High population growth rate is an obstacle to economic growth in many?

Answer 1

In the under-developed countries, especially in the over-populated countries of Asia, population increases very rapidly. This has very adversely affected their rate of economic growth. In fact, rapid population growth is a greatest obstacle to economic growth. Whatever increase takes place in the national output and income in such countries as a result of development is devoured by the ever pounding torrent of babies. It is like writing on the sand. That is why the standard of living and income per capita cannot rise. For example the major part of increase in national income that has accrued in India during the five year plan has been nullified by the rapid population growth as the result through there has been substantial increase in national income, but the per capita income has not increased much. Obviously a rapidly growing population is a great obstacle in the way of raising the level of living in such countries.

Beside a rapidly growing population creates several other problems on account of which it becomes difficult to accelerate economic growth. In firstly place a rapidly growing population required large quantity of food grains. In India the explosive rate of population growth has increased the demand for food problem in the country. This is due to higher income elasticity of demand for food. It has created a serious food problem in the country. India has been importing now for many year large quantities of food grain and losing valuable foreign exchange on this account. If there had been no food problem we would have been able to import plant and machinery and other equipment and necessary industrial raw material all of which would have promoted rapid economic growth in the country.

Unemployment is another very serious problem creates by rapid increase in population. We know that the India backlog of unemployment has been increasing at the end of each five year plan. This is due to that fact that owing to low rate of capital formation industrialization has been going on at a slow rate and it has not been possible to increase employment opportunities commensurate with the rate of population increase. Unemployment means waste of potential manpower resources. Instead of being used in the work of economic development the unemployed act as a drug on economic progress since they have to be fed all right even through they are not making any contribution to the growth of national output.