Several South and Southeast Asian nations—Nepal, Indonesia, Bangladesh, and Sri Lanka—have long anticipated a demographic dividend, expecting a growing working-age population to fuel economic growth. However, many countries struggle to convert population potential into actual prosperity due to structural, educational, and economic challenges.
1. Understanding the Demographic Dividend
Definition: Economic growth potential arising from a larger proportion of working-age population relative to dependents.
Expected Benefits: Increased labor force, higher productivity, and accelerated GDP growth.
Necessary Conditions: Quality education, skill development, employment opportunities, and robust economic policies.
2. Country-Wise Challenges
a) Nepal
Large youth population but limited industrial and employment opportunities.
Rural-urban migration strains urban centers without creating sufficient jobs.
Skills mismatch and low labor productivity impede economic growth.
b) Indonesia
Significant working-age population, yet unemployment and underemployment remain concerns.
Automation and low-tech industries limit full utilization of workforce potential.
Regional disparities in education and infrastructure hinder balanced growth.
c) Bangladesh
Robust labor force contributing to textiles and exports, but wages remain low.
Youth employment often concentrated in informal sectors without social security.
Education quality gaps restrict innovation and higher-value economic contributions.
d) Sri Lanka
Aging population in combination with youth unemployment creates economic pressure.
Political instability and debt crises limit investment in human capital.
Limited industrial diversification affects overall productivity.
3. Common Reasons for Unfulfilled Demographic Dividend
Skill Gaps: Education systems not aligned with labor market needs.
Job Scarcity: Industrial and service sectors cannot absorb large workforce.
Economic Inequality: Unequal distribution of income reduces potential consumption and growth.
Policy & Governance Issues: Weak institutions and inconsistent policies undermine workforce potential.
4. Strategies to Realize Demographic Dividend
Invest in Education & Skills: Vocational training, STEM education, and digital literacy.
Boost Employment Opportunities: Encourage entrepreneurship and industrial growth.
Inclusive Economic Policies: Reduce inequality and improve labor market access.
Regional & Cross-Border Cooperation: Leverage trade and investment to expand opportunities.
FAQs
Q1: What is a demographic dividend?
It is the economic growth potential from a larger proportion of working-age population relative to dependents.
Q2: Why haven’t these countries fully benefited?
Challenges include skill gaps, job scarcity, economic inequality, and governance issues.
Q3: Can Nepal, Bangladesh, Sri Lanka, and Indonesia still benefit?
Yes, with proper investment in education, employment, and policy reforms, the potential can be harnessed.
Q4: Which sectors can drive the demographic dividend?
Manufacturing, IT, services, exports, and entrepreneurship-driven sectors.
Q5: How can policymakers help?
By aligning education with market needs, fostering industrial growth, and ensuring equitable economic policies.
Published on : 11th September
Published by : SMITA
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