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There is no question that the populations of most European countries will decline in the next generation, and in the cases of Germany and Russia, the decline will be dramatic. In fact, the entire global population explosion is ending. In virtually all societies, from the poorest to the wealthiest, the birthrate among women has been declining. In order to maintain population stability, the birthrate must remain at 2.1 births per woman.
Above that, and the population rises; below that, it falls. In the advanced industrial world, the birthrate is already substantially below 2.1. In middle-tier countries such as Mexico and Turkey, the birthrate is falling but will not reach 2.1 until between 2040 and 2050. In the poorest countries, such as Bangladesh and Bolivia, the birthrate is also falling, but it will take most of this century to reach 2.1.
The process is essentially irreversible. It is primarily a matter of urbanization. In agricultural and low-level industrial societies, children are a productive asset. Children can be put to work at the age of 6 doing agricultural work or simple workshop labor. Children become a source of income, and the more you have the better. Just as important, large families can more easily support the elderly in societies where there is no other retirement plan.
In an urban society, the economic value of children declines. In fact, children turn from instruments of production into objects of massive consumption. In urban industrial society, not only are the opportunities for employment at an early age diminished, but the educational requirements also expand dramatically.
Children need to be supported much longer, sometimes into their mid-20s. Children cost a tremendous amount of money with limited return, if any, for parents. Thus, people have fewer children. Birth control merely provides the means for what is an economic necessity. For most people, a family of eight children would be a financial catastrophe. Therefore, women have two children or fewer, on average. As a result, the population contracts.
Courtesy : Stratfor (www.stratfor.com)