons:
1. Population reduces the Rate of Capital Formation:
In underdeveloped countries, the composition of population is determined to increase capital formation. Due to higher birth rate and low expectation of life in these countries, the percentage of dependents is very high. Nearly 40 to 50 per cent of the population is in the non-productive age group which simply consumes and does not produce anything.
2. Higher Rate of Population requires more Investment:
In economically backward countries, investment requirements are beyond its investing capacity. A rapidly growing population increases the requirements of demographic investment which at the same time reduces the capacity of the people to save.
3. It reduces per Capita Availability of Capital:
The large size of population also reduces per capita availability of capital in less developed countries. This is true in respect of underdeveloped countries where capital is scarce and its supply is inelastic. A rapidly growing population leads to a progressive decline in the availability of capital per worker. This further leads to lower productivity and diminishing returns.
4. Adverse Effect on per Capital Income:
Rapid growth of population directly effects per capita income in an economy. Up to ‘income optimizing level’, the growth of population increases per capita income but beyond that it necessarily lowers the same. In a sense, so long as the rate of population growth is lower than the per capita income, rate of economic growth will rise but if population growth exceeds the rate of economic growth, usually found in the case of less developed countries, per capita income must fall.
5. Large Population creates the Problem of Unemployment:
A fast growth in population means a large number of persons coming to the labour market for whom it may not be possible to provide employment. In fact, in underdeveloped countries, the number of job seekers is expanding so fast that despite all efforts towards planned development, it has not been possible to provide employment to all. Unemployment, underemployment and disguised employment are common features in these countries. The rapidly rising population makes it almost impossible for economically backward countries to solve their problem of unemployment.
6. Rapid Population Growth creates Food Problem:
Increased population means more mouths to feed which, in turn, creates pressure upon available stock of food. This is the reason, the under-developed countries with rapid growing population are generally faced with a problem of food shortage. Despite all their efforts for raising agricultural production, they are not able to feed their growing population.
Answer:
Population can be a limiting factor to economic development because of the following reasons: 1. ... In underdeveloped countries, the composition of population is determined to increase capital formation. Due to higher birth rate and low expectation of life in these countries, the percentage of dependents is very high.