The high cost of raising children has caused a decline in birth rates, which is becoming a difficult problem for developed economies in Asia. Countries have had to launch many measures to promote birth to save the current situation.
Cash Bonus
According to data released by the Korea National Statistical Information System (KOSIS), the number of births from January to November 2023 in this country only reached 213,572 children, the lowest ever.
Currently, the cost of raising a child to 18 years old in Korea is 7.79 times higher than the GDP per capita, the highest in the world. Many reasons for the decline in birth rate in Korea include expensive housing prices, high youth unemployment, long working hours, and lack of childcare. Not to mention, women who have children but still work have to bear double the burden of housework. Women who are economic workers also tend to delay having children longer.
To prevent population decline, the Korean government has implemented a “nation and mother” system, under which the government will subsidize insurance premiums related to pregnancy and health monitoring for infants up to 12 months old. This insurance will be developed as a product that covers medical expenses such as diagnosis, treatment, hospitalization, and surgery from the time the fetus is in the womb to 12 months after birth, and will be provided free of charge to all pregnant women.
At the local level, city governments have also launched many projects to support childcare costs of up to 300,000 won ($228) per child. Geochang County, South Gyeongsang Province, in the east of Korea, has decided to support 110 million won for each child born in 2024 from 0 to 18 years old; Incheon City supports 100 million won. In addition to cash bonuses, local governments are also considering extending maternity leave for both pregnant women and their husbands, and increasing post-maternity benefits for women so that they can give birth without fear of losing their jobs.
Pilot multiple projects
After South Korea, China is one of the most expensive countries in the world to raise a child relative to its GDP per capita. The Beijing-based think tank YuWa Population Research Institute released a report saying that the cost of raising a child until age 18 is 6.3 times the GDP per capita in China. This is much higher than 2.08 times in Australia, 2.24 times in France, 4.11 times in the US and 4.26 times in Japan.
As a result, more women are choosing not to have children because it is too costly. The report said that caring for a child from 0 to 4 years old reduces women’s working hours by an average of 2,106. They have to accept an estimated 63,000 yuan ($8,757) in lost wages during this period, if the wage per hour is 30 yuan ($4.17). Raising children also reduces women’s paid working hours and wages, while men’s livelihoods remain largely unchanged.
The average willingness of Chinese people to have children is now among the lowest in the world. According to the National Bureau of Statistics (NBS), China's population will be 1.409 billion at the end of 2023, down about 2 million from 1.41175 billion at the end of 2022. The birth rate will also fall to a record low since 1949, at 6.39 children per 1,000 people, compared to 6.77 in 2022.
In response, the Chinese government has introduced insurance, housing and education benefits for new parents and increased the number of kindergartens for children under 3. Dozens of pilot projects have been launched across the country, trying to usher in a “new era” of marriage and childbirth. Chongqing and the provinces of Guizhou, Shaanxi, Hubei and Jiangsu allow mothers to receive maternity benefits without submitting a marriage certificate.
As Singapore struggles to combat its declining birth rate, it recently relaxed egg freezing rules and doubled maternity leave after its fertility rate fell to a record low of just 1.05 babies per woman. Statistics from Singapore’s National Population and Talent Authority show that in 2023, the number of people aged 65 and above accounted for 19.1% of the population, up from 11.7% in 2013.
The Japanese government also plans to make university education free for families with three or more children. The Japanese cabinet has approved a bill to increase monthly allowances for children up to 18 years old.
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