U.

P's New Population Policy

EHS July 14, 2021

Why in news?
" Uttar Pradesh Chief Minister launched the State's

population policy for 2021-2030.

" Also, draft of the Uttar Pradesh Population (Control,
Stabilisation and Welfare) Bill, 2021 was published earlier.
What are the key features of the policy?
" The new policy aims to achieve the following targets:
i. decrease the Total Fertility Rate from 2.7 to 2.l by 2026
and 1.7 by 2030

i. increase Modern Contraceptive Prevalence Rate

from 31.7 to 45 by 2026 cnd to 52 by 2030
ii. increase male methods of contraception use from
10.8 to 15.lby 2026 and to 16.4 by 2030
iv. decrease Maternal Mortality Rate from 197 to 150 to
98

V. decrease Infant Mortality Rate from 43 to 32 to 22

vi. decrease Under 5 Infant Mortality Rate from 47 to 35
to 25

" The state would attempt to maintain a balance of

population among the various communities.
Awareness and extensive programmes would be held
among communities, cadres and geographical areas
that have a higher fertility rate.
What does the draft bill propose?
" Under the draft bill, a two-child norm would be
implemented and promoted.
" A person who will have more than two children after the
law comes into force would be debarred fromn the
benefits of government welfare schemes.
 Ration card units would be limited to four.

The person will be barred from contesting elections to

local authority or any body of the local self-government.
Such persons would also become ineligible to apply for
government jobs under the State government.
They will be barred from promotion in government
services and will not receive any kind of subsidy.
The provisions would come into force one year after the
date of publicationof the gazette.
" The draft alsoproposes to incentivise one-child and two
childfamilies.

These include perks in government schemes, rebates in

taxes and loans, and cash awards if family planning is
done, anmong other sops.
What is the rationale?

The policy seems to be in line with principles of the Cairo

International Conference on Population and Development
in 1994.
The Cairo Consensus called for a promotion of

reproductive rights, empowering women, universal

education, maternaland infant health.
The objective was to address the relations between the
issues of poverty and high fertility.
What are the concerns?

" While the above intention is welcome, the government

fails to take affirmative steps in that direction.
" It instead seems to have taken the path of a mixture of
incentives and penalties.
" It is approaching the socio-economic ISSue as

demographic one.
The incentives/disincentives approach has been

denounced in the past by the National Human Rights

Commission tO0.
 " Also, empirical studies of coercive measures haveshown
such policies' discrimination against the poor and the
marginalised.
" Studies have also found no discernible effect of such

measures on population control.

What should be done?

" India is not being threatened by a 'population explosion".

" India's TERS have been reducing substantially across most
States, even in U.P. and Bihar with the highest TERS.
So, to hasten the drop to replacement levels of fertlity,
States should tackle the socio-economic issues faced by
India's largely youthful demography.
" Economic growth as well as attention to education, health
and enmpowerment of women work far better to
disincentivise larger families.
" The success of India's southern states in containing

population growth clearly indicates this.

" In all, socio-economic empowerment is more effective
than coercion in bringing down fertility rates.
Introduction

Macroeconomic policy plays a critical role in shaping the economic landscape of a nation. In
contemporary developing economies, these policies are essential for fostering growth, maintaining
stability, and ensuring equitable development. With globaleconomic integration and rapid
technological advancements, the challenges and opportunities faced by these economies have
evolved, necessitating a nuanced approach to macroeconomic policy.

This essay will delve into the objectives of macroeconomic policy, the specific priorities in
developing economies, and the challenges they face. It will also explore the role of international
institutions and the impact of globalization. By examining these aspects, we can better understand
how developing nations navigate their economic landscapes and strive for sustainable growth.

Objectives of Macroeconomic Policy

1. Economic Growth

Economic growth is a primary objective of macroeconomic policy. Policymakers aim to

create a favorable environment for investment, entrepreneurship, and consumption.
Growth can be measured through GDP increases, and sustainable growth ensures that
future generations also benefit from economic activities.

Strategies may include fiscal stimulus, investment in infrastructure, and incentives for
private sector development.
2. Price Stability
Controlling inflation is vital for maintaining the purchasing power of the currency. High
inflation can lead to uncertainty, affecting consumer and business confidence. Conversely,
deflation can stall economic growth.
" Central banks often use monetary policy tools,such as interest rate adjustments and open
market operations, to control inflation.
3. Full Employment
Achieving full employment is crucial for maximizing a nation's productive potential. High
unemployment not only affects individual livelihoods but also limits economic growth and
increases government spending on social welfare programs.
" Macroeconomic policies can stimul job creation through public works programs,
vocational training, and support for s1nall and medium enterprises (SMEs).
4. Balance of Payments Stability
" A stable balance of payments is necessary to avoid excessive foreign debt and currency
volatility. Policymakers aim to manage exports and imports, ensuring that a country does
not become overly reliant on foreign capital.
Trade policies, currency interventions, and promoting competitive industries are common
strategies.
5. Income Distribution

Equitable income distribution is essential for social stability and poverty alleviation.
Macroeconomic policies can help reduce inequality through progressive taxation, social
welfare programs, and targeted investments in disadvantaged areas.
Ensuring that growth benefits all segments of society can enhance social cohesion and
political stability.

Priorities in Contemporary Developing Economies

1. Investment in Infrastructure

Infrastructure development is critical for supporting economic activities. Many developing

economies suffer from inadequate roads, energy supply,and communication systems.
Policymakers prioritize public-private partnerships (PPPs) to finance infrastructure
projects, as they can leverage private sector efficiency and capital.
2. Human Capital Development
" Investing in education and healthcare is fundamental for enhancing productivity and
economic growth. A skilled workforce is more adaptable and innovative, which is crucial
for competing in a globalized economy.
Governments often implement policies to increase access to quality education and
healthcare services, particularly for marginalized populations.
3. Financial Inclusion

Ensuring that all citizens have access to financial services can stimulate economic activity
and foster entrepreneurship. Microfinance initiatives and mobile banking have gained
traction in many developing countriec
 Policies aimed at improving financial literacy and reducing barriers to access are essential
for promoting financial inclusion.
4. Sustainability
Balancing economic growth with environmental sustainability is increasingly important,
especially in light of climate change. Policymakers prioritize green technologies and
sustainable practices to ensure that growth does not come at the expense of
environmental degradation.
Investment in renewable energy, sustainable agriculture, and conservation efforts are
examples of this focus.

5. Policy Stability and Transparency

A
stable and predictable policy environment is crucial for building investor confidence.
Political instability and abrupt policy changes can deter investment and economic growth.
Governments work towards transparent governance practices, regulatory clarity, and
stakeholder engagement to foster a conducive business environment.
6. Debt Management

Many developing economies grapple with high levels of public debt. Effective debt
management strategies are essential to ensure fiscal sustainability while promoting
growth.

Policymakers must balance the need for borrowing to finance development projects with
the risks associated with high debt levels.

Challenges Faced by Developing Economies

1. Political Instability
Political instability can hinder effective policymaking and implementation. Frequent
changes in government or policy direction can disrupt economic activities and deter
investment.

Establishing stronginstitutions and governance frameworks is essential for mitigating

political risks.
 2. Limited Fiscal Space

Developing economies often have limited fiscal space due to low tax revenues and high
public debt. This restricts their ability to implement expansionary fiscal policies during
economic downturns.

Policymakers must find innovative ways to increase revenue without stifling growth, such
as broadening the tax base and improving tax collection efficiency.
3. Vulnerability to External Shocks
Developing economies are often more susceptible to external shocks, such as fluctuations
in commodity prices or global economic downturns. These shocks can severely impact
their economic stability.
Diversifying the economy and developing resilient supply chains can help mitigate these
vulnerabilities.

4. Informal Economy

A significant portion of economic activity in developing countries occurs in the informal

sector, which can lead to challenges in taxation, regulation, and labor rights.
" Policies aimed at formalizing the informal sector can enhance productivity, ensure better
labor standards, and increase government revenues.
5. Globalization and Competition
" Globalization has brought opportunities for trade and investment but also increased
competition. Developing economies must find ways to enhance their competitiveness
without compromising their social and environmental goals.
Investing in innovation and skills development is critical for maintaining a competitive
edge.

Role of International Institutions

International institutions such as the International Monetary Fund (IMF) and the World Bank play a
significant role in shaping macroeconomic policy in developing economies. They provide financial
assistance, technical support, and policy advice aimed at fostering stability and growth.
 1. Financial Assistance

The IMF provides financial support to countries facing balance of payments crises, helping
stabilize their economies while implementing necessary reforms.
The World Bank focuses on long-term development projects that aim to reduce poverty
and promote sustainable economic growth.
2. Policy Advice and Capacity Building
Both institutions offer expertise in macroeconomic management, helping countries design
and implement effective policies.
Capacity-building programs help strengthen institutions and improve governance, which is
vital for successful policy implementation.

Conclusion

Macroeconomic policy is a vital tool for developing economies as they strive for growth, stability,
and equitable development. The objectives of these policies-economic growth, price stability, full
employment, balance of payments stability, and income distribution-guide policymakers in their
efforts to create a conducive economic environment.

However, developing economies face unique challenges that require tailored approaches. Priorities
such as infrastructure investment, human capital development, financial inclusion, sustainability,
policy stability, and effective debt management are essential for navigating the complexities of the
global economy.

International institutions play a critical role in supporting these economies, providing financial
assistance and expertise. As globalization continues to shape the economic landscape, developing
nations must remain agile, embracing innovation and sustainable practices while addressing social
and environmental challenges.