Sweden
After World War I, many countries were left with dwindling populations. In an attempt to solve this problem, Sweden began a program called "family allowance". These were government funds given to families with children to encourage them to bear more children and increase the birthrate.
Today, the guardians of all children aged 16 or younger, are awarded child benefits of 1050 crowns per month. http://www.forsakringskassan.se/wps/wcm/connect/3573e1a0-c838-4e7c-bf65-c634544bc55d/barnbidrag_flerbarnstillagg_eng.pdf?MOD=AJPERES
The couple Alva and Gunnar Myrdal have played a very influential role in the Swedish society. (Alva got Nobel’s Peace prize in 1982 and Gunnar got Nobel’s prize in economics in 1974). You can find more information here: http://sv.wikipedia.org/wiki/Kris_i_befolkningsfr%C3%A5gan Their book “Kris i befolkningsfrågan” (Crisis in the Population Development”) was published in 1934. It painted a very dark picture of Sweden. The growth of the population would turn negative and Sweden be filled with mostly elderly people.
This book had an important influence and in 1937 child allowance was introduced for poor mothers. In 1948 child allowance was extended to all families and was then SEK 260 per year or SEK 22 per child and month. The price of milk was then SEK 0.30 per litre so the value of the monthly allowance was 72 litres per milk and year. – Quite a significant contribution. (For my Swedish friends, the price of 1 kg of falukorv was 3 kr) Using the consumer price index, in 2010 the value would have been SEK 383 per month and child.
In 2001 the child allowance increases as the number of children increases. The number of children borne per mother has decreased as well as the death rates in Sweden as can be seen from the figure below. Regarding the 1948 decision one woman was interviewed by the Swedish Radio, Mrs. Persson. She had 13 children and one had died. The journalist asked her what she would do with the money. Three of her children went to school and they needed clothes. Perhaps she would save some of the child allowance in case the children would study further. She would not use the money on luxury such as bicycles. She did not plan to spend any money on herself. One of the heads of the child allowance system was born in 1948 and he believes that there was very little corruption in the system.
Read more about this topic: Child Benefit