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Exercises · Q8

Q.Explain the concept of demographic dividend. Why is it not automatic?

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The demographic dividend is the economic growth potential created when a country's

working-age population (roughly 15–59 years) grows large relative to its dependent population

(children and the elderly). This favourable age structure means a larger share of the

population is economically productive and a smaller share needs to be supported — potentially

delivering a larger labour force, higher household savings, and a bigger domestic market.

However, the dividend is not automatic — it must be actively earned. If the economy fails

to adequately educate and skill this working-age population, and fails to generate enough jobs

to employ them, the SAME demographic fact turns into a burden: wasted productive potential,

greater strain on limited resources, and rising unemployment/underemployment, with possible …

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