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POPULATION POLICY IN CHINA AND INDONESIA 1

Population Policy in China and Indonesia

Milla A. Rajasa, B. Des.

I201621261

Huazhong University of Science and Technology


POPULATION POLICY IN CHINA AND INDONESIA 2

Abstract

China is the worlds number one country with most population while Indonesia is

the fourth. There was a policy in China to control the population growth, which is called One

Child Policy, but already changed to 2 children policy. They can have 2 children per family

within some conditions. Indonesia also has been trying to control the population growth since

many years ago. Each country has their own policy and the positive-negative side, and this paper

is to study them.

Keywords: population, policy, China, Indonesia.


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Background Introduction

A population is the number of all the organisms of the same group or species, which live

in a particular geographical, and have the capability of interbreeding. The area that is used to

define a sexual population is defined as the area where interbreeding is potentially possible

between any pair within the area, and where the probability of interbreeding is greater than the

probability of cross breeding with individuals from other areas. In sociology, population refers to

a collection of humans. Demogprahy is a social science which entails the statistical study of

human populations.

The number of inhabitants on the planet, now to some degree in abundance of three

billion people, is developing at around two for each penny a year, or quicker than at whatever

other period in man's history. While there has been an enduring increment of populace

development amid the previous a few centuries, it has been particularly quick amid the previous

20 years. To value the pace of populace development we ought to review that total populace

multiplied in around 1,700 years from the time of Christ until the center of the seventeenth

century; it multiplied again in around 200 years, multiplied again in under 100, and, if the current

rate of population increase were to remain constant, would double every 35 years. Moreover, this

rate is still increasing.


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Image1: Top 20 world population (Worldometers, 2017).

It is easy to see why some people have become alarmists when it comes to population

growth rates in developing nations. Looking at the worlds low-income countries, they see a

population of more than 2 billion growing at a rate that suggests a doubling every 31 years. How

will we cope with so many more people? The following statement captures the essence of widely

expressed concerns:

At the end of each day, the world now has over two hundred thousand more mouths to

feed than it had the day before; at the end of each week, one and one-half million more; at the

close of each year, an additional eighty million. Humankind, now doubling its numbers every

thirty-five years, has fallen into an ambush of its own making; economists call it the Malthusian

trap, after the man who most forcefully stated our biological predicament: population growth

tends to outstrip the supply of food.Phillip Appleman, ed., Thomas Robert Malthus: An Essay
POPULATION POLICY IN CHINA AND INDONESIA 5

on the Principle of PopulationText, Sources and Background, Criticism (New York: Norton,

1976), xi.

In any case, what are we to put forth of such an expression? Unquestionably, if the total

population keeps on expanding at the rate that it developed in the previous 50 years, monetary

development is more averse to be converted into a change in the normal way of life. Thus, the

rate of populace development is not a steady; it is influenced by other financial powers. This area

starts with a dialog of the connection between populace development and wage development,

then swings to a clarification of the wellsprings of populace development in low-pay nations, and

closes with a discourse of the Malthusian cautioning recommended in the quote above.

Population of China

China is the world's most populous country, with about 1.34 billion people (2010 census),

but the birthrate has been falling significantly from more than 20 per 1,000 people in 1990 to

about 12 today. (Hays, 2013). There is an old joke that goes: " In China when they say you are

one in a million there are a thousand just like you." There are twice the same number of

individuals in China as there are in European Union and the Assembled States combinied. India

is the main other nation that has achieved the one billion mark. Together China and India

represent 33% of the total populace and 60 percent of Asia's population. India is relied upon to

have a greater number of individuals than China by the year 2030 therefore of having a less

effective family arranging strategy than China.

China is a case of a nation that has accomplished a low rate of populace development and

a high rate of development in per capita GNP. China's low rate of populace development speaks

to an emotional move. As of late as the mid 1970s, China had a generally high rate of populace

development; its populace extended at a yearly rate of 2.7% from 1965 to 1973. By the 1980s,
POPULATION POLICY IN CHINA AND INDONESIA 6

that rate had dove to 1.5%. The World Bank reports a development rate in China's populace of

around 1% in the early piece of the 21st century.

Population of Indonesia

Indonesia is the forth most populous nation in the world after China, India and the United

States. Population: 253,609,643 (July 2014 est.). The population of Indonesia was 237.6 million

according to preliminary 2010 census figures released in August 2010 with an annual growth rate

of 1.1 percent. This marked an increase of about 35 million since 2000. [Source: CIA World

Factbook =, Library of Congress *].

Population Problem in China

With such a huge population, every social problem is magnified. If 10 percent of the

population in China is unemployed, for example, the number of people out of work is equal to

half the population of the United States. A migrant from Henan told journalist Howard French,

Im frightened for my son's future, China's biggest problem is the population. There are just too

many of us, and the competition for opportunity is murderous." [Source: Howard W. French,

New York Times, August 28, 2009] (Hays, 2013)

A strict government approach by which couples are permitted to have just a single child.

Disincentives have been known to incorporate fines, loss of business, seizure of property,

pulverization of homes, constrained premature births, and disinfection. While the Chinese

government has denied that constrained premature births and disinfections are a piece of its

technique, strategies are directed locally, and the greater part of the above methods for

compulsion appear to have been utilized at some time. In the event that a lady who as of now has

one child ends up plainly pregnant, she will probably be compelled to have an abortion.
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In spite of the fact that the strategy has accomplished its coveted outcomediminished

populace developmentit has had some unpleasant reactions. Given a solid social custom

favoring having a child, a few couples fall back on child murder as a methods for disposing of

baby girls. At the point when the sex of an unborn child is resolved to be female, abortion is

normal.

The coercive parts of China's approaches and their undesirable symptoms have been

censured by numerous legislatures around the globe, and in addition by nongovernmental

associations. Revelations from Joined Countries' meetingsthe UN Gathering on Populace in

Cairo in 1994 and the UN Gathering on Ladies in Beijing in 1995have stressed that birth rates

are connected to the monetary states of ladies and that enhancing wellbeing, training, and

business open doors for ladies constitutes a superior and more others conscious method for

lessening birth rates. Dreadful that ace majority rule government and human rights activists from

different nations may mix up those developments locally, the Chinese government really planned

the 1995 Beijing Meeting to limit contact amongst Chinese and nonnatives.

There are signs, however, that Chinese authorities may have heard the message. In

various districts in China, exploratory projects with mottos, for example, "Complete

Contraception and Family Arranging Measures Deliberately" are in progress. The new way to

deal with family arranging underscores social insurance, training, and diminishment in

destitution to urge ladies to have less child.

Population Problem in Indonesia

Traditionally, Indonesian society has viewed children as the source of rejeki (fortune). A

local saying, banyak anak banyak rejeki, maintained that more children equated to more
POPULATION POLICY IN CHINA AND INDONESIA 8

fortune and it was widely believed that the use of contraceptives contravened religious and moral

values. This contributed to a very high fertility rate.

Rural and remote areas have more limited access to healthcare than urban areas. Studies

suggest that, as of 2014, 40 per cent of Indonesians do not have access to proper sanitation

facilities. Improving access to sanitation facilities and improving education in regard to safe

hygiene practices will be vital to achieving better basic health outcomes. Maternal mortality has

also increased in recent years. In 2007, there were 288 deaths per 100,000 births. By 2014, this

had increased to 359 deaths per 100,000. (FDI TEAM, 2015)

The economic growth rate must increase in order to ensure job creation and maintain low

rates of unemployment. (FDI TEAM, 2015)

The Indonesian education system lags behind those of other regional states.

Unsurprisingly, it trails behind wealthy Singapore, but it also lags behind Vietnam, a country

with a per capita GDP two-fifths lower than that of Indonesia. Tellingly, at the end of their school

careers, only 25 per cent of Indonesia students meet minimum standards in literacy and

numeracy.

Perhaps some of this underperformance is due to the bureaucratic complexity of the

Indonesian education system. Three separate government ministries are responsible for various

parts of the system, the education ministry oversees state primary, junior and secondary schools;

the religious affairs ministry is responsible for madrassas (Islamic schools) and the ministry for

research and technology is in charge of universities and polytechnics.

Corruption also remains a major impediment to the proper functioning of the education

system. According to Indonesian Corruption Watch, there are very few schools that are free of
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graft, bribery or embezzlement. It claims that in some schools up to 40 per cent of the budget is

lost to corruption.

You know a country is overpopulated when people cannot afford to queue. In Indonesia

this is visible every day at bus and train stations. Transport facilities have long lost their battle

with exploding demand. (Vaessen, 2015)

These every day scenes will be worse during the Eid festival, when rich individuals pass

out cash to the poor who pass on battling for a couple of money. Or, on the other hand those of

kids offered confection. Once in a while observed hostility on their blameless countenances

when they are attempting to get their offer. Waiting politely for your turn is only affordable to

those who know there is enough for everyone.

The changing demographics of Indonesia have the potential to contribute to a variety of

social issues. Some of these, such as an ageing population, will not be experienced until after

2050. Others social issues relating to education, employment, the distribution of wealth and

urbanisation, will likely be made manifest in the near-term. The current administration will need

to ensure that it has the correct policy settings to address them. (FDI TEAM, 2015)

Population Growth and Economy Development

The relationship between population growth and economic development has been a

recurrent theme in economic analysis since at least 1798 when Thomas Malthus famously argued

that population growth would depress living standards in the long run. The theory was simple:

given that there is a fixed quantity of land, population growth will eventually reduce the amount

of resources that each individual can consume, ultimately resulting in disease, starvation, and

war. The way to avoid such unfortunate outcomes was moral restraint (i.e. refraining from

having too many children). He didnt foresee the technological advances that would raise
POPULATION POLICY IN CHINA AND INDONESIA 10

agricultural productivity and reduce the toll of infectious diseasesadvances that have enabled

the worlds population to grow from 1 billion in 1798 to 7.4 billion today. (Fox & Dyson, 2015)

Nevertheless, his basic knowledge that populace development constitutes a potential

danger to financial advancement stayed powerful and educated global improvement arrangement

motivation, particularly in the 1960sa period set apart by exceptionally fast rates of population

development in many creating nations.

Quantity vs Quality: Around then, the general perspective of financial analysts was that

high birth rates and quick populace development in poor nations would redirect rare capital far

from funds and speculation, along these lines putting a delay monetary advancement. They

speculated that bigger families have less total assets and less assets per kid. Bigger families in

this manner spread their assets all the more meagerly to bolster more kids. This leaves less to

save and putting resources into development improving exercises. It additionally decreases

spending on enhancing the economic potential of each child.

High birth rates and rapid population growth in poor countries would divert scarce capital

away from savings and investment, thereby placing a drag on economic development. Change in

age composition creates a window of opportunity during which a country can potentially raise its

level of savings and investmenta phenomenon now known as the demographic dividend.

(Fox & Dyson, 2015)

The Malthusian Trap and the Demographic Transition

In 1798, Thomas Robert Malthus distributed his essay Essay on the Principle of

Population. It turned out to be a standout amongst the most continuing works of the time.

Malthus' essential contention was that populace development will definitely slam into

unavoidable losses. Unavoidable losses infer that adding more work to a settled amount of land
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builds yield, however by ever littler sums. In the end, Malthus finished up, increments in

nourishment generation would be too little to support the expanded number of individuals who

devour that yield. As the populace kept on becoming unchecked, the quantity of individuals

would in the long run overwhelm the capacity of the land to produce enough sustenance. There

would be an unavoidable Malthusian trap, a time when the world is no longer ready to meet the

nourishment prerequisites of the populace, and starvation turns into the essential check to

populace development.

Figure 1: The Malthusian trap

We can determine the total amount of food needed by multiplying the population in any

period by the amount of food required to keep one person alive. Because population grows

exponentially, food requirements rise at an increasing rate, as shown by the curve labeled Food

required. Food produced, according to Malthus, rises by a constant amount each period; Its

increase is shown by an upward-sloping straight line labeled Food produced. Food required
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eventually exceeds food produced, and the Malthusian trap is reached at time t1. The faster the

rate of population growth, the sooner t1 is reached. (Rittenberg & Tregarthen)

What occurs at the Malthusian trap? Unmistakably, there is insufficient nourishment to

bolster the populace development inferred by the "Sustenance required" bend. Rather,

individuals starve, and populace starts rising numerically, kept within proper limits by the

"Sustenance delivered" bend. Starvation turns into the constraining power for populace; the

populace lives at the edge of subsistence. For Malthus, the long-run destiny of individuals was a

way of life scarcely adequate to keep them alive. As he put it, "the view has a despairing tone."

Joyfully, Malthus' forecasts don't coordinate the experience of Western social orders in

the nineteenth and twentieth hundreds of years. One shortcoming of his contention is that he

neglected to consider the additions in yield that could be accomplished through expanded

utilization of physical capital and new innovations in agribusiness. Increments in the measure of

capital per specialist as machines, enhanced seed, water system, and preparation have made

conceivable colossal increments in agrarian yield in the meantime as the supply of work was

rising. Farming efficiency climbed quickly in the Assembled States in the course of the most

recent two centuries, the exact inverse of the fall in profitability expected by Malthus. Efficiency

has kept on extending.

Malthus wasn't right too about the connection between populace development and salary.

He trusted that any expansion in wage would support populace development. However, the law

of interest discloses to us that the inverse might be valid: higher salaries have a tendency to

diminish populace development. The essential cost of having kids is the open door cost of the

guardians' chance in raising themhigher salaries increment this open door cost. Higher
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livelihoods increment the cost of having kids and have a tendency to lessen the quantity of kids

individuals need and in this way to moderate populace development.

Figure2: Salary Levels and Populace Development. Panel (a) shows that low-income

nations had much higher total fertility rates (births per woman) during the 20002005 period

than did high-income nations. In Panel (b), we see that low-income nations had a much higher

rate of population growth during the 19752005 period. (WorldBank, 2008)


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"Salary Levels and Populace Development" demonstrates the birth rates of low-, center ,

and high-wage nations for the period 20002005. We see that the higher the pay level, the lower

the birth rate. Less births convert into slower populace development. In Board (b), we see that

high-salary countries had much slower rates of populace development than did center and low-

wage countries in the course of the most recent 30 years.

In any case, if monetary advancement can moderate populace development, it can

likewise expand it. One of the principal picks up a creating country can accomplish is upgrades

in such nuts and bolts as the arrangement of clean drinking water, enhanced sanitation, and

general wellbeing measures, for example, inoculation against youth infections. Such picks up can

drastically decrease sickness and passing rates. As alluring in that capacity picks up seem to be,

they additionally support the rate of populace development. Countries are probably going to

appreciate sharp decreases in death rates before they accomplish picks up in per capita wage.

That can quicken populace development right on time in the advancement procedure.

Demographers have distinguished a procedure of statistic move in which populace development

ascends with a fall in death rates and afterward falls with a lessening in birth rates.

The procedure of statistic move has unfurled in a strikingly extraordinary way in created

versus less created countries in the course of recent hundreds of years. In 1800, birth rates

scarcely surpassed passing rates in both created and less created nations. The outcome was a rate

of populace development of just around 0.5% every year around the world. By 1900, the demise

rate in created countries had fallen by around 25%, with little change in the birth rate. Among

creating countries, the birth rate was unaltered, while the passing rate was down just somewhat.

The joined outcome was an unobtrusive increment in the rate of total populace development.
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How to Improve the Economic Growth

There are four broad ways in which a countrys GDP per capita can increase.

The first is to increase the number of labor hours worked, either because a larger share of

the population is employed or because employed workers are working more hours per year. In

turn, the employment ratio can increase either because more people join the labor force -- those

who want to work -- or because the unemployment rate drops.

The three remaining sources of growth in per capita GDP represent different sources of

growth in output per hour worked, namely:

Investment in physical capital increases the quality and quantity of equipment that each

worker uses to produce output, and thereby increases workers productive capacity;

Investment in human capital -- skills and knowledge, through education and training --

improves the performance of the workforce by enabling them to do more complex and more

productive tasks; and Improvements in the productivity with which capital and labor are used,

resulting in more valuable output from the same value of physical inputs. This source of output

growth is known as total factor productivity or TFP, and it has been by far the most important

source of growth in U.S. GDP per capita, as the table below -- copied from Charles Joness essay

The Facts of Economic Growth -- http://www.hoover.org/sites/defa... -- illustrates.


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Similarly, developing countries have far greater scope to improve the allocation of

resources from less productive to more productive uses. The most obvious example of this

reallocation is the shift of the labor force from traditional agriculture to modern agriculture as

well as to modern industry and services, where output per worker tends to be much higher. In

addition, most developing countries have considerable scope to improve average productivity by

adopting policies that allow and encourage more productive firms to expand and less productive

firms to disappear and release their workers to their more productive competitors. Here again, the

role of policies and institutions is crucial, creating incentives that either encourage or block such

competition along with other sources of improved productivity. (quora, 2016)

Expanding government action is a straightforward matter of saddling the occupants and

organizations in the nation all the more so the legislature can spend more. The obvious issue here
POPULATION POLICY IN CHINA AND INDONESIA 17

is exhausting the overall public means they will spend less in the private part. At first look this is

a zero entirety diversion. That implies the spending is moved yet not expanded.

Expanding private area monetary movement should be possible numerous ways. The

least demanding for an administration to utilize is to lessen controls that force an additional heap

on organizations and inhabitants. Regardless of the possibility that the main diminishment is in a

requirement for detailing measurable data on a business the time spent on that report could be

better spent on creating more products and ventures or creating more deals. More huge controls

have a greater effect in the event that they are evacuated. Then again (prime financial specialist

talk) expanding controls on organizations and occupants is sure to decrease private part monetary

action and in this way lessen Gross domestic product.

An exceptional case exists in the territory of foundation. An awesome case of this is the

exertion in the USA amid the Common War (1860 to 1865) to interface numerous territories with

railways. A comparable occasion occurred after World War II when the old national expressway

framework was supplemented with the Interstate Thruway framework which could deal with

significantly more movement with no inalienable deferrals as the new parkways avoided towns

and urban areas as opposed to going directly through the center of every one. Both of these

foundation ventures empowered lower cost and more quick transportation of individuals and

products which empowered critical increment in monetary movement.

Chinas One Child Policy

There is a surprising news that was submitted by Chinese authorities, namely the end of

"one child policy" policy in China. The Chinese government now allows families to have two

children for whom one parent is the result of a one-child policy, which is one of the most

extreme demographic policies in the world. The Chinese government has given a stern sanction
POPULATION POLICY IN CHINA AND INDONESIA 18

to those who violate it, including fines in the form of money and imprisonment and loss of work,

and many demographers judge that an end to "one child policy" policy is a victim of China's

economic progress which began to dominate the world. The world's strongest economies look to

the eyes of the world's economy. At that time the economic power in Asia is held by Japan. It is

the map of world economic power has changed because China has been transformed not only

become economic power in Asia but has become a world economic power. This is evident when

China lowered the value of its currency, the world economy And also the value of other countries

shook great currency. No doubt China is now playing an important role and determining the map

of the world economy. However, this remarkable economic development of China is not

accompanied by sufficient social capital due to the erosion of the productive age group which is

one of the impacts of the implementation of "one child policy" implemented about 35 years ago.

What is the "one child Policy" "One Child Policy" adopted by the Chinese government in 1979

only allows couples to have one child only. In some rural areas as well as for ethnic minorities

under the "one child policy" policy still allows couples to have a second child if the first child is

female. This policy resulted in abortion cases as well as female infanticide. The greatest impact

of this policy is in addition to slowing the growth of the productive age category population and

also creating an imbalance between male and female population or in terms of demography

called "Gender imbalance".

Impact of "One Child Policy"

The policy of "one child policy" controversy adopted in 1979 has made the Chinese

government rethink due to its bad impact and if it continues will affect China's competitiveness

in the future.
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The impact of the implementation of the "one child policy" program on productive age

groups and old age in China compared to the world population. China faces an increasingly

aging population problem.

Since the implementation of this policy China has been successful in preventing the birth

of 400 million, but what is worrisome is the demographic structure of China is increasingly

dominated by the old age group. This condition in the demographics is called the "aging

population". This is the condition that worries Chinese demographers and sociologists because it

will have an impact on social problems and a decline in the labor force that can not sustain

China's economic development in the future. This demographic policy reliance is intended to
POPULATION POLICY IN CHINA AND INDONESIA 20

improve the balance of Chinese population growth. Currently as much as 30% of China's

pollution of 1.36 billion are residents over the age of 50 years.

The 35-year policy of China has now become a time bomb because it has resulted in an

increasingly aging Chinese population and a declining workforce. The United Nations is

predicting that by 2050, Chinese people aged 60 and above will reach 440 million people, while

the 15-59-year-old workforce declines by 3.71 million annually and this downward trend is

expected to continue.

The lax birth regime to be adopted by China is considered too late and can not rapidly

demographicize the demographic structure. For example, 30,000 families in Beijing are only

6.7% who meet the criteria for having a second child. But the Beijing municipal government

says that through this policy there will be an additional 54,200 child births annually.

How about Indonesia?

Demographic policy is a long-term policy. Therefore it is necessary to think carefully in

applying kebikan because the impact is only visible within the next 20-30 years.

Indonesia under the Soeharto government was once successful in controlling the growth

of the Indonesian population by implementing a family planning program with the motto "Just

Two Children Only". This policy is considered to be quite successful in controlling the growth

rate of the Indonesian population and has an impact on demographic bonuses in which the

Indonesian productive age population in the next 10-20 years is one of the best demographic

bonuses in the world.

Indonesia's demographic bonus is indeed a potential and a strength if it can be managed

properly. However, the increase of the productive age population which is not accompanied by

adequate educational and skill preparation will turn into a burden and cause social problems that
POPULATION POLICY IN CHINA AND INDONESIA 21

will reduce Indonesia's competitiveness in the future. Indonesia classified as a country that will

grow rapidly the population. If Indonesia can not control the rate of population growth then

uncontrolled population will be a big problem in the future. Lessons can be learned from cases of

tightening birth rates in China. The birth control program in Indonesia without any adverse and

harmful effects in the future should have begun to prepare by the government if Indonesia wants

to be one of the world's most respected economic powers.

Problem Statements

China is the worlds most populated country. Indonesia is the fourth. And they are

still growing until now. China has a very high rate in growth per capita in GDP, but not for

Indonesia. Is it true that the population growth and economic growth are connected? How to

control the population growth and keep the economic growth in balance?

Conclusion

The focus on human capital as a driver of financial development for creating nations

has prompted undue consideration on school fulfillment. Creating nations have gained

impressive ground in shutting the crevice with created nations as far as school achievement,

however late research has underscored the significance of psychological abilities for

monetary development. This outcome shifts thoughtfulness regarding issues of school

quality, and there creating nations have been a great deal less fruitful in shutting the holes

with created nations. Without enhancing school quality, creating nations will think that its

hard to enhance their long run monetary execution.

Improvements in long run development are firmly identified with the level of

psychological aptitudes of the populace. Advancement approach has improperly underlined

school fulfillment rather than instructive accomplishment, or psychological aptitudes. Creating


POPULATION POLICY IN CHINA AND INDONESIA 22

nations, while enhancing in school accomplishment, have not enhanced in quality terms. School

strategy in creating nations ought to consider upgrading both essential and propelled abilities.

The two-kid standard has clearly been rising in Indonesia, as demonstrated by the way

that almost 40 percent of all married ladies see two children as the perfect and over portion of the

ladies with two kids need no more. The present fertility rate proposes that this extent will

increment in consequent eras. Actually, a few areas in Indonesia have come to or are moving

toward substitution level. In Yogyakarta, DKI Jakarta, Bali, East Java, and possibly North

Sulawesi the two-child average has already emerged.

In addition to provincial variation, the two critical covariates of the inclination for smaller

families are ladies' instruction and ladies' presentation to broad communications. Ladies' training

has all the earmarks of being decidedly and reliably connected with inclinations for a littler

family estimate. This is additionally valid for ladies' presentation to broad communications. Far

beyond the impact of instruction, perusing daily papers, staring at the TV, and tuning in to radio

are essentially identified with an inclination for the two-kid family.

This examination demonstrates the proceeding with rise and improvement of a two-kid

standard in Indonesia. Unless policy changes relax the family planning programs' strong anti-

natalist policy, the objectives of accomplishing substitution level ripeness by the year 2015 and

zero population development by the year 2050 are presumably not very goal-oriented.
POPULATION POLICY IN CHINA AND INDONESIA 23

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