by Stanislas Jourdan | Jul 30, 2015 | News
Leaders from the traditional biggest opponents to basic income in Finland, the Social Democratic Party and Trade Union Central Federation STKK, said their organisations should eventually consider basic income.
Two major faces from the Finnish leftist political sphere, the Social Democratic Party (SDP) chairman Antti Rinne and Trade Union leader Antti Palola have just made a significant shift of attitude towards basic income during SuomiAreena, an annual public debate forum held in Pori, Finland.
“If basic income means that everyone is secured in a decent way, the SDP must be involved in this debate” said Antti Rinne, Social Democrat leader and former minister of finance. Rinne thinks it is important that any basic income would not make it more difficult to take up work.
The Social Democratic Party has been the main basic income opponent in Finland. During the last general elections, 80% of their candidates for parliament said they opposed basic income.
A similar move came from Trade Union STTK leader Antti Palola, who was also speaking at SuomiAreena. He said:
Personally, I’ve been thinking about this issue and come to the conclusion that we in the trade union movement need to reposition ourselves on this issue. After all, we have traditionally been very tightly in favour of this discretionary income-related basic social security. We have seen that it is the right thing.
According to Palola, the old vision of Trade Unions was relevant as long as the people had permanent – big or small – incomes from standard employment positions. However, the labor market is rapidly changing and the Union movement should hear these new signals.
The new center-right government of Finland has committed itself to implement a basic income pilot, although the details are not known yet. The SDP has not yet announced whether or not it will oppose this project in the parliament.
Credit picture CC Demarit
With contribution from Johanna Perkiö
by Vito Laterza | Jul 29, 2015 | Opinion, Research
Give a Man a Fish: Reflections on the New Politics of Distribution, by James Ferguson (Duke University Press Books, 2015).
James Ferguson’s latest book focuses on the rise of social welfare programs in southern Africa, in the form of grants to low income and vulnerable groups, primarily the elderly, women and their children, and the disabled. Post-apartheid South Africa has led the way. It has an extensive system which administers grants to 30 percent of the population. Other countries like Botswana, Namibia, Lesotho, Swaziland, and Mozambique have also implemented nationwide programs, while pilot programs are being tried elsewhere in the region.
Ferguson’s goal is not to provide an extensive ethnographic treatment of these developments, but rather to analyze their implications and the field of political possibilities they might open up. Half comparative ethnography, half political pamphlet, Ferguson’s impressive narrative is a tour de force questioning, deconstructing and reconstructing classic and contemporary notions of poverty, development and the welfare state in the region and beyond. Through a focus on direct cash transfers, the author brings together the anthropology of southern Africa, with the latest debates in development practice and anti-poverty activism.
Written in a highly readable style, the book is structured around a series of self-contained chapters, originally given as the Lewis Henry Morgan lectures in 2009 at the University of Rochester. One can easily read the chapters independently or as part of a larger whole.
Ferguson’s starting point is the contradiction between dominant narratives on the relentless expansion of the neoliberal state, and the substantial extension of state social provisions through grants. The modest size of these social payments sets them apart from more comprehensive welfare measures in Nordic countries, yet the author believes that this phenomenon marks the rise of what can be legitimately called “welfare states” in southern Africa. While their impact might be limited in the present form, the systems in place lay the foundations for more radical possibilities.
Breaking away from conventional welfare and poverty interventions, grants are not delivered with the final goal of reproducing a healthy and productive workforce in the cities, or creating a class of productive farmers in the rural areas. The eligibility criteria are simple – mostly age for pensions and child care grants – and do not include conditions like searching for employment or investing in productive activities.
This hints at economic structures that affect the vast majority of southern Africans: the rural areas are witnessing a constant decline in agricultural production, while the formal sector in urban areas, even when experiencing high growth, simply fails to absorb most people who are in need of employment. Far from being a temporary situation that can be rectified through economic policies, this is a chronic feature of contemporary capitalism in southern Africa and increasingly in other parts of the world, including Northern economies like the US and Europe.
The author points out that production remains the dominant paradigm in economic anthropology, development discourse and practice, and radical left thinking. He calls for a radical shift away from “productionist” tenets towards distribution. His wide-ranging critique builds on a re-elaboration of key themes in classic and contemporary southern African ethnography, from kinship-based reciprocity across the rural-urban spectrum to a mix of moral and economic concerns at play in sex, love and intimacy in times of precarious livelihoods.
The “distributive political economy” mapped by Ferguson is characterized by a myriad of acts of wealth distribution, entangled in multiple and complex relations of dependence influenced by configurations of gender, kinship, labor, community, ethnicity, society and the state. Rather than producing more wealth, this “distributive labor” is primarily directed at dividing sources of wealth into “smaller and smaller slivers as they work their way across social relations of kinship, clientage, allegiance, and solidarity” (p.97). It is this kind of activity that sustains and reproduces society, more than engagement in production as defined by macro-economic frameworks centered on the labor of able-bodied men in the formal sector and the reproductive work of women as wives and mothers. One powerful example of this reversal in South Africa is the shift from dependence of women, children and rural relatives on remittances from men working in the mines in the heyday of the apartheid economy, to the central distributive role played today by women and elderly people. The latter are the main beneficiaries of state grants, and disenfranchised men at the margin of the productive economy have increasingly come to rely on them.
Establishing and maintaining dependence on others who have access to wealth becomes a full-time job for those who are excluded from the benefits of middle class life. Dependence, in Ferguson’s treatment, has more to do with sharing than either gift or market exchange. Sharing and dependence cannot be easily subsumed under the conventional opposition between equality and inequality. These relations hint at a “new politics of distribution” beyond these two poles.
Within this framework, Ferguson convincingly reinterprets varied political movements calling for redistribution in the region, from the populist socialism of new radical movements in South Africa to the region-wide basic income grant campaign, and debates around land reform and resource nationalism. Calls for redistribution go beyond narrow views of African patrimonialism. People demand what Ferguson labels their “rightful share” in wealth that is owned collectively. Legitimate participation in this process can be framed along citizenship lines at the state level, but there are other levels of belonging too when local communities and traditional leaders are involved. These claims are not exercised from a position of inferiority or supplication. People own collectively all the resources of their community of belonging, hence they have a claim to a share of the wealth produced from these resources.
By inserting the normative and political dimensions of these movements into a long history of local idioms and practices, Ferguson provides a different angle on activist discussions around radical measures like the basic income grant (BIG). BIG is argued from a variety of perspectives, ranging from radical Marxism to left-leaning libertarianism and technocratic social democracy. The distinctive feature of a basic income is that it should not be tied to any condition and everybody should be entitled to it. The ideal world imagined by BIG activists is one where all human beings receive a basic income that would afford them a decent livelihood, with no compulsion to work for a wage or generate income through other activities. This is a radical break from existing welfare measures that tie unemployment benefits to the reintegration of beneficiaries in the labor market. In line with other activist scholars, Ferguson notes that these emerging state systems of cash distribution provide an essential infrastructure for the possible establishment of BIG. At the same time, his anthropological analysis develops moral and political arguments in favor of BIG that are grounded in local discourses and aspirations, a dimension often missed by global activist groups and regional campaigners.
Ferguson joins a growing number of anthropologists who subvert the conventional boundaries between analysis and engagement. With his creative and flexible analysis, he provokes thinking for action beyond narrow ideological boundaries. One could imagine enthusiastic endorsements of his work by Marxist campaigners, World Bank technocrats and traditional leaders alike. This highly original book is likely to leave a lasting mark not only on contemporary anthropological debates around poverty and development, but also policy and activist thinking in southern Africa and beyond.
This review was originally published in Anthropology Book Forum.
by Josh Martin | Jul 27, 2015 | News
Geoghegan’s article serves as a very thorough introduction to basic income. He begins by discussing the recent commitment to a basic income pilot project in Utrecht, the Netherlands, and he then continues within the Scottish context by interviewing two major academics on the subject, Danny Dorling and Malcolm Torry.
Peter Geoghegan, “Is a citizen’s income for everyone an idea whose time has come?”, The National, 13 July 2015.
by Josh Martin | Jul 16, 2015 | News
Sarath Davala, an independent sociologist based in Hyderabad, has begun a new blog focused on basic income in India. Davala worked closely on the Indian Basic Income Pilot projects with Renana Jhabvala, Soumya Kapoor Mehta, and Guy Standing, authoring Basic Income: A Transformative Policy for India.
On the blog’s website, the reader can find blog posts tailored to basic income in India, information on their book, and the final report for the Indian Basic Income Pilot Study.
To visit the blog, Basic Income India, click here.
by Citizens' Income Trust | Jul 10, 2015 | Opinion
Sarath Davala, Renana Jhabvala, Soumya Kapoor Mehta and Guy Standing, Basic Income: A transformative policy for India, Bloomsbury, 2015, xii + 234 pp, 1 4725 8310 9, hbk, xvi + 331 pp, £65, 1 4725 8311 6, pbk, xvi + 331 pp, £19.99
How can poverty be ended in the world’s developing nations? A simple question: and it might have a simple answer. A recent pilot project in India shows that a Citizen’s Income – an unconditional income for every individual – can make a substantial dent in poverty and create the conditions for its elimination.
This book is the report of eighteen-month experiments in which thousands of men, women and children in urban, rural and tribal communities in India were given a monthly unconditional income in place of India’s flawed subsidised food and guaranteed employment schemes. Pilot communities in which cash transfers would replace the subsidy system, and control communities in which they would not, were randomly selected, and the different outcomes in relation to a number of factors were carefully evaluated during the project and at the end.
The first chapter describes how the Self-Employed Women’s Association (SEWA) and UNICEF (the United Nations Children’s Fund) worked with Guy Standing and his colleagues to decide that the pilot project would be of a genuine Citizen’s Income – a universal, unconditional and nonwithdrawable cash transfer – for every individual in the pilot communities. Arguments against such cash transfers are answered. The second chapter describes the project, and the vast amount of work that went into establishing the necessary infrastructure, and particularly into ensuring that everyone in the pilot communities had bank accounts into which their Citizen’s Incomes could be paid.
The rest of the book describes the effects of the Citizen’s Income in terms of improved housing, electricity and water supplies, sanitation, nutrition, health, healthcare, school attendance and performance (especially for girls of secondary school age), and economic activity: by the end of the project, ‘many more households in the basic income villages had increased their earned incomes than was the case in the control villages, and many fewer had experienced a fall in earned income than in the control villages’ (p.139). In the pilot villages, child and teenage labour shifted from wage labour to own account work on family farms and to increased school attendance, bonded labour decreased as debts were paid off, and the purchase of such assets as sewing machines facilitated increased own account economic activity. Women’s status was enhanced by their new financial independence and by SEWA’s involvement, and the elderly and the disabled experienced improved status and living conditions. The final chapter shows that India could afford to pay a small universal Citizen’s Income by reallocating the money currently spent on food subsidy schemes.
SEWA, UNICEF and the researchers are to be congratulated on the establishment, and the significant success, of this pilot project. They have proved that it is possible to implement a Citizen’s Income in a developing country and that the benefits of doing so are substantial. The results are encouragingly similar to those generated by a Namibian pilot project in which Guy Standing was also involved. A significant cumulative case has now been built. Now all that is required is the political will to establish a Citizen’s Income scheme. If that happens then it might be a developing country, rather than a developed one, that implements the first universal Citizen’s Income and reaps the social and economic benefits.