From low birth rate to depression

IIPM’s 36th Glorious Year of Academic Excellence

Albeit the economic one, is waiting for Europe today....

The world population never before had a paradox like this. While the population of the world is increasing a fast pace, Europe is experiencing a major reduction in its population growth rate. Birth control or the lack of offsprings is no more a family issue, as it has emerged as threat to future of European economy.

While greater professional opportunities for women have substituted motherhood, reports state that even young men are reluctant to have their own family. This is not an isolated incident but is a phenomenon which has spread like wildfire in Europe leading to one of the lowest birth rates in the world over decades in history; the birth rate is 1.2 per women in Czech Republic, Slovenia, Latvia and Poland, far below the requisite 2.1, while Greece, Italy and Spain have below 1.3 birth rate for a decade.

For long, it was assumed that population is nothing more than a big burden for any nation. Yet in the recent past, the resurgence of India and China driven by the power of their market economy and prospering population, has vindicated the perception that an economy is nothing, unless there is an ever increasing population of consumers. The decreasing population in Europe might not seem to be a problem for the time being, as in the age of automative production and outsourcing, it hardly would have any impact on production from Europe. But the real problem is the problem that is building up for the future. With a reduced consumer population and shrinking economy, would Europe be able to take the burden of its increasingly greying population in the future?

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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