I'd bet what happens is that it just funded a bunch of children of upper middle class families.

Scholarships and this kind of funds happen elsewhere and are based on merits. They end up funding a bunch of upper middle class's children because it turns out those children are well-equipped to perform higher on merits.

If you are too rich, then you wouldn't need this kind of fund.

If you are below upper middle class, then you would have a hard time competing with children from that class.

The upper middle class isn't rich enough to fund the kid but is good enough to accumulate a lot of merits.

You're sort of right. This particular grant is extra curious because it's typically been given to already highly accomplished artists. Sweden is a small pond and although there are a few fun outliers in this crowd, most of them make out the upper echelons of the Swedish cultural societé. Some were born straight into it. Others, no doubt, had parents who could put them there and knew someone who knew someone. One, for example, is Swedish nobility and the son of a diplomat. Another was the son of a Swedish secretary of state.

While I'm sure there are some wholly self-made virtuosos on the list, it does give off an air of apparent nepotism.

>They end up funding a bunch of upper middle class's children because it turns out those children are well-equipped to perform higher on merits.

I'd argue they are well equipped to give the appearance of merit, rather than performing higher on actual merit.