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Business Environment and Law-Infrastructure Of The Economy

Demographic Issues And Human Development- Infrastructure Of The Economy

   Posted On :  04.05.2018 08:01 am

The study of human resource is vital from the point of view of economic welfare.

Demographic Issues And Human Development

Study Of Human Resource

The study of human resource is vital from the point of view of economic welfare. It is particularly important because human beings are not only instruments of production but also ends in themselves. It is necessary to know in quantitative terms the number of people living in a country at a particular time, the rate at which they are growing and the composition and distribution of population.

The Theory Of Demographic Transition

The theory of “demographic transition” postulates a three-stage sequence of birth and death rate as typically associated with economic development.

First Stage Of Demographic Transition:

According to this theory death rates are high in the first stage of an agrarian economy on account of poor diets, primitive sanitation and absence of effective medical aid.

 Second Stage Of Demographic Transition:

Rise in income levels enables the people to improve their diet. Economic development also brings about all round improvement including the improvement in transport, which makes the supply of food regular. These entire factors tend to reduce death rate. Thus in the second stage, birth rate remains high but death rate begins to decline rapidly. This accelerates the growth of population. High birth rate and falling death rate contribute to the growth of the average size of the family in the second stage.

Third Stage Of Demographic Transition:

With the growth of industrialization, population tends to shift away from rural areas towards industrial and commercial centers. One of the features of economic development is typically increasing urbanization, and children are usually more of a burden and less of an asset in an urban setting than in a rural. The consciousness to maintain reasonable standard of living tends to reduce the size of family in an industrialized economy; since the death rate is already low, this is possible only if birth rate falls. Thus, the characteristics of the third stage are low birth rate, low death rate, small family size and low growth rate of population.

These three stages reveal the transformation of a primitive high birth and high death rate economy into a low birth and low death rate economy. When an economy shifts from the first stage to the second stage of demographic transition, an imbalance is created in the economy as a result of falling death rate but relatively stable birth rate. The second stage of demographic evolution has, therefore, been termed as the stage of population explosion. This stage is the most hazardous period for a developing economy. The decline in death rate in the second stage therefore creates an imbalance, which requires a period of transition for adjustment. Thus, the theory is termed as the theory of demographic transition. During the period of transition the demographic factors get out of harmony. A new constellation of demographic forces is brought about which changes the character of society; birth and death rate becomes balanced at a lower level as a result of which growth rate of population also declines.
Tags : Business Environment and Law-Infrastructure Of The Economy
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