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CHAPTER 9. Population and Development. Introduction to population and development. India’s population is 1.15 billion and growing This relentless growth has canceled out gains in food production, health care, and literacy Kerala, a state in south India, is densely populated
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CHAPTER 9 Population and Development
Introduction to population and development India’s population is 1.15 billion and growing This relentless growth has canceled out gains in food production, health care, and literacy Kerala, a state in south India, is densely populated It is crowded, poor and has adequate (but low) food intake But Kerala is also different: it has invested in social policy A strong commitment to health care and education Its fertility rate has dropped from 3.7 to 1.8 in 20 years A developing region can undergo demographic transition without long-term economic development
The poor have large families The fertility transition is the most vital element in the demographic transition High fertility and poverty are linked Why do the poor in developing nations have large families? Security in old age because there is no social safety net High infant and childhood mortality Helping hands from children as young as 5 doing chores Status of women is linked to having more children Availability of contraceptives reduces fertility, but they are too expensive or unavailable
A vicious cycle High fertility rates in developing countries are not because people behave irrationally or irresponsibly The sociocultural climate favors high fertility Contraceptives are not available Poverty, environmental degradation, and high fertility drive each other in a vicious cycle: a poverty trap Population density leads to resource depletion Which leads to more children to gather fewer resources
Some sobering facts Some developing nations still have problems 1.2 billion live on less than $1.25/day 1 billion lack access to water, live in urban slums, and are malnourished The poor suffer from disease, infant mortality, illiteracy, lower life expectancy, social exclusion, powerlessness Nelson Mandela said that massive poverty and inequality rank alongside slavery and apartheid The UN Fund for Population Activities (UNFPA) states that economic growth is not enough to end poverty
Millennium development goals (2000) The UN’s Millennium Development Goals (MDGs) Each goal has measurable indicators to monitor progress A clear set of targets for developing countries Developed countries and agencies will help Achieving these goals will improve economic development Eradicate poverty and hunger Achieve primary education and gender equality Reduce child mortality and diseases Improve maternal health Ensure environmental sustainability, forge partnerships
World agencies at work In 1944, delegates formed the International Bank for Reconstruction and Development (the World Bank) A special agency under the UN Owned by countries that provide its funds Developed countries and commercial banks deposit money Governments of developing nations borrow money for projects Annual loans equaled $24.7 billion in 2008 The World Bank is the major single agency providing aid to developing countries
What is the World Bank? The World Bank is composed of five associated agencies The International Bank for Reconstruction and Development (IBRD) Works at reducing poverty in middle-income and stronger low-income countries Provides loans and advisory services The International Development Association (IDA) Provides interest-free loans to the poorest countries The International Finance Corporation Provides loans, advice, and guidance to countries that are investment risks
Bad bank The World Bank’s projects have made the cycle of poverty and environmental decline worse The World Bank loaned India a billion dollars to build five coal-burning power plants and six open-pit mines The power goes to distant cities The project has displaced 200,000 rural poor It produced extensive air and water pollution $1.5 billion went to clear millions of acres of tropical forests to raise beef and crops for export Environmental concerns were not considered integral components
Good bank The World Bank helped initiate the MDGs It requires Poverty Reduction Strategy Papers for all countries receiving IDA loans Its Country Assistance Strategy identifies how its help reduces poverty and encourages sustainability The World Bank adopted Making Sustainable Commitments: An Environmental Strategy for the World Bank in 2002 Environmental improvement and sustainable development is fundamental to reducing poverty Development balances economy, society, and environment
Other UN agencies The UNDP connects countries to knowledge, experience, and resources to help people build a better life It helps countries attract and use aid effectively The UN Food and Agricultural Organization (FAO) and World Health Organization (WHO) also help Critics in the U.S. charge that the UN is useless They want to reduce or eliminate foreign aid Without the UN and World Bank, the poor would be in much worse shape This is not a luxury, but a necessity
The debt crisis Theoretically, development projects will generate enough money to repay the loans, with interest Corruption, mismanagement, miscalculations occurred Developing countries have become more indebted $4 trillion in debts in 2007 Failure to pay interest increases the interest owed The debt situation is an economic, social, and environmental disaster
How countries handle their debt To keep up even partial interest payments, poor countries have few options Focus agriculture on growing cash crops for export Decreases a country’s ability to feed its people Adopt austerity measures by reducing services Schools, health clinics, police protection, road maintenance, other goods and services Rapidly exploiting natural resources (logging, mining) Few environmental restrictions are imposed The debt crisis has meant environmental disaster
Liquidating ecosystem capital Developing countries are liquidating ecosystem capital to raise cash for short-term needs This is not sustainable Countries have paid back more interest than they borrowed The debt still remains After paying $8.3 trillion in interest, countries still owe $4 trillion Only 10% of this debt is owed by the low-income nations A consequence of debt cancellation It is obvious that most of these countries can never repay their debts
Debt cancellation Two initiatives of the World Bank Consultative Group to Assist the Poorest (CGAP) Heavily Indebted Poor Country (HIPC) initiative CGAP increases access to financial services to the poorest Through microfinancing HIPC addresses the debt of low-income developing nations To qualify, countries must carry out economic and social reforms leading to greater stability and less poverty In countries that qualified, spending on education and health care rose substantially
Zambia Before HIPC, Zambia’s debt was $7.1 billion It was reduced to $500 million Servicing this debt was costing the country twice what it spent on education News of the debt cancellation was met with joy The government responded by introducing free health care in rural areas
Improving education Basic literacy: learning to read, write, and do simple math 50-70% of women in poor countries are illiterate Educating women is considered unimportant High population growth overwhelms school and transportation systems Basic literacy allows people to gain information Investing in educating children returns great dividends Korea’s 94% literacy rate helped economic growth and reduced population growth rates Secondary schooling further reduces poverty and growth rates
Improving health Health care needed by the poor is not high-tech It is the basics of good nutrition and hygiene For example, boiling water reduces disease Oral hydration therapy: treating diarrhea by giving suitable liquids Developing countries have high infant mortality rates 54/1,000, compared to 6/1,000 in developed nations
Life expectancy One universal indicator of health: human life expectancy In 1955, it was 48 years Now it is 68 years and is expected to be 73 years by 2025 Increased life expectancy is the result of social, medical, and economic advances The epidemiologic transition: decreasing death rates seen in countries as they modernize Shifting from high mortality (diseases) to low mortality rates (diseases of aging, cancer, etc.)
Family planning Poor people must depend on family-planning agencies Funded by private donations, governments, and clients Family-planning policy is to enable people to plan their own family size—to have children if and when they want A critical component of reproductive health care, it includes counseling and education on contraceptives, health care, and avoiding high-risk pregnancies Encouraging and implementing family planning is the first and most important step a country can take to develop economically Contraceptives effectively reduce fertility rates
Grameen Bank The Grameen Bank in Bangladesh provided microloans Small loans (about $330 in 2007) Short term (4-6 weeks) Loans provide seed and fertilizer, pans, yarn, tools, etc. Credit associations: groups of people who agree to be responsible for each other’s loans Over 97% of loans are paid back Microlending has the greatest benefits when focusing on women Children and households benefit
Microlending…a big deal, a good deal Microlending is an unqualified success It stimulates economic activity It enhances the income of the poor More than 40 countries have adopted the Grameen concept The World Bank increased its support of microfinancing By 2007, 3,300 institutions had granted loans to 154 million poor—mostly to women Microloans help meet MDGs The poor are improving their own well-being
Putting it all together The five components of social modernization depend on and support each other: Education, health, family planning, employment and income, and management of natural resources All five components must be addressed in order to alleviate poverty, reverse environmental degradation, and reduce population growth in developing countries.
