When a country has a high number of children, it is said to have a youthful
population, but when a country has a high number of elderly people, it has an
ageing population. both of these situations can give rise to a number of
problems.
Dependency ratio: the ratio between those of working age and those of
non-working age. This is calculated as:
% pop aged 0 -14 + % pop aged 65+
% of population aged 15-65
x 100
The ratio for an MEDC usually lies between 50 and 75. The ratio for an LEDC
is typically higher. Mexico, with a youthful population structure, has a
dependency ratio of 104. The higher the ratio, the greater the number of
dependents that have to be provided for from the taxes on the workforce.
Youthful Population (LEDCs)
Advantages
Disadvantages
Solutions
- provides a large and cheap future workforce
- provides a growing market for manufactured products
- puts strain on education and health services
- puts strain on food supplies
- puts strain on available accommodation
- lack of available jobs in the future
- family planning
- industrialisation to provide jobs in manufacturing
Ageing Population (MEDCs)
Advantages
Disadvantages
Solutions
- A larger proportion of ageing people can add experience
to the workforce
- a growing 'grey' market for leisure and health products
- construction boom in favoured retirement locations such as the
Costa del Sol (Spain).
- cost of providing pensions, health care and sheltered housing
leads to increased taxes on a proportionally small workforce
- many young people are employed caring for the elderly. This
harms a country's competitiveness, since they are not producing products for
export.
- abolish state pensions
- raise retirement age
- locate retirement 'colonies' in LEDCs
- increase taxes
- sell homes of the elderly to pay for retirement care
