Q.(a) “United Nations Department of Economic and Social Affairs indicated that India has overtaken China as the world’s most populous country in the month of April 2023.” Explain the consequences of one-child policy adopted by China in the 1970s.

(a) China's one-child policy, implemented in the late 1970s, aimed to curb rapid population growth but led to significant demographic and economic consequences. A primary impact was a skewed sex ratio, as a cultural preference for male heirs resulted in female infanticide or sex-selective abortions, creating a gender imbalance. Economically, the policy contributed to a rapidly aging population and a shrinking workforce. Fewer young people entered the labor market, increasing the dependency ratio where a smaller working-age population supports a larger elderly population. This demographic shift poses long-term challenges for social security, healthcare systems, and sustained economic growth due to reduced labor supply and potential domestic consumption. …

(a) Consequences of the One-Child Policy Adopted by China in the 1970s

The one-child policy was a population control measure implemented in China from 1979 to 2015. Its primary goal was to curb the rapid population growth that was perceived to strain the country's resources and hinder economic development. The policy mandated that most couples in China could only have one child, with some exceptions for ethnic minorities or rural families whose first child was a girl. While successful in significantly reducing China's birth rate and slowing population growth, the policy led to several profound and often unintended demographic, social, and economic consequences:

• Aging Population and Rising Dependency Ratio: A drastic reduction in the birth rate over several decades resulted in a rapidly aging population. As the proportion of elderly people increases relative to the working-age population, the dependency ratio rises. This means fewer young workers are available to support a growing number of retirees, placing immense strain on social security, healthcare systems, and pension funds. This phenomenon is often referred to as the "4-2-1 problem," where one child might eventually be responsible for supporting two parents and four grandparents.

• Gender Imbalance: Due to a traditional cultural preference for male heirs, particularly in rural areas, and the availability of sex-selective abortions, the policy led to a significant gender imbalance. Many families opted for male children, resulting in a skewed sex ratio at birth (more boys than girls). This imbalance has long-term social implications, including difficulties for men in finding partners and potential social instability.

• Shrinking Workforce: The sustained low birth rate means that, in the long run, the size of China's working-age population will shrink. This decline in the labor force can lead to labor shortages, increased labor costs, and a potential slowdown in economic growth, as the "demographic dividend" (a period where a large working-age population drives economic growth) diminishes or reverses.

• "Little Emperors" Syndrome: Children born under the one-child policy, often being the sole focus of their parents and four grandparents, sometimes exhibited characteristics of being over-indulged, lacking siblings, and facing immense pressure to succeed. This social phenomenon has been termed the "little emperors" syndrome.

• Human Rights Concerns: The implementation of the policy involved coercive measures, including forced abortions and sterilizations, which raised significant human rights concerns internationally.

• Economic Impact on Consumption: While a smaller population might mean higher per capita income in some scenarios, a shrinking and aging population can also lead to reduced overall consumption demand in the long run, impacting domestic market growth.

(b) Impacts of Special Economic Zones (SEZs) on the Economic Growth of China

Special Economic Zones (SEZs) are designated geographical areas within a country that are subject to different economic regulations than other regions of the same country. China began establishing SEZs in the late 1970s and early 1980s as a key component of its economic reform and opening-up policy. The primary goal was to attract foreign direct investment (FDI), promote exports, facilitate technology transfer, and experiment with market-oriented economic policies in a controlled environment before wider implementation. These zones offered preferential policies such as tax incentives, reduced tariffs, simplified customs procedures, and improved infrastructure.

China's SEZs have played a pivotal role in its remarkable economic growth over the past few decades, contributing significantly in several ways:

• Attraction of Foreign Direct Investment (FDI): SEZs successfully attracted massive inflows of FDI by offering a favorable business environment, lower labor costs, and various incentives. This foreign capital was crucial for financing industrial development, infrastructure projects, and the establishment of new manufacturing facilities, directly boosting economic activity. …