Is Singapore Buying Babies?

$230 million was given out by the Singapore government as "Baby Bonuses" which were designed to provide incentives for Singaporean couples to have babies. Although the baby bonuses have undoubtedly resulted in more births of Singaporean babies, it has had a limited success overall.

Singapore is facing one of the worst baby droughts in the world. The total fertility rate (TFR) – or the number of children a woman is expected to have – fell a notch, from 1.29 to 1.28 last year. Only South Korea and Hong Kong have lower TFRs than Singapore. To replace itself, a population needs a TFR of 2.1 or higher.

While the TFR may have flagged a bit, take-up rates for the Baby Bonus Scheme have been increasing. About 19,000 new Child Development Accounts (CDAs) were opened last year, up from 14,000 in 2004.

Its interesting how a program offering such incentives hasn't really done more to help the situation. This Baby Bonus Scheme sounds very similar to the Cash for Clunkers Program in the U.S.