India: 2019 General Elections and basic income

India: 2019 General Elections and basic income

Indian woman worker with spectacles. Picture credit to: Sarah Day

 

New ideas seem to be running dry in the Indian political context. Within Congress, Government (BJP – Bharatiya Janata Party) and opposition parties (ex.: AAP – Aam Aadmi Party). Tweaking with the minimum support prices for food production and/or with the multiplicity of welfare programs is not going to substantially change rural population’s main concern, which is declining real wages (purchasing power after adjustment for price variations). These have been steadily falling since 2014, ever since the BJP came to power, which means that to stay too focused on the former issues will not probably get BJP reelected this year. Also farm loan waivers (credit write off) has been used as a political tool, especially by the opposition (mostly center and left-wing) parties, given the high indebtedness rates of rural families (over 50%) and their dependency on predatory lenders (also over 50%).

 

However, according to political analyst Saubhik Chakrabarti, from The Economic Times, loan waiver is not going to be decisive for these next elections, even though it has been flagged by the opposition in regional suffrage (which has won three states from BJP). This decisiveness might very well come from pushing the basic income policy, an old new idea that has been hot in India ever since the 2016-2017 Economic Survey Report featured a whole chapter to it. And this applies to both parties / coalitions with a shot at forming a government in 2019, because what really impacts real wages is not topping crop prices or forever trying to fix a broken welfare distribution system (very complex and prone to corruption). A real difference may come from directly and unconditionally giving people what they need the most, economically: money.

 

Even though there will be no time to properly design, let alone implement a basic income scheme regionally – and even less likely a national implementation – before this year’s elections (latest in May), Chakrabarti suggests that one or more pilot tests could be tried out. According to him, that could be done “in chosen districts, accompanied by a blaze of political publicity, [being] enough to take to voters, with the promise that re-election will lead to an across-India UBI program.”

 

More information at:

Saubhik Chakrabarti, “Doling out a universal basic income scheme may be Narendra Modi’s best chance to win 2019 mandate”, The Economic Times, 24th December 2018

Farm loan waiver: How to nip it in the bud”, The Economic Times, 7th January 2019

Kate McFarland, “India: Government Economic Survey presents case for basic income”, Basic Income News, February 4th 2017

France: The “yellow vests” movement spurs renewed discussion over the economy, society and basic income

A new series of demonstrations have erupted in France: the “gilet jaunes [yellow vests]”. This movement started in 2018, from an online petition which had grown 300 000 signatures large by October. From there, massive street demonstrations have followed, with some violent eruptions, particularly in France (but in other regions of the world too). The causes for discontent have been mainly economic, related to taxes on fuels, income taxes, minimum wage and the monopoly of large retailers in villages and cities (which end up asphyxiating small businesses). However, the list of claims grows larger, including demands like eliminating homelessness, financial incentives for home insulation, protecting national industry (in France) and a cap on salaries (at 15000 Euro/month). It even includes the controversial claim that the production of hydrogen vehicles should be incentivized, instead of electrical ones (even though hydrogen for vehicles is produced using electricity).

The basic income movement in France (MFRB – Movement Français pour un Revenue de Base) has written on the “yellow vests” phenomena. In this article, it is suggested that demands from the “yellow vests” movement are aligned with the basic income idea. However, the list of demands above mentioned do not refer basic income, and do not question the conditionality of the present system of benefits and taxation. These do contain the immediate call for taking people off the streets (ending homelessness), but no further ideas on how to do it.

On the other hand, these social events and demonstrations have spurred discussion and public appearances voicing the basic income concept. Public figure and philosopher Abdennour Bidar, has defended basic income as a way to “stop strangling citizens with economic constraints”, on France TV (C La Suite). Cyril Dion, a known French filmmaker and environmental activist, has also supported basic income, alongside Bidar, as a way to both reduce acute inequalities and bring forward true environmental protection. According to him, there can be no ecology without social justice, which is also the opinion of other French thinkers and activists, such as Guy Valette. Also, on the political ground, Benoît Hamon (individually and under his recently formed Génération.s. party) has been defending the basic income policy in France, ever since the beginning of the last presidential elections.

More information at:

[in French]

Movement Français pour un Revenue de Base, “Gilets jaunes: le revenu de base comme réponse aux inégalités et à la pauvreté [Yellow Vests: basic income as a response to inequality and poverty]”, December 5th 2018

Michael Howard: “We have two years to avoid climate disaster. A carbon fee and dividend will help”

Michael Howard: “We have two years to avoid climate disaster. A carbon fee and dividend will help”

Michael Howard. Picture credit to: University of Maine

 

Michael Howard, a professor of Philosophy and Political economy at the University of Maine, who also specializes in environmental issues, has published an article on how a carbon fee and dividend might help to solve an impending climate disaster.

In this article, Howard speaks of a recent bill (November 2018), introduced to the House of Representatives of the United States, supported by Democrats and Republicans, “that would reduce CO2 emissions [from the US] by 40% in 12 years, and 90% by 2050”. Called the “Energy Innovation and Carbon Dividend Act”, it aims to impose a 10 US$/metric tonne fee on carbon fuels produced or imported, rising to 15 US$/metric tonne, if the referred CO2 emissions goals are not fulfilled.

The generated revenue would be saved at a Carbon Dividend Trust Fund, and be unconditionally redistributed annually to all US citizens. Estimated point to a US$ 3456/year for a family of four (as an example). Of course, fuel prices would go up, but according to the Regional Economic Models Inc (REMI), “most households would receive more in cash dividends than they would pay in higher fuel costs”. That and an estimated amount of 2.1 million extra jobs over 10 years, and reduced mortality in 20 years (due to declining air pollution).

If the bill is passed, present-day authority of the US Environmental Protection Agency (EPA) over carbon emissions will be suspended, but only to be re-installed if CO2 reduction goals are not met. Nevertheless, the expectation is that this Energy Innovation and Carbon Dividend Act will reduce carbon emissions from the US “far more than the Obama administration’s Clear Power Plan”. On social grounds, according to Howard, the bill is progressive, as far as taxation is concerned, and the dividend is fair and acceptable by the public at large.

 

More information at:

Michael Howard, “We have two years to avoid climate disaster. A carbon fee and dividend will help”, Bangor Daily News, December 18th 2018 (link to article not accessible from Portugal)

International: Basic Income Earth Conference 2019 announcement (call for papers)

International: Basic Income Earth Conference 2019 announcement (call for papers)

The Call for Papers for the 19th Basic Income Earth Network (BIEN) Congress, in Hyderabad, India, has been released. From the 22nd through the 25th of August 2019, scholars, community organizers and artists are invited to make presentations pertaining to any of the following thematic areas. The abstracts (maximum 500 words) must reach the Local Organizing Committee by February 25th 2019. Please mail your abstracts (in MS Word document between 300 and 500 words) to: 19biencongress.india@gmail.com.

Thematic areas:

1.  Ideological Perspectives on Basic Income

2. Basic Income, Unpaid Work and Women in the Informal Economy

3. Basic Income in Development Aid Debate: Is there a Paradigm-shift?

4. Religious Perspectives on Basic Income

5. Basic Income as a Foundation of a Caring Economy and Society?

6. What forms of Freedom and What kind of Community Life does Basic Income promote?

7. Basic Income and Blockchain Technology: Are there Synergies?

8. Basic Income, Poverty and Rural Livelihoods

9. Basic Income, the Commons, and Sovereign Wealth Funds: Is Public Inheritance an emerging issue?

10. Basic Income Pilots: Opportunities and Limits

11. Basic Income and Political Action: What does it take to transform an Idea into Policy?

12. Basic Income and Corporate Philanthropy: Is Basic Income a better paradigm and way forward?

13. Basic Income and Children

14. Basic Income and Mental Health

15. Basic Income and Intentional Communities: What does this Experience Teach us?

Congress Theme: Basic Income as Freedom and Development

The theme of the Congress is ‘Basic Income as Freedom and Development’. Basic Income is an idea that is evoking curiosity and attention of people from a wide variety of national and cultural contexts, from leaders of different socio-political domains. Irrespective of the generic meaning that we attempt to give it, the groundswell that we witness today is producing its own local meanings. Each of these meanings seems to emerge from its own unique contextual starting point. The year 2019 is virtually being declared as the ‘Year of the Basic Income’, because the idea is reverberating across the world.

In this chaotic multiple renderings and interpretations, we observe that Basic Income is being seen both as Freedom and Development. These two notions are not mutually exclusive or distinctively apart, as often they are made out to be. Development ideally ought to lead to Freedom, and equally so the other way round.  In certain contexts, the immediate appeal of the idea of Basic Income seems to be ‘Development’ in terms of addressing hunger and other forms of deprivation, access to education and healthcare. In other contexts, the immediacy may be felt as Freedom from alienating jobs that most of us are forced to do for a living. In either case, what emerges is that an unconditional Basic Income is seen as having tremendous potential to liberate us from the new forms of slavery that the current phase of capitalist economy subjects us to.

BIEN Civic Forum

The Congress will be held for four days. The first day, on the 22nd August, will be India Day which is being organised under the new BIEN initiative Civic Forum. The deliberations of this day will focus on the Basic Income debate and policy initiatives and the ground level experience in India. All the delegates are encouraged to attend the India Day. The main Congress will be inaugurated on 23rd morning and will conclude at 2:45 pm on 25th August 2019. The General assembly of BIEN will be convened at 3 pm on the 25th August 2019.

Registration of Delegates Those who wish to attend the Congress, please register by filling out the online form. The Delegate Fee structure is as follows:

Type of FeeIn EuroIn US Dollars
Solidarity Fee200 and above 229
Regular Fee125143
Delegates from low-income countries5057

Delegates from low-income countries are encouraged to attend the Congress, and this fee is at a highly subsidized rate. Those who can afford to pay, please consider opting for Solidarity Fee of 200 Euros and above. Those who have institutional support, please opt for Regular Fee even if from low-income countries.

The Congress is supported by:

LocalHi – travel and logistics

NALSAR University of Law

SEWA Madhya Pradesh

WiseCoLab

Mustardseed Trust

Everyday.earth

OpenDemocracy

Book Announcement: A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens

Book Announcement: A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens

Karl Widerquist has published a new book, titled A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens. It focuses on the actuality of basic income experiments, and presents the following summary:

At least six different Universal Basic Income (UBI) experiments are underway or planned right now in the United States, Canada, the United Kingdom, Finland, and Kenya. Several more countries are considering conducting experiments. Yet, there seems to be more interest simply in having UBI experiments than in exactly what we want to learn from them. Although experiments can produce a lot of relevant data about UBI, they are crucially limited in their ability to enlighten our understanding of the big questions that bear on the discussion of whether to implement UBI as a national or regional policy. And, past experience shows that results of UBI experiments are particularly vulnerable misunderstanding, sensationalism, and spin. This book examines the difficulties of conducting a UBI experiment and reporting the results in ways that successfully improve public understanding of the probable effects of a national UBI. The book makes recommendations how researchers, reporters, citizens, and policymakers can avoid these problems and get the most out of UBI experiments.

More information can be found, and the published version can be purchased here.

An early draft of the book can be downloaded for free here.

Canada: Canada’s Federal Government is assembling a National Advisory Council on Poverty

Canada: Canada’s Federal Government is assembling a National Advisory Council on Poverty

Picture credit to: Opportunity for All (Government of Canada)

Jean-Yves Duclos, Minister of Families, Children and Social Development for the Canadian Federal Government, has launched a call for applications to assemble a so-called National Advisory Council on Poverty. This council will be comprised of experts in poverty-related issues, and “people who have lived experienced or are currently living in poverty (…) indigenous peoples, women, persons with disabilities, visible minorities and other vulnerable groups”. The purpose is, not only having actual experience of poverty in the group, but also for it to be “representative of Canada’s linguistic, gender and regional diversity.”

This advisory group will be responsible for giving advice about programs and funding strategies which can contribute to poverty reduction, as well as produce a yearly report with detailed information on how poverty reduction goals are being met, according to agreed metrics. On top of that, the group shall also engage the public, including the academic community, several experts, indigenous people and others which experience or have experienced poverty. Applications to work with the group can be done online, until the 29th of January 2019.

The creation of this Council derives from the overarching Program “Opportunity for All”, a Canadian Federal Government initiative which it considers Canada’s first poverty reduction strategy. According to the Program’s website, the purpose of “Opportunity for All is to eradicate poverty because we are all better off when no one is left behind. Opportunity for All supports a human rights-based approach to poverty reduction, reflecting principles that include universality, non-discrimination and equality, participation of those living in poverty, accountability and working together.” It may be worth mentioning that “universality” is only mentioned on this one occasion throughout the explanation of the whole program, but nonetheless it is clearly stated here. Furthermore, the Program states that:

“Opportunity for All is about working together to end poverty so that all Canadians can live with dignity, have real and fair access to opportunities to succeed, and be resilient enough to get through difficult times. Living with dignity means that Canadians would be living without hunger and would have enough income to meet their basic needs (…)”

Jean-Yves Duclos

Jean-Yves Duclos

Although basic income is not mentioned, the reference to a universal “all Canadians” linked with “enough income to meet their needs” might point in the direction of some unconditional cash transfer program as one of the tools for poverty reduction in Canada. That would be aligned with Jean-Yves Duclos recent statements on the subject. Furthermore, the Program is based an a civic approach to problem-solving, since consultation was done to the wider population:

“Opportunity for All is guided by the thousands of voices we have heard and, in particular, the voices of those with lived experience of poverty. Canadians told us that poverty is complex, that different groups experience different risks of poverty and different challenges in getting out of poverty, and that reducing it requires a long-term commitment as well as calls for a coordinated approach with diverse groups—government and non-government alike. Canadians told us that the Strategy must contribute to a national effort to reduce poverty. It must also recognize that when some members of our communities cannot reach their full potential, we are all affected. More specifically, Canadians have said that the Poverty Reduction Strategy should be about:

Dignity – Lifting Canadians out of poverty by ensuring everyone’s basic needs are met;

Opportunity and Inclusion – Helping Canadians join the middle class by promoting full participation in society and equality of opportunity;

Resilience and Security – Supporting the middle class by protecting Canadians from falling into poverty and by supporting income security and resilience.”

Again, focusing on the needs of everyone, ensuring the full participation of all people in society and creating a solid ground so that no one falls into poverty, suggests a basic income type of policy, without explicitly mentioning it. This could mean that the National Advisory Council on Poverty will study or consider basic income somehow within its mandate, although no direct information exists to confirm it, at this moment.

More information at:

André Coelho, “Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots”, Basic Income News, December 22nd 2018

Canada’s First Poverty Reduction Strategy website