Chinas One Child Policy and the Economic Implications

Topics: One-child policy, Demography, Population growth Pages: 3 (1044 words) Published: May 7, 2013
Chinas one child policy

Introduction:
Vast depletion of natural resources, limited amounts of space, malnourishment, these are all effects of an overpopulation of a country. In the 1970’s, China was faced with the same scenario, which called for an immediate policy that had to be implemented to further delay the unbearable impacts that have arose. China would not wait and lay victim to prove that Thomas Malthus’ population hypothesis could in fact prove true. Therefore the 1 child policy was created, and implemented in China to help control the threat of overpopulation and vast depletion of natural resources. However with that in mind, the policy was due to have more effects than a merely simple decrease in population growth. What other impacts did such a policy bear? The question this paper inquires is whether China’s implementation of the 1 child policy led to an increase in the output per worker? To be more specific, was the increase determined mainly by an increase in capital per worker, along with an increase in the savings rate? This paper will be divided amongst 3 different sections. Section 1 will give some additional background on China’s 1 child policy, which will be followed by the targeted impacts of the policy in section 2, finally there will be a linkage between the impacts of the policy accompanied by the changes in output per worker, along with concluding remarks.

Section 1: Background of the 1 child policy
The policy, which was implemented in 1979 had the original intent of reducing the demand on natural resources, maintaining a steady labour rate, and reducing unemployment caused by surplus labour. China’s standard of living much more resembled that of a 3rd world country, which forced them to seek 1st world status, with the idea of slowing down their high population growth rate of 2.76% in 1970. The 1 child policy to summarize included the following; local residents requiring permission before having their first born child, strictly...
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