It wouldn't be applicable to the world, Japan and Sweden already are post-industrialized nations, meaning they have decreasing populations.
For countries like the U.S., China, India, it would be effective in lowering and stabilizing population growth. Keep in mind the replacement birth rate is 2.1 children per couple, so eventually we would have to revert back to that.
Unfortunately this idea won't be enforced anytime soon in the U.S. and its just not possible to enforce in developing countries like India.
The proven most effective method of reducing population birth rates is through education on the sexual and economic (circle of poverty) levels, along with cost-free availability of multiple forms of birth control.