Demographic dividend

[1] UNFPA stated that "a country with both increasing numbers of young people and declining fertility has the potential to reap a demographic dividend.

With fertility rates continuing to fall and older generations having longer life expectancies, the dependency ratio declines dramatically.

Combined with effective public policies, this time period of the demographic dividend can help facilitate more rapid economic growth and puts less strain on families.

[3] However, dramatic social changes can also occur during this time, such as increasing divorce rates, postponement of marriage, and single-person households.

Creating conditions for decent livelihoods will be an enormous task, especially given that, currently, about 80 per cent of the people who work in these countries are unemployed, underemployed or irregularly employed.

Additionally, the shortage of financial resources will make it difficult to maintain, let alone increase, spending on health, education and nutrition.Therefore, in order to reap the benefits of a demographic dividend, countries must recognize and cultivate the potential of young people and close the gap between the demands placed on young people and the opportunities provided to them.

[9] During this time the dependency ratio also improved as a result of increased female labor market participation and a reversal from outward migration of working age population to a net inflow.

A 2011 International Monetary Fund Working Paper found that substantial portion of the growth experienced by India since the 1980s is attributable to the country's age structure and changing demographics.

[11] The U.S. Census Bureau predicts that India will surpass China as the world's largest country by 2025, with a large proportion of those in the working age category.

[11] Extreme actions are needed to take care of future basic minimum living standards including food, water and energy.

[16] This urgency stems from the relatively small window of opportunity countries have to plan for the demographic dividend when many in their population are still young, prior to entering the work force.

[16] Failure to provide opportunities to the growing young population will result in rising unemployment and an increased risk of social upheaval.

[16][6] The urgency to put in place appropriate policies is magnified by the reality that what follows the "demographic dividend" is a time when the dependency ratio begins to increase again.

Inevitably the population bubble that made its way through the most productive working years creating the "demographic dividend" grows old and retires.

[19] Other regions, notably Europe and North America, will face similar situations in the near future, with East Asia to follow after that.