by Guest Contributor | Apr 9, 2022 | Opinion
14.5 million living in poverty
in the world’s fifth largest economy
until a global pandemic forced our chancellor
to spend £69 billion on a word
none of us had ever heard of.
Furlough showed universal basic income to be
a fundable possibility, at £67 billion net cost
paid for through reduced corporate tax breaks
and subsidies. Just 3.4 percent of GDP
to make absolute poverty extinct.
When the first unconditional money
hit mum’s bank account she cried
with eyes that could now see a future.
But trusting it took time. You’re not supposed to eat
normally just after a fast or you’ll be sick.
So we let relief drip into our days.
First in seconds, dancing round the kitchen
feeding shopping into starved cupboards
now bulging till their doors wouldn’t shut.
Then in minutes, a river that brought mum
home two full days a week. She began
helping me with my homework.
Grades went up. A well fed mind imagined
going to university, freed from the urgent need
to leave school early and start earning.
Knocks on the door brought not fear
but friends. Neighbours came to chat,
share ideas, our street hadn’t felt this alive
in years! Revitalised by breathing in
something other than stress and anxiety.
Minds to the right: tick
for smaller, simpler government; tick
for healthcare appointments reduced
8% by better physical and mental health; tick
for greater purchasing power from the ground up.
Minds to the left: tick
for greater community engagement; tick
for people secure enough to believe in a future; tick
for human ingenuity previously capped
by the poverty trap freed to help create
a society no longer chained to poor
wages for sourcing, making, selling poor
quality goods that return to poor
countries forced to burn, bury, breathe poor
quality air. Instead, the choice to say no
from a new sense of security, dignity, universality
we can do better.
Harula Ladd
by Guest Contributor | Mar 15, 2022 | Opinion
Universal Basic Income (UBI) takes care of sustenance needs, and SESED (Figure 1), can complement UBI to achieve poverty alleviation. This will be through a small business enterprise, whose success is facilitated by SESED given the peace of mind that UBI provides.
Figure 1 – A Systemic Ecosystem for Socio-Economic Development (SESED)
The SESED is a network of interconnected interdependent small businesses operated by people who are being helped to uplift themselves from poverty. These ventures are initially funded by microloans availed from sponsors, through Fintech companies.
The success of the business is ensured by a strategy of “benefits for all” modus operandi. Thus, the vested interests of all stakeholders are procured upfront.
The access to credit and the success of the enterprise evolves into income generation, from which aspirations, such as education for children, good health by proper nourishment and peace of mind, etc., are shaped.
These aspirations create buying power, now that the funds for these are available.
Though these ventures are small, the overall increased aggregate demand will create a whirlpool in the sluggish economy of the present, and result in a broader, vibrant, and sustainable one.
A key feature for the success of the venture is the “System”. This essentially facilitates the end-to-end process, and whose main responsibilities are:
- Borrower Education – Financial Literacy, Business Acumen, Skills Development, Psychological Interventions, etc.
- Enable access to credit via an efficient income distribution system; e.g., an interface with the Fintech company, manual distribution of funds.
- Manage the Supply and Demand value chain – e.g., suppliers must also be consumers, and vice-versa, of the products of the enterprises as appropriate. This could be along the lines of the Japanese innovation of “Keiretsu”.
- Foster a vested interest from the sponsor in the success of the enterprise for a win-win relationship.
- Tailor local solutions – i.e., targeted business development and bottom-up innovation; e.g., the product could be made available in a cheaper one-time use package, as well the regular one.
- Mitigate the risk of loan default.
- Deal with the idiosyncrasies of the society – e.g., in most 3rd world countries bribes are a norm, and extortions can be present as well.
The late Professor C. K. Prahalad, together with Professor Stuart L. Hart urged corporations to note “The Fortune at the Bottom of the Pyramid”, and espoused “Eradicating Poverty Through Profits”.
It is thus that, not only is the primary outcome of poverty alleviation of UBI with SESED paramount, but they fall through benefits of 1) increased revenue for corporations due to the increased aggregate demand, and 2) the interest on the loans plus “fractional dividends” in the form of profits sharing for the sponsors, that stand out as unique, different and pragmatic in this model.
Thus, UBI with SESED will then be an “Auspicium Melioris Aevi” – an Augury of a Better Age.
M.Pandurangan
linkedin.com/in/mpandurangan
7 Mar 2022
References:
- Standing, Guy – “Basic Income: And How We Can Make It Happen”
- Ruskin, John – “Unto This Last”
- More, Thomas – “Utopia”
- Schumacher, E.F. – “Small is Beautiful”
- Prahalad, C. K. – “The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits”
by Guest Contributor | Mar 15, 2022 | Opinion
On March 9, South Korea took to the polls for the 2022 Presidential Election. Former governor of Gyeonggi province, Lee Jae-myung of the ruling Democratic Party lost by a narrow margin of less than 0.7% to Yoon Suk-yeol from the People Power Party. This election outcome will likely stunt the development of basic income in the country.
As Guy Standing has written previously, this election in Korea is a vital one as Lee Jae-myung is a proponent of basic income. Prior to his candidacy, Lee served as mayor of Seongnam and subsequently governor of Gyeonggi, the province surrounding the capital city of Seoul. Among other initiatives, he famously launched the Gyeonggi Youth Basic Income (YBI) in 2019, providing valuable insights into how this idea might work in a highly developed country as well as an Asian economy. It is not so often that we see a major presidential candidate championing basic income at a national level (Andrew Yang dropped out of the race in 2020). Lee vowed to gradually implement a universal scheme in Korea, focusing on the youth and expanding to cover the entire population.
As the world’s 10th largest economy, a nationwide programme implemented in Korea could lead to tremendous progress in the discourse on basic income. With an advanced economic structure, high automation rate, and rising youth unemployment, Korea has the conditions of a postindustrial society in which a strong case for basic income could be built. Instead, such a prospect was overshadowed by more salient topics such as economic inequality, inter-Korea relations, and China’s influence. Gender equality and anti-feminism were at the forefront of the political debate, with Yoon pledging to abolish the Ministry of Gender Equality and Family.
Dubbed the “unlikeable election” due to the prevalence of smearing campaigns, the presidential race was a very close one with neither candidate receiving majority support. Yoon garnered 48.56% of the votes nationwide, ahead of Lee’s 47.83%. A provincial breakdown of the election results reveals a highly divided country with democrat votes concentrated in the southwestern part of the country and conservatives in the east. Lee’s approval ratings in his own province seem to be falling – he barely received half of the votes in Gyeonggi this time, where he served as governor from 2018 to 2021. Now that Lee has resigned his governor seat and lost the presidential race, the cause for basic income in Korea will be affected to a certain extent.
This election outcome may not spell the end to basic income in Korea, however – outgoing president Moon Jae-in lost to Park Geun-hye in 2012, only to be elected as her successor five years later; moreover, a young Basic Income Party is seeking to bring this issue into the mainstream. The party fielded their own presidential candidate this year as well, critiquing Lee’s roadmap. Korea may not be the first country in the world to implement universal basic income just yet, but political tides could change and there is still room for this movement to grow.
On March 9 South Korea took to the polls for the 2022 Presidential Election. Former governor of Gyeonggi province, Lee Jae-myung of the ruling Democratic Party lost by a narrow margin of less than 0.7% to Yoon Suk-yeol from the People Power Party. This election outcome will likely stunt the development of basic income in the country.
As Guy Standing has written previously, this election in Korea is a vital one as Lee Jae-myung is a proponent of basic income. Prior to his candidacy, Lee served as mayor of Seongnam and subsequently governor of Gyeonggi, the province surrounding the capital city of Seoul. Among other initiatives, he famously launched the Gyeonggi Youth Basic Income (YBI) in 2019, which provides valuable insights into how this idea might work in a highly developed country as well as Asian economy. It is not so often that we see a major presidential candidate championing basic income at a national level (Andrew Yang dropped out of the race in 2020): Lee vowed to gradually implement a universal scheme in Korea, focusing on the youth and expanding to cover the entire population.
As the world’s 10th largest economy, a nationwide programme implemented in Korea could lead to tremendous progress in the discourse on basic income. With an advanced economic structure, high automation rate, and rising youth unemployment, Korea has the conditions of a postindustrial society in which a strong case for basic income could be built. Instead, such a prospect was overshadowed by more salient topics such as economic inequality, inter-Korea relations, and China’s influence. Gender equality and anti-feminism were at the forefront of the political debate, with Yoon pledging to abolish the Ministry of Gender Equality and Family.
Dubbed the “unlikeable election” due to the prevalence of smearing campaigns, the presidential race was a very close one with neither candidate receiving majority support. Yoon garnered 48.56% of the votes nationwide, ahead of Lee’s 47.83%. A provincial breakdown of the election results reveals a highly divided country, with democrat votes concentrated in the southwestern part of the country and conservatives in the east. Lee’s approval ratings in his own province seem to be falling as well – he barely received half of the votes in Gyeonggi, where he served as governor from 2018 to 2021. Now that Lee has resigned his governor seat and lost the presidential race, the cause for basic income in Korea will be affected to a certain extent.
This election outcome may not spell the end to basic income in Korea, however – outgoing president Moon Jae-in lost to Park Geun-hye in 2012, only to be elected as her successor five years later. Moreover, a young Basic Income Party is seeking to bring this issue into the mainstream, fielding its own presidential candidate in the election this year as well. Korea may not be the first country in the world to implement universal basic income just yet, but political tides could change and there is still room for this movement to grow.
Truston Yu is a BIEN life member and former resident of Seoul, specializing in Southeast Asian studies including Korea-Southeast Asia relations. Their commentaries have been featured by numerous outlets including the Diplomat, the Jakarta Post and the Straits Times.
by Guest Contributor | Dec 30, 2021 | News
The Basic Income March serves as our movement’s annual reminder to pause, take stock and celebrate our progress. This year was full of things to celebrate: from the over 90 pilots taking place across the U.S. to the extended Child Tax Credit – the first national guaranteed basic income legislation for families. While our movement celebrated this momentum across 31 cities – national and local press took notice. Teen Vogue touted the movement as one that resonates with the youth and local outlets took note of local community celebrations of pilot demonstrations.
Basic income advocates organized a variety of different events across the country. While some put on traditional events like marches and rallies, others hosted open skates, enjoyed barbecues at the park, put on concerts, and tabled at art fairs. Organizers did an amazing job on-the-ground of bringing people together for these events safely, taking appropriate COVID precautions.
A new addition to this year’s events was the involvement of organizations leading pilots in their cities. The organizing of the Denver and Chicago events were based on deep partnerships between local volunteer organizers and staff and partners working on Pilots in those cities. This led to strong turnout, great programs, and deeper celebration of local and national progress made for basic income. These were such a success; we anticipate increasing the number of events in 2022 that are led by pilot organizations.
Organizers across the country hosted events that included activities encouraging deep engagement with the community around the idea of basic income. Some provided posters with different financial responsibilities like rent, student loans, childcare, savings, and participants placed stickers next to items they would use a basic income for. Others had people write down a wish for their lives if they received basic income and added it to a collective art installation.
At the core of this celebration and the core of our movement is community engagement. Our design for this year led us to connect with volunteer organizers on a deeper level, the interactive activities during events allowed organizers to connect more deeply with their community and pilot supported events ensured larger turnouts bringing the movement to a wider audience.
It has been a joy to bring together our friends and advocates, both established and new. Along with our partner organizations and organizers, we invite new faces and facets to build on the foundation of our movement. We begin 2022 with gratitude to work in such a dynamic and growing space.
by Guest Contributor | Dec 3, 2021 | Opinion
In The Basic Income Engineer (not yet available in English, unfortunately), Marc de Basquiat invites us to embark upon a journey of discovery on the subject of Basic Income. Each chapter draws on a personal experience to illustrate his point and marks a milestone in his intellectual development. The author does not reveal much about his private life (we learn in passing that he has many children). However, this engineer by training and sensibility unabashedly shares the joys and frustrations that have punctuated his journey in search of solutions rather than truths.
He describes himself as a right-leaning by culture. His book reveals, on the contrary, a passionate person with a resolutely left-wing heart, underpinned by great scientific rigor. With his doctorate in economics acquired late in life, de Basquiat has been involved in all aspects of Basic Income research and advocacy: as a founder of the French Movement for a Basic Income (MFRB) and president of the Association pour l’Instauration d’un Revenu d’Existence (AIRE), he knows everyone.
Unlike most Basic Income theorists, who are little concerned with the practical side of things, de Basquiat distills the concept down to a simple formula and brings it to life by quantifying it: €500 per month minus 30% of income. It is this easy to understand and democratic (since it applies to everyone) formula that he successfully defends throughout his work.
The great strength of this book is that the reflection does not stop at the sole question of a Basic Income. Many other issues must be tackled simultaneously to ensure a better quality of life for all. De Basquiat is not a philosopher: so much the better! There are enough of them as it is who stir the economic pot without ever sitting down at the table!
For example, to ensure decent housing for all, he proposes a mechanism that would allow everyone to find housing in exchange for a quarter of their income. His best idea, in my opinion, is the proposal to levy a wealth tax of 0.1% per month (since life lasts about 1000 months) applied equally to the lords of the manor with assets worth 2 million € and to the owner of an old jalopy worth 1000 €. The first one pays 2000 € per month, the other just one euro. It’s an original and disarmingly simple concept that has enormous potential to transform mentalities and strengthen social solidarity. It is also a clever update of Thomas Paine’s Agrarian Justice, to which Basic Income supporters all claim allegiance, without taking full advantage of Paine’s message.
There are some proposals in the Universal Income Engineer that put me off. I can’t accept that an employer can purchase with his payroll contributions the right to direct his employees. A license to lead slaves cannot be bought. But de Basquiat is only describing how things are. Indeed, the power to manage employees is granted free of charge to anyone who sets himself up as a boss.
It is refreshing to see the socio–economic problems of our time treated in a global and integrated way, with rigour and without any ideological bias. It’s an engineering tour de force. And all this while raising a big family!
