The Importance of Demographics

[via Sadagopan] Malcolm Gladwell writes:

The relation between the number of people who arent of working age and the number of people who are is captured in the dependency ratio. In Ireland during the sixties, when contraception was illegal, there were ten people who were too old or too young to work for every fourteen people in a position to earn a paycheck. That meant that the country was spending a large percentage of its resources on caring for the young and the old. Last year, Irelands dependency ratio hit an all-time low: for every ten dependents, it had twenty-two people of working age. That change coincides precisely with the countrys extraordinary economic surge.

Demographers estimate that declines in dependency ratios are responsible for about a third of the East Asian economic miracle of the postwar era; this is a part of the world that, in the course of twenty-five years, saw its dependency ratio decline thirty-five per cent. Dependency ratios may also help answer the much-debated question of whether India or China has a brighter economic future. Right now, China is in the midst of what Joseph Chamie, the former director of the United Nations population division, calls the sweet spot. In the nineteen-sixties, China brought down its birth rate dramatically; those children are now grown up and in the workforce, and there is no similarly sized class of dependents behind them. India, on the other hand, reduced its birth rate much more slowly and has yet to hit the sweet spot. Its best years are ahead.

One thought on “The Importance of Demographics

  1. At the top of my list is SafeBreath Pro. This keeps me going, “Good things come to those who wait.” or one might even try to be adventurous and try out new SafeBreath Pro. The fact is that SafeBreath Pro is really complicated. It team of experts has come up with enough SafeBreath Pro tips and tricks to fill a book. I did this with just a little work. One can do an striking fusion of SafeBreath Pro and SafeBreath Pro. You need to get results. SafeBreath Pro is a complete winner. It makes it seem as if they don’t give a crap about this in relation to SafeBreath Pro since the first time I ever saw SafeBreath Pro was over 18 days ago.