by Andre Coelho | Sep 2, 2018 | News
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.
More information at:
BIEN Conference 2018 website
André Coelho, “Finland / International: Nordic Day at the BIEN Conference 2018“, Basic Income News, August 30th 2018
by Andre Coelho | Aug 30, 2018 | News
Gerdur Palmadottir (BIEN Iceland)
On the 23rd of August 2018, on the eve of the Basic Income Earth Network (BIEN) Conference in Tampere, Finland, yet another Nordic Day was completed, with the participation of speakers from all the European Nordic countries (Sweden, Denmark, Iceland, Norway and Finland).
After introductions and acknowledgements by Petti Koistinen, Chair of the Local Organizing Committee (of the Conference), a first module about basic income in Finland was opened. Finnish experts on basic income Pekka Elonheimo (who is also a Lutheran priest) and Jan Otto Anderson, both members of the BIEN affiliate in Finland, explain to the audience how the welfare system in Finland has been decaying in the last 25 to 30 years. That essentially meant loss of benefits, more state control in administrating those benefits, and increased complexity in managing the system. Pekka further introduced his thoughts on the relationship between the Lutheran thought and universal basic income, which for him are fully compatible. That same day he would be furthering that relationship in Tampere’s cathedral, on a dedicated Mass to subject, at 7 pm. Andersen, on his turn, informed the audience that basic income has been a discussion point in Finland since the 1980s, but that only relatively peripherical parties like the Greens and the Left Alliance have overtly endorsed basic income and presented specific mechanisms to introduce it in Finland. He also said that the more dominant political party Social Democrats, through its Youth branch, recently released a basic income proposal of its own, although connecting it with labour participation conditions.
From Denmark, Martin Michaelsen, head of the Denmark’s BIEN affiliate, agrees with his counterparts in Finland in that the Nordic welfare state is decaying, obviously including Denmark in such description. As for basic income, he admits the idea has not yet taken root in Denmark, where most relevant institutions of government, social and corporate society are not really attracted to the concept, not only out of ignorance, but also due to the strong hold of the welfare state and a deep-rooted work ethic (objecting the dispense of money with no strings attached). Even still, according to Michaelsen, implementing a basic income in Denmark would be relatively easy, precisely because the welfare state concept and apparatus are so well developed in the country.
Iceland has also sent a thinker and a leader to speak about the Icelandic situation about and around basic income. With close connections to the Iceland Pirate Party, which push for just redistribution of dividends from Iceland’s natural resources (according to their political platform), Gerdur Palmadottir delivered on this event a message on prosperity and passion. According to her, humans get a “kick” out of doing things, not necessarily the results from these (ex.: sales, profits, etc.), and also that people are using prosperity “in a suicidal way”. Emphasizing that democracy has been highjacked, in recent decades, by money power, Gerdur underlines that only politicians who understand societal evolution as stemming from honesty and empathy will eventually bring about a real democracy. Following this line of though, she thinks basic income should not be seen as a cost, but rather as an investment for the flourishing of new ideas and businesses.
Øyvind Steensen (BIEN Norway)
Øyvind Steensen, from BIEN Norway, also agrees with his Icelandic counterpart. According to him, prevention is always better than fixing the consequences, and so investing in people pays off. However, since power corrupts human beings – as proven by science and by hundreds of years of political experience – it is a good idea to redistribute power better than today, avoiding concentrating it into very few hands. So, giving a basic income to all people equates to trusting them enough and so allowing them to thrive in life, while distrusting them enough not to concentrate too much power in their hands.
Finishing the round of presentations from the Nordic countries, Lena Stark, representing the Swedish basic income party, warns that Swedish politics is devoid of visions at this moment in time. According to her, people have lost trust in each other, since there is no place for trust when most of them are just trying to survive. She also confirms, in line with her predecessors in the session, that the Swedish welfare state is falling apart, and that people are being reduced to numbers. This only adds to the general distrust and so, to break the “vicious cycle of distrust”, a generous basic income should be implemented.
Rutger Bregman. Picture credit to: Forbes.
Finally, and to close the day dedicated to basic income in the European Nordic countries context, Rutger Bregman talked about political frameworks, specifically relating to the basic income concept and how it has been developing in recent years. His talk came as an event linked to the translation into Finish of his now famous book “Utopia for realists”. According to him, mainstream news does not bring a factual perception about human nature, being usually far too negative. He thinks most people are agreeable and peaceful beings, mainly moved by stories appealing to emotions, rather than hard scientific facts. As an experienced speaker, he also explains that people listen, or are more open to certain types of language, and so the latter should be adapted to each audience, for maximum effect. Bregman added still that, in these times of unprecedent change, people tend to overestimate transformation in the short term (2/3 years) while underestimating what might happen in the long term (20/30 years). That is why he recommends that those concerned with such ideas as basic income or promoting them actively, be receptive to even the smallest of steps in that direction, instead of only be satisfied with large developments in society.
More information at:
BIEN Conference 2018 website
by Harry Curzon | Jun 30, 2018 | News
Olli Kangas. Picture credit: What.Happens.Now?
Olli Kangas, one of the masterminds behind Finland’s Universal basic income (UBI) research experiment, has spoken in detail about the process of implementing the UBI experiment and the challenges that have come with it. Finland’s UBI trial, presents the first of its kind in Europe, however different to other examples of UBI, in that it only gives handout to the unemployed. The research study organized and supervised by Kangas involves around 2,000 unemployed participants, with a budget of approximately 20 million euros, where each participant of the study getting around 560 euros a month for two years.
“Although the contribution a person gets is low, it is permanent and secure,” said Olli Kangas, speaking at the 2018 Nordic work life conference. Kangas overarching goal within the project is to uncover what happens when the people being studied no longer must waste time submitting for economic assistance from the state. Would this newfound time be spent looking for jobs or on other activities?
Politically, Kangas has faced multiple problems in trying to get the experiment up and running, which began in 2016. For instance, some politicians in Finland from the Finns party have argued that the UBI will only succeed in turning Finland into a hotspot for welfare scammers and refugees. This has only added further bureaucratic and political resistance to the project.
Opposition to the UBI project has seemingly transcended ideological lines, in terms of Left and Right typical political wings. The most adamant critics of the project argue that UBI simply acts as a tool to give out free state handouts, which acts to kill citizens desires to get jobs and contribute to working society. Kangas replies that the purpose of the study is to shed some light over these questions posed by sceptical politicians and to reveal how people act when they receive unconditional guaranteed payments.
Olli Kangas. Picture credit to: Iltalehti.
The initial planned study was expected to be large in scope and funding, which as stated by Kangas “made us feel like ‘masters of the universe’, planning an experiment with 100,000 participants. But we soon came back down to Earth, since the bureaucrats turned out to be stronger than the politicians”.
A major problem that the political resistance has brought with it is the difficulties in securing funding for the experiment. As remarked by Kangas over the Nordic Work Life Conference 2018, “it has been extremely difficult to secure funding for this. Politicians were willing to provide 20 million euro for the experiment, but just 700,000 euro to evaluate it”. However, the experiment has also received support from each political side too, with some politicians from the Right viewing UBI as a potential method to strip back the welfare system and arguments from the Left which see UBI more as an expansion of the welfare state.
An additional obstacle with the setting up of Kangas research study was the Finish Constitution. It states that there must be no unequal mistreatment of citizens, which impacted the plans to conduct an obligatory study where participants received payments regardless of whether they needed or wanted them. Hence Kangas had to scrap any experiment that implied payments to anyone, regardless of employment status.
Even given the challenges for setting up this experiment, it has been running for almost two years, and is scheduled to finish at the end of 2018, with its findings expected to be published in late 2020. Finish politicians and social researchers alike will have to wait as to whether their differing claims about the UBI experiment come to fruition. Kangas suspects that with the scepticism rising around the expected results of the project, this will be finished a year earlier than first set out and that if any UBI policy is to be implemented in Finland “it would be through the back door – by merging and simplifying some types of benefit”. Due to the great deal of resistance Kangas has faced when trying to implement this experiment on basic income, he is not entirely optimistic about the prospects of implementing UBI in Finland and feels it’s unlikely to happen in the future. However, Kangas admits that “One experiment here or there couldn’t say if basic income is good or not”, which leaves, in a way, the door open to new initiatives regarding basic income from Kela, the Finish Social Security.
More information at:
“Finland’s basic income organisers correct inaccurate media reports of trial’s premature death”. Yle Uutiset, April 25th 2018
Björn Lindahl, “The research project against all odds: Olli Kangas on Finland’s universal basic income”. Nordic Labour Journal, June 22nd 2018
Olli Kangas on YouTube, 2018
Heikki Hiilamo and Olli Kangas, “Universal Basic Income: Does the Carrot Work Better than the Stick?”. Meeting of the Minds, January 27th 2017
Olli Kangas, Sharon Bessell and Martyn Pearce, “Back to basics – Finland’s Universal Basic Income – Policy Forum” (Podcast). Asia & the Pacific Policy Society – Policy Forum, June 1st 2018
by Andre Coelho | Apr 20, 2018 | News
Picture credit: Leena Kela (“Walk this way”)
The Finnish basic income (BI) experiment proceeds as planned. According to Kela, the Finnish social security agency, results will only start being analysed at the beginning of 2019, and their publication at the end of that year, or early 2020.
As already known, the purpose of the experiment is to evaluate participants behaviour in terms of employment, particularly employment rates. An intention exists, in spite of that, to evaluate “the wellbeing of the participants and their experiences when communicating and conducting business with the authorities”. To this end, questionnaires and interviews are being contemplated, but only when the experiment is over. Here, Kela officials are more cautious, stating that “timing the data collection requires detailed planning and an evaluation of the factors to be measured as well as an assessment of the potential impact of the various stages of the experiment, such as its conclusion, on the measurements”.
Finland has no plans to further the experiment after 2018, although is already experimenting with participatory social security, beginning this year. In fact, according to Miska Simanainen, a Kela researcher, “right now, the government is making changes that are taking the system further away from a basic income”, referring to an ‘activation model’ which the government is pushing through. That model is designed to partially cut benefits to people receiving assistance from Kela, if they don’t succeed in working (in a formal job) for at least 18 hours in three months.
It seems that these changes are contrary to what the initial proposition was, within Kela’s framework, which involved the expansion of the experiment (in early 2018) to include also workers, allowing for capturing information on life options, such as entering training or education. That, according to Olli Kangas, Kela’s director of Community Relations, would mean “have been given additional time and more money to achieve reliable results”.
On a comparative basis with other basic income like experiments around the world, for instance in Ontario and in Barcelona, the goal of these experiments stands out as a fundamental difference: while in Canada and Spain the (basic income) trials are aimed at testing whether people’s life conditions are improved, for instance in health, education and economic security, in Finland the goal is only to check whether people get into formal employment or not.
More information at:
“The Basic Income Experiment will continue for another year – Analysis of the effects will begin in 2019”, Kela, 25th January 2018
“Basic Income experiment at halfway point”, Kela, 18th December 2017
Kate McFarland, “Finland: first results from pilot study? Not exactly”, Basic Income News, 10th May 2017
Karin Olli-Nilsson, “Finland is killing its world-famous basic income experiment”, Business Insider – Nordic, 20th April 2018
by Andre Coelho | Feb 12, 2018 | News, Research
Ville-Veikko Pulkka
Although an experiment on basic income is being performed in Finland at the moment (being expected to end by January 2019), this does not say much about what Finns think about it, or about basic income in general. According to recent research developed by Ville-Veikko Pulkka, a doctoral researcher at the University of Helsinki, not only does survey methodology deeply affect people’s responses, but current beliefs and views of society by Finnish citizens are also such that “there is no need for a paradigm shift”.
Ville-Veikko and his colleague Professor Heikki Hiilamo ran another survey in late 2017, arguing that other surveys on basic income in Finland such as Center party’s think tank e2 in 2015, Finnish Social Insurance Institution (Kela) in 2015, and Finnish Business and Policy Forum EVA in 2017 skewed results due to different ways of defining and framing basic income, with support ranging from 39 up to 79%. These researchers view their survey as “a more realistic view on basic income’s support in Finland”, having it based on the Basic Income Earth Network (BIEN) definition. They also explicitly referred the basic income net level of 560 €/month, which is around as much as many basic social benefits in Finland.
Ville-Veikko and Professor Hiilamo have found that the partial basic income of 560 €/month currently being tested in Finland is actually the most supported one among several basic income options (partial(1) with more or less than 560 €/month, full(1) with 1000 or 1500 €/month), with 51% of respondents saying it is a “good idea” (20% being undecided and 21% firmly considering it a bad idea). Significantly, of the surveyed income schemes, the most supported one was “participation income” (78% of supporters) which is not a basic income by definition.
This survey also showed that the younger the respondents (around 1000 in total), the more support the basic income proposal (the one cited above) receives – 72% under 24 years of age, down to 42% for people over 65. Occupation also seems to have a strong influence, with students showing 69% of support for basic income and entrepreneurs only 38%. For relatively obvious reasons, the unemployed and part-time employed were also more in support of the idea (68 and 61% respectively).
The new survey by Ville-Veikko and Professor Hiilamo comes at a time when it becomes clear that the Finnish government’s path is not to break from “the activation policies implemented since the 1990s”. This has been shown through the recent implementation of a tighter work activation model, aimed at the unemployed, which brings more conditionality and sanctions into the system. This is, apparently, contrary to the basic income spirit of unconditionality and, on top of that, the government is already considering tightening up unemployment benefits even further.
From the referred survey and recent Finnish government moves toward activation policies, it seems clear that running an experiment on basic income does not equate to leading the way towards the implementation of this policy. According to Ville-Veikko, basic income in Finland is likely to receive more support if only unemployment and work precarity rises significantly in the near future, which is uncertain even given the latest studies on the subject. It also becomes clear that the public remains polarized regarding social policies for the future: on the one hand there is moderate support for basic income, and on the other hand there is clear support for activation measures such as the “participation income”.
Notes:
1 – here, “partial” refers to receiving the stipend and maintaining eligibility for housing allowance and earnings-related benefits, and “full” refers to losing eligibility to those same benefits.
More information at:
Kate McFarland, “FINLAND: First Results from Pilot Study? Not Exactly”, Basic Income News, May 10th 2017
“New model to activate unemployed comes into effect amid rising criticism”, YLE, 26th December 2017
“Finnish government plan for jobless: Apply for work weekly – or lose benefits”, YLE, 10th January 2018
Micah Kaats, “International: McKinsey report identifies basic income as a potential response to automation”, Basic Income News, 16th January 2018
