Bedia François Aka, “Feasible utopia: cutting poverty rate in half using basic income grants in regions and cities of Côte d’Ivoire”

Bedia François Aka, “Feasible utopia: cutting poverty rate in half using basic income grants in regions and cities of Côte d’Ivoire”

Bédia François Aka, a teacher in the Department of Economics and researcher in the Center of Research for Development (CRD) of the University of Bouaké in Côte d’Ivoire, has previously been highlighted in Basic Income News for his scholarly work on the potential impact of a basic income in Côte d’Ivoire.

In a subsequent paper, “Feasible Utopia,” Aka conducts simulations of the effect of a basic income on poverty and inequality in the country. Aka rules out a basic income approximately equal to Côte d’Ivoire’s poverty line (CFAF 22,448 per month, or approximately 36 USD), which he believes to be fiscally impossible: “Taking a total population of 21 million in Côte d’Ivoire in 2007, giving this minimum to all population will lead to CFAF 5,656,896 million representing 58% of year 2007 GDP. Indeed this is not possible” (p. 89).

Instead, then, he simulates two lower amounts of a basic income (or partial basic income): CFAF 7,500 per month (about 12 USD), and CFAF 10,000 per month (about 16 USD). Aka estimates that the latter amount should be sufficient to reduce Côte d’Ivoire’s poverty rate by half. As a funding mechanism, he simulates an increase in the Value Added Tax (VAT) and use of half of the nation’s spending for the poor (as measured from the 2015 budget) (see p. 90).

On the basis of these simulations, Aka concludes that a basic income “would be particularly effective firstly in reducing considerably poverty and inequality and increasing financial inclusion of the population, and secondly in ultimately eliminating poverty towards the new sustainable development goals (SDGs)” (pp. 94-5).

Download the full article:

Bédia François Aka, “Feasible utopia: cutting poverty rate in half using basic income grants in regions and cities of Côte d’Ivoire,” Regional and Sectoral Economic Studies, Vol 16.2, 2016.


Reviewed by Cameron McLeod 

Photo CC BY-NC-ND 2.0 Guillaume Mignot

Bedia François, “Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies”

Bedia François, “Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies”

Bédia François Aka, a teacher at the Department of Economics at University of Bouaké, has written a journal article in which he investigates the implementation of a basic income in Côte d’Ivoire.

Abstract:

This paper tries to engage the economic and political debate around the proposition of a basic income grant (BIG) in Côte d’Ivoire. We simulate the economic wide and distributional impact of a universal basic income grant (BIG) in Cote d’Ivoire. How the BIG is financed is investigated. We use a microsimulated computable general equilibrium (CGE) model to analyze the effects of a universal basic income grant on the economy and on households. The model is performed using a Côte d’Ivoire’s 2003 social accounting matrix (SAM) based on the 1998 household survey composed of 4,200 households, and 2003 national accounts data. The paper uses a value added tax (VAT) financing approach to provide a reasonable feasible scenario, as we are all consumers. The results suggest that the macroeconomic impacts of the basic income grant are a powerful social protection tool in fighting poverty and inequality towards a welfare state.

The paper is available online as a free PDF file here.

Bedia François, “Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies,” Revista Galega de Economía, Vol. 25-1 (2016).


Photo of women and girls of Côte d’Ivoire CC Krishna (2011)