Abstract

PIP: In order to stem the rising fertility and growth rates in China, new theories and measures are needed. The author suggests new insights into the relationships between reproductive behavior and economic interests, regulation of individual reproductive behavior by such economic interests, and governmental performance with these interests in mind. Topics are devoted to the benefit theory about the costs of children, trends in Chinese children's costs and benefits, and family planning (FP) based on children's costs and benefits. Natural biological law governed people's reproductive behavior and the number of offspring until there was control over human reproduction. Factors which determine the desired number of children can be economic, cultural, political, historical, or geographical. In modern times and with the commercialism of society, children have been sometimes viewed as commodities and Western economists (Becker and Leibenstein) have theorized the cost benefit ratio to parents. Expected positive benefits are support, labor force contribution, and family happiness. Negative benefits are the direct and indirect costs in time and money raising children. Children are produced where benefits are positive, and where benefits and costs are equal, circumstances will determine the result. No children will be produced when costs exceed benefits. The concept of net costs is described. Chinese trends indicate a direction toward a market oriented economy. Instead of following Western theory, as economic development has advanced rapidly the value of children has grown. The reasons are explained as marginal children may still bring benefits in a market where the function of regulation of a labor market is limited, children still render better support for their parents without a developed social security system, and boys are expected to secure their families fortunes during the changing economic conditions. The author recognizes that other conditions such as the number of fertile women are also important. The State's population policy of rewards and penalties also affects the costs and benefits. Administrative intervention to implement the FP program have been effectively and adequately used in the past to control population growth, even though it is recognized that social and economic development is another way of affecting population growth. Parents still need to be guaranteed that 1 child will indeed be a benefit. Children's economic value has been accepted, and policy is moving in the direction of correcting the imbalances between children's costs and benefits, such as increasing fines along with improving education and income distribution.