9.5.16

HONEY, I SHRUNK THE KIDS.


Much of the world seems to be concerned about population bursts. Global average population growth rates have crossed 1.25%. However, it is interesting to dive into intricacies of nations that face the opposite situation; a rapidly decreasing population. In particular, 2 nations are under threat; Japan and Moldova. Here, I shall try and understand the situation in each of these nations in order to foster a greater understanding of an issue less spoken of.  Although reasons for population decline vary, the consequence does not. Productivity his hit due to a crunch in the work force which hampers economic growth.

The most severe cases of population decline are seen in Eastern Europe. Moldova, one of the nations within this region, loses roughly 1% of its population annually. It has a death rate of 11.1deaths /1000 population, a rate more alarming than war torn nations in Africa such as Sudan (8 deaths/ 1000 population). Why? The answer may be found in the pages of history. The fall of the Soviet Union was as economic as it was political. Eastern Europe was economically dependent on the Soviets and their crash left these nations staring into financial downturn. Financial instability may have driven the population to slow down its birth rate as more lives mean more mouths to feed. The birth rate is, to this day, relatively lower than the global average that is required to sustain a population. In addition, globalization has paved the way for emigration and `brain drain’. Financially insecure minds often wander outside the boundaries of the land they were raised in. When skilled and educated personnel leave the nation due to lack of opportunities, it has disastrous effects on the population growth rate. Staggering number of students seek an education in foreign universities despite efforts from the state to promote domestic educational programs through financial incentives.

However, Japan might be staring down a hole deeper than it imagined. In 2014, the island nation was left with roughly 268,000 people less than what it began the year with. A figure that reflected the severity of the problem at hand. Why? Factors at play include the high cost of living in major cities and the low and decreasing fertility rate which is currently at 1.41 births/ woman. For most Japanese, the balance between work and domestic life is hard to find. Working long hours rarely leads to a commitment to raise children. Japan also faces an increase in ageing population at the cost of decreasing youth. This has severe implications on total productivity. Unemployment is over 3%, which may be another cause for the population crunch. A major cause may be the strict immigration laws upheld by the island nation. Japanese government officials validate these regulations as necessary to maintain the ethnic homogeneity of the population. True as that may be, their effects seem to reflect otherwise. 

The bottom line is, a decrease in population both in Eastern Europe and Japan points to decreased economic activity which then fuels a domino effect of decreased consumption and lower revenue through taxes. Thus, while much of the world struggles to accommodate an expanding population, it is crucial to fathom the grievances of those nations that face the opposite.

-          ATHARVA DESHMUKH 

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