So Ethiopia was the fastest-growing country in the 2010s. But who will it be in the 2020s? Many of the countries in Africa have the potential. https://www.ft.com/content/c71cd2e5-7e32-4675-9680-e94bfd7f055d … via @financialtimes
-
how would a lower fertility rate lead to a larger savings and banking system
I had same question myself. I think, through a demographic dividend. For example, if you have a society with few old and children everyone is extremely productive. The old and children spend without producing. With few old and young, the productive middle saves.
-
-
Saving seems more culture than demographics. The Asians countries have always had higher saving rates. lowering fertility would seem to just create a smaller, but still inefficient, population, Shrinking savings and banking
-
I think it's both. Culture is definitely very important. Are Ethiopians not big savers? While I agree that East Asians are big savers and Africans seem not to be, Ethiopians are not typical for the continent.
- 2 more replies
New conversation -
-
-
When you have 4-6 children, they are your pension and there is no money left to save in the banking system. When you have 1-3 children, you have money to save and your children are your investment. Asia cut fertility rates before Africa, hence higher savings and higher investment
-
Ah, good point about your "children being your pension".
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.