Unified Basic Income: A Viable Solution for Israel and Palestine?

Unified Basic Income: A Viable Solution for Israel and Palestine?

While the proposition may appear daunting, the exploration of Universal Basic Income (UBI) for both Israelis and Palestinians is certainly worthwhile. Given the sustained conflicts in the region — from bombings in Gaza to raids in villages — and the current Israeli government, a unified UBI may seem implausible. 

Nevertheless, a robust discussion on the potential benefits of a shared UBI program across troubled landscapes from the Mediterranean to the Jordan River is a necessity. Despite a history of failed negotiations and a prevailing sentiment of intractability, a UBI offers a novel approach to a perennial issue.

Scholars like Diana Bashur, renowned for her research on the influence of UBI in conflict-ridden areas, argue for its potential to improve social cohesion, bolster peacekeeping initiatives, strengthen social contracts, and enhance the resilience of communities. As demonstrated in her most recent work on post-war Syria, UBI might not be a panacea, but it could be a crucial step toward a more equitable society. This innovative peace-building measure, detailed extensively in Bashur’s work, ought to be considered seriously by policymakers seeking to address one of the oldest conflicts of mankind.

Imagine the application of UBI across Palestine and Israel — in Gaza, the West Bank, Jerusalem, and Haifa. This shared income would not discriminate between Palestinians and Israelis but rather assert a human right to live with dignity. Such a policy could foster a sense of shared belonging and equality, thus promoting mutual respect, regardless of religious, cultural, or ethnic differences. It would necessitate a cooperative approach from both Palestinians and Israelis, forging a partnership necessary to make UBI a success.

A harmonious social connection, coupled with non-discriminatory policies, could enhance security and decrease instances of violence. Moreover, acknowledging the human rights associated with UBI could demonstrate to even the most radical factions the shared humanity of all residents. From an economic perspective, investments into UBI could foster development and societal contribution, provided these efforts are accompanied by comprehensive security measures and advancements in healthcare and education.

Contrary to critics, such a program may not be prohibitively costly. With the successful implementation of UBI and accompanying reforms, reductions in military and security spending could be realized, thus paying for itself. The benefits of UBI in terms of lives preserved and cycles of violence broken are invaluable. Providing Palestinians, particularly those in Gaza and the occupied regions, with genuine opportunities could not only disrupt the status quo but also increase their societal contributions.

The current situation in the region, marked by loss, radicalization, and animosity, is untenable. Desires for change resonate on both sides — the Israeli protests and the widespread dissatisfaction among Palestinians are testaments to this. Therefore, despite its potential complexities, the implementation of a shared UBI could be both economically and politically feasible.

While this article merely introduces the concept of a unified UBI for Israel and Palestine, the technicalities of such a policy’s execution will be elaborated in forthcoming work.

It is not asserted here that a shared UBI would be a panacea for all the region’s problems, nor that its implementation would be straightforward. The argument presented is that a unified UBI could assure the right of all residents to a life of dignity, thus breaking the cycle of violence. Once this foundation is established, politicians can convene to debate boundaries and borders in an environment free of immediate pressure.

Written by: Ahmed Elbas

Image credit: Sawinery.net

Israel: Study detailing plan for implementing basic income

Israel: Study detailing plan for implementing basic income

Economists Ori Katz (picture: on the left) and Michael Sarel (picture: on the right) believe the implementation of basic income is a task both necessary and desirable in the near future, within the Israeli social reality. So, as researchers, they conducted a thorough study on basic income applied to the economic reality of Israel (used figures from the year 2016). In that study, they considered the elimination of existing (conditional) benefits, abolishing tax exemptions and raising income tax as the financing mechanisms for sustaining an unconditional basic income for all the population.

If adopted in Israel basic income would, according to Katz and Sarel, induce significant bureaucratic savings, encourage employment, eliminate the poverty trap, reduce friction between citizens and the authorities, increase individual freedom of choice, (slightly) reduce inequality and reduce incentives to work in the black market.

In the conclusions it can be read:

Basic income is not a panacea to all the ills of the Israeli economy, and it is unable to create money “out of thin air.” However, it is a more effective way of providing a safety net for the entire population than the current welfare system, and it eliminates the perverse incentives this system creates. As a result of the transition to basic income, Israelis will be able to work, study and manage family life and relationships of their own accord, without fear that their income will be affected due to their choices and without having to justify the way of life they chose. Overall, we believe that this is a saner way of subsisting as a human society.

More information at:

Ori Katz, “Basic income in Israel”, KPF, Kislev 5779 Policy Paper nº42, December 2018

ISRAEL: Government plans to research idea of basic income

By Yedidya Lau (Institute for Structural Reforms)

Recently, the government of Israel published a book containing its work plans for 2017-2018. This book accompanies each budget in order to clarify the main objectives that the government plans to carry out through the budget and place measurable outcomes. The new book contains for the first time, besides the plans of the different ministries, a work plan for the National Insurance Institute (NII). One of the objectives that the NII states is to promote reforms in the NII. In this context, the NII is aiming to examine the practicability of maintaining a model of Universal Basic Income in Israel.

This is the first time that an official government unit in Israel has raised the concept of UBI as a possible policy. More than 20 years ago, Prof. John Gal from the Hebrew University and Taub center called for examining UBI in Israel, and over the years he published many papers examining some aspects of it. Today, a variety of research institutes including Shahrit, Taub center, and the Institute for Structural Reforms, are considering UBI in Israel, from the philosophical and economic points of view. In the last months three conferences held discussions about UBI in Israel. A central speaker in all of them was Prof. Daniel Gottlieb, the Deputy Director General of Research and Planning in the NII, who recently introduced an initial examination of a scheme for UBI in Israel, and who is currently promoting the idea in the NII.

These developments are starting to be echoed in the public debate in Israel. For the first time, there are reports about UBI developments around the world, and articles considering UBI in Israel are beginning to rear their head in the Israeli economic press, followed by debates held in the social networks. The implementation of UBI still looks far away, but first steps towards deep examination of it, and the rise of public awareness to the concept, are slowly taking place.


Reviewed by Kate McFarland

Photo: Tel Aviv, CC BY-NC-ND 2.0 Ron Shoshani