Q. Consider the following statements:
1.The demographic dividend means the chance for more economic growth when there are more people of working age compared to those who are not working age.
2.Countries with a high dependency ratio usually experience demographic dividend due to increased government spending on social welfare programs.
Which of the statement(s) given above is/are correct?
Explanation –
Statement 1 is correct. The demographic dividend refers to the economic growth potential that arises from changes in a population’s age structure, particularly when the share of the working-age population is larger than the non-working-age share of the population. This condition creates an opportunity for economic growth as there are more people able to work and contribute to the economy.
Statement 2 is incorrect. A high dependency ratio, which indicates a larger proportion of non-working-age individuals compared to the working-age population, does not typically lead to a demographic dividend. Instead, a demographic dividend is more likely to occur when the dependency ratio is lower, meaning there are fewer dependents and more working-age individuals who can contribute to economic growth. High dependency ratios can actually place a greater economic burden on the working-age population, potentially requiring increased government spending on social welfare programs, which is not directly indicative of a demographic dividend.
Source: The Hindu
