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Family planning spurs economic growth, reduces poverty

Not only does family planning improve stakes for the health of women and children, new analyses show that such measures can break the cycle of poverty, drive new economic growth and improve the overall health of a country’s citizens

Rita Widiadana (The Jakarta Post)
Kigali, Rwanda
Thu, November 15, 2018

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Family planning spurs economic growth, reduces poverty

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ot only does family planning improve stakes for the health of women and children, new analyses show that such measures can break the cycle of poverty, drive new economic growth and improve the overall health of a country’s citizens.

For decades, family planning has always been associated with the idea of population control and coercion.

The health benefits of contraception — preventing unintended pregnancies, averting unsafe abortions and reducing maternal and child mortality rates — were strongly emphasized, while the economic benefits were seemingly relegated to the background.

However, welcome developments in the past few years have revealed an accumulation of evidence on the extensive and far-reaching dividends that investments in family planning yield beyond improving women’s health and rights.

A study conducted by the Copenhagen Consensus Center indicates that achieving universal access to contraception could result in long-term health and economic benefits worth US$120 for each dollar spent on family planning. The newly released report, Family Planning (FP) 2020: Catalyzing Collaboration, has found that better access to family planning can deliver a “powerful demographic dividend” that can help transform economies, as birth rates drop and the ratio of adults to dependent children increases.

With fewer dependents to support, a country can invest more in education, infrastructure and other productivity-enhancing measures.

“Family planning does more than save lives, it also saves money,” said Natalia Kanem, executive director of the United Nations Population Fund (UNFPA).

“For every dollar invested in family planning and reproductive health services, around $2.20 is saved in pregnancy-related healthcare costs. The longer a woman waits to have children, the longer she can participate in the paid labor force, thereby boosting the economic health and prosperity for poor and vulnerable communities.”

The insight may prove useful for Indonesia, which is transitioning to a so-called demographic dividend. Seen as a period when the proportion of productive-aged people (15 to 64 years) reaches a maximum against the dependent-aged population, the demographic dividend is expected to peak between 2025 and 2030 and may come as a result of successful family planning programs.

Demographic experts say Indonesia is now on the cusp of this “window of opportunity”, which occurs when the dependency ratio hits its lowest level, 44 to 46 per 100 people, and is achievable if a national family planning program runs successfully.

“Family planning empowers women and empowered women are economic dynamos. They will be joining the labor force, starting their own businesses and investing in their communities,” said Beth Schlachter, executive director for FP2020.

“This sparks a ripple effect that generates vast benefits across society, driving productivity, prosperity and sustainability.”

The FP2020 report is supported by a study conducted by the McKinsey Global Institute that suggests if women were able to participate in the economy at the same level as men, they would add some $28 trillion to the global gross domestic product by 2025.

Yale economist T. Paul Schultz also found that family planning not only leads to better health care and better education for both women and children, it also results in higher income and greater household assets for their families.

Schultz reached this conclusion after analyzing data on the enduring effects of having improved access to family planning in Matlab, Bangladesh, just 20 years after the initial intervention.

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