History Matthias Dilthey called for a day of basic income in 2006, which unfortunately received little support at the time.*
The first week of the basic income was held in 2008 and was designed as a sub-project of the EU-funded “Basic Income on the way to Europe.” This was initiated by Günter Sölken, from an idea the Basic Income Network Germany (Netzwerk Grundeinkommen) had proposed. It happened with the support of Basic Income Network and Social Cohesion Austria, BIEN Switzerland, Attac branches in Germany, Austria and Switzerland, along with the help of many independent basic income initiatives in Germany, Austria and Switzerland.
In 2009, a significant expansion took place. A call started from various initiatives, and finally 247 organizations and over 2,800 individuals participated. In Germany a website was developed to showcase the activity and creativity, with countless ideas, suggestions, and planned actions, under the editorial supervision of Martina Steinheuer.
The 4th International Basic Income Week was held 19 to 25 September 2011 with a focus on “Basic Income in Europe“. In Germany and Austria, there were about 100 events and activities: discussions, workshops, readings, theater and film screenings, exhibitions, etc. The fifth International Basic Income Week happened 17 to 23 September 2012 with the focus on “Ways to Basic Income”.
In 2013, the year of the European Citizens’ Initiative for Unconditional Basic Income, “Basic Income a Human Right“, a further internationalization of the 6th week of basic income took place. The Netherlands organized the “Week van het Basisinkomen” but not much action was involved, we were all too busy collecting signatures for the ECI.
In 2014 a Basic Income Week websitewas set up in English to further internationalize the event by Robin Ketelaars. Manja Taylor handled promotion and activities.
Unconditional Basic Income Europe (UBIE) adopted the 8th International Basic Income Week in 2015 as a key item to organize every year by all countries individually. Also at the 15th Annual North American Basic Income Guarantee Congress, International Basic Income Week was adopted as a way to publicise UBI.
That year, 19 countries participated with live events: Belgium, China, Danmark, Germany, France, United Kingdom, Ireland, Canada, Malawi, Netherlands, Norway, Austria, Sweden, Swiss, Zimbabwe, Spain, South Korea, Hungary, USA. A further eight countries participated on the internet: Australia, Brasil, Bulgaria, Finland, India, Italy, Mozambique, New Zealand, Zambia, South Africa.
9th international Basic Income Week had the motto “Basic income goes worldwide”. In 2016 Basic Income Earth Network (BIEN) contributed to the week´s further globalization by starting a group on Slack for better collaboration. Jenna van Draalen from Canada and Christof Lammer from Austria were among the promoters of the IBIW along with many more UBI activists. Themes for other yearly events can be found on basicincomweek.org.
International Basic Income Week is a self-organised participatory week. A lot can be done, from spreading the news to friends to organising your own event with films, speakers or creative action. We can help with finding presenters and promoting your event with our shared Basic Income Week website. We welcome new participants who can share time, money or ideas! Get in touch with your regional group or the international coordination team, and let us know what you decide to do! This year there was the start of the Videothon Playlist.
From 2018 onwards there have been three synchronised events. 1) Make a photo and share it on social media with the hashtag #countonbasicincome on the Wednesday 2) Come and socialize, organize a #basicincomebeer on the Friday 3) Since 2019 the #basicincomemarch is part of the week on the Saturday
Basic Income Marches In April 2019, social worker and co-founder of Basic Income NYC Diane Pagen and 2020 candidate for U.S. Congress James Felton Keith came together to organize a public event in a show of force and inclusion for basic income.
2020 saw a huge growth in support for basic income in the United States. It was important to provide different ways for the community to celebrate. All sorts of events, live and online, from a film screening, panel discussions, to a Year of Basic Income Livestream event featuring commentary from Andrew Yang, Andy Stern, and over 10 Mayors from Mayors for a Guaranteed Income and more, marked the important progress made in 2020.
With COVID measures in place, city organizers got creative. From art installations, to bike and car parades, to street corner protests, Income Movement in the US built tools to make it easy for organizers to plan amazing, highly successful events while allowing for safe social distancing for community members. Many people who did not go on the streets posted a photo with the hashtag #talkonyourwalk and held Zoom sessions with shoes.
This year’s motto for International Basic Income Week is ‘Forward to a Better World!’
Future plans? Who knows? We hope that with BIEN’s support we can involve more countries in India, Africa, Asia and Latin America this year.
How can people contribute to or participate in IBIW this year? Organize events and spread the B-word! Social media activists wanted for @insta and other media outlets There is a Slack group where activities are discussed which you can join: the Basic Income Outreach Group. Please let us know if you want an invite via the contact form. We’re always on the lookout for more ideas!
*) Basic Income Day In 2014 a website promoting Basic Income Daywas started by Robin Ketelaars. “If everyone is his own king, nobody has to be the king of the other.” This sentence by Michael Sennhauser (Swiss Radio DRS) in the review of the film Kulturimpuls Grundeinkommen by Daniel Häni & Enno Schmidt and the film scene at Basel SBB train station inspired the crowning of the first 500 heads 1 May 2009 on the market square in Lörrach. Since then, we want to unite with everyone who burns for an unconditional basic income to trigger a wave of change.” The action was followed up in 2014 by Sylvia Mair and Oliver Der as a Basic Income Day on the 1st of May. This was supported by Scott Santens, a Basic Income activist from the United States, and other activists in Europe and the US. The websiteis in use for more “basic income days”. Human Rights Day is celebrated annually across the world on 10 December. In 2013 we participated by showing the world through our profile pic that an Unconditional Basic Income is a human right. The action this year will take place 4 to10 December. International Women’s Day on 8 March could also become a “Basic Income Day”.
Editor’s note: The use of the term ‘basic income’ for the sheme in Janggo Island does not correspond to BIEN’s definition of basic income, since it is paid not to all residents but to only participants in communal fish farming activities for 20 years, and paid not to individual but to household.
A forum took place on the meaning and issues of the basic rural income social experiment, which Gyeonggi Province plans to conduct in the second half of this year. Entitled, “The Meaning and Issues of the Community-centered Basic Income Social Experiment,” the first Rural Basic Income Policy Forum was held on the 29th of January and introduced cases and discussed India’s basic income experiment, distribution of shared assets in Boryeong, Chungcheongnam-do, and Jeju Island. The Hankyoreh Economic and Social Research Institute with the Gyeonggi-do Agricultural and Fisheries Promotion Agency, the Basic Income Korea Network, Lab 2050, the Korea University Institute of Government Studies, and the Korea Regional Development Foundation all participated in organizing the January event. Some of the presenters and debaters participated online.
Lessons from the Indian basic income experiment
Sarath Davala, the keynote speaker, is the architect of India’s basic income social experiment and chairman of the Basic Income District Network, which leads the discussion on basic income worldwide. He laid out the implications of basic income experiments conducted in India and Namibia.
Namibia and India conducted basic income experiments—in 2008 and 2011, respectively—during which Namibia paid USD 12 and India USD 4 per month to 2,000 people for a span of 12 months. “Contrary to many people’s expectations, people who received basic income did not become lazy. Start-ups and economic activity increased, new transportation facilities were opened, school attendance rates rose, household debt decreased, and other good things occurred. In Namibia, the consumption of alcohol remained unchanged,” Dr. Davala explained.
Dr. Davala also introduced changes in policies following basic income social experiments. “After the social experiment, the local government in India began providing cash allowances to all farmers proportional to their farmland area in 2018, and through this policy, the party won three-quarters of the local council. […] However, the program excluded sharecroppers and non-farmers and allowances were paid only to owners of land in rural areas, and basic income discussions focused mainly on ‘the excluded.’ […] The implications of the Indian outcomes on other basic income experiments is that one needs to follow the principle of individuality and avoid excluding anyone in the region.”
Dr. Davala emphasized the role of social experimentation in promoting social dialogue beyond the collection of evidence. “In the past, we did not conduct small-scale social experiments in advance before abolishing slavery or winning women’s suffrage. These policies were based on values, philosophy, and human rights. Obviously, the policy effect rationale is important, but the policy is not implemented only with evidence. In India, political movements took place after social experiments, and there was a close review and public discussion of what was better,” he said. Another aspect of the social experiment he emphasizes is that it triggered dialogue between the public and the media, experts, and political parties to discuss desirable alternatives. “In Korea, there have been experiments with things such as youth dividends in Seongnam City, a basic income for young people in Gyeonggi Province, and national disaster support funds amid the Corona crisis, which has attracted the attention of politicians and the public.”
Sea cucumber seeds become basic income for islanders
The forum also presented a case where a local community shares the profits generated from a shared asset. Kang Je-yoon, head of the Island Research Institute, explained how Janggo Island allocates the profits from collected seafood to the islanders. Janggo is a small island with 81 households and 200 residents and began allocating profits from sea cucumber farming grounds in 1993. In 2019, 11 million won (around USD 10,000) was paid annually to each household in basic income. Kang said, “Unlike other fisheries, sea cucumbers grow on their own when the residents sow seeds. There is nothing residents have to do with them until they are ready for harvesting. Residents of Janggo Island receive a basic income from sea cucumber farming, which requires minimal labor, and the same amount is allocated as labor income from collecting clams ten times over two months. “Since the village community provides a basic income and labor income together worth 20 million won per year (USD 19,000), Janggo Island residents earn equal and stable income, unlike residents of other islands, where large income gaps exist between those in the aquaculture industry and those who are not.
However, Janggo Island also went through a slow and painful process before residents received a consistent dividend. Initially, the fishing village fraternity rented out fishing grounds around Janggo Island to fish farmers, who paid rent to the village society. Director Kang said, “It is illegal to rent out fishing grounds, which no one owns, and beside that, the rent was 500,000 won a year, which was an absurdly low price for 1983. In 1983, the village’s newly appointed head persuaded residents to reclaim the fishing grounds, after which they managed the profits from the fishing grounds (now village property) for ten years, and gave out loans. After much controversy, the dividend first began in 1993, and residents’ complaints about fishing grounds profits subsided, and the community’s common interest in the fishing grounds increased the quality of management.” A fair distribution system supported the management of shared assets.
Kim Ja-kyung, an academic research professor at Jeju National University, who presented on the possibility of basic income through shared assets on Jeju Island, said, “Jeju Island has a tradition of distributing profits through communal operation of pastureland and fisheries. For example, one village harvests seaweed fusiforme and agar together and distributes them among the participants while allowing individuals to keep the collected seaweed for themselves. One hundred and one fishing village fraternities had their own unique customs and order.”
Recently, wind and wind power generation has been drawing greater attention as a new shared asset on Jeju. Professor Kim gave a wind farm in Haengwon-ri, Gujwa-eup, eastern Jeju Island as an example. “Six villages in Haengwon-ri receive part of their wind power generation profits and set aside the funds. […] There is always a possibility of conflict and disagreement in the village, which prevents certain people from arbitrarily exercising their decision-making authority.” There is still work left to be done to develop a system to distribute the new shared asset profits fairly.
Consideration of the impact of distribution system on residents
Lee Chang-han, director of the Korea Regional Development Foundation, which designed the basic income social experiment in rural areas in Gyeonggi Province, said the experiment’s primary purpose is to closely examine the impact of basic income on the local community. “Because of the name “basic rural income,” many people are confused whether it only benefits farmers. However, farmers in rural areas in Gyeonggi-do Province make up only about 16% of the total population. It is crucial how farmers and non-farmers interact in the same living space in these rural areas. Like Janggo Island, we will observe the impact of the distribution system on resident communities.”
Park Kyung-chul, a researcher at Chungnam Research Institute, said, “Since 2019, various local governments have introduced farmers’ allowances, and there has been a discussion on farmers’ basic income. […] However, since non-farmers are also, directly and indirectly, involved in agricultural activities in rural areas, and together they form local communities, expanding the scope of payments to all rural residents is the concept behind basic income.”
Lee Ji-eun, CEO of the Basic Income New Research Network, said, “The basic income social experiment in rural areas can be reevaluated in terms of climate justice.” She added, “We hope this experiment will lead to discussions on rediscovering ‘the commons’ (shared assets), discovering small sustainable economic models and revitalizing ecological feminism, reflecting the peculiarity of rural areas.”
Lee Won-jae, CEO of Lab2050, who headed the debate, said, “I think the basic income social experiment in Gyeonggi Province has a unique status, as does the basic income experiment in Finland…where the prime minister in power conducted a policy experiment. In Korea, the experiment is taking place when basic income is becoming a central political topic.” This means that it is an environment in which the country’s overall policy will follow the results of the social experiment.
For more information, check out Gyeonggi Rural Basic Income Social Experiment’s blog page: https://gg-rbip.medium.com/
Written by Yoon Hyeong-joong, visiting fellow at the Hankyoreh Economy and Society Research Institute, philyoon23@gmail.com Translated by Eunjae Shin, researcher at the Hankyoreh Economy and Society Research Institute, eunjae.shin@hani.co.kr Reviewed by Toru Yamamori, Academic Research Editor of BIEN
Photo: Credit: Janggo Island, South Korea, is experimenting on sharing dividends from sea cucumber farming grounds with its residents. Provided by Kang Je-yoon.
By: Carlos Alvarado Mendoza y Jonathan Menkos Zeissig Translation: Julio Linares The Spanish version of the article can be found here.
Recently, the Central American Institute for Fiscal Studies (Icefi) proposed for Central America the implementation of a universal basic income (UBI), seeking that the States of the isthmus have a minimum guarantee of social protection, while contributing to counteract the impact of the Covid-19 pandemic. A UBI, accompanied by other public, social and economic investments, would accelerate the fulfillment of the 2030 Agenda for Sustainable Development and, by proposing a change structural in the welfare and economic growth model, could be the basis for the discussion of new social, political, economic and prosecutors in Central America.
Central American governments have implemented actions in order to contain the spread of the virus and reduce the impacts on people’s health and economic activity. However, these states have faced a complex scenario, although to varying degrees in each country, as the pandemic has exacerbated structural problems mainly related to the lack of equity in access and care of public health systems, the weak health care system and social protection and the low capacity to generate formal employment and productive transformation, which has as a consequence lead to high levels of inequality and poverty. Indeed, prior to the crisis, 45 out of every 100 Central Americans (about 22.5 million people) lives in conditions of poverty; furthermore, 82 out of every 100 poor Central Americans lives in Guatemala, El Salvador, and Honduras.
According to estimates by the Institute, the current crisis could cause the loss of up to 1.9 million jobs, and induce a significant increase in general and extreme poverty. Especially in Guatemala, El Salvador and Honduras, the current crisis could add at least 4.9 million people to poverty, according to data from the Economic Commission for Latin America and the Caribbean (ECLAC), which would further erode the weak social fabric of these countries of the region (Economic Commission for Latin America and the Caribbean (ECLAC), 2020, “Latin America and the Caribbean in the face of the COVID-19 pandemic: economic and social effects”, Special Report COVID-19 No. 3). Among the main measures that have been implemented by most Central American governments to limit the impact on the population, in terms of ensuring income, food security and basic services, particularly for vulnerable groups, are: food delivery; the creation of new monetary transfers; suspension of payment for basic services (particularly water, power and telephone); and, the increase in the amount of previously existing monetary transfers. Likewise, different types of protection programs have been put in place for workers in the formal sector, among which are teleworking, paid absence from work, unemployment insurance, reduction of working hours, among others. Additionally, additional direct support has been provided to individuals and families, consisting of credit payment facilities, support for workers in the informal sector, among others.
Although the measures adopted by the governments of the region are limited and of a temporary nature, they indicate the urgent need to implement permanent actions, from a long-term perspective, that make it possible to guarantee the gradual reduction of poverty in the countries of the region until they are eliminated and the rights of the people by strengthening States through the universal provision of social protection that allows rebuilding the social fabric of those countries.
Faced with the above, the Icefi has urged the Central American States expand and strengthen their social protection systems in a way that protect the population, prioritizing traditionally excluded groups and the most vulnerable, the economic and financial damages derived the crisis and accelerate the process of economic recovery. To achieve these objectives quickly and effectively, the Institute proposes the implementation launch of a universal basic income (UBI) that eliminates extreme poverty and significantly reduces general poverty. In its III Report Central American fiscal policy ―whose first chapters were published in July―, the Institute has calculated the costs and effects of the application of a universal basic income.
For the implementation of a UBI, the Icefi proposes to assign a sum monetary to each member of society, equivalent to the amount associated with the international threshold of extreme poverty (USD 1.90 per day in parity of 2011 purchasing power). From that account, you would also be paying the achievement of the 2030 Agenda of the Sustainable Development Goals (SDGs), in particular goals 1, 2, 3, 5, 8, 10, 12, and 16. The application of a UBI has an operational simplicity that pays to its rapid execution, avoiding creating more bureaucracy, opening paths to corruption and keeping beneficiaries in the trap of poverty. By being assigned unconditionally, it would allow not only to eradicate extreme poverty, decrease overall poverty, reduce inequality in income distribution, increase levels of economic activity and create the conditions for new jobs, but also the measure should provoke the modernization of fiscal policy and rebalancing necessary of responsibilities between citizens, companies and the government. From that account, when proposing a structural change in the welfare and economic growth model, UBI could be the basis for discussion of new social, political, economic and fiscal pacts in Central America.
The initial estimates made by the Institute suggest that the annual investment required for the implementation of a UBI ranges from 1.2% and 7.5% of GDP for the six countries of the region, Honduras being the country that would require more investment due to the size of its GDP and the number of inhabitants of the country. Similarly, Nicaragua would require an investment of approximately 5.8% of GDP; while in Guatemala and El Salvador, investment necessary would reach between 5.0% and 5.3% of GDP, respectively. In contrast, the countries that would face the least fiscal pressure to implement this policy are Costa Rica and Panama, whose investment would be around 2.2% and 1.2% of GDP, respectively.
Figure 1: Central America: necessary increase in public spending by the central administration to implement a UBI from threshold poverty level (2020-2030, figures as percentages of GDP).
At the Institute’s discretion, the implementation of a UBI could be carried out gradually, as shown in Figure 1 ―in a maximum period of ten years and serving the population in the territories with the highest poverty and less development, consistent with the achievement of the Sustainable Development Goals and with the necessary institutional, fiscal and economic restructuring that guarantees the effectiveness and sustainability of this policy over time. This way of gradually achieving the universality of basic income would allow States to advance comprehensively in the universalization of other public goods and services related to education, health, water and environmental sanitation, housing, among others.
According to estimates by the Institute, among the greatest impacts of executing this agenda, in addition to the elimination of extreme poverty, is the generation of 2.0 million direct jobs; the increase average of 20% in the rhythm of economic activity, mainly driven by domestic production; as well as improvements in the indicators of social welfare and equality. For the general fulfillment of the SDG2030 Agenda in the Central American region, the Institute has identified various probable sources of financing, among which the increase in tax collection stands out. As a result of the reduction of illicit capital flows, smuggling, evasion of taxes and fiscal privileges; as well as by the increase of some taxes that, additionally, could improve the global progressiveness of the tax system. In some states, indebtedness can also be considered as a financing mechanism. Additionally, the Institute reiterates that, on the side of public spending, it is possible to generate spaces additional prosecutors through two channels: by eliminating the items that are not oriented towards development goals, so that resources can be reallocated to programs that have such an orientation; as well as by improving efficiency of those that can generate better results in economic and social terms.
Table 1: Fiscal Space on the Taxation Side
The gradual implementation of a universal basic income, together with the advancement of public investments that guarantee the fulfillment of development goals, and a comprehensive fiscal reform ―more income, public spending based on results, greater transparency and an effective fight against corruption – are the elements that will allow Central Americans to successfully face this health and economic crisis, expanding rights and rebalancing social responsibilities. For this reason, the Institute urges all of society – peasant movements and promoters of individual human rights, workers, businessmen, academia, political parties and governments in office – to promote an open and sensible national dialogue, with a vision of the future, that has as objective of transforming States through a social, economic and fiscal pact that changes current political and socioeconomic trends and sets Central America on the path of sustainable, inclusive and democratic development to which the great majority aspire.
In particular, the states of the countries of the region must advance in the strengthening of their social protection programs, a central element of policy that allows reducing existing inequalities, not only in terms of income, but also from an inclusive perspective in economic terms and social that promote social cohesion. Furthermore, for Icefi, reducing the exacerbation of the poverty conditions in which more than half of Central Americans live may be possible by universalizing access to social protection programs, since the current context has only accentuated the existing limitations in terms of of the economic and social model. A better Central America is possible to the extent that an inclusive development model is formulated and built in economic, social and environmental terms, so that a universal basic income ensures a minimum base of protection that is accompanied by policies that guarantee for all a quality education; access to timely, effective and efficient health services; have public services of economic and social infrastructure that favor social cohesion; and that all implemented policies are consistent with an environmentally friendly strategy.
There is a translation of this article into French.
On the 18th July the Secretary General of the United Nations gave the annual Nelson Mandela Lecture.
People want social and economic systems that work for everyone. They want their human rights and fundamental freedoms to be respected. They want a say in decisions that affect their lives.
The New Social Contract, between Governments, people, civil society, business and more, must integrate employment, sustainable development and social protection, based on equal rights and opportunities for all. …
The gradual integration of the informal sector into social protection frameworks is essential.
A changing world requires a new generation of social protection policies with new safety nets including Universal Health Coverage and the possibility of a Universal Basic Income.
It is undeniable that the new wave of engouement for UBI (universal basic income) that has shaken the US, the EU, India and so many other parts of the globe in the wake of COVID-19 has also reached Brazil. Everywhere, the simple idea of guaranteeing a regular income, duty-free, underwritten by the State, appears to be the way forward to mitigate the still unmeasurable consequences of the appalling disruptions brought about by the pandemic. UBI would swiftly reduce income insecurity, preventing poverty; it could also significantly contribute to accelerate the economic recovery in the post-COVID-19 era by stimulating aggregate demand.
The idea of a UBI was galvanized when governments promptly decided to extend the amount, coverage, and length of different sorts of monetary transfers to confront the gravity of the multiple crises created by the COVID-19 outbreak. Unemployment benefits, job allowances, one-time pay-checks, welfare benefits, or even special forms of credit line have spread out to inject liquidity in the economy. All of a sudden, we have a new opportunity for making the case for UBI.
Brazil was no exception. The comprehensive national social security system created in 1988 that provides free, universal health care (among many other rights) had been made vulnerable by years of underfinancing. But the system continues to be the most effective and democratic institution when it comes to guaranteeing social rights and wellbeing in Brazil. When the COVID crisis hit, the federal government and Congress could have reinforced social assistance, public healthcare, unemployment insurance, and other job allowances — all constitutive dimensions of the Brazilian social protection system. Instead, they united to favor ad hoc measures that, though sounding generous, are inevitably temporary.
The ultraliberal government of President Jair Bolsonaro backed a bill that Congress approved unanimously early April to adopt an “emergency basic income” program that would last the entire state of emergency declared on March 20, 2020. In principle, this program should expire on December 31, 2020, along with the state of emergency. In Brazil, a state of emergency allows extraordinary spending, suppressing the 2016 cap imposed by a constitutional amendment that impeded any real increase in social spending until 2036 regardless of economic growth or rise in tax revenues.
It bears reminding that Brazil is the only country in the world to have passed a law on Basic Income in 2004, hours prior to the adoption of the Bolsa Familia Program. Yet the law remained a dead letter and largely unknown to most Brazilians. To date, it remains unclear why the Workers’ Party started its mandate presenting a bill on UBI, which was approved without encountering any opposition, too soon after paying no heed to it. Today, despite the existence of a UBI Law, activists, progressive parties, and members of Congress chose the easiest way out, bypassing the already existing institutional framework. They chose a transitory and short-term program over existing law. This narrowed sighted strategy further debilitates Brazil’s social security system, because it deepens defunding. It also fails to bring greater comprehension of what a UBI is in the public opinion, thereby further diminishing the chances to make it a true, permanent, and unconditional right.
Today’s “emergency basic income program” provides a three time-payment – now extended to four months – of R$ 600.00, the equivalent of $120 USD per month. It is means-tested. Anyone over 18 years old (threshold waived for single mothers) living with a monthly per capita household income below half a minimum wage (R$ 552.00 / $110 USD) qualifies. The Minister of the Economy estimates that this benefit has reached 54 million people, encompassing the target-population previous recipients of Bolsa Familia, informal and precarious workers, and the unemployed who registered. Let’s not forget that Brazilian monthly median per capita household income, including labor income and all forms of social benefits, like pensions and welfare schemes, corresponds to R$ 862.00, equivalent to $172.00 USD. A monthly stipend of R$ 600.00 is therefore a very significant figure that amounts to 70 percent of the median per capita income and is three times higher than the Bolsa Familia cash transfer. It was the first time that Brazil set the bar so high with regard to compensatory benefits.
It is worth noting that indigenous and traditional black communities who were proportionally the most hardly hit by the pandemic have been denied the right to this temporary benefit, which is very telling about the challenges for universalizing rights in Brazil. The mortality rate among indigenous in the Legal Amazon is 150 percent higher than the national average. The deficiency of the specific care system for native peoples, the invasion of their lands by miners who can take the virus into their territories and communities, and continuous deforestation are pointed out as reasons that can explain such a high mortality rate and lethality. Faced with the threat posed by COVID-19 to indigenous communities, opposition parties passed a law in early July in Congress that provides for a set of 16 emergency measures to protect some 800,000 indigenous people. President Bolsonaro, however, immediately vetoed the most important ones, such as guaranteeing the supply of drinking water, food baskets, hygiene products and specific ICU beds for indigenous people infected with the virus, arguing that the Union could not afford mounting non-essential expenditures. Brazil remains a very unequal society and has not yet reckoned with its colonial structures of racialized discrimination.
The Brazilian Bureau of Census (IBGE) just published the first results regarding the impact of the Emergency Basic Income Program: 38.7 percent of all Brazilian households received the program, with the bottom 40 percent benefitting most. 45 percent of all Brazilians received the temporary emergency workers’ allowance and three-fourths of all monetary transfers benefitted the 50 percent at the bottom of the distribution scale. According to IPEA, this allowance has compensated 45 percent of outstanding earning losses due to the pandemic. It also increased by 2,000 times the average income of the poorest 10 percent. This is good news, especially because the recovery of the economic activity that has been noticed in early July significantly relies on the rebound of household consumption.
There is now strong evidence that providing monetary transfers at large scale and in substantial amounts that make a real difference in people’s lives is a powerful mechanism to boost economic activity, prevent destitution and humiliation, and help people cope with all sorts of hardships.
Did the crisis and the measures adopted increase the support for a true UBI? Are Brazilians really aware of the challenge and motivated to fight for it? In 2013, I carried out a national survey to assess how Brazilian society values social policies. There was a specific question on UBI. Back then, 51 percent disagreed, and one-third agreed with the idea of implementing a UBI. The current estimates are unknown since no survey asking the specific question has yet been re-conducted. But let us keep in mind that the current emergency workers’ allowance is no UBI.
The question is whether or not the evidence aforementioned would suffice to bolster the implementation of a true UBI in Brazil.
During the pandemic, doctors, health workers, and the many who support the universal public health care system (SUS) persevered in order to advance a temporary program, called ICU Beds for All. In Brazil, for every 5 ICU beds fully equipped in the private sector, we have only 1 in public hospitals. The problem is that only 25 percent of all Brazilians have subscribed to private health insurance, whereas 75 percent go public. Given that a significant and growing number of ICU beds were underutilized in the private sector, a campaign was launched to create a pool of ICU beds, coordinated by a public entity, to improve access and sort out the waiting list problem. But no agreement could be reached and today Brazil is second only to the United States, with 1,7 million confirmed cases, and 68,000 fatalities, both figures broadly underestimated given that testing is rather rare in Brazil. It is now obvious that the COVID-19 pandemic was insufficient to unite Brazilians, even when so many lives are lost.
This paradox raises two major concerns:
Is UBI the most urgent need for Brazilians? Will it be possible to couple a universal basic income at a relatively significant amount at least to eradicate abject poverty with other universal social policies that are urgently needed such as public healthcare, good public education, social housing, adequate sanitation? Is this affordable?
To what extent would endorsing UBI strengthen the social security system already threatened by austerity measures derived from the cap on public spending and by attempts of the Bolsonaro government to fully reshape it through tax reform and the merging of different social benefits restricting them to poverty relief programs?
————————————————————
In regards to the first question, what would be the cost of a UBI in Brazil? Of course, the cost depends on the design of the program. To get a rough idea of the cost of a very basic program, let us consider a stipend that would be equivalent to the monthly benefit of Bolsa Familia today, which is R$ 200 per month ($40 USD). This amount should be acceptable by all parties and civil organizations across the political spectrum. The difference lies in the fact that it would apply to individuals (UBI) rather than households (Bolsa Familia Program).
Let us then imagine that when the law was approved in 2004 the Brazilian government decided to implement the program starting with children under 5. Given that it would be impossible to grant a stipend to all Brazilians, the idea is that we would launch a UBI by targeting the children to prevent intergenerational poverty. The new benefit will accompany the beneficiaries throughout their lifetime as an unconditional right. Focusing on children sounds appropriate because the pension system in Brazil provides a satisfactory income security to the elderly: 85 percent of all seniors over 65 receive a public pension, either contributory or non-contributory, whose monthly amount (floor) corresponds to no less than a minimum wage.
By providing a UBI of R$ 200.00 to children under 5 in 2004, today’s number of potential recipients under 20 years old totals 60,7 million people (IBGE, PNAD 2004 & PNADc 2020). This would cost R$ 323 billion, or 10 times the annual spending with the Bolsa Familia Program (R$ 32 billion or, 4.4 percent of GDP in 2019). The good news is that 57 percent of all stipends would go the bottom 40 percent of the distribution. The current Emergency Workers’ Allowance Program amounts to R$ 150 Billion, consequently less than half of the proposed UBI, reaching an almost equal number of recipients.
To grant $40 USD a month to 60 million people in 2019 is three times higher than the federal spending, with the public healthcare system (only R$ 117 billion or 1.64 percent of GDP). Such a program would also surpass by 11 percent of all benefits conveyed by the federal government (including higher education, housing, sanitation, labor, and agrarian initiatives), which accounts for R$ 289 billion (Lavinas 2020).
In 2019, outstanding federal social spending amounted to R$ 1.73 trillion. Paying a basic income of R$ 200.00, therefore at the level of the current anti-poverty Bolsa Familia program, would compromise 27.5 percent of all social spending. That same year federal social spending in kind corresponded to only 4.12 percent.
Monetary transfers remain the bulk of social spending, accounting for 68 percent. Should Brazil continue to expand cash transfers, to the detriment of providing running water, sanitation, housing, equal standards in education and healthcare? The most recent data from IBGE (2018) show that 31.1 million Brazilians (16 percent of the population) have no access to tap-water, whereas 72.4 million (37 percent of the population) lack proper sanitation. Not to mention decades of deep housing shortage affecting millions of poor and low-income families who end up living in slums, which makes them less immune to all sorts of diseases in times of pandemics.
The second question relates to the future of the Brazilian social protection system, which was underfinanced for quite a long time, and now risks being completely dismantled. The Minister of the Economy, an old member of the Chicago Boys who worked for the Pinochet Regime, intends to overhaul social security. He initiated a pension reform in 2019, making it harder for informal workers to get a full pension at retirement.
Now, that same ultraliberal minister proposes the creation of a “Brazil Income Program”, resulting from the merging of a large number of benefits, both contributory and non-contributory. Workers’ rights like job allowances, unemployment benefits, and other benefits alike will all be suppressed and replaced by an anti-poverty program to reach 57 million people, granting a monthly stipend of R$ 232 per month, 15 percent above the average payment of Bolsa Familia. They expect to spend R$ 52 billion per year with this new program, which is less than one percent of the 2019 Brazilian GDP. This means that the coverage against risks and poverty will be shortened and people’s autonomy and wellbeing consequently corroded.
In addition, the government intends to provide a voucher to pay for private daycare for two million children up to three years old, which will increase prices and fees and discriminate based on income. Lessons from Chile are well-known to envision that in Brazil things could be different. A voucher of R$ 250,00 corresponds to 10 percent of what middle-class families pay for private childcare in cities like Rio and São Paulo. The best daycare centers, however, charge double or triple. According to the government, churches could be interested in providing this service, an idea that breaks with the logic of secularism in the provision of public education.
Both concerns point to the ineluctable call for a joint perspective associating basic income and universal public provision to democratize access and opportunities by fully de-commodifying wellbeing. Otherwise, under financialized capitalism, a guaranteed income will just serve as collateral propelling citizenry to take out loans and go indebted in order to meet their financial obligations.
Early July, that same Congress that approved the Emergency Workers’ Allowance Program voted for the full privatization of water supply and sanitation, maybe having in mind that enlarging access to cash to those most affected by the pandemic would also make it easier to expand further a business model grounded in denying basic human rights and ensuring huge profits for pension and mutual funds that today drive investments in infrastructure in developing and emerging countries. After the longest and most severe recession Brazil has faced over a century since 2015 and given the growth projections ahead (-9.1 percent for 2020, according to the IMF), fiscal resources will dry up while competing and clashing issues will fill up antagonisms, stirring tensions. All the care may not be enough in designing social policies if the goal is eventually to forge a truly egalitarian society in the country.
The major differential of a UBI is to de-commodify labor. It is thus equally crucial to de-commodify the social reproduction of labor, by ensuring that education, daycare, healthcare, training, and other basic needs will also be fully de-commodified. Otherwise, UBI will perform as a powerful pro-market mechanism, upholding income-related and highly segmented private provision, mostly through the financial sector, and fueling rather than overcoming discrimination and inequality.
