Singapore’s Government Pays Parents for More Children
Singapore has become the latest country to adopt a pro-natal policy that rewards couples for having children. Prime Minister Goh Chok Tong recently announced the establishment of baby bonuses for parents for their second and third children. The fertility rate in Singapore is currently at an all time low of 1.48, falling from 1.96 in a little over a decade. If this continues, asks Prime Minister Goh, “How can we sustain economic growth? How can we support our elders? How can we defend ourselves?” Singapore, it seems, is asking itself the hard questions, and coming up with at rise in birthrates as the logical solution.
Under the new program, which will take effect on April 1, 2001, the government will put money for children into a “child development account.” The bonuses start at $500 (Singapore) for the second child, with up to an additional $1000 in matching grants for contributions parents make, for a total possible of $1500 (Singapore) (US$872). For the third child, these amounts are doubled. The bonuses are given annually for the first six years of a child’s life.
In addition, the policy is written to include paid maternity leave for the birth of a third child. At the present time, an eight-week paid maternity leave is allowed only for the births of a woman’s first two children. Will the bonuses work’? Reactions are mixed. A recent article in The Strait Times of Singapore argued that the idea is more popular with men than with women. The women quoted in the article felt that the incentives were a good idea, but would not affect their decision whether or not to have more children. The men interviewed were more enthusiastic. One man, the father of two, is quoted saying “naturally it will help. I have always wanted a third and fourth child.”
It is unlikely that this baby bonus alone will raise the birthrate in Singapore back up to replacement level. But it is a first step. And as Prime Minister Goh states, “we must at least try to arrest the problem. Not to try is to give up on Singapore.”
(Richard Borsuk, “Singapore Announces Incentive Plan to Boost Sliding National Birth Rate,” Wall Street Journal, 21 August 2000; Yap Chuin Wei, “Baby bonus great, but…” The Strait Times, 22 August 2000)
Germany & Depopulation
The future of Germany is looking pretty grim. According to newly released population projections issued by the Federal Statistical Office in Berlin, Germany is on track for a demographic implosion in the not-so-distant future. By as early as 2050, Germany could see a 20 percent drop in its population size, currently at 82 million. As is the case with the majority of European countries, Germans aren’t having enough children and will soon see the economic and social consequences of their barrenness. If population trends continue on at their current pace, and annual net immigration to the country remains 200,000 persons per year, Germany stands to lose at the very least 12 million citizens in the next 50 years — a full 15 percent of the population. Every year in Germany more people die than are born. Currently, there are 76,000 more deaths than births annually. This number will increase to 640,000 in the next 50 years. This drastic decline in population size is generating what is becoming an all-too-familiar outcry over the threat of diminishing state pensions and lack of laborers for the workforce.
The threat of a population shortage has had such a profound impact on German society that public officials are now coming forward to encourage citizens to have more children. With the fertility rate well below replacement level, it is no wonder why. Bavarian Premier Edmund Stoiber has made an open plea to German citizens to produce more babies. He is quoted as saying “we have too few children.” Stoiber also proposed several official measures to “reverse the population decline, including financial support and tax breaks” but said these changes would mean little if people’s attitudes towards having children didn’t change.
(“Population in Germany will decline by more than 10 million from presently 82 million by 2050” Federal Statistical Office, http://www.statistik-bund.de/presse/englisch/pmp0260022.htm; Hannah Cleaver, “Germans urged to have more babies” Electronic Telegraph, 10 August 2000, http://www.telegraph.co.uk; James Drake and Juliuls Strauss, “Shrinking population threatens German economy” Electronic Telegraph, 21 July 2000, http://www.telegraph.co.uk}
