Effects of rapid population increase
(a) Positive effects:-
- It increases the demand for goods and services hence it widens the market Thus a big population size provides big market provided they are employed and have effective demand.
- Increased labour force:- Increases the size of labour force especially where there was labour shortage and a surplus of cooperate factors. This leads to an increase in output in an economy.
- Increased urge for development:- The urge for development effort by the government increases through provision of social and economic infrastructure needed to sustain the rapidly rising population
- Increased labour mobility:- The associated population pressure accelerates higher mobility of labour from areas of high population to areas of low population densities and also between jobs, which increases the efficiency and productivity of labour.
- Stimulates Investments:- The increased consumer demand resulting from increased populations stimulates Investments in the economy leading to increased employment opportunities.
- Increased revenue to the government. The number of people who can pay tax increase hence more tax revenue to the government.
- Increased manpower for security. The number of people to enlist in military service increase thus protecting the country against external aggression.
- Increased utilization of a country's resources. A country's idle land will be put to use to produce more food for the rising population.
- Leads to economic growth. Due to large number of people, there will be high output, thus, a country's GDP increases.
(b) Negative effects:-
1. A shortage of food is experienced as population growth increases. this may lead to misery and starvation.
2. Dependence burden:- A high population growth rate increases the number of dependents who are mostly below the working age that has to be sustained by the working group. This diverts resources, which would have been used for development.
3. Reduced Investments:- Investment is affected since expenditure tends to be. focused on consumption with less savings.
4. BOP Problems:- The excess demand for social services strains the government budget and citizens in general which may result into BOP problems as some requirements may have to be imported with less being exported.
5. Income inequality:- Due to problems of resource distribution, income inequality increases.
6. Unemployment:- As the proportion workers to ihe population increases,. unemployment results, The shortage of co-operant factors like capital, land etc makes it difficult to increase employment opportunities.
7. Over population: High population growth rate leads to over population with its consequences like over exploitation of natural resources, land fragmentation, political unrest etc.
8. Low capital accumulation:- It retards the process of capital accumulation, Because people are required to sustain a big population, savings are discouraged.
9. Low standard of living:- A rising population leads to a low per capital income and low standard of living,
10. Rural urban migration:. Because of the pressure on land in the rural area, rural urban migration results as people tend to move to the urban areas in search of opportunities.
11. Inflation:- As population increases, the demand for goods and services also increases. The failure for the supply to match with the demand leads to demand pull inflation.