A depopulating world

Shrinking global population should be seen as an opportunity to heal the planet

Alok Tiwari

The big news on population front last week was that population of China declined for the second successive year. In 2023, the decline was by nearly 20 lakh people, more than twice the 8.5 lakh decline seen in 2022, the first year it saw a decline. China is not alone in this. Much of the developed world is seeing a significant fall in birthrates and population. Japan and Russia are experiencing declining population for decades. They have been joined by almost entire Europe, North America, Australia, New Zealand, and several emerging economies in Asia.

Even India has seen significant decline in the growth rate over the last three decades from over two percent annually to less than one percent. This too is contributed mostly by a handful of states in north and northeast with the rest of the country at either replacement rate or seeing a decline. High population growth is now seen only in African continent and poorer countries of Asia and South America.

For about half-a-century the conventional wisdom has been that if only we could control our population things would be great. It would mean less demand for resources resulting in lower prices, less supply of labour resulting in better wages, better education and health services for all. It is even more important in a world faced with human-caused climate change. Fewer human beings could only be good news, right? Well, yes and no.

While it does appear that finally the world has largely come to grips with the population problem, it turns out that managing a declining population is almost as tough if not more than managing a rising one. Multiple problems arise. A shrinking population is also an aging one in which the proportion of older people increases sharply. This casts a huge burden on fewer and fewer number of working population. Younger couples, often single children themselves, must take care of two sets of parents. Contributors to social security systems (working people) go down while beneficiaries (older people) go up. Entire villages and regions begin to empty out creating law and order problems and economic disruptions.

Even ecologically, fewer people are not good news. Population shrinkage typically follows rising prosperity. It means better living standards and much more demand on resources. Often population declines very gradually while consumption rises quickly. This is good for economy in the short term but bad for environment. Hence, hopes that lower population would mean help in fighting climate change need to be tempered.

Coupled with these are worries about cultural and ethnic decimation. Japan, Russia, Italy, and others despite seeing steep population decline have restricted immigration over this fear. There are anti-immigrant movements in countries like US, UK, and Canada that have tried to tide over the labour shortage through immigration. While people want cheap immigrant labour for their farms, factories, and warehouses, they do not want outsiders to “spoil” their way of life. It also feeds xenophobia and all manner of irrational fears about demographic change.

Hence, you do not find countries with declining population celebrating. Instead, they want their people to have more children. China’s one-child policy has quickly become three-children policy. It and others give financial and other incentives to couples for having more children. Thankfully, these measures do not work and birthrates in most places have remained much lower than replacement levels. The main reason is that in a modern society, one can do without too many children. At lower levels of prosperity, more working hands mean more income. Also, children are a form of social security. As people get more educated and richer, they have other means to get these. In such society there is greater participation of women in workforce, better access to contraceptives which also lowers birthrates. Also, cost of raising children is also much higher. Government incentives, no matter how generous, do not nearly counter all these factors.

So, what must the world do? There is no doubt eventually fewer people is what the world needs from sheer sustainability point of view. Even with rising per capital consumption there will eventually come a point when lower population will mean lower demand on world resources. That is the only way humans can survive on this planet. Sooner that point is reached the better it is. This would inevitably mean facing disruptions and pain in the short run. In fact, the governments’ effort to push up population are to avoid this pain.

Richer nations need to shed their xenophobia and welcome more immigrants, even at the cost of altering their ethno-cultural-religious landscape. This would not only solve their labour shortage but also provide opportunity to people still trapped in poverty elsewhere in the world. But more importantly, we need to work on an economic model that does not rely on perpetual growth. Of course, companies need to make profits, but they do not need to go on increasing their profits quarter-on-quarter. The economy needs to be ready for inevitable shrinkage in some sectors. This is not new. Technological change has caused entire industries to be wiped off. We survived that. We can survive de-growth caused by lower population as well.

Instead of trying to keep villages and towns alive at all costs, countries need to think about ceding unviable land areas back to nature by incentivising relocation to more viable population centres. This would help revive environment and be better earth’s non-human inhabitants who have been often driven to extinction. Human ingenuity has helped them come this far, though with disastrous consequences for planet and its climate. The same can be used to heal the wounds they have caused for decades.

This column appeared in Lokmat Times on Jan 31, 2024

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