by Sarath Davala | Jan 4, 2022 | Events, News
In collaboration with our Korean affiliate and the UBI Advocates Worldwide and the National Research Foundation of Korea, we are organizing an international workshop on the basic income manifestos of at least two parties in Korea. The main manifesto is that of the ruling party candidate Mr. Lee Jae-myung. The other manifesto is that of a newly formed single issue party called Basic Income Party of Korea.
Here is a link to register for the webinar to be held on 11 January 2022, 13:00-15:00 GMT
View and download the two manifestos below:
Basic Income Party Manifesto (Korea)
Basic Income Proposal (Korea)
by Sarath Davala | Dec 17, 2021 | News
“The Executive Committee of the Basic Income Earth Network (BIEN) which is a global network of social scientists and others studying basic income models across the world, appreciates and salutes Mr. Lee Jae-myung for proposing in his manifesto in the context of the forthcoming Presidential elections in March-April 2022, a progressive and feasible basic income model for the Republic of Korea, one that would assist humanity in the march against global inequality and global warming.
A Basic Income successfully implemented in the Republic of Korea would provide her people with a secure layer of income, would enhance opportunities for education about Basic Income around the world, and would provide significant opportunities for research about the desirability, feasibility, and implementation of a Basic Income system.
It would improve the status and economic position of women and youth and establish the Republic of Korea as a resilient society able to deal well with future pandemics and other economic shocks. If implemented successfully, this model will stand as an example worthy of emulation across the world.”
(Korean Translation)
“전 세계적으로 기본소득 모델을 연구하는 사회과학자들 등으로 이루어진 기본소득지구네트워크 (BIEN) 집행위원회는 다가올 대통령 선거에서 이재명 후보가 대한민국에서 진보적이고 실현 가능한 기본소득 모델을 공약으로 제안한 것에 대해 환영하며 경의를 표한다. 이 제안은 전 지구적 불평등과 지구 온난화에 맞서는 노력에서 인류에게 도움이 될 것이다.
대한민국에서 기본소득이 성공적으로 실시된다면 대한민국 사람들은 소득의 한 층을 보장받게 될 것이며, 전 세계적으로는 기본소득에 관한 교육의 기회를 확대할 것이며, 기본소득제의 바람직함, 실현 가능성, 실행 등에 관해 중요한 연구의 기회를 가지게 될 것이다.
이 기본소득 모델은 여성과 청년의 지위 및 경제적 처지를 개선할 것이며, 대한민국이 장래의 팬데믹과 기타 경제적 충격을 감당할 수 있는 탄력 있는 사회가 되게 할 것이다. 이 기본소득 모델이 성공적으로 실행된다면 전 세계적으로 따라 할 만한 모범이 될 것이다”.
Sarath Davala
Chair, Basic Income Earth Network
December 16, 2021
by Sarath Davala | Sep 6, 2020 | Opinion
I can’t claim to be a friend of David Graeber. I can say I am his fan and that his work has influenced the way I see the world. I met him twice though. I met him first two years ago for dinner at Barb Jacobson’s place where he arrived in a long coat accompanied by a mild fever. He just had some hot tea while we shamelessly gobbled our beers. He came to meet me because I was my friend Barb’s Indian basic income comrade hanging out with her in her London apartment in Charles Rowan House. David sat with us for a long time chatting and answering our questions. Julio Linares his student at LSE and my dearest friend was also with us.
The next day I went to the London School of Economics campus with Julio just to hang out with him in the Anthropology department. We had the Hare Rama Hare Krishna free lunch that they serve to students on the campus. Then we walked around and on an impulse barged into David’s office in the anthropology department. He was working in his sun-lit office. As we entered and greeted him, we accosted a box of his yet unpublished proof copies of Bullshit Jobs. Julio and I picked up one each and bullied him to sign our copies. He was such a comrade he didn’t mind our playful bullying and very affectionately signed the copies. When he signed his unique signature, I asked: ‘David, can you sign this again?’. He smiled and nodded. Being self-proclaimed anarchist, he said something that I will now leave to your imagination.. And we chatted for a while and left him to continue his work.
I cried when I got the news about his death. Megan Coxwell an American poet and Barb’s niece who was also with us that evening with David, sent me a message on FB messenger about his sudden death. I screamed when I saw the message. It was half past eleven at night in India. What made me sob more was just an hour ago I was talking to a group of international students, and I said: ‘ If you want to understand the poor, you need to understand ‘debt’ because they live in perennial debt. It has a curse. Please read David Graeber’s book ‘Debt – the first 5000 years’. He gives a perspective. Let’s talk about the book next time we meet.’
What more can I say?
Each time I think of him I have tears in my eyes. The meeting I am talking about was in 2018 Spring in London. Last year, I desperately called him and was keen to have him at the BIEN Congress in Hyderabad. But he was about to get married and legitimately preoccupied with it.
The last I met him was online when he invited me to speak at a Spectre TV inaugural discussion. It was one of the most enjoyable and deepgoing discussions I have ever had.
I miss you David. I was hoping to come and see you this winter. God bless your wife and the rest of your family. What more can I say?
by Sarath Davala | Apr 30, 2019 | News
As students of life, some of us have lived through poverty, through the worried nights of insecurity, the feeling of being powerless and valueless. Some of us have seen the angst of unemployment, the feeling of being unwanted, the restless days of sitting at home while others go to work, and the lull of the nights that is not entirely peace.
Some of us are scholars committed to understanding poverty and economic insecurity. We try to find the underlying political and economic causes of inequity and ways of solving them. We see a vision for the future, and try to lay down steps to overcome poverty and build a more equitable society.
All of us whose vocabulary has been informed by the lived experience of poverty and unemployment, or those of us who may have an indirect knowledge or experience of it; all are invited. We may be students, artists, researchers, social workers, community organizers, development practitioners, and politicians. We can also be those who have no claim to any such knowledge or experience, and those who fervently dream of a better world.
For the 19th BIEN Congress, India Network for Basic Income plans to publish an anthology of different kinds of writing on themes surrounding Basic Income and what it hopes to address – unfreedom, new forms of slavery, poverty, economic insecurity, being debt-ridden, addiction, deprivation, depression – and the sense of shame that accompanies each of these states of mind. The list can be almost endless. The writings can also be of different kinds:
Poems
Short story / parable
Biography / Autobiography / memoir
Personal reflection
Interview / conversation
Cartoon
Painting
Graffiti
Please ensure that the writing does not exceed 1000 words.
INBI invites contributions to this anthology, as an open call until 15th of June 2019. These shall be sent to Akhilesh Arya at akhilesh.arya@gmail.com.
by Sarath Davala | Jan 6, 2019 | Opinion
Written by: Sarath Davala [1]
In the last two weeks, there has been much speculation in some sections of media about Prime Minister Narendra Modi seriously considering Universal Basic Income (UBI) as a policy option. This comes on the heels of the electoral debacle Modi’s party faced in the recent elections in four states, and coincidentally just months ahead of the 2019 parliamentary elections.
This is the second wave of interest the current government has shown toward the idea of Universal Basic Income (UBI). The first wave was in early 2017 when the then Chief Economic Advisor to the Government of India, Dr. Arvind Subramanian, included a substantial chapter [2] on UBI in his annual Economic Survey (2016-17) which was presented to the Indian Parliament. The chapter explored the concept of UBI and observed that it could be a way forward to address poverty. Subramanian stated that a full-fledged UBI may not be feasible in India immediately, though it was possible to think of a Quasi UBI (QUBI) which would identify specific demographic groups in the population and give them an unconditional basic income. One of his speculations was that a QUBI could be to all women citizens, which would ensure that every household will receive a basic income. The discussion within the government did not proceed beyond this point, apparently as the Prime Minister was not convinced at that time of the political dividends flowing from this policy route.
The immediate trigger for the second wave of interest in basic income is the recent elections in the states of Telangana, Rajasthan, Madhya Pradesh and Chhattisgarh. At the time of these elections, the financial crisis affecting farmers became center-stage and the Congress party promised that they would waive farm loans as soon as they came to power. And they did so when they took charge of three states.
In the state of Telangana, the ruling party TRS went a step further by implementing several months before the elections a scheme called Rythu Bandhu, (Farmer Investment Support) which gives to the farmers Rs. 8000 (USD $115)[3] per acre per annum[4]. The cutting edge of the scheme is that it is unconditional, a feature that is considered central to the idea of basic income. Irrespective of whether farmers take up cultivation or not, the investment will be transferred to the farmers. The scheme benefited about 5.8 million farmers who own a total of 14 million acres of cultivable land in Telangana.
In 2017, responding to farmers’ agitation in the state, the Madhya Pradesh government implemented a different kind of scheme for farmers. It was called Bhavantar Bhugtan Yojana (BBY) which originally intended to pay farmers the net difference between the actual sale price and the Minimum Support Price announced by the government. Subsequently, however, the government introduced the notion of a modal rate which is the average of the sale price of a given crop sold in Madhya Pradesh on any given day, and in markets of two other neighboring states.
Both the schemes ran into controversy, particularly the latter. Regarding the Rythu Bandhu scheme, the criticism was that the scheme does not give any benefit to the tenant farmers who actually cultivate the land. Secondly, the scheme was criticized as regressive since it was paying rich farmers as well. The government then appointed J-PAL, a reputed international group based in the Massachusetts Institute of Technology in the United States to monitor and evaluate the scheme. In the initial survey conducted by it after the first round of transfers were made in June 2018 revealed that most cheques were for less than Rs.20,000 (USD $287), and only 0.8% of the farmers received more than Rs.50,000 (USD $718). A follow-up survey by J-PAL revealed that farmers spent the money judiciously with over 77% purchasing crop inputs, and 92% percent saying that they were satisfied with the scheme.
The Madhya Pradesh scheme was criticized because it brought in the notion of a modal rate which was far above the actual sale price. Ordinary farmers, who were unaware of the critical distinction between the actual sale price and the modal price, were in for a shock. Assuming the government would compensate them the difference between MSP and Sale Price, many of them also made distress sale of their produce and then realized that they would get much less compensation. Disappointed with this conditionality, many farmers were unwilling to sign up for the subsequent crop. This was not the only conditional aspect of this policy. The sale must take place during a prescribed window of three months. There was a cap on the volume that a farmer can get compensated per hectare. There was also a proposal that if a farmer sells his produce for less than 50% of the MSP, he becomes ineligible since it is the poor quality of his produce that is the reason for the low sale price, and that government should not compensate the farmer for producing low quality produce. And lastly, the scheme was applicable to only seven specific crops.
It appears that these two schemes and the farm loan waivers are the three primary options that the central government is discussing in order to find an effective response to the distress farmers all over the country are experiencing. Let us consider each one of them.
First, the loan waivers. All the three new Congress governments have announced loan waivers within days after assuming power. Even as these announcements have been taking place, experts from different locations have criticized loan waivers as harmful to the economy. Following these announcements by the new Congress governments, the former RBI Governor Dr. Raghuram Rajan released a document entitled ‘An Economic Strategy for India’ which he co-authored with 12 other well-known economists including the IMF Chief Economist Gita Gopinath and Sajjid Chinoy of JP Morgan, among others. The report advises the government to “… eschew loan waivers that divert resources from needed investment.” Arvind Subramanian in a recent interview severely criticized farm loan waivers as “an inefficient, retrograde and even perverse method of addressing farmers’ distress”. He further added that nearly 50% of the small and marginal farmers cannot and do not borrow from formal banks and they are completely left out of this mode of addressing farmers’ issues. Dr. Urjit Patel who had recently resigned as the RBI governor criticized farm loan waivers as corrupting the credit culture in the country. Addressing his party workers in Karnataka, PM Modi himself called Karnataka government’s farm loan waivers as a “cruel joke on farmers”, and that it benefits only a handful of farmers.
It is clear the farm loan waiver is not likely to be part of PM Modi’s new grand electoral narrative. This now brings us to the other two options. Between the two, the Rythu Bandhu seems to be a clear winner not just because of the electoral gains that the TRS party reaped from its introduction. It is because of certain essential features it has that are unique and demonstrate a clear transformation in the very grammar of welfare policymaking in India.
Firstly, it is an entitlement without having numerous conditionalities. The only conditionality is that the recipient must have a clear title. The curse of various welfare schemes in India is that each one comes with innumerable conditionalities thereby giving extraordinary discretion to inspectors who administer it. Rythu Bandhu makes a departure from this welfare practice. This is based on the assumption that any support given by the government must be given only to the deserving and that we need to ensure that it is spent only for the purpose it is given. Who deserves and who does not is decided by the government. And so is the purpose. Secondly, Rythu Bandhu is a proactive policy and not relief after the calamity has occurred. In fact, some economists such as Ashok Gulati, Arvind Subramanian, Bimal Jalan, etc., have said that it could be a potential agricultural policy for the entire country. The main point is that it is defined as an investment rather than welfare. Thirdly, because it is unconditional and a cash transfer, it is very easy to deliver. The record of delivery of Rythu Bandhu has been very impressive. Except in those cases where the land ownership is in dispute, the majority of farmers in the state have received cash in their bank accounts.
In addition to these innovative features, the TRS government has also added an additional scheme to all farmers called Rythu Bima, a life insurance scheme which provides coverage of Rs. 500,000 (USD $7,179). The annual premium of Rs.2272 (USD $33) per farmer is to be paid entirely by the state government.
This is this grand electoral moment that PM Modi is facing. What is he likely to do? Given that farmers have become quite vocal and that there is hardly any time before the Model Code of Conduct would come into operation around March 2019, he must respond in some form in the interim budget. Most likely, he will implement some version of Rythu Bandhu in combination with an insurance scheme for farmers. While this cannot be called a true UBI, it does carry the spirit of the idea of basic income because of its unconditionality. Normally we would be inclined to dismiss this is an electoral gimmick. We should not forget that in an electoral democracy, change comes in a clumsy way. We must be clear when we are positively moving forward and when we are not. In this case, the Indian political parties are embracing the spirit of basic income. This shift in India’s policy grammar should be seen as a welcome move in our journey to build a better society.
[1] Sarath Davala is the Vice-Chair of BIEN and Coordinator of India Network for Basic Income (INBI).
[2] Universal basic Income: A Conversation with and within the Mahatma
[3] To make sense of these amounts, it is useful to know that the rural poverty line in India is defined on the basic of per capita expenditure, which is half a dollar a day.
[4] This amount will be disbursed twice in a year, one just before Rabi crop season and one before the Kharif crop season.
