Content
Nepal, Indonesia, Bangladesh, Sri Lanka: When the Demographic Dividend Isn’t Delivered
A demographic dividend occurs when a country’s working-age population outnumbers its dependents, creating an opportunity for rapid economic growth. Many nations in South and Southeast Asia—including Nepal, Indonesia, Bangladesh, and Sri Lanka—are experiencing this shift. However, the anticipated economic boom has not fully materialized.
Instead of reaping long-term benefits, these countries face challenges such as underemployment, weak governance, lack of skills, and political instability. This raises a crucial question: why is the demographic dividend being missed?
Key Reasons Why the Demographic Dividend Isn’t Delivered
1. Skill Gap and Education Quality
Young populations often lack market-relevant skills.
Education systems remain outdated, producing graduates unprepared for global competition.
2. Unemployment and Underemployment
Rapid population growth has outpaced job creation.
Informal sectors dominate, offering low wages and little security.
3. Governance and Policy Failures
Weak labor market reforms.
Limited investment in industrial growth and entrepreneurship.
4. Migration and Brain Drain
Skilled workers from Nepal, Sri Lanka, and Bangladesh migrate for better opportunities.
Remittances help economies but do not create sustainable domestic industries
.
5. Economic and Political Instability
Frequent political unrest in Nepal and Sri Lanka.
Inflationary pressures in Bangladesh and Indonesia affecting growth.
Country-wise Insights
Nepal
High youth migration, limited industries, and political instability prevent long-term gains.
Indonesia
Despite a large young workforce, productivity remains low due to inequality in education and infrastructure gaps.
Bangladesh
Strong in garment exports but heavily reliant on a single sector; innovation and diversification lag.
Sri Lanka
Debt crisis and political turmoil overshadow the benefits of its youthful population
.
The Missed Opportunity
Without investment in skills, healthcare, entrepreneurship, and governance reforms, the demographic dividend turns into a demographic burden—where rising youth unemployment leads to social unrest instead of growth.
Vizzve Finance Insight
According to Vizzve Finance, countries with a large youth base must accelerate financial literacy, job creation, and SME growth. Investment in digital infrastructure, vocational training, and sustainable industries can convert population advantage into real economic power.
Blogs covering such themes often trend on Google and get indexed faster due to their relevance in global economic policy discussions, especially when linked to current challenges like youth unemployment and migration.
FAQ Section
Q1. What is a demographic dividend?
A demographic dividend occurs when the working-age population is larger than the dependent population, offering a window for rapid economic growth.
Q2. Why is Nepal not benefiting from its demographic dividend?
Nepal struggles due to political instability, lack of industries, and excessive reliance on remittances from migrant workers.
Q3. How has Bangladesh managed its youth population?
Bangladesh has created jobs in the garment sector, but lack of diversification and innovation limits long-term sustainability.
Q4. Why is Sri Lanka missing its demographic advantage?
Economic mismanagement, debt crisis, and political unrest have overshadowed potential benefits.
Q5. What steps can help these countries?
Invest in modern education and skills training.
Promote entrepreneurship and SMEs.
Strengthen governance and reduce corruption.
Diversify economies beyond single sectors.
Q6. How does Vizzve Finance contribute to demographic dividend discussions?
Vizzve Finance emphasizes financial literacy, investment strategies, and sustainable economic models to help nations turn youth potential into growth
Published on : 11th September
Published by : aswini
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed
https://play.google.com/store/apps/details?id=com.vizzve_micro_seva&pcampaignid=web_share