The Economic Commission for Latin America and the Caribbean proposes Universal Basic Income

The Economic Commission for Latin America and the Caribbean proposes Universal Basic Income

The Economic Commission for Latin America and the Caribbean, a regional organism of the United Nations Secretariat has declared itself in favour of a new regime of welfare and social protection that includes the gradual, progressive and sustained establishment of universal basic income in the region of Latin America and the Caribbean.

On May 12th, its executive secretary, Alicia Bárcena, presented the 3rd Special Report COVID-19: the social challenge in times of covid-19, which reads:

To address the socioeconomic impact of the crisis, ECLAC proposes that governments guarantee temporary cash transfers to meet basic needs and support household consumption, which will be crucial to achieving a sound, relatively rapid recovery (p. 14)

The Proposal however, is not limited to this emergency programme which would involve at least one cash transfer, equivalent to a poverty line, for 1/3 of the population, but rather:

From a long-term perspective, ECLAC reiterates that these transfers need to be ongoing, should reach beyond those living in poverty and cover broad strata of the population that are highly vulnerable to falling into poverty, such as the low-income non-poor and the lower-middle income strata. This would make it possible to move towards a universal basic income that could be implemented gradually over a period suited to each country’s situation. (p.15)

ECLAC has held the position now for 10 years that the current dominant development style needs to be replaced, as it has brought low economic growth, high social inequality and accelerated environmental destruction. It has been 10 years since ECLAC highlighted that this should be the hour of equality in Latin America and the Caribbean, and as such has been working on developing and deepening far reaching initiatives and proposals aimed towards building a new style of development centred around a core of equality and sustainability.

This is the perspective that corresponds to the proposals for progressive structural change, equality pacts and the initiative for a great environmental push. Through all these years ECLAC has insisted on and reiterated the need for social policies that are universal and with a focus on rights. In this decade there have been different mentions of the importance of guaranteeing income, of the possibilities of basic income as an emancipation mechanism and the possibility of implementing basic income for women as a tool for building their economic autonomy. Now, ECLAC is declaring the need for universal basic income and rates it, beyond the emergency and the short-term, as a strategic objective.

Facing the profound weaknesses in the welfare and social protection regimes that have been laid bare by the pandemic, and the unprecedented growth in the volume of cash transfers that, through different modes, have been implemented by the region’s governments, the interest in basic income has grown exponentially. Its appeal is not only philosophical, but also includes its power and utility for solving practical problems and achieving an immediate, opportune and far-reaching impact.

It has been said many times that the most intense debates are not solved by new arguments, but rather by great outcomes. This seems to be the case for the basic income proposal, a proposal whose debate, analysis and experimentation increased significantly after the great recession of 2008-2009 and which has placed itself, with a previously unknown force up until a few weeks ago, into the public and political spheres of various countries in Latin America and the Caribbean. It is an idea whose time, it seems, has arrived.

The question regarding what would have been the impact and dynamic of the pandemic if instead of having highly precarious and unprotected societies there had been a practical, operating basic income is ever more present. We would surely be talking about a different story in terms of poverty and inequality and uncertainty. Likewise, the physical distancing and home confinement measures involving people that, facing a sudden loss of income had to continue going out into the street to try and earn a survival income, would have been implemented more successfully and with less suffering.

Due to all this, ECLAC highlights the importance of having a universal basic income, within the broad framework of a welfare state and a strong social protection system. That is, basic income as an additional pillar for a new welfare regime, where most importantly the fragmentation, hierarchization and commodification of health services must be overcome, as the same document states.

Regarding the types of policies to be implemented, ECLAC says:

Before the pandemic, the social situation in the region had been deteriorating since 2014 in terms of poverty and extreme poverty, with a slowdown in the pace of inequality reduction.

    • In view of the major persistent gaps that the pandemic has widened, ECLAC reiterates that it is time to implement universal, redistributive and solidarity-based policies with a rights-based approach, to ensure that no one is left behind.
    • From a rights and welfare perspective, emergency responses rooted in social protection must be developed to avoid a serious deterioration in living conditions.
    • Social protection responses must link the short-term measures needed to address the most acute manifestations of the crisis to medium- and long-term measures aimed at guaranteeing the exercise of people’s rights, by strengthening the welfare State and providing universal social protection. (p. 18)

If the covid-19 pandemic is, as Ignacio Ramonet says, a comprehensive social fact, the least that can be done is to learn from it and to understand that social precariousness and the fragility of life cannot be part of the new normal, of the new post-pandemic reality. So much suffering for so many people cannot be and must not be, repeated or assumed to be natural.

This article was originally published in Spanish at Sin Permiso. www.sinpermiso.info

Regional Research Coordinator for the subregional headquarter of ECLAC in Mexico. The opinions stated here may not be those of the United Nations System.

Cash handouts in Japan: How the financial incentive offered to the whole population in Japan compares to Basic Income

For weeks now, the coronavirus pandemic has affected the livelihoods of people across the world. As the global economy is negatively impacted by the pandemic, governments all around the world have released incentive packages in a bid to counter the economic devastation the virus has brought. In this scenario, universal basic income has gained tremendous attention, as a tool to safeguard the wellbeing of the population in the long-term. Whether we like or not, new crises and epidemics could always emerge. At the same time, many of these government initiatives have been wrongly referred to as universal basic income.

On the 16th of April, Japanese Prime Minister Shinzo Abe announced a state of emergency for all Japan. This announcement included that 100,000-yen ($930) cash handouts would be given to all 120 million Japanese citizens.

Every person listed on Japan’s Basic Resident Register (as of April 27 2020) can receive 100,000 yen, regardless of nationality. In practice, this means that anyone registered as a resident and with a visa of more than three months is eligible for the cash handout. This means adults and children alike

However, the claim itself can only be made by the head of the household, who can also claim the benefit for the rest of the household. It is important to notice that around 90% of the heads of non-single households in Japan are male. After heavy criticism, the government has allowed for victims of domestic violence to apply to the cash handout directly.

The application can be online or by mail. In case of mail, an application form is sent to every household in the country. Any eligible participant is to fill out their bank account details, attach a copy of their ID, and send the form to the municipal office. The money is then transferred to the applicant’s account.

Upon receiving the form, the applicant has three months to return it filled in if they want to keep the right of receiving financial support.

The Universality of the Plan

Originally, only those whose income had fallen sharply due to the emergency policy were eligible to receive the cash handout. However, after much criticism, Prime Minister Abe changed the policy so it could reach every single citizen.

Given that the applicant must fill-up the form, this means that people may or may not apply for it, putting into question how universal the support actually is. Applicants can indeed mark in the application form that they wish to opt-out of the program. Furthermore, since it is up to the head of the household to do the application for the rest of the household, not every person can claim their rights in their own discretion.

Finance Minister Taro Aso has publicly said he hopes wealthy individuals will not claim their rights to receive it. Furthermore, the Liberal Democratic Party of Japan has taken the decision that its parliament members will not receive the money. Politicians of other political parties such as Natsuo Yamaguchi have also declared they will not accept the cash handout. Although saving money to the government, this move from the LDP has been highly criticized as a sign of privilege and lack of solidarity and universality.

Yuichiro Tamaki, leader of the opposition Democratic Party for the People, has declared to receive the money and donate it to the medical field. According to him, “If we create a mood where declining the handout is seen as a noble act, we end up making people in urgent need of help feel embarrassed to receive it.”

How this Policy Relates to UBI

The cash-handouts in Japan differ from UBI in the sense that this is a one-off payment and not a periodic payment. The payment comes from an emergency budget for the relief in this specific coronavirus crisis, and not for long-term social development.

Other than that, the incentive is a cash payment offered to all on an individual basis, regardless of work requirement and without means-test, which has its merits.

Still, there is no discussion of future payments. As it is a one-off payment for economic support punctually for the coronavirus outbreak, it does not qualify as a universal basic income.

In this respect, it is important to remember the definition of UBI according to BIEN: ‘A Basic Income is a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement.’

Reviewed by Toru Yamamori

A corona is the halo of light during a solar eclipse

A corona is the halo of light during a solar eclipse

Time for a new story

A corona is the halo of light around the solar eclipse. The coronavirus crisis can ensure a more balanced economy. Care and solidarity must support our economy and society.

Under a crystal-clear sky and the chirping of birds, our economy glides into a state of slow motion. Foremost, the virus is a drama and poses a great risk for society and its people. Next to that, it is also a strange experience. It is quiet, mostly dogs with their owners populate the streets. 

Only “vital functions” are fulfilled. Non-vital employees have to stay at home or work from home. They are not really necessary. Childcare is only available for people who work in healthcare, and other employees that we really cannot do without. The rest must arrange childcare themselves. Raising children is a vital function in society, and suddenly childcare is too. 

This is remarkable. Our view of the economy and income is rapidly changing. Our values change. The term “Working Netherlands” takes on a different meaning than before. Our health is number one, and better-paid employees sit at home these days. We have traded shopping for a quiet walk. Nature makes itself heard, people no longer dominate everything.

Crucial reflection

And that new reality leads, next to all the illness and disruption, to crucial reflection. Considering how we have organized our society and our economy. We reflect on the value of well-paid, low-paid, and unpaid labor for the economy and our society. We reflect on the value of (working) time. And we reflect on what everything is all about.

Ever since the coronavirus spread throughout the world, there is great appreciation for the people who work in healthcare. Everyone now sees that these vital functions are worth a lot, but that at the same time they are not the highest-paying jobs. 

It started with applause from balconies in Spain and Italy, followed by applause and flags in the Netherlands. A standing ovation. Professionals take care of the sick and are at risk themselves. This crucial interest is now visible and visibly appreciated.

In addition, there are care activities that are not paid. We also applaud all these unpaid people! Unpaid care activities, such as care for children, family, for the earth, the environment, social contacts, and culture, are vital as well. And this is more visible as well. In this time of crisis in the Netherlands, we are seeing more solidarity and more unpaid voluntary initiatives.

A different world

The current old economy is being hit hard, and we will soon have to deal with it when this is over. We are curious to hear what Prime Minister Rutte will say on behalf of the national government. Will it again be: “Buy the car you wanted for a long time”, trying to stimulate consumerism? Or does this crisis bring a different vision and a different world closer than ever?

Will there be a reflection on our incomplete society with our focus on rules and procedures? We need a vision of how we can organize society differently. A society where not money but people are completely central again. 

Once again: paralyzing the current economy gives us time to reflect on this and think about a different economy. An economy in which we realize that it mainly consists of services and care. An economy in which solidarity and security of existence are paramount.

Making unpaid work visible

The crisis is a disaster, but it also shows us where we come short. And it brings up essential questions. How can we take better care of each other? How can we take better care of our Earth? How can we also make unpaid intrinsically-motivated care work visible in our economic model?

We should think about care credits. Some examples: a pension for unpaid caregivers, a universal global price for oxygen, better reimbursements for volunteers. And yes, we should consider a universal basic income.

These proposals and ideas can be a lever for changing values ​​and appreciation for all the (unpaid) care work and solidarity that is now visible in this crisis. And these measures can be a safeguard to achieve a different society and a new economic model. Because there is no one who has never been taken care of, and everyone will ever take care of someone.

A corona is the halo of light around the solar eclipse. A fragile light shines behind the dark. The coronavirus crisis can provide a more balanced picture of the economy. It is not the banks and stock markets, but it is solidarity and care that support our economy and society.

It’s time for a new story.

 

Jan Atze Nicolai 

Political thinker and poet

Member of the Board of Vereniging Basisinkomen (BIEN member)a

UBI Europe webinars

UBI Europe webinars

UBI Europe is to hold webinars. They say this about them:

Europe and the world under the siege of a virus: Difficult days to cope with for the most of us. At the same time, we begin to realise – the world might never be again like before the epidemic. Will Basic Income become part of the post-Corona world order?

To explore this and related questions, but also to give you proper facts and analysis rather than second hand headlines, UBIE is starting a new experiment: From this week on, we are going to invite you every Sunday at 5pm CEST for a “Basic Income Tea” – a one-hour online talk with various guests from all over Europe on subjects related to the Corona crisis and UBI.

In the first edition, on Sunday, 26 April we are going to ask: “Has the EU shown solidarity in the Corona crisis?” With Stanislas Jourdan (Executive director, Positive Money Europe) and Francois Denuit (Policy Advisor, European Parliament) , moderated by Alessandra Bianchi (Vice-Chair, UBIE), we will take a thorough look at the EU institutions’ reactions and policy packages adopted or discussed. We will also be discussing alternatives on the table like eurobonds, helicopter money, and basic income.

Want to meet other basic income advocates, share your thoughts via live chat, and be able to put your questions to our guests? Then please register here until Saturday, 25 April, 6pm, so we can send you the connection details for the video conferencing tool (most likely Zoom)!

However, if you just want to listen and enjoy, you can also watch the live stream on the UBIE website and on our social media channels (FacebookTwitterInstagramYouTube) starting Sunday, 26 April, 5 pm CEST.

 

 

 

 

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