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Trend in Population

The present growth rate of population is 1.2% - from 1 -1750 AD the growth
rate was .05%; from 1750- 1850 it was 0.5%, between 1900 -1950 it was
0.8%. The death rate has declined mainly due to medicine and modern
sanitation measures.
(2005) The average rate of growth for the low and middle income countries
has been 1.3% per year, compared to 0.7% of developed countries.
Doubling time is the period that a given population takes to increase by its
present size.
Following are the population growth rate per continent:
Africa 2.5%
Asia 1.4%
Latin America 1.3%

During industrial revolution high birthrate accompanied economic growth


mainly because of improved public health. As countries become prosperous
The death and birth rates decrease resulting in low population growth rate.
Death rate has fallen drastically because of improved health care, education
and sanitation. In many developing countries even though the birth rates have
decline it is still high.
In poor households they have an incentive to invest in children to help
them as farm labor and help with household task
Investing in children is a way to ensure old age care.
Lack of knowledge about family planning.

There are three world demographic trends:


Fertility rate has decline. It is about 3 per woman now
There is an aging population
Large portion of the population are living in urban areas.

Population Momentum

(Thirlwall) Cost and benefit of Population: The pessisisstic view originated


from Malthus.

- Uses up scarce non renewable resources and causes environmental


degradation
- Puts pressure on food supply
- Leads to overcrowded congested cities
- Increases unemployment
- Reduces capital per labor
-
Again the positive side is
-Productivity increases with increase in population because of techological
improvement
-output grows due to economies of scale and so does labor productivity
Therefore, we are met with paradox of labor where in one hand - Population
reduces standard of living, on the other hand we see increase in learning,
specialization, and growth of output. (Thirwall)

What are the links between population and environment?


Imbalance in the distribution of population in relation to natural resources can
increase environmental degradation and undermine sustainable development.
Soil erosion and desertification
Deforestation and loss of biodiversity
Misuse and pollution of freshwater resources
Production of greenhouse gases
Pollution in coastal areas

Population and consumption:

Increasing population mean higher consumption of natural resources.


Despite improvement large amount of waste, air and water pollution is a
serious problem in OECD countries. Industrial residue acidic material heavy
metal, and toxic chemicals degrade soil, damage plants and endanger food
supplies.

Higher income and standard of living lead to increased consumption and has
pressure on non renewable resources. The population growth also increases
the consumption of nonrenewable and renewable resources.

Recommendation:
Improving literacy rate, especially for women
Empowering women as managers in environmental matters and family
planning decisions
Having better knowledge of the demographic trends and it impact on
ecology, endangered zones, agriculture etc
Involvement at the grassroot level with respect to agricultural
development, grazing, slums etc
Investment in education and healthcare.

Next Chapter

Trade and Environment

There is links among trade, economics and environment


Trade serves as primary engine of economic growth to many low and
middle income countries
Trade helps to optimize the efficiency of resource use. Countries tend
to export goods that are abundant
Increased growth lead to higher standard of living which in turn means
clean water, preserved wild life etc

Government policies that reduce market distortions, define property rights,


promotes laws and regulations, governs use of natural resources and
environment, has an educated labor force are the powerful way to promote
sustainable development. Oil

Economic effect leading to environmental impact:


increased capital inflow- this may increase productivity. On the other
hand due to devaluation of the currency there might be over extraction
of resources
Production technology should be advanced, environmentally friendly.
But industrial processes lead to toxic and hazardous waste. Therefore,
as the economic growth increases the environmental degradation may
outweigh the clean tech.
Production should shift towards better usage of capital, natural
resource, and human endowment. This will lead to efficient industries.
This may cause brown areas of environmental concerns. Air pollution,
traffic etc
General effect of trade on environment is the availability and use of raw
material. The question then remains whether they are extracted in a
way that causes harm or not
Location of economic activity shows whether there will be rapid
urbanization ,pressure on arable land, or fishing.

Sectoral effect

Earlier developing countries exported raw materials so the pressure was on


natural resource depletion. Now these countries produce processed and
manufactured goods. This may lead to environmental degradation.

So the effect of trade on environment is mixed, depends on the composition of


export, government policy, and market and government intervention to price
natural resources. Trade may underprice environmental resources.

Trade does create externalities such as timber trade from the rain forest. Or
fishing rights

Sound economic policies, secure property rights, strong environmental


institutions are necessary to correct the market and avoid environmental
externalities.

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