Economic Issue (Midterm)

Growing population a boon for PH economy

By Lois Calderon, ABS-CBN News Channel

Posted at 05/02/2012 10:19 AM | Updated as of 05/02/2012 1:26 PM

MANILA, Philippines - The Aquino government sees the country's rising population as more of a boon, rather than a bane it was to the economy in the past.

They are investing more to feed the young population, educate them and keep them healthy.

The government says the effects of this will be felt around 2015 when the working-age Filipinos will make up majority of the country, accelerating economic growth. At present, the country's population reached 92.33 million as of 2010, according to data released by the National Statistics Office.

"If we are to reap this demographic dividend, this particular sector, the lower part will have to have the kills to be productive participants in the future Philippine economy," Finance Secretary Cesar Purisima said.

Working and earning Filipinos are consumers too. Bangko Sentral governor Amando Tetangco says domestic, consumer spending helps the economy ride out the increasingly volatile global economy and markets, which caused a drag on exports last year.

To keep the economy being domestic-demand driven, people need the skills to get jobs, earn and keep spending.

"Growth in the Philippines has been driven more by domestic demand rather than foreign demand... Of course, remttances help finance consumption but we also have what we recently talked about - the demographic dividend - the young, economically active population like those guys in teh BPO sector. They drive consumption," Tetangco said.

Tetangco said the government is finding ways to make sure the poor won't be left out. He says including them in the financial system, giving them access to credit could help them become a boost rather than a drag to the economy.

"We're trying to reach the unbanked and the underserved or the excluded segments in the population," he said.

The government says other economies grew fastest when they hit their demographic sweet spots. It's hoping to get a double boost from the rising population, and including more of the population in the modern economy.

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            Overpopulation has a definite effect on a country’s economy. First of all, when countries are overpopulated, they hardly have enough food to support themselves, never mind the hope of having a surplus to sell.  This can contribute to a low GDP which is an effect overpopulation has on the economy.  In an attempt to save the people from the starvation, the government will most likely have to rely on foreign debt.  This puts the country in debt and stretches the government’s already meagre resources.  Furthermore, when a country is overpopulated, there is a high rate of unemployment because there just aren’t enough jobs to support the population.  This results in a high level of crime because the people will need to steal things in order to survive.

             Overpopulation does not just affect the standard of living, but also the environment. Every person on the planet takes up space, but space is needed for farmland, and forests. People excrete wastes and pollution that flow into water systems, animal habitats, polluting water, and killing wildlife. Many people cannot bathe or brush their teeth because of the status of the water in their land. Forests are being torn down as more wood and land is needed to support our ever-growing population. The loss of these forests leads to extinction of plants and animals. These plants could contain cures for diseases that will never be found.

                In my opinion, we should do several things to solve overpopulation in the country. First, we should continue to strive to reduce suffering by combating disease and poverty around the world. Second, we should continue to improve resource efficiency and pollution control so that standards of living can rise without negative impact. And third, we should keep human population to numbers that are sustainable.