There is a close relationship between population and economic development in some countries. It is an obstacle in the way of economic development. While in various countries it is playing very effective role in improving the rate of economic development. The role of population in the economic development can be explained by the following facts :
1. Maximum Utilization of Resources :-
If the majority of the population is educated and technically trained then the resources of country can be utilized to the maximum level.
2. Population and Per Capita Income :-
If the birth rate is high in the country, it will reduce the per capita income. Because per capita income is calculated by dividing the total number of population by the GNP.
3. Labour Intensive Industries :-
In those countries where rate of population growth is high labour intensive industries can be set up to increase the production. Man power will be cheap and it will reduce the cost of production.
4. Population and Standard of Living :-
High birth rate reduces the per capita income and low per capita income reduces the standard of living.
5. Solution of Capital Shortage :-
The poor countries are facing the problem of capital shortage. They can not import the heavy machinery. So by using the labour in factories we can solve the problem.
6. Population and Savings :-
If the rate of population growth is high then rate of saving will be low and due to this rate of investment will be low. Low rate of investment causes low production.
7. Specialization :-
In those countries where size of population is large specialization process is adopted in the factories. It increases the production on large scale and also improves the quality of the product.
8. Population and Employment :-
A rapid increase in population increases the rate of unemployment in the country. While in those countries where birth rate is low the rate of unemployment is also low.
9. Extension of Market :-
If the size of population is greater it will increase the demand of various goods and services. So the size of market will expand.
10. Population and Agriculture :-
If the rise in population is fast the population pressure increases on land. The farmer can not use the inputs like fertilizer and seeds. It causes low production.
11. Population and Other Facilities :-
If any country birth rate is very high then government can not provide various facilities, like health, education, housing and transport to all the population.
12. Population and Social Evils :-
With the rise in population, there is a rise in social evils like theft, and bribery.
13. Population and Urban Development :-
In any country as the population increases people migrate to the urban areas and create many problems like water, education and housing in urban areas.
14. Population and Industrial Development :-
A high birth rate reduces per capita income, savings and investment. With the rise in population, the demand of basic goods like food and milk increases. While less attention is paid to the industrial development.
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Here is the another Reference => Role of Human Resource in Economic Development of Country
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