Demographic Dividend explained

Summary

The video discusses the concept of a demographic dividend, which refers to accelerated economic growth when a population has a large working-age group and fewer dependent children. Using Thailand as an example, it illustrates how investments in health, family planning, and education can lead to a transformation in the age structure, resulting in economic growth. Key areas for harnessing the demographic dividend include empowerment, education, and employment. Governments play a crucial role in providing a supportive environment for young people to thrive, promoting economic development and inclusive growth for a better future.

Takeaways

• 😀 The demographic dividend refers to accelerated economic growth when a population has many working-age people, and the government ensures they are educated and employed.
• 😀 A country experiences a demographic dividend when the number of children declines in relation to the working-age population, leading to more workers and fewer dependents.
• 😀 In 1960, Thailand had over 40% of its population under 15 years old, with women having an average of six children. This changed with investments in health and family planning.
• 😀 By the 1990s, fertility rates in Thailand declined, leading to an older, healthier working-age population and a transformed age structure.
• 😀 With better education and increased employment, Thailand's economy experienced accelerated growth, becoming one of the Asian miracles.
• 😀 To harness a demographic dividend, countries need to invest in three key areas: empowerment, education, and employment.
• 😀 Empowerment means ensuring all individuals have the freedom to define their lives, access education, join the workforce, and make choices about family life.
• 😀 Access to family planning, especially for women, is crucial, as it allows for healthier lives and more significant economic contributions from women.
• 😀 Quality education and skills development are critical for young people to fill 21st-century jobs and drive economic progress.
• 😀 A positive business environment, reliable regulations, adequate infrastructure, and a skilled workforce are essential for creating job opportunities and economic growth.

Q & A

What is the demographic dividend?

The demographic dividend refers to the accelerated economic growth that occurs when a country has a large working-age population and ensures that these workers are empowered, educated, and employed. This growth is possible when there are fewer dependent children relative to the working-age population.

How does the age structure of a population influence the demographic dividend?

The age structure is critical to the demographic dividend because as the number of births declines, the population of dependent children becomes smaller in relation to the working-age population. This creates an opportunity for economic growth, as there are more workers available to drive the economy.

What was Thailand's demographic situation in 1960, and how did it change?

In 1960, over 40% of Thailand's population was under the age of 15, and women had an average of six children. By the 1990s, fertility rates dropped significantly, and the age structure transformed, with a smaller child population and a larger working-age population, leading to accelerated economic growth.

What role does empowerment play in achieving a demographic dividend?

Empowerment is essential because it ensures that all individuals, particularly women, have the freedom to make decisions about their lives, such as when to marry and have children. It also involves access to family planning and reproductive health services, which improve health outcomes and enable people to contribute more effectively to the economy.

How does access to family planning contribute to economic growth?

Access to family planning allows women to control the timing of their childbearing, leading to better health for both women and children. It also enables women to pursue education, join the workforce, and engage in entrepreneurial activities, all of which contribute to economic development.

Why is education crucial for a demographic dividend?

Education provides people with the skills and training needed for 21st-century jobs. Governments and private sectors must invest in quality education to ensure that there is a match between the skills of the workforce and the demands of the economy, enabling sustained economic growth.

What does the private sector need to promote a demographic dividend?

The private sector needs a favorable political and business climate, including reliable regulations, adequate power supply, and a skilled workforce. A strong business environment encourages industrial and business investment, creating opportunities for job growth and economic advancement.

What are the key factors that affect employment in relation to the demographic dividend?

For the demographic dividend to be realized, employment must not only be abundant but also of high quality. Young people need access to decent jobs with fair wages and good working conditions, and women must receive equal pay for equal work.

How can governments harness their population as a resource?

Governments can harness their population by empowering, educating, and employing their young and working-age people. By focusing on these key areas, they can create a more productive workforce that can drive inclusive economic growth.

What is meant by the 'window of opportunity' in demographic terms?

The 'window of opportunity' refers to the period in which a country has a larger working-age population relative to the dependent child population. During this time, countries can experience accelerated economic growth, as there are more workers available to support and drive economic development.