Why in news?

In recent years, youth-led uprisings have erupted across Sri Lanka, Bangladesh, Indonesia, and Nepal, where economic growth has failed to translate into better opportunities for the young. Instead, corruption and elite prosperity dominate.

Nepal’s protests have spotlighted “nepo kids” flaunting luxury lifestyles, fuelling Gen Z anger over inequality. Transparency International’s 2024 corruption rankings placed Nepal at 107, Bangladesh 151, Sri Lanka 121, and Indonesia 99, underscoring widespread governance challenges.

What’s in Today’s Article?

• Youth Uprisings and the Missed Demographic Dividend in Asia
• The Vanishing Demographic Dividend in Asia
• High Youth Unemployment in South Asia
• Understanding India’s Demographic Transition

Youth Uprisings and the Missed Demographic Dividend in Asia

• In recent years, youth-led uprisings have shaken Sri Lanka (2022), Bangladesh (2024), Indonesia (2025), and Nepal, driven by frustration over economic growth that has failed to create better opportunities for young people.
• Despite headline growth, the benefits have largely bypassed the labour force entrants, while ruling elites and business classes prospered.
• Corruption and Optics of Power
  • Nepal’s Gen Z protests spotlighted the luxurious lifestyles of political elites’ children, with “nepo kids” trending on social media.
  • Transparency International’s 2024 rankings reflect deep-rooted corruption: Nepal (107), Bangladesh (151), Sri Lanka (121), and Indonesia (99).
  • Leaders’ actions worsened optics — for instance, Indonesia’s President Prabowo Subianto dismissed respected finance minister Sri Mulyani Indrawati amid backlash over lawmakers’ extravagant $3,000 housing allowance, nearly 10 times Jakarta’s minimum wage.
• Economic Growth Without Inclusion
  • Although these nations witnessed economic expansion, high corruption and weak political continuity prevented inclusive growth.
  • The youth remain the worst affected, struggling with unemployment and limited opportunities.
• A Young Demographic at Risk
  • With median ages of Nepal (25), Bangladesh (25.7), Indonesia (30.1), and Sri Lanka (33.1), these countries are among the youngest globally.
  • Yet, instead of reaping a demographic dividend, they face unrest as disillusioned youth demand accountability and equitable growth.

The Vanishing Demographic Dividend in Asia

• The demographic dividend arises when a country’s working-age population grows faster than dependents, boosting economic potential.
• However, many Asian economies have failed to harness this advantage. Despite strong growth, millions of new jobs have not materialised, leaving young people underemployed.
• Automation has sharply reduced opportunities in traditional sectors such as textiles and auto manufacturing, once the backbone of youth employment.
  • The Asian Development Bank notes that today’s car factories employ only 15% of the workforce needed 25 years ago.
• The World Bank warned in 2023 that South Asia may waste its demographic dividend, as it created only 10 million jobs a year from 2000 to 2023 — just half of what was needed.
• This shortfall underscores the urgent need for inclusive job creation to ensure the region’s youth can drive growth rather than unrest.

High Youth Unemployment in South Asia

• Indonesia’s Youth Struggles - In 2024, Indonesia’s unemployment rate was 4.91%, but for ages 20–24 it spiked to 15.34%, showing youth face joblessness at over three times the national average.
• Bangladesh’s Jobless Youth - Bangladesh recorded 3.35% overall unemployment in 2023. However, youth aged 15–24 had the highest rate at 8.24%, underscoring the lack of opportunities for the young workforce.
• Nepal’s Employment Crisis - Nepal’s unemployment rose from 11.4% in 2017–18 to 12.6% in 2022–23, with underemployment widespread among youth. Limited industrial growth and reliance on remittances highlight weak domestic job creation.
  • Young Nepalis seek jobs abroad, making remittances nearly a quarter of GDP. Without urgent investment in emerging sectors, Nepal risks losing its demographic dividend.

India’s Demographic Dividend in the Making

• India has shifted from a high fertility-high mortality society to a low fertility-low mortality one, reshaping its age profile and creating the potential for a demographic dividend.
• Changing Age Profile
  • According to the 2011 Census, 48% of Indians were in the working-age group (15–59 years), 31% were children under 14, and 9% were elderly above 60.
  • The dependency ratio fell from 64% in 2001 to 55% in 2011, indicating fewer dependents per worker.
  • India’s median age is just 28, making it one of the youngest nations globally.
• Peak Demographic Dividend
  • The Economic Survey 2018–19 estimates that India’s demographic dividend will peak around 2041, when the working-age population (20–59 years) is expected to reach nearly 59%.
  • The UN Population Fund notes India’s demographic window spans five decades (2005–2055), longer than any other country.
  • Unlike China, which saw its demographic dividend peak around 2010, India’s more gradual transition ensures opportunities until 2055, giving it an unparalleled advantage globally.