Please enable JavaScript.
Coggle requires JavaScript to display documents.
How population affects Development - Coggle Diagram
How population affects Development
Japan: Farouk
Japan faces is facing an issue of depopulation which is straining their economy
Although Japan's cities such as Osaka and Tokyo have world class health services and business opportunities, the rural population of Japan is ageing, and new birthrates remain minimal.
Japan's rural population is expected to drop 17%(in comparison to the US’ 7.4%) in the next 12 years (2018-2030), It is also estimated that the rate of depopulation will increase to around 2% each year following 2030.
Japan's depopulation is already taking its effect on rural areas, according to a survey conducted by the agricultural ministry of Japan, 80% of those surveyed replied that they needed to take steps to aid residents who find it difficult to get groceries, stating age as a main cause.
The low birthrates also affect the educational sector of Japan. From 2002-2017 over 7000 public schools have been closed down.
Effects of diminishing economy in rural areas
Due to the halt in business activities and strain that ageing is causing for the Japanese economy in rural areas, many youngsters are moving to “greater Tokyo” to pursue new opportunities.
The government is offering upwards of 3 million yen to people who move out of Tokyo to rural areas or start businesses in an attempt to strengthen their economy in more cities and areas, but economists argue that japan should instead focus their efforts on adapting to the inevitable megatrend.
How population growth spurts affect the economy: - Lana
Baby booms are considered to be significant increases in birth rates. It has been assessed to have both positive and negative impacts on the economy.
NEGATIVE IMPACT:
Baby booms lead to changes in the ratio between young men and older men in the workforce. The effect of these cohorts is due to the shared belief that younger men are more substandard alternatives than older men who are viewed as more experienced, which often leaves these younger men unemployed and overall leads to negative employment rates. This differs in developing countries, however, as modern development assists these rates, as well as a rising level in women’s education.
Changing demographics in the proportion of young adults in the population can also be seen as an underlying cause for economic recessions. As young adults start their transition to adulthood, eventually representing a major share in the growth in total consumer expenditures per year. However, if this trend were to reverse, industries would start counting on this strong growth, cutting back on production and will create a negative snowball effect through the economy.
POSITIVE IMPACTS:
Though it might seem paradoxical, a boom in birth rates could lead to a reduction in relative income, which eventually leads to declining birth rates as people delay starting a family. As these birth rates decline, the cohort will appear smaller in size, allowing for development in aspects such as improving working conditions. In addition, decline in relative income could lead to increased female participation in the labor force as younger men struggle to deal with these worsened prospects.
Solutions to Aging Population - Adam
Aging population due to:
-increasing longevity- meaning that people live longer
-reduce fertility as women focus more on their careers then household obligations
Implications of an ageing population :
economic growth slowdowns due to labour and capital shortages;
asset market meltdowns and a drop in the savings rate as older people liquidate their assets and dissave to support themselves
workforce shortages as retirees come to outnumber new entrants to the workforce( This is happening in Czech Republic, where there is a reduced fertility rate which creates a ageing population and reduces the working population)
fiscal stress, due for example to rising healthcare costs owing to the fact that diseases of old age
How to deal with it:
Improving healthcare services for the elderly- This can be seen in India, where recent public sector initiatives have expanded healthcare for the poor and elderly, have increased public funding for health services, and increased medical personnel.
Social insurance and pension- Raising the retirement age would provide more private resources for retirement and more income tax revenue for government support
Migrant workers- This can be seen in the CR, where because of a decreasing working population, the country is dependent on migrants from ukraine and Slovakia to do the work that Czech citizens just wouldn't do for the amount of money that is being paid for the job. Although this helps czech republic develop today, it is not a long term solution and they need to find more sustainable solutions for dealing with their ageing population.