Dependency Ratios 12936KB Sep 20 2012 09:21:54 PM

January 6, 2018 | Author: Anonymous | Category: Business, Economics, Macroeconomics
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IB Geography


Dependency Ratios Mrs. Leahy Horton High School

What's to come…

What are dependency Ratios?

Impacts of youthful and aging populations

Natalist Policies

Responses to high and low fertility- Populations in Transition

Dependency Ratios

Getting Started with dependency ratios Dependency Ratio: is the relationship between the working or economically active population and the non-working population.

Youth Dependency Ratio- the ration of the number of people 0-14 to those of 15-64 years.

Elderly dependency ratio: the ratio of the number of people aged 65 and over to those aged 15-64 years.

Importance of dependency ratios

• The dependency ratio is important because the economically active population will contribute more to the economy (taxes on income, goods and business activity) • The dependent population tends to be bigger recipients of government funding (education, health care, pensions). • The increase in the dependency ratio can cause significant financial problems for a government if it does not have the financial reserves to cope with such change.

Limitations of the dependency ratio: • In developed countries few people leave education before the age of 18, many do not get a job until 21 and even retire before the age of 65. • A large number of people in the economically active group are staying home, such as parent to look after children and other reasons. • In developing countries many children are working full or part time before the age of 15- some areas also have high unemployment.

Video time: Watch and Learn

Impacts of a youthful or aging populations

Lets start with:


Case Study- Malawi

Problems to Malawi's Youthful Population

Problems • Pressure on providing adequate medical services and health care. This may lead to widespread disease and infections • Education system under stress – lack of education leads to under-paid, under-privileged jobs. • Insufficient food supply – could lead to famine • Increased rural-urban migration as rural areas unable to sustain growing population. This could lead to shanty towns • Increased poverty and lower standards of living.

Advantages and disadvantages Advantages


- provides a large and cheap future workforce

- puts strain on education and health services

- provides a growing market for manufactured products

- puts strain on food supplies

- provides a large tax base for the country

- puts strain on available accommodation - lack of available jobs in the future

- Source of new innovation and ideas

Aging Populations

Video Clip

• Zvcc&list=FLjCw18Dzx8TViPFSvwRAInA&index =2&feature=plpp_video

Japan Case Study

Japan Case Study Japan has an ageing population because the birth rates have fallen and it has one of the world's highest life expectancy's. In fact the islands of Okinawa off Japan's south coast have the highest life expectancy and the greatest percentage of centenarians in the world. Japan has the highest proportion of old dependents (about 23%) and the lowest proportion of young dependents (about 13%) in the world. It has a total fertility rate of only 1.25. This is well below the replacement rate of 2.1. Even though the Japanese are working longer, it may have to look outside its borders to prevent future population decline and economic decline. Japan is traditionally a very insular country so allowing large scale immigration would involve huge social and cultural changes.

Causes of an Aging Population

High life expectancy caused by: -Good medical care -Good diet and improved water supply -Good sanitation and hygiene Low birth rates caused by: -Emancipation of women -Cost of children -Emigration of economically active

Advantages and disadvantages Advantages


-Elderly people have a lot of -Shortage of economically experience and can be valuable in the active workplace -Reduced taxation income for the government -Less money spent on schooling and -Cost of providing healthcare natal medical care and care homes (elderly tend to get sick more frequently) -Lower crime rates and less money -Reduced spending on needed to be spent on policing education, policing, transport network, etc. -Cost of paying for pensions -Service decline (schools, sports centres, etc. not used by older residents)

Solutions to an Ageing Population

-Pro-natalist policies -Increased immigration of economically active -Increased retirement age -Private pensions -Private healthcare -Increased taxes of economically active

• Videos: Ageing Populations: Chinas- Upside down pyramid- 6 mins 012/04/chinesedemography?fsrc=nlw%7Cnewe%7C4-232012%7C1479315%7C37467942%7C • Aging populations: Ss0k

Natalist Policies


Population Policy Project: You may choose to work with a partner, or a group of three. Each group must select a country and research their population policy. No two groups can study the same country. Please sign your group up with the country of your choice to ensure that no two groups have chosen the same one. The following should be covered in your project•Provide a brief demographic profile of the country – e.g. CBD, CDR, IMR, MMR, LE, TFR, stage in DTM, contraceptive use etc. /5 • Show population pyramids for past, present and future. Describe and account for the trends in the demographic situation that the population pyramids show. /6 •What is the government’s policy towards population growth? How does it implement its policy? Evaluate the success of the policy. /6 •What predictions do you have for the future – demographically, socially, economically, politically, and environmentally? /5 You may use any of the following to present your project: -PowerPoint, wiki page, webpage or have other ideas?? Just ask!

Some Ideas:

» China » Iran » Egypt » France » Denmark » Singapore » Nigeria » India » The Kerala

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