The Center for Population Economics (or CPE) is a research center at the University of Chicago Booth School of Business. The work of the CPE is funded primarily by the U.S.'s National Institute on Aging of the National Institutes of Health.
Population Growth and Economic Development
Introduction
The relationship existing between population growth and economic development is one of the subject areas which scholars have explored extensively[1]. The current prediction from researchers is that, various high-income countries are likely to experience slow population growth. On the other hand, it is feared that population growth has always been a problem and will continue to be a challenge as long as people continue to depend on the limited natural resources available [2]. This will eventually affect long-term economic development. Population growth affects various aspects including international migration, population age structure, the size of the workforce and economic inequality. These factors are critical factors that determine economic growth of any nation. Additionally, they are also affected by economic depending on the number of people living in a particular country. The effects of population can be determined in terms of GDP and per capita output.
One of the famous authors whose theory has been used in assessing economic growth is Thomas Malthus. According to the author population growth would at some point suppress living standards in the long term. In order to put the theory in to perspective, he used the quantity of fixed land[3]. If the population continues to grow and the people still uses the same amount of land, then the amount of resources consumed will definitely reduce. This will eventually lead to starvation, war and diseases. He further provided a solution for this problem by suggesting that, these adverse effects of population growth could only be avoided if the people could from moral restraint that is by restraining from having several children. At the time this assumption was being made, the author did not put in to consideration future technological developments that have been used in reducing infectious diseases and improve agricultural production. For this reason, the world population has continued to grow despite the fear that it would have depleted all the available resource[4]. However, from his point of view it is clear that population growth has potential detrimental to economic development and this has been the basis for formulation of international policies towards curbing excess population growth in different parts of the world especially in developing nations.
Malthusian Theory
According to Malthus, population growth at some point must collide with shrinking returns [5]. It is all about arithmetic food supply and exponential population where increase in population and food supply can be balanced through the establishment of positive checks and preventive measures[6]. Malthusian theory consists of various elements that have been put forward to help with further understanding of the relationship between population growth and economic development. Even though the theory tries to put different aspect of population growth and economic development in to perspective, it does not cover every factor as it did not consider the fact that technology could be used to improve food production and reduce prevalence of diseases around the world.
i. Preventive Checks
The theory suggests that encouraging things like self-control, late marriage and simple living would be helpful in balancing food supply and population growth[7]. Balancing the relationship between population growth and economic development requires the establishment and implementation of policies and measures that improve living standards of the people.
ii. Positive Checks
According to this theory, population control is left to nature as it has its own way of weeding population. When nature comes in to control population, it takes the population level back to a size where the available food supply can sustain it [8]. Nature controls population through earthquakes, famine, wars, flood and epidemics among others. The role of nature is to control population when it is beyond control y other measures that have been established.