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AE 12 Lesson 6 7

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13 views36 pages

AE 12 Lesson 6 7

Uploaded by

angelicadavid1504
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Lesson 6:

Population Growth and


Economic Development: Causes,
Consequences, and
Controversies
AE 12 - BSA 1
Contents of this Lesson

I. Argument:
 Population is a serious problem in developing
countries?
II. Theories:
1. Demographic transition
2. Malthusian model
3. Microeconomic theory of fertility
III. Facts:
 Some empirical evidences
IV. Policies:
 What can developing countries do?
1.1 Population Growth Is A Problem!
1. Population and the Global Crisis
• Poverty, low levels of living, malnutrition, ill health, environmental degradation,
etc.
2. Population-poverty cycles
• Population growth, saving, per capita income growth
3. 7 Negatives
• Lower Y per head
• Poor people bear burden of population growth
• Large population limits educational opportunities
• Health of women is harmed
• Family food is limited
• Environmental degradation occurs
• Illegal international migration and over urbanization
1.2 Population Growth Isn’t A Problem!
1. Other Issues
• Underdevelopment
• Resource Depletion and Environmental Destruction
• Population Distribution
• Subordination of Women
2. False Issue
• Neocolonial dependence theory
3. Desirable
• Consumer Demand
• Economies of Scale
• Labor Supply (sufficient-low cost)
• Non-economic reasons
2.2 The Malthusian Model
Malthus predicted that natural
population growth would
inevitably outpace agricultural
output, ultimately resulting in
famine and other catastrophes
until the population was reduced
below a sustainable level.

https://www.investopedia.com/terms/t/thomas-malth
us.asp#:~:text=Malthus%20predicted%20that%20n
atural%20population,reduced%20below%20a%20su
stainable%20level
.
Criticisms of Malthus’ model

the theory only addressed


population issues related to
his home country of
England. the theory was
rooted in racist ideologies
related to England's
imperialist foreign policy.
Malthus failed to anticipate
the development of new
technologies that would
decrease food insecurity.
2.3 The Household Model
Gary Becker's fertility theory holds that with
higher income people would purchase more
children, the people behaving as they would
in purchasing consumer durables. However,
higher income groups frequently have fewer
children. Becker says that higher income
families want high-quality children who are
more expensive.
MICROECONOMIC THEORY OF
FERTILITY
The microeconomic theory of fertility offers a contribution to the
understanding of fertility in two ways:
1. the first is the theoretical-methodological standpoint that birth
is the outcome of decision making on the level of the
individual, along with their maximizational behavior;
2. the second is the involvement of economic variables among the
factors which explain births.
MICORECONOMIC THEORY IN FERTILITY
Empirical Evidences
Empirical Evidences
Empirical Evidences
Empirical Evidences
Empirical Evidences
Empirical Evidences
Empirical Evidences
3.2 Population Growth: Structures
3.2 Population Growth: Structures
3.2 Population Growth: Structures
3.3 Population Growth: Relations
• Population growth & income - how the size of the
population is changing over time.
• Population density & income - how many individuals
are in a particular area
• Population growth & structure (Number & Structure)
• Producer & consumer
4. Some Policy Approaches

What developing countries can do:


• Long run: increase the price of child
 opportunity cost of mother’s time
 Cost of educating child
• Short run: control fertility
 Persuade people
 Family-planning programs
 Economic incentives and disincentives
 Redistribute population
 Coerce people
 Raise women’s social and economic status
Urbanization and Rural-
Urban Migration
(Theory and Policy)
The Migration and Urbanization Dilemma
Urbanization Costs, and Efficient Urban Scale
The Urban Informal Sector
5 MIGRATION AND DEVELOPMENT
Economic Theory of Rural-Urban Migration
Five Policy Implication
Policy
Urban Bias – more jobs in urban than in
rural
Imbalances in expected income
opportunities is crucial
Indiscriminate educational expansion
fosters increased migration and
unemployment
Wage subsidies and scarcity factor
pricing can be counterproductive
Programs of integrated rural
development should be enouraged

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