The Optimum Theory of Population | Geography

In this article we will discuss about:- 1. Introduction to the Optimum Theory of Population 2. Concept of Optimum Theory of Population 3. Assumption 4. Interpretation.

Introduction to the Optimum Theory of Population:

The optimum theory of population was put forward as a reaction to the Malthusian theory of population. Malthus (1766-1834), in his famous book ‘Essay on the Principle of Population’ (1798), stated that: Population increases faster (in geometric progression) than means of subsistence (in arithmetical progression).

However, the Malthusian Theory deals with the relationship between population growth and food supply, while the Theory of Optimum Population studies the relationship between population size and the production of wealth. Optimum population refers to a state where the size of the population is neither greater nor lower than the socially desirable level.

Concept of Optimum Theory of Population:

The concept of Optimum Population arose from the fundamental relationship between population and resources. Edwin Cannan (1861-1935), who was a British economist, has been credited for having introduced the term and framing the theory. He published the “Wealth” in 1924. His idea was discussed and made popular by Carr Saunders, Dalton and Robbins.

If the different views are studied, we would find that they emphasized on various aspects of the optimum size of population, such as requirements of the population, productive activity of the economy, requirement for equitable distribution etc.

Assumption of the Optimum Theory of Population:

(1) With the growth of population, the ratio between total population and working population remains unchanged.

(2) The hours of work and production per head of working population will remain constant.

(3) A time may come when a country’s population will increase with that of the available natural resources. Under such a condition, technical know-how and capital will not change. So, after some time, the law of diminishing returns begins to operate. When the combination of factors is not suited for production, it will be impossible to maximise production.

According to the exponents of the theory, from the national point of view, population should be treated as a labour force. Every increase in the labour force creates an opportunity to utilize the material resources available in the country.

Interpretation of the Optimum Theory of Population:

In order to understand the concept of optimum population, the following points are to be studied carefully:

(1) Population is the manpower needed to exploit the natural resources and thereby promote economic growth.

(2) As long as the optimum point is not reached, the nation shall remain unable to exploit the natural resources to the maximum possible extent, i.e., properly and fully.

(3) If the population crosses the optimum point, then the nation shall not get the maximum return. This is because the large population will create pressure on other resources. The burden on those resources will become disproportionate.

(4) If the population is at the optimum point, the resources are properly and fully utilized. It gives the ideal combination of factors of production. Moreover, it helps in suitable division of labour, resulting in very high national gross production and per capita income. At the optimum point, external economies are fully utilized. As an empirical theory, the optimum theory is very scientific.

Given a criterion, the theory establishes that the function y(P) increases over a range of low value of P, reaches a maximum point and then decreases as the value of P increases:

Y = y(P),

where,

y = per capita real income

P = Population.

From Fig. 13A, we can understand the theory. Here, the optimum population function is represented as a simple curve which is concave to the X-axis. The curve has a single hump. The point P shows the optimum point. +

Here, the per capita income is highest. Till the point ‘P’ is reached, the growth in population is accompanied by a corresponding increase in per capita income. When we go beyond the point OM, any further increase in population results in a fall in per capita income.

Here, we can refer to the laws of production.

According to the law of increasing returns, as the population increases, marginal and average productivity also increases. When the point of optimum population is reached, the law of constant returns operates. Now, with further increase in population, the law of diminishing returns tends to overtake the economy.