- Increased demand for consumable goods and services
Because of rising population, the demand for goods and services goes on to increase. Our country, despite agrarian in nature, always remains deficient in foodstuff, milk, meat, beef, poultry, wood, vegetables, pulses, grams and other necessities of life. Thus, because of increased demand for goods etc, the prices of goods go on to increase. The situation is contributing to inflation.
Moreover, in such state of affairs, the artificial shortages of goods is also created to reap abnormal profits. In this situation, the rich are getting rich while the poor getting poor. This means that rising population is responsible for widening the gap between have and have-nots aggravating the distributional issue. Efficiency of the poor is affected when they do not get the wages in accordance with the rise in prices. To remove the paucity of food-stuff etc they have to be imported. While on the other side, the rich have no alternative except to spend their abnormally gotten high incomes on imported luxurious consumption goods. Thus, the combined effect of rising population whether in the form of foodstuff imports or imports pertaining to conspicuous consumption has worthy affected the balance of payment position of the country. It was obvious from current account deficient of $3.4 billion during the year 2011-12.
- Increased demand for social goods and services
Because of rising population, the demand for social and public goods like water, houses, roads, hospitals, schools, colleges, health centers, illiteracy and malaria eradication programs etc rises. But our countrymen, in spite of apparent prosperity, fail to deposit enough amount as taxes. Accordingly, to meet the rising expenditures (mostly unproductive in nature) due to increased population, government has to depend upon an excessive deficient financing. As during 2012-13, the budget deficient was above 8% of GDP a clear -cut threat to economic stability.
Because of increased population, in addition to social services, government has to spend a bulk amount on administration and its allied fields. Above all, the rising defense expenditures are insult to injury. It is evident from this fact that about 80% of our revenue budget is used to meet the expenditures of defense, administration and interest charges.
- Absorption of population
The increased population has resulted in aggravating the problem of unemployment in the country. Agriculture is the main absorbing sector for rising population. But in such sector, more than the required number are employed. Consequently, the marginal productivity of labor is zero and negative in so many cases. Because of operation of natural vagaries’ agriculture, the agriculture as a profession is losing attraction. Accordingly, the laborers are leaving agriculture in order to seek jobs in industrial and services sector. But unluckily, the industrial sector is handicapped because of uncertainly, strict loaning conditions, flight of capital, diversion of resources to commerce, hoarding, smuggling and clumsiest official procedures etc.
Because lack of financial resources the oil and gas exploration is being made at a reduced rate. Hence, this sector also fails to accommodate the rising manpower due to increased population.
The job opportunities are getting slack in ‘Middle-East’ because of reduction in oil earnings, completion of constructional works and tightening of labor markets etc. The above discussion reveals that our economy fails to absorb the additions in the manpower due to rising population. The current rate of unemployment in the country is about 6% which is far above the population growth rate.
- Physiological and ecological problems
“Because” of rapidly increasing population the rate of working labor force is decreasing while that of dependents is increasing. When a male earning member has to face the burden of ever-increasing number of children, the earnings of a person are thinly spread among st the members of the family. The male earning members always have to make a sacrifice for their dependents whether they are their offspring, brothers, sisters, uncles, aunts, grand-fathers or grand-mothers. In this situation the physical and mental health of the earning members is adversely affected due to over-work or malnutrition. In our country, the per capita calories intake is around 2500, while it is 3475 in Germany, 3623 in US and 2653 in Japan. It means that because of increase in population in our country, the health standard is being deteriorated. There is big attack of disease, particularly in the presence of reduced medical facilities. As a result, the life expectancy is around 63 years which is far below the western and south-east -Asian countries.
“Because” of increased population a lot of ecological problems have also emerged. To produce food for increasing number of mouths to feed, the lands are extensively used with the help of fertilizers, nutrients, pesticides and other chemicals. In this way, on the one side the fertility of land is being affected. While to produce the chemicals, phosphates and urea to boost agriculture production, more plants are required to be established. In this way, the ecological problems are becoming acute day by day polluting the atmosphere. Again, more population means the more traffic, more movement of means of transportation resulting in traffic problems, more accidents, more pollution, and environmental disturbances.
- Increased consumption and fall savings
In the phenomenon of rising population, despite heavy infant mortality rate (76 out of 100), the population of infants and other young person is increasing while that of working class is decreasing. In this situation, more of incomes have to be spent on consumption. As a result, the proportion of savings is at the lowest level about 15% of GNP. “Because” of such situation our society has become a consumption oriented society. The low saving and investment are responsible for keeping the country poor. The growth takes place only if the growth of GNP is more than the growth rate of population. In our country, growth rate is poor because of low saving and investment, while population growth is sufficiently stable at a higher level. Our per capita income $1368 per Annam is far to below Singapore’s $2500, Japan’s $38950 and US $43500. It is attributable to higher population growth rate on the one side, and low increase in GNP, on the other side.