The basic issue: population growth and the quality of life

In 2013, the world’s population reached about 7.2 billion people. In that year, the United Nations
Population Division projected that population would rise to about 8.1 billion in 2025 and reach about 9.6
billion by the year 2050.

QUALITY OF LIFE

- The standard of health, happiness and comfort experienced by an individual or group.

- Concept which means to capture the well-being whether of a population or individual, regarding
both positive and negative elements within the entirely of their existence at a specific point in time.
- Health related: an individual or group`s perceived physical and mental health over time.

WHO

PSYCHOLOGY: an individual`s perception of their position in life in the context of the culture and value
system in which they live and in relation to their goals, expectations and standard and concerns.

OPERATIONAL DEFINITION
- A measure of an individual ability to function physically, emotionally and socially within his/her
environment at a level consistent with his

The degree to which an individual is healthy – comfortable and able to participate in or enjoy life events.

STANDARD INDICATORS OF QUALITY OF LIFE INCLUDE wealth, employment, the environment, physical
and metal health, education, recreation and lessure time, social belonging , religious beliefs, safety,
security and freedom.

a problem of human welfare and of development. Every year, more than 75 million people are added to
the population. Increase—97%—is in developing countries.Development entails the improvement in
people’s levels of living—their incomes, health, education, and general well-being encompasses their
capabilities, self-esteem, respect, dignity, and freedom to choose

Doubling time Period that a given population or other quantity takes to increase by its present size.
1750, the population growth rate had accelerated to 0.3% , 1950- 1.0%, 1970 – 2.35%, present – 1.2%.
Africa- 2.3%.

population growth is primarily the result of a rapid transition from a long historical era characterized by
high birth and death rates to one in which death rates have fallen sharply but birth rates, especially in
the least developed countries, have fallen more slowly from their historically high levels.

Structure of the World’s Population unevenly distributed by geographic region, by fertility and mortality
levels, and by age structures.
Rate of population increase calculated as the natural increase after adjusting for immigration and
emigration.
Natural increase The difference between the birth rate and the death rate of a given population.
Net international migration The excess of persons migrating into a country over those who emigrate
from that country.
Crude birth rate The number of children born alive each year per 1,000 population (often shortened to
birth rate).
Death rate The number of deaths each year per 1,000 population
Total fertility rate (TFR) The number of children that would be born to a woman if she were to live to the
end of her childbearing years and bear children in accordance with the prevailing age-specific fertility
rates.
Life expectancy at birth The number of years a newborn child would live if subjected to the mortality
risks prevailing for the population at the time of the child’s birth.
Under-5 mortality rate Deaths among children between birth and 5 years of age per 1,000 live births.
Youth dependency ratio The proportion of young people under age 15 to the working population aged
16 to 64 in a country.
Hidden momentum of population growth The phenomenon whereby population continues to increase
even after a fall in birth rates because the large existing youthful population expands the population’s
base of potential parents.
Population pyramid A graphic depiction of the age structure of the population, with age cohorts plotted
on the vertical axis and either population shares or numbers of males and females in each cohort on the
horizontal axis.
Demographic transition The phasing-out process of population growth rates from a virtually stagnant
growth stage
Replacement fertility The number of births per woman that would result in stable population levels

THEORY OF FERTILITY

Cd = f(Y, Pc , Px , tx), x = 1, g, n

Assumptions of Robert Malthous

1. Food is necessary to our existence

2. The passion between man and woman is also necessary
3. the powerr of the population is indefinitely greater than the power to produce subsistence

Factors can control population

1. War
2. Famine
3. Disease

Malthous the father of birth control movement

Malthus therefore contended that the only way to avoid this condition of chronic low levels of living or
absolute poverty was for people to engage in “moral restraint”
Harrod-Domar (or AK) model, whenever the rate of total income growth is greater than the rate of
population growth, income per capita is rising; this corresponds to moving to the right along the x-axis.
Conversely, whenever the rate of total income growth is less than the rate of population growth, income
per capita is falling, moving to the left along the x-axis. When these rates are equal, income per capita is
unchanging.

Geometrically - multiply : Arithmetically - additional

Criticisms of the Malthusian Model

Malthusian population trap provides a theory of the relationship between population growth
and economic development.

We can criticize the population trap on two major grounds

1. the model ignores the enormous impact of technological progress in offsetting the
growth-inhibiting forces of rapid population increases
2. focuses on its assumption that national rates of population increase are directly
(positively) related to the level of national per capita income

GDP should be higher than population.

BENEFITS

1. More labor resources

2. More demand for goods and services

Microeconomic theory of fertility- The theory that family formation has costs and benefits that
determine the size of families formed.

Reproductive choice The concept that women should be able to determine on an equal status
with their husbands and for themselves how many children they want and what methods to use
to achieve their desired family size

five policies that developing country governments to adopt to lower birth rates in the short
run
 1. persuade people to have smaller families
2. enhance family-planning programs
3. manipulate economic incentives and disincentives for having children
4. coerce people into having smaller families through the power of state legislation and penalties
5. raise the social and economic status of women
Two activities related to fertility moderation
The first is the area of research into the technology of fertility control ; PILLS, IUDs.
The second area includes financial assistance from developed countries for family-planning
programs, public education, and national population policy research activities in the developing
countries

3 types unemployment
1.Frictional - same as search unemployment// constantly looking for work
2.Structural- you got unemployed because the company has changed the structure/ example-
dati kang typewriter pero nawalan ka ng work dahil may bagong technology and u are not used
to it /
3. Cyclical - unemployment because of recession

4 business cycles

1. Expansion - recovered// womb

2. Peak - prosperity
3. Contraction - recession//
4. Depression - trough

Character of depression

1. Stagnation - High unemployment

2. Inflation - high inflation

URBANIZATION
- Process by which large number of people became permanently concentrated.
- Process where cities growth and higher percentage of population found

Most Urbanized country – JAPAN

LEAST Urbanized country – BURONDI

Urban bias- The notion that most governments in developing countries favor the urban sector in their
development policies, thereby creating a widening gap between the urban and rural economies.

Rural-urban migration- The movement of people from rural villages, towns, and farms to urban centers
(cities) in search of jobs

Agglomeration economies- Cost advantages to producers and consumers from location in cities and
towns, which take the forms of urbanization economies and localization economies.

two forms of Agglomeration economies

 1. Urbanization economies Agglomeration effects associated with the general growth of a
concentrated geographic region.
2. Localization economies Agglomeration effects captured by particular sectors of the economy,
such as finance or autos, as they grow within an area.

Social capital The productive value of a set of social institutions and norms, including group trust,
expected cooperative behaviors with predictable punishments for deviations, and a shared history of
successful collective action, that raises expectations for participation in future cooperative behavior.

Efficient Urban Scale

Congestion - an action taken by one agent that decreases the incentives for other agents to take similar
actions. Compare to the opposite effect of a complementarity.

The Urban Giantism Problem

In the case of developing countries, the main transportation routes are often a legacy of colonialism.

First-City Bias- A form of urban bias that has often caused considerable distortions might be termed
first-city bias.
. The country’s largest or first (“first-place”) city receives a disproportionately large share of public
investment and incentives for private investment in relation to the country’s second-largest city and
other smaller cities

CAUSES OF Urban Giantism

Urban Giantism - increase number of population rapid increase in services.
Urban giantism probably results from a combination of a hub-and-spoke transportation system and the
location of the political capital in the largest city. This is further reinforced by a political culture of rent
seeking and the capital market failures that make the creation of new urban centers a task that markets
cannot complete.

- when trade barriers are reduced, the incentive to focus production on the home market is also
reduced

5 policy indication of migration

1. Urban bias leads to more rural -urban migration

2. Imbalances of income opportunity is crucial
3. Indiscriminate educational expansion fosters Increase migration and unemployment
4. Wages subsidies and scarcity factor can be counter productive.
5. Program of integrated rural development should be encourage.
Ways to prevent urban Giantism

1. Create an urban-rural balance

2. Expand small scale and labor intensive industries
3. Eliminate factor price distortion
4. Choose appropriate labor intensive technology
5. Modified the linkage between education and employment
6. Reduce population growth
7. Decentralized authority to cities a d neighborhood

Informal sector- The part of the urban economy of developing countries characterized by small
competitive individual or family firms, petty retail trade and services, labor-intensive methods, free
entry, and market-determined factor and product prices.

It is in the agricultural sector that the battle for long-term economic development will be won or lost. —
Gunnar Myrdal, Nobel laureate in economics

Recent developments in the land, water, and energy sectors have been wake-up calls for global food
security. —International Food Policy Research Institute, 2012

Many development policies continue to wrongly assume that farmers are men. —World Bank, World
Development Report, 2008

Africa is the only region where overall food security and livelihoods are deteriorating.

The Imperative of Agricultural Progress and Rural Development

URBANIZATION PART 7

- Agriculture to Industrialization
- Farmers decrease because of Agriculture to Industrialization
- People go to urban areas to find work
Purpose of agricultural
1. To provide sufficient food and man power to the economy
2. To provide low price food
3. To keep pace with population

Problem in population and food - politicians thinking about food security in the future.
AGRICULTURE has the ability to keep pace with the population.
GREEN REVOLUTION increase/boost in grain production with scientific discovery on new seed
varieties.

3 agrarian system
1. Agricultural base countries- rely on agricultural
2. Transforming countries- people lived in rural that transform in other countries
3. Urbanized countries

Requirements for agricultural

1. Improve small scale agriculture- less use of machinery, more on human labor
2. Provide incentives- government provide helps
3. Land reform
4. Supportive government policies

Conditions of land reform

1. Pay continuously
2. Can't sell the land

International Trade Theory and Development Strategy

Globalization- The increasing integration of national economies into expanding international markets.
World Trade Organization (WTO) Geneva-based watchdog and enforcer of international trade
agreements since 1995; replaced the General Agreement on Tariffs and Trade (GATT)

Free trade agreements- free tax or lower taxes

GLOBALIZATION - Describe the growing interdependence of world economies, culture and population
brought about by cross border trade In goods and services, technology and close of investment, people
and information

3 periods of globalization

1870-1940 -started industrial revolution in europe and the opening of New resource-rich, populated
land in north America, south am, Australia, new Zealand, Argentina, Chile, and Uruguay this
countries eceives so many immigrants,. millions of immigrants and investment came in this country.
This came end 1940 because ww1 started.

1945 – 1980 – characterized by increase in international trade due to the dismounting of heavy trade
protection.

1980- present
Characteristics: fast/speed
-there was an improvement in telecommunications and transportation
-massive international capital close resulting from elimination of restrictions across national
boundaries and the participation of all countries of the world.