Sri Lanka, one of India’s closest neighbours, is starting to be the stage for a wide campaign to grow awareness about basic income. Talal Rafi, an entrepreneur, consultant and columnist from Sri Lanka is heading this awareness effort, since he is convinced automation will disrupt the economy, particularly by leaving millions of people unemployed.
Associated with Jim Pugh, ex-Director of Analytics for ex-US President Barack Obama, and Scott Santens, prominent international basic income activist, Talal Rafi has been referenced in Daily News, where he is cited for making an argument for basic income based on the onslaught of automation on jobs: “Artificial Intelligence will bring ease to humans, but would take away many of their jobs. Less than one fifth of jobs lost could be replaced. With half a billion people expected to be unemployed in the coming decades, crime alone would reach unprecedented levels. Self-driving cars, growing online shopping and robots for factories, mean millions of jobs taken over by machines. With IBM Watson, even doctors and lawyers are not safe. A possible solution is a guaranteed basic income for all.”
Rafi went on to be interviewed on Sri Lanka’s national TV (morning show, in English), where he was confronted with the usual questions concerning working productivity and financing. The answers surfed between automation and its consequences, results from already performed basic income pilots worldwide, and the prompt elimination of extreme poverty.
Flowers, on the way to the mountain. Picture credit to: Rookie’s Journal
Sikkim, the second smallest state in India, has grown a reputation, over the years, for environmental consciousness, ethnical diversity and tourism. It is also the home of one of the most educated people on Earth, with a 98% literacy rate. Moreover, in the last couple of decades, policies in the state have been implemented in order to reduce poverty, which presently sits below 8% (from a 41,4% in 1994). The Sikkim Democratic Front (SDF), the democratically elected party governing the state since 1994, has written basic income into its manifesto for the 2019 Assembly elections, and aims to have it implemented by 2022.
SDF’s MP in New Dehli’s Lower House of Representatives (Lok Sabha), Prem Das Rai, has said that “our party and Chief Minister Pawan Chamling (…) are committed to bringing in Universal Basic Income. This, we will do three years of coming back to power in the state”. This initiative is not intended as a pilot test, but as an actual implementation, hence Prem Das Rai words: “Basically, it’s an income given to families irrespective what do they do. In Sikkim, it will be for everyone and every household.”
As for financing the basic income scheme, SDF officials are considering surplus energy generation revenue (from hydropower) and redirecting costs from welfare programs which cease to be relevant. Restructuring the tax edifice and using tourism revenues are also future financing routes to cover for basic income. In any case, Prem Das Rai is confident that this is “not just a feasible idea, but a very positive idea”.
About this issue, basic income activist Scott Santens has written, on Twitter: “What makes this news so big in my opinion is the fact they’re talking about full universality, unlike what’s being discussed at the national level right now, where cash may be targeted to the poorest 33% of the country and thus not actual UBI. This news out of Sikkim is actual UBI.”
It started on Tuesday, 13th of November 2018, with a 200 large committee of environmental activists (Sunrise Movement) crowding Nancy Pelosi‘s office premises at the Capitol Building. The activists called upon Pelosi, the Democrats House speaker, to push for a real, ambitious and wide-reaching plan to curb climate change. That alone would probably amount to little as far as media coverage was concerned. However, the event was mediatized by recently elected Democrat MP and young political leader Alexandria Ocasio-Cortez, who stepped in and weighted her support, attracting lots of media attention.
What first seemed to be the aftermath of yet another Democrat internal dispute over climate change issues, turned out to be a positive reinforcement between Democratic leaders to start pushing for a deep strategy which can eventually set real policy to solve the climate crisis. Recent Pelosi efforts to revive energy independence and global warming related issues in the Househad turned out inconsequential, which only made the new Resolution presented by Alexandria stand out even more.
This Resolution aims to have a so called “Plan for a Green New Deal” ready by no later than January 1st 2019, and a final draft legislation by April 1st 2019 (with a proviso that it should not be extended, under any circumstance, further than March 1st 2020). This plan, supported by both the Sunrise Movement activist group and the Justice Democrats (a pioneering partnership), ambitiously aims to completely decarbonize the US economy, ramp up renewables to 100% and eliminate poverty in all United States within a 10 year timespan.
The ending poverty part of the plan starts with the provision of a job guarantee, coupled with training and education opportunities for all Americans, to assist in the transition to abetter (for most people), decarbonized economy. The concept of a job guarantee had already been given attention by Democrat “heavy-weights” like former President Obama and his Vice Joe Biden, putting an emphasis on its (alleged) non-monetary advantages (at least in the United States context) – e.g.: dignity, sense of purpose, recognition. However, basic income has appealed to Democrats in the last few years (adding Bernie Sanders and even Hillary Clinton into the pot), and so it appears under number four of Alexandria’s plan, after the taking care of disadvantaged communities affected by climate change, and reducing deep inequalities – racial, regional, gender-based, income and access to infrastructure – within the territory. With climate change impacting the world’s poorest much more than the world’s richest, it’s no wonder that people are turning to social justice lawyers for compensation. Lawtx.com already offers these services, and as climate change becomes more acute, it’s likely that we’ll be seeing more lawsuits in the future.
However, and according to basic income activists such as Guy Standing, Scott Santens and Annie Miller, basic income could have an important role precisely in addressing the issues faced by those who are impacted the most.
The Resolution clearly states that environmental issues cannot be separated from social/economic problems, hence the focus on both. Such deep connection has already been considered and analysed by several thinkers of our time, such as Phillipe van Parijs, André Gorz and Charles Eisenstein. Therefore, the moment in time, the nature of the document and its content seems to be aligned with the demands of today’s crisis, particularly in the United States. Finally, on the financial side of the Resolution, the idea is to use Federal Reserve funds, the foundation of a new public bank and/or theuse of public venture funds to cover for the Plan’s expenses, hence focusing on public finances and asset management. That certainly appeals more to a Commons-oriented solution to environmental and social issues, rather than a private-donor type of approach such as a few coming from Silicon Valley recently.
A new site on Youtube collects and presents short videos and animations about basic income, dubbed “Basic Income Visuals”. This website has been created by Philippe Chabot, a creative and basic income activist from Montreal, Canada. List of contributor videos include Andrew Yang, Annie Lowrey, Scott Santens, Guy Standing, Floyd Marinescu, among many others.
At BIEN Conference main auditorium (at the forefront: Phillipe van Parijs)
On the 24th of August 2018, the Basic Income Earth Network (BIEN) Conference at Tampere, Finland, started at full force (after an introductory day on the 23rd of August – Nordic Day).
Nordic countries like Finland have always had some of the strongest economies in the world. While they might not be the biggest, their economies are reliable which leaves their citizens willing to look into different etoro kokemuksia and start investing because they know the economy isn’t at risk of failing. This economic security means that people are looking into different ways they can strengthen and improve the economy further – including basic income. The Opening Session, taking place at a large plenary auditorium, featured Tarja Halonen, former President of Finland, and a firm believer in sustainable development goals. She focused on international affairs, concerning these goals, underlining that these cannot be attained if people don’t feel included. Hence, according to her, sustainability is only possible if and when poverty and migration issues are solved at the base of the social pyramid. These two aspects can be seen as two sides of the same coin, since, according to Rutger Bregman (discussed in his book Utopia for Realists), the existence of borders is one of the main drivers of poverty across the world. However, as Tarja puts it, poverty is a difficult issue to talk about, since it involves a considerable amount of shame.
Philip Alston
To that introduction followed the first Plenary Session, where Phillip Alston, from the University of New York and Special Rapporteur of the United Nations, talked about human rights and how basic income should fit within its advocacy. Alston first referred to labour and social security rights, which are running thin everywhere in the world, if present at all. The right to an adequate standard of living also sounds reasonable but, in the same vein, is seldom realized in most regions. He also reports on several governments actual cutting on social services, under the banner of “tax changes”, which invariably end up amounting to several human rights violations. Not surprisingly, institutions like the IMF, World Bank and the OECD are “allergic” to human rights language. On the other hand, and despite universal basic income (UBI) is seldom referred in the human rights advocacy circles, Alston is certain these are not incompatible, even the contrary may be the case. According to him, it’s past time of tinkering with failed social security systems, which are getting more cumbersome and controlling by the day, to start and introduce new and radical ways. UBI is one of these ways, which will also help and push back against neo-liberal “giants” that are permanently forcing a full liberalization of the economy, without consideration to human rights. That and governments, stuck in the austerity and privatizations mindset. Alston concludes by saying that rage is actually a feeling necessary for something like a UBI to become a reality, since it requires mass mobilization and the insurgence against deep injustices in society.
Louise Haagh
The second Plenary Session came after a multitude of parallel sessions, covering aspects of financing basic income, its political aspects, experiments with cash transfers, historical perspectives, its relation with existing social services, current developments in Europe, particular aspects with disability and child grants, BIEN Affiliates reports (as coordinated by Julio Aguire) and Media Workshop (as coordinated by Scott Santens). Here, Louise Haagh, meanwhile re-elected BIEN Chair (along with Sarath Davala as Vice Chair), first argues that giving people a UBI doesn’t equate to bringing them property rights. She also warns that two-year pilot experiments are not basic income, however important these might be to further the UBI agenda. While being a strong advocate for UBI, Haagh highlights the possible dangers of pursuing with it as a policy, since it can be mortgaged to debt, deepen the black market or derive in what she has called “wishful economics”. That would be the case if UBI were to be considered as a panacea. According to her, UBI should never lead to what is called Flexicurity (security with flexible labour), which in present day politics and economics is invariably linked with punitive governance and control. For Louise Haagh, there is a strong case to be held from the combination of a developed welfare state and UBI, which could stimulate institutions to work better together. This can come with the recapture of social development ideals, and a too narrow focus on UBI could defeat that purpose which she considers central to our society, particularly in the context of European Countries.
This first day of the Conference was crowned by a reception at Tampere’s City Hall, where participants were given a warm welcome, although the Mayor Lauri Lyly was not present at the event.
Lena Lavinas
The second day of this international event started by a presentation by Lena Lavinas, that although supporting such a policy like basic income, was very clear to highlight its dangers in light of recent financialization tendencies of the economy. This pattern is identified by the divestment of finance institutions from the productive sector, concentrating its investments on the speculative sphere, which however have an impact on the real economy through the reality of interest on loans. In a parallel to what Louise Haagh had presented the day before, Lavinas underlined the danger of welfare state dismantlement disguised under the UBI policy. Since a possible consequence of the implementation of basic income is the rise of global demand (for basic goods and services), she warns that may also enhance the rising of demand for credit, with the associated debt problems. Those problems are already affecting many middle-class and poor families in countries like Brazil and South Africa, as Lavina pointed out with specific numbers. Also, the mass inclusion of these millions of people in the banking system gives banking institutions much larger potential markets for financial instruments (mainly loans and insurance), with the expectable consequence of rising debt. To this apparently grim scenario, as portrayed by Lavinas, she assures that nothing (constructive) can be done without the severe taxation of the financial sector, plus the introduction of strong controls and regulations enforced over it. That, according to the university professor, could even be a path to finance a basic income.
The third and last day of the Conference is covered in a second part of the article, to be published soon.
