The demographic dividend generally refers to a rise in the volume of working age population leading to acceleration in economic growth. This usually happens in the intermediate phase of demographic transition as a result of declined fertility rate and declined youth dependency rate.
But the demographic dividend is not a permanent phenomenon, and if not reaped properly, it would not take long for this dividend to turn into a deficit.
Theoretically, it seems really good to an economy as the working age population will be more than the non-working age population or the dependents. More working age people means more income, more savings, more investments, and thus, a higher growth rate. But what is of concern here is whether it is practically true or not. Out of these working age people, how many would actually work? Demographic dividend, no doubt, provides a `basket of opportunity' to the economy where it occurs, but the question that arises is: Will that economy be able to exploit or reap this dividend in full measure? The answer depends on several factors, such as the quality of policy system, productivity of workers, availability of suitable employment, quality of education and health system, infrastructural facilities, etc. |
