by Ian Orton | Nov 10, 2013 | Research
The Economist
The evidence that simply giving cash to the poor and vulnerable households is successful is well accepted by those familiar with the BI. Elsewhere, in more mainstream debate this recognition has lagged somewhat behind the empirical evidence, until now where a change seems to be afoot. A recent article in The Economist: “Cash to the poor: Pennies from heaven” charts both the origins of cash transfers (both in their unconditional and conditional forms), and most importantly gives its seal of approval that giving cash, when combined with wider measures, is an effective way forward for addressing inequality and poverty.
The article reaffirms the overwhelming evidence that giving cash improves key human development incomes (increased vaccinations and school attendance/attainment), spending money on improved living conditions, bolsters psychological well being (e.g. reduced levels of the stress hormone cortisone in the blood of recipients), depicts positively the capabilities of the poor by illustrating how transfers unlock and resource their economic potential, resulting in increased micro-economic activity and entrepreneurialism.
However, the article goes far beyond this, showing a nuanced understanding of the different outcomes generated by the incentives of soft and tough conditions (the latter credited with giving more significant results); the fact that pilot projects or one-off basic income-type transfers from Google or Facebook (as has occurred recently via ‘GiveDirectly’ in Kenya), might distort relations between recipient and non-recipient villages therefore skewing regional developmental goals. Moreover, from a Real Politick position the article also recognises the important strategic complementarity between conditions and cash and therefore political viability: conditions are the easiest way to assure political support by reassuring middle-class taxpayers that the poor are not violating the ‘norm of reciprocity’ through something-for-nothingism. And perhaps most importantly it lends weight to emerging concerns about the tendency of politicians and media to transform ‘shame’ and cash transfers into an ironclad collocation, especially in OECD countries, by dispelling this idea: ‘[UCTs] dent the stereotype of poor people as inherently feckless and ignorant’. In short, the article represents something of a popular breakthrough in legitimising cash transfers, whether they be unconditional or the ‘soft’ and ‘tough’ conditional variants.
The Economist, “Cash to the poor, Pennies from heaven: Giving money directly to poor people works surprisingly well. But it cannot deal with the deeper causes of poverty”, The Economist, October 26, 2013.
by Karl Widerquist | Oct 27, 2013 | Research
Guy Standing
Guy Standing, honorary co-president of BIEN and Professor of Development Studies at the School of Oriental and African Studies (SOAS), University of London, will be taking part in a debate on basic income at the Salone dell’Editoria Sociale book fair in Rome. The event will take place on Saturday 2 November 2013 at 6.15pm to 8pm at the Porta Futura, Via Galvani 108 (Testaccio), Rome. Click here for more details.
On Monday 4 November, Standing will talk about basic income to the Bergen Students Society. The event will take place at 6pm at the Akademiske Kvarter, Olav Kyrres gate 49, 5015 Bergen. For more information please click here.
Standing will then speak at two venues in Helsinki on issues related to the precariat, identified in his 2011 book The Precariat: The New Dangerous Class, including why the precariat needs a basic income. On Wednesday 6 November he will give a keynote address to the 2013 Finnish Conference on Youth Studies entitled “Generations, Economy and Equity”. The conference will take place from 10am to 6pm at the House of Science and Letters, Kirkkokatu 6, Helsinki. Click here for more information.
On Thursday 7 November he will give a guest lecture at 2pm at Aalto University, Arkadia building, Lapuankatu 6, Helsinki, lecture room AE-127. For more information click here.
Warwick PPE Forum: All Work and No Pay in 2013
On Saturday 9 November Standing will be one of the speakers at the 2013 Forum organized by the Philosophy, Politics and Economics (PPE) Society of Warwick University. The title of the forum is “All Work and No Pay in 2013: The Automation of the Global Economy”, and will address, inter alia, how technological progress can be used for the benefit of all rather than just an elite. The Forum will take place at 2pm to 6pm at the Arts Centre, Warwick University, Coventry CV4 7AL. For more information and to buy tickets, click here.
On Wednesday 13 November, Standing will give a seminar on “Basic Income in India: Evaluating a Pilot Scheme” at the India Institute, King’s College, University of London, Strand, WC2R 2LS. The seminar, based on the results of an unconditional cash transfer pilot scheme in a number of Indian villages, will be held from 5pm to 7pm. Click here for more information.
by Yannick Vanderborght | Oct 24, 2013 | Opinion
Daniel Häni at the event
Dorothee Schulte-Basta: Daniel, today a lot of people believe that the popular initiative for Basic Income here in Switzerland could also give an impulse to others. Is it in your opinion an impulse for Europe, or is it a global impulse?
Daniel Häni: Switzerland has a special position. It is really easier to promote the idea of Basic Income here than elsewhere because, on the one hand, we have a direct democracy and, on the other hand, we have no financial poverty. We can talk more freely about Basic Income since basic income is really an idea, a cultural impulse. This is evident from the debates in our neighboring country, Germany, where it is a debate about social policy. But in Switzerland the chances are greater because here the issue is discussed on a cultural level. As for the impulse, we think that it concerns not only Switzerland. We are doing this not only for Switzerland.
Dorothee: Are you doing it for Europe? For the world?
Daniel: I would not think so. You start with Europe, and then you quickly start thinking about America. America has strong links with Switzerland. This can be seen from the history of democracy.
Daniel Häni shovelling
Dorothee: Both countries have a common history of democracy, but the social situation in these countries is very different. For example, most people in the United States are not doing nearly as well financially as the people in Switzerland. And the social safety nets are quite different.
Daniel: Yes, but the United States is the biggest economy in the world. And America is built completely on the principles of freedom. The individual counts a lot. You can do there almost everything you want. The situation is similar in Switzerland. Switzerland was also built from the bottom up. However, it was unified into a direct democracy. In America, they went another way. But for the United States, basic income is an essential impulse, too. The most important thing one has to understand about basic income is that the idea behind it is the intent to free the economic potential of people. Or, to put it in other words, we need to change people’s understanding of the term “labour”. This is also a prerequisite to the future meritocratic society: the individual will associate themselves completely with what they do. America needs that. I can see that the door is open in America – through its history and mentality. And people in America want to do something. What people have to understand is that they need a base, an income so that one can work.
Picknick on money
Dorothee: What impulses can come to Switzerland from other countries? For example, can the pilot projects on basic income that have been launched in other countries, such as India, Brazil or Namibia, give an impulse to Switzerland? Or are there any other basic income-related activities that could give an impulse to Switzerland?
Daniel: I think all basic income pilots are interesting. They are a kind of impulse, too. Everything that happens somewhere could provide an impulse. But I would like to clarify this. It is not Switzerland that provides an impulse for Europe or America. It is not Switzerland, but rather it is the people– and they are everywhere in the world.
The most important thing is that we in Switzerland (maybe otherwise I would have been born somewhere else) are able to produce such a popular initiative. During a vote, the result is not so important. What matters is what happens on the way towards the vote, what kind of consciousness is created, and how people’s attitudes and thoughts change are also important. Here, in Switzerland, this is part of our culture. It is common practice here to make decisions together. We do not have boring discussions about pro and contra, or government and opposition.
Mountain of money
Dorothee: What are your wishes regarding basic income?
Daniel: I wish that all basic income advocates would know all the arguments against basic income, and would be able to cite them. I also wish that all basic income opponents would know all the arguments for basic income, delve deeper into the issue, and would be able to cite them. This is my wish. It’s the maximum we can achieve.
Dorothee: Thanks, Daniel.
by Karl Widerquist | Sep 17, 2013 | News
Namibia is experiencing its worst drought in decades. Hundreds of thousands of people are affected. Several groups have decided to use the Basic Income Guarantee (BIG) as a model for distributing relief aid. The Lutheran World Federation (LWF) initiated the effort, which will give a short-term monthly grant of N$100 to 4 000 drought affected people. The cash will be disbursed from mid-September 2013 until March 2014 when the next (hopefully improved) crop is harvested. The LWF selected four communities, one in each of the hardest hit regions of Hardap, Kunene, Omusati and Kavango.
A woman pictured in Caprivi while carrying two 25-kg bags of drought relief maize. -New Era
The idea of using BIG as a method of distribution for disaster relief aid has been discussed for years, but this is the apparently first time it has been implement anywhere in the world. The decision to use this method follows the successful BIG pilot project conducted recently in Otjivero, Namibia.
BIG has several potential advantages of as a form of emergency relief. It allows individuals to tailor their relief to their needs. Food aid is good for people who need food, but not as good for people who need medicine, seeds for next year, or money to relocate. Direct food aid crowds out market provision of food, but BIG attracts more companies to bring food into the area. Donations can be more quickly turned into BIG than they can be turned into almost any other form of aid. Experts will be watching this project closely to determine whether BIG lives up to this potential.
Livestock in Namibian drought. -LWF
The cash response of the Churches received media attention yesterday. The Bishops of the Lutheran Churches, the LWF Africa Secretary and TARA informed the media about the joint drought relief programme. The three major newspapers of Namibia reported in detail about it, two on the front page.
People can donate to the project online via the following link by entering the keyword “Appeal NAM 131”: https://www.lutheranworld.org/content/emergency-drought-angola-and-namibia
For more information about the project see these three articles:
ENGLISH: Fifi Rhodes, “Cash for drought victims,” New Era, September 3, 2013
ENGLISH: Clemans Miyanicwe, “Lutherans give N$100 to the poor,” the Namibian, September 3, 2013
GERMAN: Catherine Sasman, “Lutherse gemeenskap staan saam teen droogte,” Voorgele deur Republikein, September 3, 2013
by Karl Widerquist | Aug 13, 2013 | News
Karl Widerquist will discuss the basic income guarantee as a way to provide a more effective social safety net in Namibia at a conference in Windhoek on September 26, 2013. He will discuss the experience in Alaska with its dividend program as well as pilot projects in Namibia, Indian, Uganda, and other places. The conference is hosted by the Namibian central bank.
Karl Widerquist is an Associate Professor at SFS-Qatar, Georgetown University. He holds two doctorates—one in Political Theory from Oxford University (2006) and one in Economics from the City University of New York (1996). He has published six books, the most recent of which is Independence, Propertylessness, and Basic Income: A theory of freedom as the power to say no.
Karl Widerquist, “Social safety nets in Namibia: Assessing current programmes and future options,” Featured Speaker, Windhoek, Namibia, Bank of Namibia, Windhoek, Namibia, September 26, 2013. For more information, see the following two websites:
https://www.bon.com.na/Annual-Symposium.aspx
https://www.bon.com.na/Annual-Symposium/Annual-Symposium-Speakers.aspx
Annual Symposium: Social safety nets in Namibia
