What Is The Demographic Dividend?

economic-lifecycleWhen someone uses the term “demographic dividend” or “demographic bonus,” they are referring to the phenomenon when a country experiences an economic boost that follows a decline in fertility.

The premise is fairly simple: When a nation’s fertility rate rapidly declines following a period of high birth rates and rapid population growth, the community benefits from a larger population of working-age adults relative to a smaller population of young dependents. With the right economic and educational policies in place, this beneficial age structure helps countries develop very quickly.

The benefits can last for more than five decades, and the “dividend” can propel developing economies into the developed world, with the potential for raising millions of people to higher standards of living.

We have written about this topic before, using Thailand as an example. If you want to know more, start with that article, and then contact us at info@popconnect.org if you need more information.

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