by Tyler Prochazka | Mar 13, 2018 | News
The second annual Basic Income Asia Pacific conference will be held in Taipei, Taiwan on March 17 and 18. This year’s theme is “Asia Pacific’s Economic Future.”
Keynote speeches will be delivered by Enno Schmidt, the Swiss referendum leader, and Dr. Sarath Davala, the lead researcher for the UNICEF basic income trials in India.
“The focus on Asia is necessary to understand how we are going to interpret the idea regionally – given Asia’s own specificities and peculiarities. This conference is going to open this much needed conversation. This event is yet another milestone achieved by the UBI Taiwan, one of the most dynamic national groups,” Davala said.
Leading thinkers in academia, government and NGOs from Taiwan, mainland China, India, Bangladesh, Singapore, the United Kingdom, and the United States will join the conference to discuss the challenges facing the Asia Pacific and potential solutions, such as basic income.
Dr. Hermann Aubie is a lecturer at Aston University in the United Kingdom. His research specializes on comparing basic income movements in East Asia and Europe.
“This conference offers a rare and precious opportunity in the Asia Pacific region to build upon the wave of renewed attention that Universal Basic Income gained in recent years to discuss actively how we can create a wider consensus and concrete initiatives that build upon existing basic income designs and pilot implementations across the world,” Aubie said.
The entire conference will be live-streamed on UBI Taiwan’s Facebook account, including both English and Chinese audio simultaneous translations.
Taiwan has recently lowered the threshold for referendums, which has opened the possibility for a UBI referendum in Taiwan. This will be a topic of particular focus for two of the presentations at the conference, including Schmidt who will present on how Taiwan can lead Asia with a UBI referendum.
“With the introduction of Direct Democracy this year in Taiwan, the UBI Taiwan proponents have the same chance and political tool to turn UBI into a nationwide discussion and to push it to a people’s vote like the Swiss have done,” Schmidt said.
The conference coincides with increased discussion of basic income in the Asia Pacific, with the UN Development Program holding roundtable discussions on basic income in Beijing, China last October and December, as well as Korea discussing designs for a a pilot program.
“With the second annual UBI Asia Pacific regional conference approaching, we have expanded into two days, allowing us to share our ideas of how to improve society through implementation of Universal Basic Income,” said Ping Xu, co-founder of UBI Taiwan and UBI Asia Pacific.
The conference will examine the economic and social challenges facing the Asia Pacifc region, and will assess what a basic income policy can do to address these issues, such as inequality, automation, globalization, demographics, and environmental issues.
Last year’s conference attracted 100 participants and thousands of online viewers. The conference helped bring attention to basic income in Taiwan, with the formation of a UBI summer fellowship program and discussions with the Taichung Social Affairs Bureau about a potential pilot program.
The event is organized by National Chengchi University’s (NCCU) College of Social Sciences, and NCCU’s International Master’s Program in Asia Pacific Studies. It will be held at NCCU on March 17 and NTU on March 18. The event’s volunteers and coordinating team are part of UBI Taiwan.
“At this juncture of history where poverty and inequality are rising rapidly, I think we urgently need a “new universalism” of the kind UBI promises. There’s a long road and a lot of work ahead of us to make it a reality, but as more and more people place their hope in UBI’s emancipatory potential to protect their livelihood, human rights and dignity, we just can’t afford to disappoint such expectations,” Aubie said.
Writing Assistance from: James Grant
by Julen Bollain | Mar 10, 2018 | News
Daniel Raventós and Julie Wark have just published a new book titled “Against Charity”.
Both authors argue for an unconditional universal basic income above the poverty line and paid for by progressive taxation to both eradicate poverty and empower recipients—the result being the human right of material existence. The burning issue is not charity, but justice.
Raventós and Wark affirm that charity is not a gift. In their own words, “gift-giving implies reciprocity, an ongoing relationship. When requital is impossible, the act of giving remains outside mutual ties and charity becomes yet another manifestation of class structure, a sterile one-way act upholding the status quo”.
Vacuuming up all the profits thanks to a weak labor movement, lower taxes, and tax havens, the global elite then turns around and remakes the world in its own image, distributing charitable donations that can hardly be mistaken with generosity. In the book, postmodern versions of nineteenth-century charity are described as trying to keep wealth and power in a few hands, countering people’s desire for greater income equality.
Daniel Raventós and Julie Wark present a thorough analysis of charity from the perspectives of philosophy, history, religion, and anthropology. They conclude that charity is an unequal relationship, presupposing the persistence of poverty and serving as a prop for capitalism.
Book reference:
Daniel Raventós and Julie Wark, “Against Charity”, CounterPunch, 2018
by Andre Coelho | Mar 6, 2018 | News
On the 26th of March 2018, at 7 pm, Marat Smirnov will hold a public speech on universal basic income (UBI) modern trends and trial, followed by an open discussion. Marat has been active in starting a basic income community in Russia, having started by organizing a Telegram channel on the subject.
This event will take place at the co-work spot named Openspace, located in downtown St. Petersburg. The entrance is free.
More information at:
(in Russian)
Event on Facebook
Event website
by Patrick Hoare | Mar 5, 2018 | News, Research
Credit to: Flickr
In a new paper, published by the Institute of Labour Economics (IZA) in December 2017, James Browne of the Organisation for Economic Co-operation and Development (OECD) and Herwig Immervoll, of both the IZA and the OECD, have discussed what the social and economic consequences might be when replacing some existing social benefits with a comprehensive basic income. The study contributes to the expanding literature (building on the work of Atkinson 1995) that uses the microsimulation technique, a method that builds a computer program based on economic inputs (such as costs, income, expenditure and savings) in order to see what the effect of one variable output (such as poverty or inequality) would be if an input was changed. It was most recently developed by EUROMOD (the only multi-country EU-wide tax-benefit model currently available), and was used in Malcolm Torry’s paper, published in May 2017 by the Institute for Social and Economic Research, which analyzed similar scenarios and outcomes to Browne and Immervoll’s. This article will compare the two papers in an attempt to better understand the growing work in this area.
The Browne-Immervoll paper focused on four countries across Europe that have different population and labour-market structures, as well as very different tax and transfer policies: Finland, France, Italy and the United Kingdom. It looked at a situation where a universal basic income (UBI) would directly replace other working-age cash-payment benefits, including unemployment benefits, social assistance and other generalised minimum-income schemes, in-work benefits, early retirement pensions (i.e. pensions paid to those below retirement age whatever their official label), student maintenance grants and family benefits. In order to ensure that hardship was not ‘built into’ the policy changes, disability allowances and housing benefits would be retained, as well as the funding of other public services, such as the provision of healthcare and education. In line with BIEN’s definition of the UBI, payments would be, in all other ways, universal, paid to the individual, provided at regular intervals in cash, and be unconditional. The funding for the reform would have to take place under budget-neutrality, which would be achieved by taxing the basic income provided and by removing any tax-free allowance from the fiscal model. The marginal rates of tax, thereafter, would remain in accordance to the rates in place prior.
Torry’s paper, dealing specifically with the UK economy, also deemed it permissible to remove tax-free allowances and to tax all earned income in order to contribute toward the funding of the reform whilst maintaining budget-neutrality. Being guided by Hirsch’s recommendations (2015) based on political feasibility, however, Torry allowed for increased Income Tax rates of up to 3 percentage points across the board to help with this funding. Additionally, and significantly, his model maintained – where necessary – the means-tested benefits entirely removed in the Browne-Immervoll version, such that if the introduction of the UBI (which he, alongside others, label a ‘Citizen’s Basic Income’) wouldn’t be sufficient in improving the economic situation of an individual, then the means-tested benefits in place prior to the reform would be available as a form of supplementary benefit.
Given the conservative (or non-existent) fiscal expansion allowed across the modelling, which in both cases is argued as being necessary for realistic simulation, the rate of the net BI payments to be provided was significantly below the poverty line in all cases. In the Browne-Immervoll model, the UBI, for adults, would be at just 21% of poverty line level (defined as 50% of median household income) in Italy (€158), at 32% in the UK (£230), at 49% in Finland (€527), and at 50% in France (€456). The tapering of income at this level (or lower for 16 to 18 year olds) had the inevitable result of an increased rate of poverty in each scenario. This effect was especially pronounced in the UK, rising from 10% to 15%, due to the fact that the UK’s pre-UBI system relied heavily on means-testing and would have, in situations of such low income levels, provided additional benefits no longer available in the new model. Though Torry’s calculated UBI for the UK was only marginally higher for both adults (£264 per month) and young adults (£216 per month), the poverty rate under the conditions of his scheme followed the opposite trend and dropped substantially, falling from 14.84% to 11.8%. This difference – the effect of which is relatively even greater given the fact that Torry, in line with De Agostini, 2017, defined the poverty line as 60% of median household income – can largely be explained by the fact that Torry retained the very same means-tested benefits that Browne and Immervoll removed.
The analysis of potential gains and losses to income groups also reflected the difference in the methodologies used by the papers. The unwillingness in the Browne-Immervoll simulation to increase any current marginal rates of tax in order to collect revenue led to the expected result that those on lower incomes, overall, experienced larger relative losses. The very poorest – with little or no income – experienced gains, due to the universal and unconditional features of the new scheme, but the regressive nature of the flat uniform payments was not sufficiently offset by any progressive mechanisms, and thus the model delivered an overall regressive outcome. In contrast, Torry’s desire to avoid regressivity, and his willingness, therefore, to raise all the marginal tax rates, resulted in the top two highest earning deciles experiencing loses in disposable income of up to 5%, the third highest maintaining their level of disposable income, and the fourth decile down experiencing gains.
In order to understand the effect on work incentives of introducing a UBI, both papers focused on whether the reform would increase the effective tax rates on additional income, thus disincentivizing earning extra at the margins. Though this metric fell, on average, in both simulations – thus showing that there would be an increased (or, at least, not decreased) incentive to work – in the Browne-Immervoll model this was the consequence of removing the benefits associated with low-employment or unemployment, whereas in the Torry model this trend occurred in spite of keeping such benefits in place. As such, Torry’s simulation saw people getting wealthier – thus potentially moving up tax-brackets – but still managed to create a system where the financial rewards to work remained, or were even increased.
In conclusion, Browne and Immervoll determined that introducing a UBI in place of most other means-tested benefits would be costly and lead to negative social outcomes. Torry concluded, by contrast, that a UBI of similar level could be financially and politically feasible and would lead to many positive social outcomes. Given, however, that universal and uniform payments in an unequal society will, by definition, always increase regressivity if not offset by sufficiently progressive funding, the data gathered and logical conclusions derived are completely consistent with the papers’ respective methodologies. This comparative analysis shows that by adjusting a model’s predicated constraints, one can collect quantitative evidence to support different desired conclusions. On this basis, a UBI’s potential introduction does not seem to be determined by its feasibility (implementation, political likelihood, or positive economic outcome) but rather, by whether there can be consensus on what its purpose should be. That is, is UBI a mechanism for equalising wealth or a mechanism to simply provide everyone with something, no matter how small or large that payment may be?
More information at:
James Browne and Herwig Immervoll, ‘Mechanics of Replacing Benefit Systems with a Basic Income: Comparative Results from a Microsimulation Approach’, Institute of Labour Economics IZA, December 2017
A Atkinson, ‘Public Economics in Action: The Basic Income/Flat Tax Proposal’, Oxford: Clarendon Press, 1995
‘Why use EUROMOD?’, Euromod.ac.uk
Donald Hirsch, ‘Could ‘citizen’s income’ work?’, Joseph Rowntree Foundation, 2nd March 2015
Paola De Agostini, ‘EUROMOD Country Report: United Kingdom (UK)’, Euromod, February 2017
by Claire Bott | Mar 4, 2018 | News
India’s Chief Economic Advisor, Arvind Subramanian, recently told reporters that he would “bet” that one or two Indian states would be implementing universal basic income (UBI) by 2020.
The high-level government advisor’s comments occurred within the context of the release of the 2017-2018 Economic Survey of India. The Economic Survey is a regular report which examines the country’s current economic status, and attempts to make some predictions regarding future growth.
The last Economic Survey, for 2016-2017, gave some details regarding the possibility of India adopting a form of UBI. The survey explored the possibility of an income which would be quasi-universal, being distributed to approximately 75% of the population. This does not match BIEN’s own definition of UBI, but was referred to as a UBI within the survey. This was not the only scheme that the government entertained, if you want to know all schemes of indian government in hindi visit:- Sarkari Yojana UP Here is All Information of the government yojana.
While its approach to the subject was broadly positive, the 2016-2017 Economic Survey stopped short of recommending that a UBI be implemented across the country. Subramanian has spoken positively on UBI in the past, saying during an interview in April of last year, “There could be, potentially, several positive impacts – you provide people with a minimum wherewithal with which they can access credit, with which they can invest – and one of the things I think is worth emphasising about UBI is the kind of psychological liberation you can provide for people.” However, in the same interview, he also indicated some issues which could arise, stating, “You can’t pay for it [UBI] unless you get rid of something else.”
A recent report from Carnegie India, India’s Basic Income Bedevilled by Details, by Shaksam Khosla, praised Subramanian for bringing “substantial rigour” to the debate on UBI in India, but also recommended that, prior to any implementation, a large-scale experimental test of the system should be carried out. The Carnegie Endowment for International Peace (CEIP) describes itself as a global network of policy research centres with the aim of advancing peace through analysis and development of new policy ideas, as well as direct engagement with government, business and civil society. Khosla is a Research Analyst with Carnegie India, the CEIP’s sixth international centre to be set up.
Arvind Subramanian took office in October 2014. He previously worked for the International Monetary Fund, and has also been a Senior Fellow at the Centre for Global Development in America.
Edited by: Dawn Howard
by BIEN | Mar 3, 2018 | News
Michael Tubbs. Credit to: Wikipedia.
Forbes published its “30 Under 30 in Law & Policy” and notes that these winners come from across the political spectrum. They have been associated with President Trump, the Democratic Party, and emerge from law schools and professional organizations.
Hundreds of online nominations came in for the listing. The nominations were judged by the CEO of Heritage Action for America Mike Needham, Harvard Law’s Laurence Tribe, FiscalNote’s Co-Founder Timothy Hwang, and the Senior Vice President of Legal Affairs at 3M.
Winners of this year’s 30 under 30 were people such as the co-founder of the National Trans Bar Association Alexander Chen, the co-founder of Upsolve Rohan Pavuluri, a top policy advisor for Medicare and Medicaid Services Jeet Guram, and numerous others.
One individual, Michael Tubbs, who is 27-years-old, is the mayor of Stockton, California was dubbed as “ambitious” in “an attempt to experiment with social policy.” In order to reduce the violent crime rate, Tubbs wants to replicate, at the time of the listing, the program from the Bay Area. The initiative “pays monthly stipends to young men determined to be likely to engage in gun violence to stay out of trouble, as well as provide mentoring, internships and travel opportunities.” Tubbs and the Stockton municipality had already been highlighted for the efforts concerning demonstrating basic income, which were intended to start effectively at the beginning of 2018.
Basic Income News has been reporting on the Bay Area initiatives in several news articles. You can find more information elsewhere (note 1).
More information at:
Avik Roy, “Meet The 30 Under 30 Activists, Washington Insiders And Legal Entrepreneurs Shaping U.S. Law And Policy Now”, Forbes, November 14th 2017
Sara Bizarro, “UNITED STATES: Stockton, California plans a Basic Income Demonstration”, Basic Income News, November 21st 2017
Note 1 – reference#1, reference#2, reference#3, reference#4, reference#5, and reference#6.
