Japan kid payouts may win votes, not up birthrate

Thu Jul 30, 2009 8:25pm EDT
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By Isabel Reynolds

FUKUSHIMA, Japan (Reuters) - Promises of cash for raising kids look like one reason why Japan's opposition Democratic Party is ahead in the run-up to an election next month, but many say it won't prompt them to have more babies.

That is a worry for Japan, which is aging far faster than any other developed country. More than a quarter of Japanese are set to be over 65 by 2015, a trend that could burden a dwindling workforce with unmanageable social security costs.

The Democratic Party of Japan (DPJ) has vowed to hand out 26,000 yen in subsidies a month per child and to make public high school free, hoping a lighter financial burden will encourage people to have larger families.

"Policies tackling the low birthrate and aging society will be a factor in how I vote," said Narumi Okoshi, 37, who works for Koriyama Sokuryo Sekkei, a surveying and design company in Fukushima, a largely rural prefecture north of Tokyo.

"I think child allowances will be positive for the party."

Struggling to catch up with the DPJ in opinion polls ahead of the August 30 election, the ruling Liberal Democratic Party (LDP) is planning measures to boost disposable household income, including making pre-school education free and providing a daycare place for every child who needs it, media say.

But Okoshi's colleagues were unenthusiastic when asked whether such incentives might push them to expand their families.

"Rather than money, what we need is jobs. Somewhere to work," said 35-year-old Minoru Suzuki, the father of a one-month old baby. "As things are, even if you have kids, you worry about what will happen to them when they grow up."   Continued...

<p>Thirty-year-old father Tomohiro Yuda (L) picks up his three-year-old son Haru from a kindergarten in Koriyama, north of Tokyo July 23, 2009. REUTERS/Isabel Reynolds</p>