by Sarath Davala | Apr 30, 2019 | News
As students of life, some of us have lived through poverty, through the worried nights of insecurity, the feeling of being powerless and valueless. Some of us have seen the angst of unemployment, the feeling of being unwanted, the restless days of sitting at home while others go to work, and the lull of the nights that is not entirely peace.
Some of us are scholars committed to understanding poverty and economic insecurity. We try to find the underlying political and economic causes of inequity and ways of solving them. We see a vision for the future, and try to lay down steps to overcome poverty and build a more equitable society.
All of us whose vocabulary has been informed by the lived experience of poverty and unemployment, or those of us who may have an indirect knowledge or experience of it; all are invited. We may be students, artists, researchers, social workers, community organizers, development practitioners, and politicians. We can also be those who have no claim to any such knowledge or experience, and those who fervently dream of a better world.
For the 19th BIEN Congress, India Network for Basic Income plans to publish an anthology of different kinds of writing on themes surrounding Basic Income and what it hopes to address – unfreedom, new forms of slavery, poverty, economic insecurity, being debt-ridden, addiction, deprivation, depression – and the sense of shame that accompanies each of these states of mind. The list can be almost endless. The writings can also be of different kinds:
Poems
Short story / parable
Biography / Autobiography / memoir
Personal reflection
Interview / conversation
Cartoon
Painting
Graffiti
Please ensure that the writing does not exceed 1000 words.
INBI invites contributions to this anthology, as an open call until 15th of June 2019. These shall be sent to Akhilesh Arya at akhilesh.arya@gmail.com.
by Guest Contributor | Apr 16, 2019 | Opinion
Universal Basic Income (UBI) is once again in the news as a promising program in the upcoming general election in India after finding its place in India’s 2016-17 economic survey. Proponents say UBI is economically prudent and could make a significant dent on poverty in the country. UBI bypasses India’s weak system of existing welfare schemes which are riddled with misallocation, leakages, and exclusion of the poor. It also makes sense from the perspective of an individual, who is assumed to be economically rational and thus can spend in accordance to his priorities and choices.
Having said there is insufficient empirical evidence to demonstrate how UBI could accomplish social justice and poverty reduction, especially in a country like India which is still held down by a regressive social structure in the form of a caste system. The caste system leads to a lack of mobility, producing a semi-feudal system of land ownership. Land is held by a small fraction of the population with the rest being landless or having little property, especially in rural areas. The fact that most of the poor are also concentrated in India’s rural areas makes the case that UBI could be successful at alleviating poverty.
Moreover, the proposition that UBI will reduce poverty assumes that the market works competitively and allocates resources efficiently. However, markets do fail in providing an efficient and just outcome in the presence of informational asymmetry, externalities, and monopolies. This is especially true in the case of India where the market is disproportionately in the hands of a few big players who can influence it to their advantage. For instance, giving out cash as opposed to goods and services in kind may not help in remote places if the corresponding supply of essential goods are not there (this role is otherwise performed by the public distribution system in India which may be dismantled to make fiscal space for UBI). A monopoly supplier may hike the prices to neutralise the extra income. To the extent the purchasing power of cash transfers in the form of UBI is curtailed by market fluctuations, the efficacy of basic income to alleviate poverty could be limited.
UBI even in the presence of efficient market can capture only poverty in terms of economic deprivation, whereas factors such as poor health, lack of education, discrimination and lack of entitlements cannot be addressed by the market but are crucial from the perspective of eradicating poverty.
John Rawls in his seminal work propounding the concept of distributive justice is guided by the ‘difference principle,’ which stresses that goods and services should be arranged in a manner that serves to benefit the least advantaged and foster growth towards equality of opportunity. To the extent that everyone will receive the same amount of cash transfer irrespective of his or her requirement, the UBI fails to ensure distributional justice, in accordance with the ‘difference principle’. In this case, justice would require maximizing assistance to those who need it most, which at present our welfare schemes (despite its weaknesses) strives to achieve. UBI at best can only work in conjunction with the existing policies. In order to fully eradicate poverty, the welfare state should work towards increasing its capacity to deliver and regulate rather than leaving it to the market.
Rishi Kant
Currently pursuing Master’s in public administration (MPA), LKY school, National University of Singapore. Graduated in Economics from Delhi University and Post Graduated in Economics from Jawaharlal Nehru University. 5year experience of teaching in various colleges of Delhi University and working with the government of India under various capacities. He has worked as a researcher in the field of Labour economics and evaluated major labour market policies in India such as the Mahatma Gandhi National Employment Program. He has also part of capacity development programs organised by IMF in the areas of Macro-Economics, Fiscal and monetary policies, and Financial Programming and policies.
References
Ackerman. B, et al (2006), ‘Redesigning distribution: basic income and stakeholder grants as cornerstones of an egalitarian capitalism’, The Real Utopias Project, Vol. V. London.
Khera. R (2016) ‘A Phased Approach Will Make a Basic Income Affordable for India’, The Wire.
Michel. H (2008), ‘Global Basic Income and its Contribution to Human Development and Fair Terms of Global Economic Co-Operation: A Political-Economic Outlook’, A Paper for the Congress of the Basic Income Earth Network, University College, Dublin, Ireland.
Pettit. P (2007), ‘Basic Income and the Republican Legacy’, Basic income studies, International Journal of Basic Income Research Vol. 2.
Porter. E (2016), ‘A Universal Basic Income Is a Poor Tool to Fight Poverty’, New York Times.
Standing. G (2002), ‘Beyond the New Paternalism: Basic Security as Equality’, London.
Standing. G (2015), ‘India’s experiment in basic income grants’, Global Dialogues, Vol. 5.
Taylor. T (2014), ‘Economics and Morality’, Finance & development, a quarterly publication of the international monetary fund, Volume 51.
Todaro, Smith (2015), ‘Introducing Economic Development: A Global Perspective’ Economic Development, 12th edition, chapter 1, Pg 20.
Tobin. J, et al (1967), ‘Is a negative income tax practical’? The Yale Law Journal.
Van. P (1995), ‘Real Freedom for All’, Oxford, Oxford University Press.
https://www.ft.com/content/100137b4-0cdf-11e8-bacb-2958fde95e5e
https://www.weforum.org/agenda/2017/03/can-universal-basic-income-actually-work
https://www.ideasforindia.in/topics/poverty-inequality/the-tale-and-maths-of-universal-basic-income.html
https://www.livemint.com/Opinion/WwFH79xl9Ypyb8Qk7f4yiL/Is-universal-basic-income-a-feasible-idea-in-India.html
https://www.iep.utm.edu/sen-cap/
https://hdr.undp.org/sites/default/files/2018_mpi_jahan_alkire.pdf
https://tannerlectures.utah.edu/_documents/a-to-z/s/sandel00.pdf
https://www.weforum.org/agenda/2017/03/can-universal-basic-income-actually-work
************************
by Daniele Fabbri | Apr 9, 2019 | News
Picture credit: CC (Giuseppe Milo)
With an article on The Conversation, Fabian Shuppeter investigates how Universal Basic Income may be the key to make the green transition possible.
A letter demanding to take swift action to address the threat of climate change, with over 600 signatories, was proposed earlier this year (on the tenth of January) to the American Congress.
Afterwards, a resolution was proposed on February 7 by Alexandria Ocasio-Cortez (AOC), outlining the ambitious Green New Deal, which calls for the federal government to have a pivotal role in the green transition.
The Green New Deal (GND) sets out to reach a reduction in greenhouse gases emission from human sources of 40 to 60 percent from 2010 levels in 2030, and net zero emissions by 2050, in order to tackle climate change.
These ambitious targets would be met via expansionary economic policies (the opposite of austerity): the GND requires a great involvement of the federal government,, which would be required to pump large amounts of money into the economy in order to support the transition, even more so as one of the milestone of the proposals is the promise of employment for everybody. In order to do so while decarbonizing the economy, governments and central banks would need to use state expenditure, incurring in an increase in national debt.
To be able to grant full employment, the state will need to act as an employer of last resort, as many job will be lost in the green transition, both in the industries that operates directly in the extraction of fossil fuels and in those which are dependent on them, the article states.
While it is true that many jobs will be created in the new green industries, Shuppeter maintains that two main issues remain: whether workers will be able to retrain in order to enter the new jobs created, and whether those new jobs will last in time, rather than just peak in the immediate, remains to be seen.
Given that full employment in the short-medium term appears quite unrealistic, what the author suggests is, rather than state created jobs, the introduction of Universal Basic Income (UBI).
UBI would not only be a more efficient way to administer benefits (rather than the plethora of existing means-tested social welfare payments), but would also protect workers in a time of transition.
Shuppeter writes that the workers harmed by the green new deal may find more support in UBI than in a job guarantee, which would inevitably force somebody in jobs they don’t want, created for the sake of creating employment: on the other hand, UBI would allow people to reinstate themselves in the new green economy. Moreover, UBI would stimulate the economy and empower people to engage in a more sustainable lifestyle.
“To win popular support for the Green New Deal its benefits must be truly universal. What better way to guarantee a just, green transition and ensure no one is left behind than universal basic income?”
More Information at:
Shuppeter, Fabian, “Green New Deal: universal basic income could make green transition feasible“, The Conversation, March 21st 2019.
by Guest Contributor | Apr 9, 2019 | Opinion
Written by: Eduardo Matarazzo Suplicy and Mônica Dallari
This January, we discovered an extraordinary pioneer effort towards poverty eradication in poor rural villages in Kenya: the transfer of Universal Basic Income (UBI). Through the initiative of GiveDirectly, an institution created by four graduates of Harvard University and MIT, Silicon Valley institutions and other organizations contributed to the formation of a US$30 million fund to benefit about 20,000 Kenyans in the most important and thorough study about UBI in history. In the visits to rural villages in the Kisumu and Siaya areas, reports were unanimous in stating that with UBI contributed to a significant improvement in the quality of life of all the beneficiaries.
![](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken1.jpg?resize=674%2C450&ssl=1)
Lula da Silva on the far left; Eduardo Suplicy on the far right
Upon learning that GiveDirectly was carrying out this experiment in Kenya, we decided to write a letter to them, in which I (Eduardo) introduced myself as the author of the Brazilian Law 10.835 / 2004, which establishes the implementation, in stages, the UBI for all people in Brazil, including foreigners residing here for five years or more. As honorary co-chair of BIEN (Basic Income Earth Network), I said I would like to know about the experiment. This request was accepted by Caroline Teti, GiveDirectly’s external relations director in Nairobi.
![](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken3.jpg?resize=572%2C429&ssl=1)
Eduardo Suplicy visits Grameen Bank with Muhammad Yunus, in Dhaka Bangladesh. July 2007
How the UBI program works
![This image has an empty alt attribute; its file name is ken4-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken4.jpg?resize=338%2C450&ssl=1)
GiveDirectly´s office in Nairobi. January 2019
As soon as we arrived in Nairobi, we met with her and started a dialogue with the coordinator of a team of 34 people who work in the call center. The call center is responsible for the quarterly contacts with each one of the 21,000 adult beneficiaries of the UBI experiment. In 2016, GiveDirectly started the pilot to provide a UBI payment in Kisumu, Siaya and Bomet counties. More than 630,000 people in these counties live below the poverty line, defined by the Kenyan government as less than US$15 a month per household member, in rural areas, and $28 a month per household member in urban areas.
For the execution of the experiment, 295 villages (14,474 residences) were randomly selected, divided into four groups:
- Control Group: 100 villages that do not receive payments;
- Long-Term UBI: 44 villages in which adults (over 18 years old) receive sufficient income for basic needs, about US$0.75 per day, or $22 per month for 12 years;
- Short Term UBI: 80 villages where adults receive sufficient income for basic needs, about $0.75 per day or $22 per month for 2 years;
- Lump Sum UBI (or UBI Cash Payment): In 71 villages, families receive UBI in the fixed amount of US$1,000 divided into two payments of $500.
The transfers are made through M-Pesa, a mobile money service created in 2007 by Safaricom, a Vodafone telephone company in Kenya. The platform enables financial transactions that are safe, fast and cheap through a cell phone, such as deposits, transfers, and savings. The platform does not need a bank account.
![This image has an empty alt attribute; its file name is ken5-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken5.jpg?resize=281%2C374&ssl=1)
View of the National Park at Nairobi. January 2019
Small retailers in rural villages across the country were trained and became agents of M-Pesa services. Beneficiaries can withdraw money or shop at accredited establishments in all villages in Kenya. Those who did not have cell phones were able to purchase a low-cost GiveDirectly device. Today, 80 percent of the country’s adult population has a cell phone.
From the visits to the beneficiaries of the Kenyan experiment of UBI, we can say that the improvement in the well-being of the people is very significant. This was what we were able to witness in all the residences we visited and in the dialogue with beneficiaries of UBI. Mothers and fathers spoke of the concern to prioritize the education of children and adolescents, ensuring attendance and completion of school. This became possible due to UBI, which even helped in the hiring of auxiliary teachers. In general, our respondents stated that they were better fed and had access to a greater variety of foods.
The benefit of the UBI resulted in people being able to work more intensely and productively, especially because they were able to acquire better working equipment, such as tools, motorcycles to transport people or make deliveries, livestock (goat and cattle) to supply meat and milk, fishing equipment to get more fish in the lake to sell them, land purchasing for vegetable and fruit trees planting. These activities directly increased their income. Some families have invested in systems to better capture rainwater or solar energy collectors in order to have electricity. Households purchased better furniture, such as mattresses, sofas, tables, chairs and small electrical appliances, such as a stereo or radio. Straw roofs have been replaced with steel that contains gutters.
![This image has an empty alt attribute; its file name is ken6-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken6.jpg?resize=223%2C297&ssl=1)
Sunset at Lake Victoria. January 2019
It is important to note that we do not perceive any use of alcohol or other drugs. A study by Innovation Poverty Action1, IPA, corroborates our observation since there was no increase in spending on tobacco, alcohol or gambling. The impression we have goes in the opposite direction; behaviors based on solidarity and cooperation between individuals have been reinforced.
Perhaps most remarkable was the redefinition of gender roles. Because women also receive the benefit, we hear from them how they feel freer in deciding where to spend their money, and we record reports of how couples have come to the table on UBI payday to talk about the household budget. Households frequently organize groups to pool money for a larger purchase or to assume a higher value expenditure. In Kenya, polygamy is allowed. We sometimes see that the UBI contributed to greater solidarity between the wives of one husband, and even between his widows and children.
The agility and speed provided by the digital income transfer system were also fundamental. Each beneficiary is notified by SMS when the transfer is made, being able to make purchases in the M-Pesa accredited establishments, or if she prefers, to exchange the credit for money.
![This image has an empty alt attribute; its file name is ken7-600x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken7.jpg?resize=600%2C450&ssl=1)
City of Kisumu. January 2019
Another important development was numerous reports demonstrating a noticeable decrease in violence against women and other criminal acts, such as theft in the villages. The direct income transfer done in this way has avoided incorrect procedures and corruption.
![This image has an empty alt attribute; its file name is ken8-600x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken8.jpg?resize=600%2C450&ssl=1)
M-Pesa Agency. January 2019
For those who want to know more about this Universal Basic Income (UBI) experiment in Kenya and other countries, please access the website. The website provides testimonials from beneficiaries of the UBI collected by the people who work in the call center, available to everyone. You will have confirmed the positive impression of this remarkable pioneering experiment on Universal Basic Income. In addition, you will have the opportunity for this remarkable and important experiment. If you would like more information, write to info@givedirectly.org.
![This image has an empty alt attribute; its file name is ken9-450x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken9.jpg?resize=450%2C450&ssl=1)
Call Center at the GiveDirectly´s Office. January 2019
Visiting Barack Obama’s Grandmother Sarah Obama
![This image has an empty alt attribute; its file name is ken15-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken15.jpg?resize=293%2C390&ssl=1)
Eduardo Suplicy visits Mama Sarah Obama, in Kogelo. January 2019
On our last day in Kenya, we visited Mama Sarah Obama, Barack Obama’s grandmother, at her farm in Kogelo, another rural village. At first, we would have only three minutes to be with her because of her age, 98 years, but we talked with Mama Sarah and Obama’s aunt, Marsat Oniango, for almost 30 minutes. Enthusiastic about the conversation, they assured me they would send President Obama a letter that I had with me, the same one I had handed to him on October 5, 2017, during a lecture in Sao Paulo.
I spoke of my enthusiasm when I watched on TV the homage Obama paid to South African President Nelson Mandela on his 100th birthday in the packed stadium of Johannesburg. In that speech, the former US president made an important statement, expressing concern about “artificial intelligence that is accelerating. Now we will have automobiles without drivers, more and more automated services, which will mean the need to provide work for all. We will have to be more imaginative because the impact of change will require us to rethink our political and social arrangements to protect the economic security and dignity that comes with work. It’s not just money that a job provides. It provides dignity, structure, a sense of place and purpose. And we will have to consider new ways of thinking about these problems, such as universal income, review of working hours, how to train our young people in this new scenario, how to make each person an entrepreneur of some level.”
I concluded by expressing my certainty that this positive experiment in the Universal Basic Income in the country of Obama’s father and grandfather, whose graves we visited on the grounds of Mama Sarah’s house, will resonate very favorably throughout the world.
Steps after the trip
Eduardo Matarazzo Suplicy
![This image has an empty alt attribute; its file name is ken10-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken10.jpg?resize=242%2C322&ssl=1)
Steel Roof to capture rainwater
The fact of having experienced a real immersion in the subject of Basic Income in such a short space of time and in two very different dimensions, that is, the theoretical academic approach of the conference in Cambridge and the opportunity to make field observations during our visits to Kenya, provoked a series of reflections, which made me desire to act.
The trip was made throughout the month of January 2019, coinciding with the inauguration and first month of the government of Jair Bolsonaro. The campaign of the victorious candidate in the 2018 election, his statements after confirmation of his election and the movements of the transition process between the Temer government and the new occupants of the Planalto indicate that the new government has an economic agenda that is based on intentions to resume growth and development of the country, generate jobs and guarantee some stability in public accounts. Despite the fact that I belong to the party that opposed the Bolsonaro candidacy, I believe that certain principles of equity, income distribution, and assistance to the most excluded are values of democracy that are not exclusive to this or that political aspect. So I decided that it was time to warn President Jair Bolsonaro, Minister of Economy Paulo Guedes and the Special Secretary of the Federal Revenue of Brazil Marcos Cintra Cavalcante de Albuquerque about the pertinence to take the steps towards the Citizenship Basic Income.
![This image has an empty alt attribute; its file name is ken2-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken2.jpg?resize=280%2C373&ssl=1)
Philippe Van Parijs and Eduardo Suplicy at the University of Cambridge. January 14th, 2019
Soon after coming back to Brazil, I wrote a letter to these three government officials who had just taken their first steps and offered two copies of works that I believe are fundamental to understanding the concept of basic income: My book “Citizen’s Income: The Exit is Through the Door,” and “Basic Income – A Radical Proposal for a Free Society and a Sane Economy” by Philippe Van Parijs and Yannick Vanderborght, which contains a foreword by myself.
In my argument, I stress the fact that Law 10.835 / 2004, which establishes the Citizen Basic Income, Universal and Unconditional, was approved by all the parties in both houses of the National Congress, including by the then deputy Jair Bolsonaro. I reminded the President “in case the President of the Republic wishes to comply with Article 3 of the Constitution on the fundamental objectives of the Republic of Brazil, in a manner compatible with what is expressed in its program of government, to guarantee a minimum income for all Brazilian families, as liberal thinkers like Milton Friedman argue, the most effective way to do so will be through the implementation of the Citizenship Basic Income, a concept that Friedman considered another way to apply the Negative Income Tax.”
![This image has an empty alt attribute; its file name is ken11-338x450.jpg](https://i0.wp.com/basicincome.org/wp-content/uploads/2019/04/ken11.jpg?resize=297%2C395&ssl=1)
Beneficiary receives credit by SMS. January 2019
In the letter, I also summarized some up-to-date information on the subject, such as the fact that today “more than 40 countries are debating, conducting experiments and considering the implementation of Unconditional Basic Income.” I briefly reported on the visit I had just made: “The results so far are highly promising, as I found out in person. Brazil would have all the conditions to carry out local experiments, as indeed has been the desire of several municipalities like Santo Antônio do Pinhal, Apiaí and Maricá. In the City Council of São Paulo, a Law Project of Mayor Fernando Haddad is in process, already approved in the Commissions of Constitution and Justice and Public Administration, to establish, in stages, UBI in cooperation with the state and federal governments.” Finally, I suggested that a Working Group, possibly coordinated by IPEA, to study the steps towards the Citizenship Basic Income. I stated that I had already spoken with both the Perseu Abramo Foundation of the Workers Party and the Fernando Henrique Cardoso Foundation, linked to the PSDB, who have already been willing to discuss basic income with the newly elected government.
The letter, as well as the volumes, were delivered to Marcos Cintra Cavalcante de Albuquerque, current Special Secretary of the Federal Revenue of Brazil, with whom I had a hearing on February 1, 2019. At the same time, I delivered a letter to the then president and future president of IPEA, Ernesto Lozardo, and Carlos Von Doellinger, detailing how this Working Group could be constituted and reporting my dialogue with former President Fernando Henrique Cardoso during the electoral process. “Given that a number of Presidential candidates were in agreement with this objective, we could very possibly meet the various economic teams of the various candidates to work on this subject.” Sérgio Fausto, the working coordinator of the FHC Foundation, suggested that this meeting should be held after the elections in the first half of 2019.
On the other hand, Márcio Pochmann, President of the Perseu Abramo Foundation, accepted the proposal to create a Working Group for this purpose, and two meetings of this group have already been held. I believe it will be common sense for IPEA to coordinate the efforts of these various institutions linked to the parties whose candidates have made proposals to do this.
It is up to the Government to take the suggested steps.