Brazil: the National Senate approves Emergency Basic Income

Homeless people in San Francisco, during the corona virus crisis days. Picture credit to: Aljazeera

On February 26th, 2020, the first case of Covid – 19 was registered in Brazil. Like in so many other countries, the coronavirus epidemic spread quickly in Brazil. On Sunday, April 5^th 2020, 11130 people are infected (with a total population of 209 million) and 486 deaths have occurred in the country. In the past three weeks, the Brazilian authorities have recommended people to stay at home, avoid agglomerations and to go out of their homes only for emergencies. Commerce has closed. As in other countries, only pharmacies, supermarkets, take away services at restaurants, gas stations and a few others essential services have remained functional. Many people cannot work and have been unable to earn enough for their survival.

Brazil was the first nation in the world in which the Federal Congress, with the approval of all political parties, approved the Law 10.835/2004, that institutes a Citizen’s Basic Income to all its inhabitants, including for foreigners living in Brazil for five or more years. Although never implemented as an unconditional program in Brazil, it gave rise to the means tested Bolsa Família program, which covers 14.3 million families today, or around 47 million inhabitants, almost ¼ of the Brazilian population.

Given these latest developments on the corona virus crisis, many civil associations like the Rede Brasileira da Renda Básica, Movimento dos Trabalhadores Rurais Sem Terra, Movimento de Trabalhadores Sem Teto, Movimento Nacional da População em Situação de Rua, União dos Movimentos de Moradia, UNEAFRO Brasil (among many others), as well as many economists, philosophers, social scientists and people of different walks of life, from Brazil and elsewhere, have claimed for the urgent need to implement a basic income in the country. To that purpose, in March 19^th 2020, all Brazilian State Governors signed a letter to the Federal Government “to mitigate the effects of the crisis over the poorest part of population, especially with respect to employment and informality, and to evaluate the application of Law 10.835/2004 which institutes a Citizen’s Basic Income, so as to provide resources to protect this economically vulnerable population”.

Last week, the Brazilian Chamber of Deputies and the National Senate approved a Law, sanctioned by President Jair Bolsonaro on April 2nd 2020, that institutes an Emergency Benefit or an Emergency Basic Income unconditionally (not dependent on how it is spent by beneficiaries) providing R$600 (US$113) per month to all adults with more than 18 years old. That is to be given to a maximum of two in each family, reaching R$1200 for each family, covering all people who belong to families with aggregate income up to three minimum wages (R$3135) per month, or half the minimum wage (R$522) per capita per month. For a monoparental family, the father or the mother will receive R$1200 per month. If an adolescent of less than 18 years of age has a child, she (or he) will also receive the benefit (of R$1200). This stipend will be valid for three months, which might be prolongued for a longer period, depending on the continuation of the pandemic economic crisis.

In Brazil, around 75 million people are registered under Cadastro Único as earning less than three minimum wages. An estimated 15 to 20 million more have still to register, and can now do that through an applicative via internet. Public Banks such as the Caixa Econômica Federal, Banco do Brasil, Banco do Nordeste do Brasil, Lottery Houses and private banks will cooperate in providing this Emergency Benefit or Emergency Basic Income.

The payment of the R$600 reaching more than 70 million people, one third of the Brazilian population, for three or six months might imply an increase in demand for goods and services which can stimulate the production of a greater supply of high priority goods and services, with positive effects in raising employment opportunities.

More information at:

“Congress approves basic income due to coronavirus crisis while Planalto fights for protagonism“, Time24News, March 31st 2020

This article was based on a letter written by Eduardo Matarazzo Suplicy (Co-President of Honor of the Basic Income Earth Network and President of Honor of the Rede Brasileira da Renda Básica)