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
