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ECON2013 Development Economics

This class discusses two contrasting views on population growth. Robert McNamara argues that rampant population growth poses a significant threat to social and economic advancement in developing countries, likening it to the threat of nuclear war. In contrast, the UN asserts that if people are cared for, population growth will stabilize itself. Key questions include whether population growth is indeed a problem, what microeconomic factors contribute to high birth rates in LDCs, and the costs versus benefits of children in economic terms.

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ECON2013 Development Economics

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  1. ECON2013Development Economics Week 5: Class on Population © Peter Smith, February 22 2010 This work is licensed under a Creative Commons licence

  2. Two different views on population growth • “…the greatest obstacle to the economic and social advancement of the majority of peoples in the underdeveloped world is rampant population growth…the threat of unmanageable population pressures is very much like the threat of nuclear war…”(Robert McNamara) • “Take care of the people and the population will take care of itself.” (UN World Population Congress)

  3. Questions for discussion • Is population growth a real problem? • Why? • What factors at the microeconomic level might contribute to the high birth rate seen in many LDCs?

  4. What determines the net price of children? • Costs: • Benefits

  5. The microeconomics of fertility MB, MC of children MC MB C* No of surviving children

  6. Policy implications?

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