China's Abolition of One Child Policy: Will it Correct the Demographic Imbalance?

On 29 October, 2015, China’s ruling Communist Party announced that the One Child Policy that had been in force from 1980 was being discontinued and the families would from then on be allowed to have two children. This change was aimed at correcting the demographic imbalance that had resulted from the One Child Policy.

China’s population had increased tremendously during the period 1949 to 1978, and it became impossible to control the population growth rate without any stringent efforts. The rapid population growth led to increased consumption and reduced capital accumulation and investment. Overuse of natural resources became prominent as the dependence on land, water, and energy increased. The standard of living remained stagnant during the period. In order to resolve all these problems, the Chinese Government announced the One Child Policy in 1978, and strict enforcement of the policy started in 1980...