July 11th is observed as World Population Day, an occasion to address the pressing issue of population growth. While the challenges associated with overpopulation are evident, including resource strain and environmental impacts, it is equally crucial to acknowledge the negative consequences of underpopulation.
Birth rates serve as a vital gauge of stability and economic development. Individuals tend to have children when they feel secure in their jobs, the economy is robust, and there is ample security and infrastructure. A decline in population growth could potentially harm the economy due to a reduced workforce, decreased consumer demand, and a decline in overall business activity.
To counteract low birth rates, numerous countries are increasingly implementing financial incentives as a solution. They are expanding access to childcare services and offering extended and better-compensated maternity and paternity leave, enabling both men and women to balance work and family life, thereby raising birth rates.
CHINA
China, for example, had enforced a one-child policy for 37 years until it was modified to allow two children in 2016. The one-child policy's repeal has been linked to China's struggles in recovering from declining birth rates.In certain regions of China, such as Lianjiang City in southern Guangdong province, the government provides substantial monthly payments, up to $510, to permanent residents for children born after September 1, 2021. These monthly subsidies, which may accumulate to over $15,000 per child by the age of two and a half, are designed to support families.
FINLAND
In Finland, applying for the maternity grant requires a pregnancy duration of at least five months (154 days). The maternity grant can be received either as a cash payment or as part of a package that includes baby clothing and childcare supplies. Opting for the cash benefit results in a tax-free payment of 170 euros.ESTONIA
Estonia rewards families for having more children, with the amount increasing according to family size. Parents receive a one-time payment of 320 euros known as the "childbirth allowance" upon the birth of a child. For triplets or more siblings, the allowance is 1,000 euros per child (3,000 euros in the case of triplets), with no additional charges. Incentives like a year-long paid maternity leave further boosts birth rates.JAPAN
Japan has witnessed a rise in its fertility rate, reaching a 21-year high, due to incentives provided for having children. Locations with similar monetary rewards for childbirth have experienced the most significant increases. In one community on Nakanoshima Island, Ama, parents receive 100,000 yen ($940) for their first child, with the potential for larger payments of up to 1 million yen (about $9,400) for the fourth child.AUSTRALIA
Australia offers the Newborn Upfront Payment and Newborn Supplement to qualifying individuals or couples who have a baby or child in their care. The baby bonus is a financial benefit intended to assist new parents with the costs of raising their child. The bonus amount varies based on income and is distributed in 13 fortnightly payments during the child's early months. Depending on circumstances, parents of children born or adopted on or after July 1, 2013, can receive either $5,000 or $3,000. The $5,000 payout is applicable for the first child, excluding stillbirths, while subsequent children qualify for the $3,000 baby bonus.While these initiatives aim to boost population growth in underpopulated countries, concerns arise about how parents will continue to provide for their children as they grow.
