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A demographic dividend is a change in a country’s economy brought about due to an increase in the population with the potential to work in the economic sector. To prove themselves to be self-dependent, it is likely for the young generation to shift towards the job market. When this happens in huge masses, this leads to an offset in that country’s economy. While not devastating, this causes many sudden changes in the economy. That is what a demographic dividend does. There are several ways in which a demographic dividend impacts lives.
Impacts of Demographic Dividend
The demographic dividend of a country can be considered to measure its growth potential. This dividend signifies changes that can be brought about in the economic potential of a certain country because of the involvement of more citizens in economic activities. The condition for demographic dividend arises mainly when the working population has a significant advantage over non-working populations. When a large population shifts towards the market to gain job opportunities, it increases the labour force. This further leads to a change in the age structure of that country as people are looking to contribute to their country.
However, in certain conditions, demographic dividends can also make people completely dependent on each other. This can be witnessed when people of the non-working age class become completely dependent on the people who work; this can negatively impact their future development prospects.
Factors relating to a Demographic Dividend
A demographic dividend denotes that a certain country holds great potential to be more productive in its future aspects. People who currently belong to the working-age class can contribute significantly to their country’s economy, an exemplary aspect of any country’s development.. However, this is only possible if they have good access to proper education, developmental facilities, and opportunities.
A demographic dividend can be seen as a good measure for the sustainable development of a country. A demographic dividend also reduces the gap between younger and older generations and tries its best to unite both. This helps in covering up their differences and ensuring their better development. This also helps make a country acknowledge the potential within its youth.
Advantages of a Demographic Dividend
There are a large number of advantages that a demographic dividend poses over a country’s economic and future development:
A demographic dividend can be seen as giving an insight into the future of a country. This proves that the country respects the potential that its citizens might have and encourages them to move forward in their lives.
Demographic dividends lead to the centralisation of resources in a direction in which they would be of the most use.
A demographic dividend pushes the people of working age to work for the welfare of their country and develop their character. It also increases the labour force of citizens in a certain area; this is also a measure for development.
Challenges Faced by India in regards to Demographic Dividend
A demographic dividend brings a complete shift in the economic environment of a country, and it can turn for better or worse according to the situation. To reinstate a suitable economic situation in the country, certain changes are required. However, these changes are not always simple to execute. Some challenges faced by India with regards to its demographic dividend include:
India supports a large population of youth. It can not provide all the youth with the job opportunities they seek.
An increase in labour does not necessarily mean that your situation will change for the better. There is a possibility of things taking a wrong turn.
In a demographic dividend, the interaction between people of different generations increases. This can lead to an increase in the age gap or mental gap between them.
Among the greatest challenges faced by India is its inability to support the skill development and education of its citizens.
Conclusion
A demographic dividend is a change in a country’s economy due to an increase in the population with the potential to work in the economic sector. A demographic dividend brings a complete shift in the economic situation of a country, and it can turn for better or worse according to the situation. India supports a large population of youth. However, it can not provide all the youth with the job opportunities they seek. A major challenge faced by India is its inability to support the skill development of its citizens.
