Summary
- Research by the RAND Corporation and the World Bank has shown that countries with a growing working-age population can experience faster economic growth when supported by sound education, health, and employment policies.
- However, a demographic dividend can quickly become a demographic burden if employment opportunities and skills do not keep pace with population growth.
- Research across both developed and developing countries consistently concludes that people become an economic asset when governments invest in their education, health, productivity, and opportunities rather than viewing population solely as a number.
By Dr Naveeda Katper
Different countries have different characteristics regarding population, geography, and natural resources that shape their economic growth. Economists use various indicators to measure development, and population is one of the most debated among them. A large population is often viewed as a hurdle to economic growth. However, every issue deserves to be examined from different angles. The question, “Is a large population a curse or a blessing?” cannot be answered with a simple yes or no. We need to move beyond the idea of population as a burden and understand the concept of the demographic dividend. What appears to be a curse can become a blessing when viewed through the right perspective and supported by the right policies. Research by the RAND Corporation and the World Bank has shown that countries with a growing working-age population can experience faster economic growth when supported by sound education, health, and employment policies.
Whether a large population becomes an economic asset depends on governance and public policy. A growing population is not necessarily a curse because every additional mind brings new ideas, different perspectives, and fresh solutions to existing problems. One mind can accomplish one task, two minds can accomplish two, and millions of minds can achieve far more. That is the value of teamwork and collective human potential. Every individual possesses different skills, abilities, and talents that can contribute to national development. What many consider a burden may actually become a country’s greatest strength if those human resources are properly developed. This is the essence of the demographic dividend—the economic advantage that emerges when the working-age population becomes larger than the dependent population. Development economists describe this period as a “window of opportunity” rather than a guaranteed outcome.
Highly populated countries can utilize their youthful population to strengthen their economies. After India, China, the United States, and Indonesia, Pakistan is the fifth most populous country in the world. This should be seen as an opportunity rather than a challenge because more than 65 percent of Pakistan’s population consists of young people. That gives the country a significant advantage. A demographic dividend can only be realized when the working-age population is educated, healthy, skilled, and productively employed. When more people are working and contributing to the economy, household savings increase, investment grows, government spending on dependents declines, and both economic output and per capita income improve. The World Bank has repeatedly emphasized that human capital—education, health, and skills—is one of the strongest drivers of long-term productivity and national income.
The real challenge is identifying the policies required to achieve this dividend. A country can benefit only if it creates sufficient employment opportunities, provides quality education and skill development, ensures access to healthcare, encourages women to participate in the workforce, and maintains stable economic and public policies. When these conditions exist, the country enjoys faster economic growth, greater productivity, increased investment and savings, improved living standards, and stronger entrepreneurship and innovation. Economic growth becomes inevitable when people are hardworking, equipped with multiple skills from an early age, and capable of adapting to changing economic demands. Skilled and self-reliant citizens become the driving force of national development. Evidence from South Korea, Singapore, and Ireland shows that investment in education and skills transformed youthful populations into globally competitive economies.
However, a demographic dividend can quickly become a demographic burden if employment opportunities and skills do not keep pace with population growth. The consequences may include rising unemployment, poverty, social unrest, and migration. Economists and demographers consistently argue that a demographic dividend is not automatic; it is an opportunity that must be earned through effective governance and strong institutions. Without adequate planning and investment, a large youth population can become a liability instead of an asset. The International Labour Organization has warned that persistent youth unemployment can reduce economic productivity and increase social instability.
A dynamic economy capable of creating millions of formal-sector jobs each year is essential for absorbing a growing workforce. Human capital development should remain at the center of national policy. Strong educational systems, Technical and Vocational Education and Training (TVET), science, technology, engineering and mathematics (STEM), digital literacy, coding, digital finance, and technology-based curricula should be introduced from the early years of education. Equal opportunities for girls and women in education and employment are equally important. Pakistan also needs job creation, labour market reforms, export-led manufacturing, labour flexibility, investment in high-value industries such as technology, electronics, and specialized services, support for youth entrepreneurship and microfinance, and stronger healthcare infrastructure. UNESCO has consistently highlighted that technical and vocational education equips young people with practical skills that improve employability and economic resilience.
Pakistan possesses one of the largest youth populations in the region, but this advantage can only be realized through greater investment in education, skills, and employment. In conclusion, population control alone is not a long-term solution to economic growth. Developing people’s abilities, expanding opportunities, and investing in human capital are far more effective. The experiences of countries such as Italy and Japan also demonstrate that declining populations and ageing societies create their own economic challenges. The real question is not how many people a country has, but how well it prepares its people to contribute to national development. Research across both developed and developing countries consistently concludes that people become an economic asset when governments invest in their education, health, productivity, and opportunities rather than viewing population solely as a number.
The writer holds a PhD from Malaysia and writes on economic development, public policy, and demographic issues. She can be reached at naveedakatper11@gmail.com
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