by Joe Timothy | Dec 23, 2015 | News
Leading UK think tank Nesta lists basic income in the top 10 trends of 2016 that will have an impact on people’s lives. With the rise in interest throughout the world, it could be the year it is put to the test.
Over the last twelve months Europe has become a hotbed for basic income innovations. With trials due to be carried out in Finland, Holland and France, it is a critical moment for policy makers to understand the feasibility of adopting a universal basic income. In addition to these trials, there is a chance that the first form of basic income will be adopted in Switzerland in 2016 via a countrywide referendum.
In light of these important breakthroughs, the leading UK economic innovation think tank Nesta recently announced that they believe that 2016 could be the year in which universal basic income is put to the test, listing basic income as one of the top 10 list of trends to watch out for in 2016. Nesta believes that a basic income is an important policy idea that should be taken seriously, and that it could be a solution to some of the many challenges of the 21st century. As Brenton Caffin, from Nesta, asserts:
A basic income can provide a safety net for people wishing to retrain, which is worth considering given the massive technological changes that we anticipate in the decades ahead. It can enable citizens to make greater unpaid contributions to their communities, strengthening the fabric of social relations and reduce the burden of professional care. And the reduction in poverty brought about by a basic income can provide children with a much better start to life.
In the UK, a universal basic income has yet to gain much support from the political mainstream. Its major advocates include the Green party, along with Richard Murphy, Jeremy Corbyn’s economic advisor. In the past, the Liberal Democrats have also supported similar policies. This could change, however; NESTA believes it will be hard to ignore the trials going on throughout the world in 2016, and, as a result, a policy that traditionally has sat on the fringe of the political debate could be thrust into the spotlight.
For more information see the following source:
Brenton Caffin, “Universal basic income moves into beta,” NESTA, December 21, 2015.
by Will Wachtmeister | Dec 18, 2015 | News
Finland is putting basic income on the map and has attracted worldwide media attention by spearheading plans for the world’s largest basic income pilot.
Over the past month, the planned Finnish experiment has fascinated such a large number of readers and news outlets that – perhaps inevitably – many aspects of what is happening in the Nordic country have been misconstrued or exaggerated.
At the same time, most reports have overlooked the underlying reason why Finland is able to even contemplate a basic income experiment at such a comprehensive scale.
During the past year, Finland has been exploring possibilities to reform policymaking, with the aim of moving from a speculative approach to one that is experimental and evidence-based. This allows the government to systematically test new policies, such as a basic income, before introducing them on a larger scale.
Finland’s approach exemplifies a completely new way of doing politics, based on scientific research on how people react to new policies and policy changes. This policymaking approach is expected to spread to other countries, potentially bringing basic income experiments with it.
Why Finland?
Anyone trying to figure out why Finland has taken the lead needs to take into account that the new policymaking approach gives governments the knowledge and confidence to engage in large-scale experimentation. This is exactly what Finland is now doing with basic income, along with other policies.
Future designs: Students participate in a hands-on course in Design for Government at the Finnish Prime Minister’s Office. (Picture: Demos Helsinki)
Demos Helsinki, a Nordic think tank, is behind the experimental policymaking approach that is paving the way for the Finnish basic income experiment, among other research initiatives. Working with Aalto University and fellow think tank Avanto Helsinki, Demos Helsinki developed the Design for Government model, having been commissioned by the Prime Minister’s Office who wanted an “agile, human-centric and evidence-based” factor underpinning experiments and behavioral approaches.
The European Commission and the OECD have recently issued recommendations to their respective member states to use behavioral insights in their policymaking processes. This reflects a widely recognized need for innovative policymaking processes that are more efficient and allow policies to be tested before implementation.
This is why, according to Demos Helsinki, Finland’s basic income experiment is “only the tip of the iceberg” of a major paradigm shift that could well spread across borders.
A step further
While other countries like the UK and Denmark have taken tentative steps towards experimental governance, Finland has gone all the way. “It’s bizarre that the rest of our society works with testing, prototyping and then scaling, but not governance. It makes politics very theoretical, slow and reliant on guesses as opposed to evidence,” says Demos Helsinki researcher Mikko Annala, who was part of the team that produced the Design for Government model.
Taking it a step further: Demos Helsinki researcher Mikko Annala. (Picture: Demos Helsinki)
Annala mentions the UK’s Nudge unit and Denmark’s Mindlab as significant examples of this new type of experimental government innovation. “But,” he says, “we wanted to take this a step further, with large experiments and scaling up to the policy level.”
As a result, the Finnish Design for Government initiative is much more ambitious and comprehensive than any other projects in experimental governance. It is founded on the careful study of the effects of policy changes and the accumulation of a mass of knowledge and models. This will allow policymakers to make bold changes, because their effects will have been properly tested and modeled beforehand. At the same time, the experimental approach will make it easier to fine-tune new policies in response to feedback.
“What the typical government innovation units lack is a feedback loop to policy,” Annala explains. “That is different with the Design for Government initiative. Now the experiments are designed to scale from the start.”
Design for Government
This political direction was set by the Finnish Prime Minister’s Office. Wanting to explore the opportunities offered by behavioral science, the government commissioned a consortium to carry out the Design for Government project, under the leadership of Demos Helsinki.
The Prime Minister’s Office is now setting up an experimentation office to oversee the experiments and scaling. In addition to the basic income experiment, Finland’s ministries are testing other innovative initiatives — such as over a hundred planned or on-going mobility experiments across the country. Eventually, the Ministry of Traffic and Communications aims to “turn Finland into one giant Mobility Laboratory”. Additionally, of more direct relevance to the basic income project, Demos Helsinki is also investigating ways to transform to the funding mechanisms for the experiments themselves. Finally, Finland is sponsoring a project to create advanced communication platforms for experiments so that information, know-how and practices are more easily and more quickly shared.
Radical and fast
“There are clear reasons for Finland to change its governance this radically and this fast,” says Annala. He says the motivations for the change are both “qualitative and quantitative”.
“The need for experimental governance has been recognized in many nations,” he says. “One reason for this is the simple fact that the world is changing faster than ever: for example digitalization, immigration, aging populations and such phenomena bring up situations which we have never encountered before. In these situations it’s almost impossible to plan, and it’s better to experiment.”
The UK’s Nudge initiative has shown that experimental governance can unlock real potential and that there is every reason to take them to a larger scale, he says. “Many [Finnish] ministries are exploring the possibilities of doing large scale experiments and the Prime Minister’s Office is building structures for supporting the experimental culture. On this scale, the basic income experiment is one single experiment among many. Yet it is an intriguing one, of course.”
Annala points out that the Finnish basic income experiment has been misunderstood in some quarters.
Referring to articles in The BBC, Forbes, The Independent, Mashable, The Telegraph, Time and Quartz, among others, Annala also says that “none of the articles uncover the reason why Finland can pull off such ambitious policies in an age where so many government are left powerless with even smallest of changes in the way society works.”
He adds that Finland has taken a promising course, which could spread to other countries in the future. “If steered well, it can turn Finland into the world’s first country with truly experimental governance.”
FURTHER READING:
Demos Helsinki “Design for Government” Demos Helsinki website, accessed 14 December 2015
Vito Laterza, “FINLAND: Basic income experiment – what we know” Basic Income News, 9 December 2015
Mark Easton, “How politicians learned the power of the gentle nudge” BBC News, 22 July 2015
by Nicole Teke | Dec 13, 2015 | Opinion
In the past few months, basic income has been widely debated in the French public arena and mainstream media are starting to pay attention to it. This trend has been influenced by the announcement of pilot projects in the Netherlands and Finland, and the upcoming referendum in Switzerland.
Recently, there have been important developments in the national political arena too. On November 13, an amendment to the 2016 Budget Law proposing the adoption of a basic income was debated in the National Assembly, one of the two houses of Parliament. The proposal was introduced by Frédéric Lefebvre, MP from the right-wing party Les Républicains. The amendment was not approved, but the chairman of the Finance Commission, Gilles Carrez, approved the creation of a multi-party parliamentary working group on the issue.
This constitutes a real improvement in terms of political discussions on this topic. However, BIEN French chapter, the French Movement for Basic Income (FMBI), has expressed concern about the proposed measure. The amendment promotes the introduction of a universal income for all French citizens – but not other residents – that would replace all welfare benefits. All unemployment and housing benefits, as well as student allowances and old-age pensions, would subsequently be suppressed. (You can read the amendment in French here.)
Most people who depend on their social benefits would be strongly affected. The amendment seems to have been designed to reduce public debt, without taking into consideration the negative impact it could have on the welfare system. The proposed basic income does not sit well with FMBI’s stance. A basic income should not undermine the welfare system, but reinforce it. It should also promote more freedom of choice.
The amendment mentions recent developments in Finland. In the Finnish case too, there are concerns that the government might be experimenting with a basic income to replace other social benefits and reduce public spending. As far as the French proposal goes, it does not consider the implications for citizens and residents, especially those in the most vulnerable groups. It also fails to look at how the proposed basic income would enhance individual freedom of choice.
This is just the beginning of a serious political discussion. There is still a lot of work to do to develop proposals about the kind of basic income France should adopt. Yet, the fact that there is growing debate in all spheres of French society is a positive and welcome development.
by Vito Laterza | Dec 9, 2015 | News
In the last week, the basic income experiment in Finland has gone viral, making headlines around the world, from UK-based Telegraph to Russia Today. Not all the reports however were correct. Here is what we know.
Update March 2016: KELA has published its recommendations – see a summary here.
Some articles mistakenly gave the impression that the Finnish government has already made plans to introduce a nation-wide basic income. As we reported before here and here, for now the government has committed to implement a basic income experiment. KELA, the Finnish government agency in charge of welfare benefits, rectified the misperception on Tuesday.
In a previous statement released on November 19, KELA provided additional information about the experiment. It highlighted four objectives behind the program. It aims to find feasible options for an overhaul of the social security system in response to labor market changes. Some of these trends include the growth of temporary contracts and freelance work that is not covered by the current work-based benefits structure. The experiment will also explore how to make the system more effective in terms of providing incentives for work, and avoiding the poverty trap – benefit recipients are discouraged from taking up employment, if the additional income received from a job is only marginally higher than means-tested benefits. Another goal is to reduce bureaucracy and simplify complex and costly procedures for administering benefits.
The experiment will be carried out in a context marked by three years of economic downturn, which has led to rising unemployment and pressures on public spending. The current center-right government took office after general elections in April this year, and is carrying out a wide-ranging program of cuts that will affect education, health and welfare provisions.
A working group has been created with the task of providing a preliminary study that will lead to the actual experiment. The study will identify a model for basic income to be tested. The experiment will evaluate the effects of giving a basic income to members of different population groups, and produce an overall cost estimate.
The preliminary study is a collaboration between Kela’s Research Department, the Universities of Helsinki, Tampere, Turku and Eastern Finland, the Sitra Innovation Fund, the think tank Tänk, and the VATT Institute for Economic Research. Kela’s research director Professor Olli Kangas is the project’s head. The study is already under way. A decision by government on the details of the basic income experiment is expected in the second half of next year. The experiment is scheduled to start in 2017.
The American news website Vox published a PowerPoint presentation by Kangas that highlights some of the issues currently under discussion in the working group. BIEN-Finland President Otto Lehto stresses that this should be read as a general indication, rather than an official position of government or the working group.
The government has set aside 20 million euros for two years for the experiment. There are several options that the working group will consider. The first is a full basic income, where the amount paid to participants would be high enough to replace “almost all insurance-based benefits”, hence a significant monthly sum. As in other European welfare states, Finland has an insurance system where workers receive their unemployment and pension benefits from sector-specific funds. These are usually higher than the basic benefits administered to welfare beneficiaries regardless of their occupational status. The figure of 800 euros per month circulated by many news outlets is to be read as a possibility under this option, rather than anything set in stone.
The second option is a partial basic income that would replace basic benefits, but leave intact almost all existing insurance-based benefits. The presentation notes that, in this case, the monthly sum should not be lower than the existing level of basic benefits, which is around 550 euros per month. The same figure was reported in several media without the appropriate context.
A third option is that of a negative income tax, where income transfers are made through the taxation system. Other models might also be considered, including the option of a participation income given to unemployed people as an incentive to seek additional income – this alternative is discussed by Kangas himself and Jan Otto Andersson in a 2002 paper.
The size of the sample and the geographical areas covered are other key topics to be addressed. According to Kela, the next step will be the delivery of a review of available evidence from universal basic income models tested in other countries, which will be presented to government in spring 2016. In a recent survey carried out by Kela, nearly 70% of respondents support the idea of a universal basic income, and most of them think it should be set at around 1000 euros per month.
Here is a list of relevant sources for more information:
Kela, “Universal basic income options to be weighed,” November 19, 2015.
Kela, “Contrary to reports, basic income study still at preliminary stage,” December 8, 2015.
Kela, “Experimental study on a universal basic income.”
Olli Kangas, “Experimenting basic income in Finland,” presentation, December 8, 2015.
Liam Upton, “Finland: New government commits to a basic income experiment,” Basic Income News, June 16, 2015.
Stanislas Jourdan, “Finland: Government forms research team to design basic income pilots,” Basic Income News, October 15, 2015.
“Kela to prepare basic income proposal,” Yle, October 31, 2015.
Ben Schiller, “How Finland’s exciting basic income experiment will work – and what we can learn from it,” Fast Company, December 7, 2015.
Dylan Matthews, “Finland’s hugely exciting experiment in basic income, explained,” Vox, December 8, 2015.
Jan Otto Andersson and Olli Kangas, “Popular support for basic income in Sweden and Finland,” Conference paper presented at the 9th BIEN Congress, 2002.
by Vito Laterza | Dec 5, 2015 | News
The 16th Basic Income Earth Network Congress will take place in Seoul, South Korea, from July 7-9, 2016. The overarching theme is “Social and Ecological Transformation and the Basic Income”. Activists, politicians and academics from across the world will gather to discuss the current realities and possible futures of basic income, in the context of ongoing global economic and ecological crises.
The Congress will be hosted by Sogang University and will coincide with Korean Basic Income Week, from July 4-10, when concerts, film screenings, performances and campaigns will take place across the country.
Eight keynote speakers have been confirmed at the time of writing: Louise Haagh (York University, England), Toru Yamamori (Doshisha University, Japan), Jan Otto Andersson (Åbo Akademi University, Finland), Sarath Davala (India), Zephania Kameeta (Minister of Poverty Eradication and Social Welfare, Namibia), Zhiyuan Cui (Tsinghua University, China), Gonzalo Hernández Licona (CONEVAL, Mexico) and Evelyn L. Forget (University of Manitoba, Canada). Click here for more information on the speakers.
A call for papers and proposals has been issued by the conference organizers. Interested people can make submissions until January 31, 2016. You can read the full call for papers and proposals here, including instructions on how to submit. Potential topics include, but are not limited to:
- Economic models after neoliberalism, and the position and role of basic income in them;
- The role of basic income in the expansion of democracy in the political arena and in society as a whole;
- The role of basic income in the transition to an ecological society and related cultural issues;
- The role of basic income in moving away from a work-based society and contributing to the de-commodification of the labor force;
- The precariat and basic income;
- The role of basic income in enhancing gender equality;
- Basic income as a tool to tackle youth unemployment;
- Evaluation and prospects of various pilot projects;
- Post-human prospects and basic income.
For all other details, visit the Congress’ website, which is also available in Korean.
