Masked Narodi supporters, in 2014. Picture credit to: Aljazeera
Just a few days after Rahul Gandhi, leader of the Congress Party, announced the intention of implementing a “nationwide minimum income for the poor”, Prime Minister Narenda Modi’s government now proposes a “basic income for poor farmers”. This policy was set as a part of a supposedly interim budget, only up to the elections date (May 2019), although in this case expenditure was scheduled up to December 1st 2019, in a clear bet to win these elections and continue in power.
The cited interim budget was presented by (acting) finance minister Piyush Goyal, and the “basic income for poor farmers” is expected to affect millions of small farmers, who will be paid 6000 Rupees per year (84 US$/year), in principle as an unconditional cash transfer. 6000 Rupees averages around 3% of a typical family yearly net living wage (~183000 Rupees), and 6% that of a single adult (96900 Rupees). It is inferred that the hand-out to farmers would be to the farmer, as the owner of the land parcel, hence to his/her family. In this context, the policy promise is not individual (only if the farmer is single and has no dependent children), nor enough to cover minimum necessities (not basic), nor universal (only for farmers). The “basic income” term, therefore, is used by Modi’s government in a very loose manner, which might indicate more of an intent to get an electoral edge, particularly over the latest Congress proposal.
There is a general acceptance in India that transferring money directly to poor people avoids the corruption of the current subsidies system, and so such a policy as a kind of basic income makes sense to many. Unemployment is another important issue, but, interestingly enough, this might be ameliorated by the implementation of a basic income (type of policy), according to Gareth Price, from the Chatham House think tank. This is because direct, unconditional money in the pockets of people will most likely drive an economic expansion. Despite this reasoning, in other allegedly developed nations, such as France, the ability to work in paid jobs is still seen as central to the social contract. There, policy makers are more afraid people will just sit back and give up on contributing with their work to society, than they are confident that basic income will help those at the bottom of the income scale to fully participate in the economy, as workers and consumers.
Preliminary results of the basic income experiment, which the Finnish government implemented in 2017-2018, was presented at Säätytalo, “House of the Estates” (Snellmaninkatu 9-11, Helsinki), on Friday, 8th February 2019, as we reported previously.
Olli Kangas, scientific leader of the study and Professor of Practice at the University of Turku, summed up the result concisely when he was asked by a journalist:
No significant effects on employment, but important effects on well-being.
At the event, Kangas gave an overview of the preliminary finding; Ohto Kanninen, research coordinator at the Labour Institute for Economic Research, spoke on the effects on employment; and Minna Ylikännö, senior researher at Kela, the Social Insurance Institution of Finland, presented on the effects on well-being.
The event can be watched online here, and the summary can be read here.
The final results will be published in 2020.
For what the experiment can and cannot tell us, this piece and literature mentioned in the piece could be helpful. For literature on other experiments, this page might be a good starting point.
The French Parliament house. Picture credit to: Refresh
A law proposal, named “experimenting over the territory in order to implement a basic income”, was presented to Parliament (Assemblée Nationale), on the 31th of January, 2019. Although government had announced the will to promote such experiments, a majority of MP’s from the party in power rejected the debate before it even started. Concretely, the proposal was rejected by a majority of MP’s mainly from LREM, LR and UDI (Note 1).
The proposal was presented by the party Groupe Socialistes & apparentées, a minority group in Parliament whose history goes back to 1893, and supported by other 17 socialist groups. This almost three-year-old project has been initiated by Gironde’s president Jean-Luc Gleyze, building upon a growing national debate on basic income. In a twisted tint of irony, the discussion of this issue is being blocked by the same party which has declared its openness to amplify its debate in France. Specifically, a “preliminary rejection motion” has been presented, momentarily cutting the avenues for discussion in Parliament.
Although most MP’s have agreed, over time, that direct cash transfers would eliminate social benefits non-take up (in France, 36% of all eligible beneficiaries for social benefits do not take them up, due to ignorance and administrative complexity), the unconditionality feature of basic income was rejected by most. To them, it is the responsibility of the citizens to search for jobs, which are seen as “a cornerstone in individual liberty“. In other words, most LREM MP’s believe that people will be idle if they receive an unconditional basic income, which boils down to the most frequently held criticism over the policy (and a pessimist-laden view on human nature).
On the other hand, the Movement Français pour un Revenue de Base (MFRB) (French Movement for a Basic Income) sustains that it is precisely the basic income that allows people to acquire rights, in such a monetized society. Furthermore, the MFRB has declared full availability to work with MP’s in order to establish the possibilities for experimenting with basic income in French regions.
As for the law proposal itself, before rejected it was subject to several change propositions, sixteen in total. These changes aimed to shift the universal grounds of the proposal to an age cohort of 18 to 25 years of age, and to erase all mentions to unconditionality. Even the title was targeted, with a change proposal from “un revenue de base” (a basic income), to “une prestation d’accompagnement à la vie autonome” (a benefit to support an autonomous life).
Preliminary results of the basic income experiment, which Finish government implemented in 2017-2018, will be presented at Säätytalo, “House of the Estates” (Snellmaninkatu 9-11, Helsinki), on Friday, 8th February 2019, between 8.30 and 10.30 (time in Helsinki, GMT +2).
The 18th annual North American Basic Income Guarantee (NABIG) Congress will be held next June 15-16th, 2019, at the Silberman School of Social Work of the Hunter College in New York City. The Congress Major Theme is: Basic Income on the Policy Agenda, and the call is out for proposals. The deadline for proposal submissions is February 18th, 2019.
Fifty years after a basic income bill was first introduced in the U.S. Congress, basic income is once again on the policy agenda in North America. Pilot programs, controlled trials, documentaries, and debates are bringing basic income into mainstream policy conversations. The 2019 NABIG Congress invites participants to consider how to advance basic income on the policy agenda at local, national, and regional levels.
Sri Lanka, one of India’s closest neighbours, is starting to be the stage for a wide campaign to grow awareness about basic income. Talal Rafi, an entrepreneur, consultant and columnist from Sri Lanka is heading this awareness effort, since he is convinced automation will disrupt the economy, particularly by leaving millions of people unemployed.
Associated with Jim Pugh, ex-Director of Analytics for ex-US President Barack Obama, and Scott Santens, prominent international basic income activist, Talal Rafi has been referenced in Daily News, where he is cited for making an argument for basic income based on the onslaught of automation on jobs: “Artificial Intelligence will bring ease to humans, but would take away many of their jobs. Less than one fifth of jobs lost could be replaced. With half a billion people expected to be unemployed in the coming decades, crime alone would reach unprecedented levels. Self-driving cars, growing online shopping and robots for factories, mean millions of jobs taken over by machines. With IBM Watson, even doctors and lawyers are not safe. A possible solution is a guaranteed basic income for all.”
Rafi went on to be interviewed on Sri Lanka’s national TV (morning show, in English), where he was confronted with the usual questions concerning working productivity and financing. The answers surfed between automation and its consequences, results from already performed basic income pilots worldwide, and the prompt elimination of extreme poverty.
