by Kate McFarland | Mar 22, 2017 | News
The government of Ontario has released an overview of the results of three months of public consultations on the design of the province’s impending “Basic Income Pilot”.
The provincial government of Ontario, Canada is currently designing a pilot study of a guaranteed minimum income (a “basic income” in its terminology [note]), which it plans to launch in the spring of 2017. On November 3, 2016, project advisor Hugh Segal released the paper “Finding a Better Way: A Basic Income Pilot Project for Ontario” to serve as the focus of discussions on the design of the pilot (see the summary in Basic Income News). Concurrent with the publication of the paper, Ontario’s Ministry of Community and Social Services released a call for feedback from the public via public meetings, online surveys, and written submissions.
Public consultations continued through January 31, 2017, and, in the end, 32,870 people responded to the public online survey, 1193 attended the public meetings, and at least 537 individuals and community groups submitted written feedback–according to a newly released summary of the results of the consultations.
The new report, “Basic Income Consultations: What We Heard” (March 2017), provides an overview of feedback received from the public, although no details have yet been provided as to how this feedback will inform or influence the design of the pilot.
One issue addressed in the consultations was which of the potential measurable outcomes were most important to Ontarians. Segal suggested ten in his discussion paper, and consultations revealed “general agreement” that, of these, four were “particularly important” to residents: health, housing, food, and work behavior.
The level of the minimum income was also a topic of discussion–with the widely announced amount of $1320 per month called into question by some. This $1320 per month amount, which Segal recommended in his discussion paper, was based on a calculation of 75% of the Low-Income Measure (LIM). Some participants in public hearings recommended instead that the minimum income be set at 100% of the LIM.
Participants also discussed the selection of sites for the pilot, with widespread agreement that a variety of locations should be chosen, representing urban, rural, and northern areas, but that the government should also strive to focus on areas of greatest need (i.e. highest poverty rates).
Read about other results here.
[note] As is common in Canada, the Ontario government uses the term ‘basic income’ more broadly than does BIEN. The report above, for example, describes a basic income as a “payment from the government to a person or family to ensure they receive a minimum income level” and lays out several methods of implementing such a policy: “giving the same amount of money to everyone” (i.e. the specific approach that organizations like BIEN refer to as a “basic income”, sometimes also called a “demogrant”), “topping up the incomes of people who earn less than a certain amount”, and “setting up a system where people who earn less than a certain amount get a payment from the government, instead of paying taxes” (i.e. a negative income tax).
Often, ‘basic income’ is used to refer specifically to schemes in which all members of a community receive an equal amount of money, paid to individuals, while a term like ‘guaranteed minimum income’ is applied to the broader category of “payment[s] from the government to a person or family to ensure they receive a minimum income level”. Thus, although the Ontario government has titled its project “Basic Income Pilot”, it might be more accurate to describe it as a “minimum income pilot” to avoid confusion with BIEN’s more specific use of ‘basic income’.
Segal himself strongly recommended that the pilot avoid testing a “demogrant” (“universal basic income”) in favor of a negative income tax. However, as the new report reveals, some participants in the consultations suggested the adoption of a demogrant model.
Reviewed by Genevieve Shanahan
Photo (Ottawa, Ontario) CC BY-NC-ND 2.0 Stuart Williams
by Kate McFarland | Feb 21, 2017 | News
The City Council of Glasgow has passed a resolution to proceed with a workshop on the design of a basic income pilot study in the city.
During a November 2016 meeting, the City Council of Glasgow decided to begin research into the design of a basic income pilot study in the city. An important step forward occurred on February 16, 2017, when the council unanimously approved a resolution to convene and fund a workshop dedicated to drafting and examining models for the pilot.
Under the terms of the resolution, the council will commit £5,000 (about 6,200 USD) to the two-day research workshop, which is proposed for spring 2017 and will be overseen by a cross-party working group. During the workshop, basic income experts will meet with councillors, community group members, and other representatives from both the public and private sectors. The objective is to design potential models for the pilot study, as well as to identify key stakeholders in the experiment and potential financial and political barriers to its execution.
The Royal Society of Arts (RSA), which published an award-winning report on a basic income model for the UK (“Creative Citizen, Creative State”), has partnered with the council for the purpose of researching the design of a pilot study for Glasgow. The RSA will prepare an initial document on approaches to basic income pilots, which the selected experts would then analyze in terms of their design, feasibility, and anticipated outcomes.
Jamie Cooke, Head of RSA Scotland, comments:
The decision by Glasgow City Council is an important moment for basic income in Scotland, and marks a significant step forward. The RSA is delighted to be working with the Council and other partners on the study, and welcomes the leadership the Council has shown. We now have the opportunity to move the basic income conversation forward and identify practical ways to run a trial which works locally and has global resonance.
At the end of the spring workshop, the working group will submit its proposals and recommendations to the Executive Committee of the Glasgow City Council. A second feasibility study, building upon these design recommendations, would take place during a second phase of the project, tentatively planned for summer 2017.
The full text of the Glasgow City Council resolution is available here.
See also:
“RSA Launches Study on Universal Basic Income Trial in Glasgow,” RSA, February 17, 2017.
“Basic Income pilot considered in Glasgow,” BBC News, February 16, 2017.
Reviewed by Genevieve Shanahan
Photo: CC BY-ND 2.0 Robert Orr
by Kate McFarland | Feb 11, 2017 | News
Omidyar Network, a “philanthropic investment firm” created by eBay founded Pierre Omidyar, announced on February 7 that it will donate up to $493,000 to the New York based charity organization GiveDirectly. The funds will be used to support GiveDirectly’s major basic income experiment in Kenya.
In the largest and longest-running basic income trial to date, GiveDirectly will provide unconditional cash transfers to the residents of 200 villages in rural Kenya (about 26,000 people in total). The residents of 40 of these villages (about 6,000 people) will receive monthly payments for 12 years. At about $0.75 per day, the amount of the basic income is roughly half of the average income in rural Kenya.
With the grant from the Omidyar Network, GiveDirectly is now just over $6 million shy of fully funding the full $30 million experiment, Communications Associate Max Chapnick tells Basic Income News. Chapnick says, “Since we announced our basic income experiment back in April we’ve seen an outpouring of support from thousands of donors across the world. We’re grateful for the latest grant from the Omidyar Network, whose substantial support will help poor families meet daily needs, while providing valuable data on basic income.”
Mike Kubzansky and Tracy Williams of the Omidyar Network explain the firm’s decision to donate in a blog post titled “Why We Invested: GiveDirectly.”
Citing a recent literature review of 15 years of research on direct cash transfers (“Cash transfers: what does the evidence say?”), Kubzansky and Williams extol the benefits of cash transfer programs in “alleviating poverty and empowering people”:
“[C]ash transfer programs can potentially help to address bigger issues facing our society, such as rising income volatility, lack of secure benefits, social instability, and the changing nature of work. Concerns around these themes have recently sparked growing attention to a particular form of cash transfer: the idea of universal basic income (UBI)—a transfer that would be regular, long-term, a meaningful amount, and available to everyone.”
Kubzansky and Williams also discuss the threat of automation and the rise of the “gig economy” as forces driving interest in UBI. They go on to note, however, that “no study to date has been conducted with sufficient size, rigor, timescale, or universality to truly test the impact of a full-fledged UBI program.”
It’s to help counter this latter deficit, the authors explain, that Omidyar Network has chosen to invest in GiveDirectly’s experiment — which they applaud for its scope, ambition, and rigor.
“Partnering with top economists (reviewed by their institutional review boards) at Princeton and MIT, GiveDirectly is ensuring the experiment is carried out with scientific rigor and responsibly, generating evidence to help answer critical questions on the impact of UBI.”
Kubzansky and Williams refrain from an all-out endorsement of UBI. Instead, they adopt a more cautious“wait and see” approach, stating, “While we don’t know what the right answer will be, or whether UBI will prove useful or feasible, this is an important first step on generating data, so that policymakers can make informed decisions.”
At the same time, though, the philanthropists are clearly willing to invest in empirical studies of its feasibility — even beyond the $493,000 donation to GiveDirectly. In concluding their blog post, Kubzansky and Williams state:
“GiveDirectly’s pilot in Kenya is geographically-specific and focuses more on the issues around poverty alleviation than questions about jobs displaced by technological change. As such, Omidyar Network will look to support additional studies on UBI to diversify the growing body of research across markets, conditions, and formats.”
Reviewed by Cameron McLeod and Dawn Howard
Photo: “Mothers with their children in Loiturerei village, Kenya” (CC BY-NC-ND 2.0 DFID)
by Tyler Prochazka | Feb 6, 2017 | News
Activists in Taiwan have scheduled a meeting with a representative from Taiwan’s Executive Yuan (the executive branch) in which they will present the idea of a basic income pilot program in one of Taiwan’s cities.
UBI Taiwan will give the presentation on March 9 to present an idea for a pilot program.
Jay Hsu of UBI Taiwan will give the presentation. The location of the presentation is not yet determined.
UBI Taiwan submitted the proposal for presentation on January 20 to the Executive Yuan, and received confirmation that they were invited to present the proposal last week.
Taiwan will also hold the first Universal Basic Income in the Asia Pacific International Conference on March 18. Prominent activist Enno Schmidt has confirmed that he will attend the conference.
Updated 5/23/17: Removed references to Audrey Tang and Ping Xu, who were not part of the presentation.
by Guest Contributor | Jan 26, 2017 | News
San Francisco is not launching a basic income pilot yet
By: Sean Kline, Director of the San Francisco Office of Financial Empowerment
There is a lot of interest in basic income, and whether it could transform income inequality. The Office of Financial Empowerment (OFE)’s interest in basic income is a direct extension of its broader concern for economic security and intergenerational poverty.
Never heard of the OFE? We are the folks behind Kindergarten to College, the first and largest universal child savings program of its kind in the country now serving 27,000 public school children; Smart Money Coaching, which delivers financial coaching to low-income people at 27 sites across San Francisco; Summer Jobs Connect, which equips youth with a bank account, financial education, and strategies to save during summer employment; Bank On, which helps low-income residents access safe accounts at responsible banks and credit unions; and policy efforts to fight predatory financial practices and help families build assets.
Given the powerful evidence for cash transfers, both domestically and internationally, the OFE recently began exploring whether a basic income demonstration in San Francisco could add evidence to policy debates about reducing income inequality and increasing financial security. Here is what action we are taking:
- Actively participating in the Economic Security Project
- Planning a convening of UBI experimenters in Fall 2017
- Seeking funding to conduct a pilot in San Francisco and potentially with other cities across the country.
- Designing basic income demonstrations to pilot test
The OFE has engaged in thoughtful conversations inside and outside of city government to understand what such a demonstration could look like and what type of new research would be most helpful to inform policy. The OFE is not embarking on any proposal at this moment, but continues to explore when and how to launch a demonstration. In 2016, the OFE joined a three-city consortium to submit a proposal to the MacArthur Foundation for $100 million to fund the first large-scale basic income demonstration in the United States. While unsuccessful in this funding effort, the OFE has continued to explore smaller research demonstrations of a basic income at a cost of between $5 million and $30 million.
Reviewed by Kate McFarland
Image: San Francisco, CC BY-NC-ND 2.0 Florent Lamoureux
