The Demographic Dividend
A Time Sensitive Window of Opportunity for Kosovo
About
Kosovo is currently in the early demographic dividend stage with fertility levels and child mortality rates that have already reached the post transition levels and dependency ratios expected to decline. In demographic transition, the population moves from one demographic structure to another. Secular shifts in fertility and mortality levels change the age structure of a population from many children and few elderly to few children and many elderly, thereby leading to a situation where the growth rate of the labour force exceeds that of dependents, resulting in surplus resources for investments in economic development and family welfare. The situation of having a relatively larger working-age population is related to the so called first demographic dividend. As the working-age population matures, the prospect of retirement can provide the motivation to save for financial security. The additional savings can either be consumed or used to prolong economic growth. This stage of economic growth has been termed the second demographic dividend which can occur in the later stage of the demographic transition. To summarize, while the first demographic dividend is an outcome of a change in the population structure which leads to a transitory bonus, the second dividend converts the additional resources into means of sustainable development. Nevertheless, the dividend period is a window of opportunity rather than a guaranteed outcome, which fully depends on the adoption and effective implementation of policies aimed to reap the benefits of the demographic dividend. See the full report for more.
