Today, we’re diving into a critical issue facing many nations—declining birth rates—with Donald Gainsborough, a political savant and leader at Government Curated. With his extensive background in policy and legislation, Donald offers a unique perspective on Taiwan’s innovative approach to combat its alarmingly low birth rates through new family subsidies. In this conversation, we explore the driving forces behind Taiwan’s demographic challenges, the specifics of their subsidy program, and how it fits into the broader regional context of population policies. Join us as we unpack the potential impact of these initiatives and what they could mean for the future.
Can you walk us through the reasons behind Taiwan’s decision to roll out these new family subsidies?
Certainly, Debora. Taiwan is grappling with one of the lowest birth rates in the world, which has been declining for nine consecutive years as of 2024. This demographic crisis is compounded by the country becoming a “super-aged society” in 2025, where over 20 percent of the population is 65 or older. This aging population puts immense pressure on the workforce, social security systems, and economic stability. The urgency to boost birth rates stems from the need to balance the population structure and ensure long-term sustainability. Without intervention, Taiwan risks a shrinking labor force and an overburdened elderly care system.
How does Taiwan’s status as a “super-aged society” amplify the need for these policies?
Becoming a “super-aged society” means that a significant portion of resources is diverted to supporting the elderly, which can strain public finances and healthcare systems. For Taiwan, hitting this milestone in 2025 has been a wake-up call. It highlights the shrinking window to reverse population decline before the imbalance becomes unmanageable. Fewer young people entering the workforce means fewer contributors to pension systems and economic growth, creating a vicious cycle. These subsidies are a desperate push to encourage family growth before the demographic tipping point is reached.
What are the standout features of Taiwan’s new subsidy program for newborns?
The program is quite comprehensive. Families will now receive a standardized payment of about $3,320 for each newborn, a significant increase from the previous range of $1,300 to $2,300, which depended on the mother’s employment status. For twins, the payout nearly doubles to around $7,000, which is a substantial incentive. This shift to a flat rate ensures fairness across different economic situations and aims to make parenthood more financially viable for a broader range of families.
How does Taiwan’s support for infertility treatments fit into this broader strategy?
Infertility support is a critical piece of the puzzle. The program offers subsidies for in vitro fertilization (IVF), recognizing that many couples face biological challenges in starting a family. Women aged 39 and under can receive financial help for up to six IVF attempts, while those between 39 and 45 are eligible for three attempts. Additionally, low- and middle-income households can access nearly $5,000 per attempt. This targeted support not only addresses medical barriers but also reduces the financial burden, making parenthood accessible to more people.
Can you elaborate on how Taiwan’s current birth rate compares to the level needed for population stability?
Taiwan’s total fertility rate in 2022 was a staggering 0.87, one of the lowest globally. To maintain population stability—what demographers call the replacement level—a country needs a fertility rate of 2.1 children per woman. That’s the number required for a couple to essentially replace themselves in the population over time. Taiwan’s current rate is less than half of that, signaling a rapid decline in population if trends continue. This gap underscores why aggressive policies like these subsidies are being prioritized.
What kind of impact do officials anticipate from these new subsidies?
According to Taiwan’s officials, the expectation is that over 120,000 families will benefit from these subsidies. The hope is that this financial boost will encourage more couples to have children and slow the nine-year trend of declining birth rates. However, while the numbers are promising, it’s worth noting that financial incentives alone may not fully address deeper societal factors like work-life balance, housing costs, or cultural attitudes toward family size. It’s a step in the right direction, but the long-term impact remains to be seen.
How does Taiwan’s approach to family subsidies compare with efforts in other countries in the region?
Taiwan’s program aligns with similar initiatives in neighboring countries, though with some differences. In Hong Kong, parents receive over $2,500 per newborn, while in South Korea, families get more than $2,200 after having two or more children. Taiwan’s higher payout of $3,320 per child and additional support for twins and IVF sets it apart in terms of generosity. I think Taiwan has likely studied these regional models and tailored its approach to offer more upfront financial relief, possibly learning from the mixed success of others in reversing birth rate declines.
When are these policies set to begin, and what should we expect in the coming months?
The new subsidy policies are slated to take effect in January 2026. In the meantime, there will likely be a period of public awareness campaigns, administrative preparations, and possibly some fine-tuning of eligibility criteria or payout mechanisms. It’s also a chance for policymakers to gauge public response and address any logistical hurdles before the full rollout. This timeline gives families and officials alike a clear horizon to prepare for the changes.
What is your forecast for the future of Taiwan’s population policies and their potential to reverse these troubling trends?
Looking ahead, I think Taiwan’s policies are a strong starting point, but they’re not a silver bullet. Financial incentives can help ease the burden of raising children, but reversing a deeply entrenched trend like declining birth rates requires a multi-pronged approach. We might see Taiwan expand into areas like workplace reforms for better parental leave, affordable housing, or education subsidies in the next few years. My forecast is cautiously optimistic—while these subsidies will likely boost birth numbers in the short term, sustained cultural and structural changes will be crucial to achieving that replacement rate of 2.1. The next decade will be telling in whether Taiwan can turn the tide.
