by Tyler Prochazka | Aug 3, 2016 | Opinion
As the US Presidential race heats up, most of the candidates have already made their opinions known regarding Universal Basic Income. Regardless, it is imperative that the United States fund new basic income pilot programs to test how a basic income would affect the current economy.
The United States experimented with a type of basic income in the 1960s and 70s, but it is time to collect new data. This is the first step toward implementing a full UBI in the United States.
Recent pilot programs throughout the world, such as in India, have given the basic income movement ammunition to push its message, showing improved educational, health and entrepreneurial outcomes. A pilot program in the United States would show policymakers that a basic income is far superior to our outdated bureaucratic safety net.
Sign this petition to ask all of the US presidential candidates to take a pledge to fund basic income pilot programs throughout the country.
by Michael Lytton | Aug 2, 2016 | Opinion
An article on basic income appeared in The Hindu newspaper recently and is potentially significant because it was written by a Member of Parliament in the ruling BJP party. Does it reflect possible government policy? No one, including Varun Gandhi, is telling. Moreover, what he means by the “need to talk about basic income” is anyone’s guess.
The article is a bit of a mish-mash of history in North America, but also includes reference to the cash transfer pilots in India. Gandhi makes the usual mention of the 1970s Canadian experiment in Manitoba with a negative income tax, but I think interested readers should examine the more recent work of Evelyn L. Forget, the author of the oft-cited study “The Town with No Poverty: The Health Effects of a Canadian Guaranteed Annual Income Field Experiment.” (The 2008 draft version of this article has an extended discussion of the history of the idea in North America. However, the draft isn’t available on ResearchGate.)
At the University of Manitoba, Dr. Forget has a project that asks the question, “Is MINCOME useful in the development of a Basic Income pilot in Ontario and elsewhere?” She points out that the sociopolitical environment, research methods and policy context are all different now than they were in the 1970s and demanding a critical examination of the relevance of the old experiment.
From her ResearchGate site you can download an April 2016 presentation prepared for a symposium on UBI pilot design for the Ontario government. You might also access the following valuable documents: “Cash Transfers, Basic Income and Community Building,” and “The Experiment that Could End Welfare.”
Mr. Gandhi’s piece extols the virtues of a basic income but overstates his case in a number of areas—village sanitation, access to drinking water, growth of rural employment and the national economy, and the pursuit of happiness. He even makes the startling declaration that with respect to automation and the threat to work “the basic income stands out as a panacea”. With such statements you might wonder if he’s being serious, or aware that he could inadvertently be discrediting the idea with extravagant claims.
India presents complex development challenges and it’s not clear that a basic income is the best or only approach. For example, Joseph Stiglitz, who generally supports the idea of a basic income, argues that targeting the needy is a necessary trade-off when public budgets are tight. And, I wonder, when aren’t they tight?
India is home to more than one-third of the world’s stunted children. If current trends continue, by 2030 India will have the world’s highest global burden of under-five year old deaths (17 percent). It has more poor people in absolute numbers in eight states than the 26 poorest sub Saharan countries combined. The main reason for extreme poverty in rural areas lies in the still largely agrarian economy and its very low productivity due to small landholdings and underemployed farming labor. Droughts have also taken their toll. People resort to informal agricultural work because there is no alternative, or landowners need to supplement their incomes and join the landless in seeking wage labor. It is estimated that 5.5 percent of a country’s GDP will be required to provide education for all by 2030, yet in 2012, India invested 3.9 percent. Corruption is endemic.
With such a constellation of issues, interventions can quickly get complicated, producing tensions between targeted transfer approaches and universal approaches. Nutrition is one example. Pakistan is modifying its unconditional cash transfer program (the Benazir Income Support Program) so that it can better respond to—read target— the nutritional needs of women and children.
India currently addresses the underlying determinants of nutrition—food security, rural livelihoods, and sanitation—with a smorgasbord of programs that include the Public Distribution System, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and the Swachh Bharat Mission. These centrally sponsored programs are then delivered by state governments, where there are risks of corruption or of states simply not prioritizing nutrition.
Others argue that without targeting for health, households will not get around to malnutrition or education. At the same time, studies confirm that health deficiencies lead to cognitive deficits and experts recommend that health and cognition be addressed in tandem to potentially reinforce each other.
But out-of-pocket health expenditures, especially for non-communicable diseases (NCDs) can impoverish Indian households. A recent systematic review of the global impact of NCDs on household income (Jaspers et al., 2015) found that cardiovascular disease (CVD) patients in India spent 30 percent of their annual family income on direct CVD health care.
Finally, providing equal amounts of finance on a per pupil basis is not necessarily a formula for equitable education funding. For children who enter an education system with disadvantages associated with poverty, gender, disability or ethnicity, more resources may be needed to achieve opportunities equivalent to those enjoyed by more privileged children.
As they say in India about so many things, what to do?
More information at:
Jaspers, Loes, Veronica Colpani, Layal Chaker, Sven J. van der Lee, Taulant Muka, David Imo, Shanthi Mendis, et al. 2015. “The Global Impact of Non-Communicable Diseases on Households and Impoverishment: A Systematic Review.” European Journal of Epidemiology 30 (3): 163–88
Feroze Varun Gandhi, “Why we need to talk about a basic income”. The Hindu, June 30th 2016
by Kate McFarland | Jul 31, 2016 | News, Testimonies
Nina Šoštarič obtained her Master’s Degree in Philosophy from University of Ljubljana, Slovenia, with a thesis titled “Basic Income as a Step towards Environmental Justice”. She is now a PhD student at University College Dublin in Ireland, where her research lies in the intersection of equality issues, social justice, and degrowth.
Nina has published two articles — “Between Socialism and Capitalism: Universal Basic Income” (2012) and “UBI in the Light of Global Environmental Crisis” (2011) — and edited the book Where are we headed? Thoughts on Ending the Crisis (2013) (all in the Slovenian language).
In a recent Basic Income Interview, Nina explained her interest in the idea:
I first heard about basic income years ago in college when my professor Igor Pribac, later my supervisor, talked about basic income at a module called Social Philosophy. Immediately I thought it was an amazing concept.
I support basic income because it is truly an inspirational idea. Every individual and the society as a whole could benefit immensely from it, if implemented properly. Basic income would provide a safety net for everyone in this precarious era. I think it has a big transformational potential.
Nina recommends the website Sekcija UTD for more information about the basic income movement in Slovenia.
Photo used by permission of Nina Šoštarič.
Basic Income Interviews is a special recurring segment of Basic Income News, introduced in July 2016 by Jason Murphy and Kate McFarland. Through a series of short interviews, we aspire to display the diversity of support that basic income receives throughout the world.
Have your own thoughts to contribute? Want to see yourself in a future Basic Income Interview? Visit our interview form.
by Florie Barnhoorn | Jul 30, 2016 | News
Highlights from the first half of 2016
The early days of 2016 brought a pleasant surprise for the Vereniging Basisinkomen (VBi; Association for a Basic Income), the Dutch branch of BIEN, which celebrated its 25 year anniversary in January. The political leader of the small Cultural Liberal Party, Norbert Klein, initiated a memorandum for the Members of The Tweede Kamer (Second Chamber) of Parliament. “The labour market is changed fundamentally. The introduction of new, innovative concepts like a basic income are urgently needed to prevent large scale social inequality, social unrest and to provide income protection,” he argued in his memo called Zeker Flexibel (Security and Flexibility). This was the first time since the 2000s that the highest political levels were challenged to discuss basic income.
However, the Minister for Social Affairs and Employment, Lodewijk Asscher (of the Partij van de Arbeid or Labour Party) said that although he recognizes the importance of a social and political debate on the future shape of social systems, I’m sure having some great lobbying tips would help in these efforts. He prefers to continue with the existing policy, because he cannot guarantee that areas such as healthcare and social participation would be secured after the introduction of a basic income.
According to Guy Standing at the opening of the 16th World Congress of BIEN, held in Seoul 7-9 July 2016, the best way to attract the attention of politicians is to highlight the growth of the precariat and the growth of related social unrest. The unconditional basic income (UBI) is the most practical, feasible and positively inspiring response to those problems for years to come.
A recent poll by Dalia Research found that 68% of people across all 28 EU member states said they would definitely or probably vote for a universal basic income proposal.
In recent years, the VBi too witnessed an increasing interest in the idea of a basic income, not only among the general public but also in the media. The association increased from a handful of older members in 1991 to a robust movement with more than 500 subscribers both young and elderly. This growing awareness has compelled the VBi to think about new strategies to spread the message: the implementation of an UBI in The Netherlands.
One of these strategies is the establishment of so-called ‘Basisteams’ (Basic teams), local groups who have the important task to inform people and to raise enthusiasm among the population for the advantages of a basic income. Full knowledge of the concept of a UBI is a prerequisite that must lead to political decision-making and acceptance.
Nowadays there are about ten active groups and eight more groups in the pipeline. The groups differ considerably in size and scope. Some are large and put their focus on the organisation of meetings and debates; others are smaller, more regionally oriented. Mostly they start with making a page on Facebook. They come together in the local pub or community centre, hand out pamphlets and deliberate about how to change old systems into something entirely new. The vice-president of the VBi coordinates the ‘Basic teams’.
A crucial achievement of the local groups is that they have convinced municipalities to start experiments with a basic income in their communities.
Utrecht Sunset CC Tambako The Jaguar (flickr)
The pilot in Utrecht among welfare beneficiaries, conceived mainly with the intention to get rid of the sanctions and the obligation to apply for jobs under the current welfare scheme, is set for January 2017. Another four experiments — in Wageningen, Tilburg, Groningen and Nijmegen — will follow as soon as the Secretary of State for Social Affairs and Employment, Jetta Klijnsma (Labour Party), has finalized the administrative decree for allowing experiments in the context of the welfare system.
More experiments will follow as long as basic teams continue to push the local authorities to start pilots with a basic income. Often, these groups are helped by the Dutch Green party, not only on a local level, but also on the national level. In November 2015, the Green Party succeeded in clearing the way for experiments by filing a motion to parliament. It was supported by all political parties, except those of the right-wing liberals of Prime Minister Mark Rutte and the populist Freedom Party of Geert Wilders.
The VBi has also called upon its active members to reach out to co-fighters within their political parties and labour unions and to start discussions during meetings and congresses. As a result, some political parties have positively responded to the idea of a basic income as a social agenda for the sake of the general welfare and against precarious conditions and growing inequality.
After the Green Party and the Democrats 66, the majority (61%) of the Partij van de Arbeid (Labour Party) recently voted for a large experiment with a basic income. The leadership is not yet convinced, but members are very committed to the idea of a basic income and they want the issue to play a major role in the forthcoming campaign for the national elections of March 2017. “A basic income as part of the modern welfare state becomes more and more the ultimate goal for people. A society that includes everyone and where everybody contributes according to their capacities and needs: paid work, volunteering, education, the establishment of a company, et cetera,” says VBi’s most active member in political lobbying.
Many voters of the far left (Socialist Party) endorse the idea of a basic income. However, the leadership has firmly rejected it. Hence the party decided not to adopt it.
Last June, the youth organisation of Democrats 66 passed a policy framework “Moedig Voorwaarts” (Courageous Forward) that states that every adult will receive €600 – €1200 per month and each child €300. The proposal guarantees that nobody will live in poverty. The creation of a basic income is to also be combined with tax reforms.
Last spring a National Poll was held about the following question:
Everyone receives a basic income from the government, regardless of other income and without the obligation to work. The system of taxes and benefits will be adjusted accordingly. Do you find this a good idea?
The results were encouraging: 40% of those surveyed said they are in favour of a basic income as described in the poll, 45% said they are against it and 15% didn’t know.
Most members of right-wing parties declared themselves to be against the idea: 73% of right wing liberals and 61% of the Christian Democrats. Supporters and opponents were roughly in balance among the supporters of Democrats 66: 44% and 45% respectively. Most voters of three left-wing parties were in favour: 60% of the Green party, 54% of the Socialist Party, and 53% of the Labour Party. Interestingly, voters of the populist right-wing Party of Freedom of Geert Wilders were divided: 37% were in favour of the idea, 46% were against it and 17% did not know.
In the Netherlands, people are beginning to recognize that a basic income, as an unconditional floor under the existing welfare state, could be very beneficial for us all by opening up new ways to end inequality, provide stability and freedom to choose. This is especially true for welfare claimants. In recent months, the labour union FNV (Dutch Federation of Trade Unions) organised two rounds of policy debates about basic income with more than 1000 welfare claimants, who are members of an affiliate union. Most of them were in favour of introducing a basic income, because it guarantees financial security, more freedom and less stress. Further, these beneficiaries call upon the FNV Congress 2017 to adopt a proposition stating that the implementation of a basic income will be an explicit trade union objective.
The appetite for such initiatives is also fuelled out of frustration with workfare programmes that turned out to be “hugely expensive and humiliating for those involved”, says Rutger Bregman, the author of Utopia for Realists: The Case for a Universal Basic Income.
Rutger Bregman CC Bond van Nederlandse Architecten (flickr)
Andy Stern, the former president of the Service Employees International Union (SEIU), which represents nearly 2 million American workers, puts it like this in a conversation with Bourree Lam about his book Raising the Floor: “What I’m hoping for is that unions can look up from the defensive crouch they’re in, look into the future, and understand that so many of the things they’re doing now that are enormously important could be very insufficient. And that they’ll begin to think of universal basic income …”
In Christian circles one also hears people making a strong case for basic income. On the website of the Christian union for employees, employers and the self-employed (CGMV), a staff member reacts to the biblical directive that “He who does not work, shall not eat”. In an article with the title “Is everyone entitled to a basic income?”, referring to the many volunteers in organisations that have replaced paid workers, he asks: How then should we interpret another biblical text that says that “a labourer deserves his wages”? How can these volunteers get money to buy food? And how can we defend this attitude towards people who have tried to get a job so hard, but who did not succeed in finding one and who have to deal with rules that cripple their capabilities and creativity?
And there are more projects going on in the Netherlands that draw attention to basic income. A group of citizens has launched a big digital campaign to collect at least 40.000 signatures for the introduction of an unconditional basic income for every adult in 2018. The Parliament is legally obliged to discuss and vote on a topic, once it has been undersigned by more than 40.000 Dutch individuals. Right now (11-07-2016) the counter stands at 51.780 signatures. On to the 100.000! The more signatures, the stronger our voice! See https://basisinkomen2018.nl/.
In April an anchor woman of RTL-Z, an affiliate of the RTL Group (an European entertainment network) in the Netherlands, started the “Basic Income Bullshit Bingo Pot“: every time someone uses the words ‘basic income’ in a wrong way — that is, other than in the sense of an individual, universal, unconditional basic income that is high enough for a dignified life — he or she has to pay a Euro. The pot for the Euro donations can be found here: https://basisinkomen.eu/donatie-aan-vereniging-basisinkomen/.
In May, ‘Haagse Anne‘ (a young woman, artist and living in The Hague) received the second crowd funded basic income for a year. No strings attached! Liesbeth van Tongeren, Member of Parliament for the Green Party, handed her a symbolic plaque. The second publicly financed basic income is an initiative of MIES (Maatschappij voor Innovatie van Economie en Samenleving, a.k.a. Community for the Innovation of Economy and Society).
Another project of MIES, ‘OnsBasisinkomen’ (OurBasicIncome), can be found on this page. Readers are asked to tell what they would do if they were to receive a basic income tomorrow. So far, over 1800 Dutch people have told their story, of which 600 responses have been scientifically analysed. Two provisional findings emerged from the survey: people are not lazy and social participation is a multifaceted concept.
I cannot wait until the next report for this big news: Just a few days ago, the Financiële Dagblad (Financial Journal) announced that four municipalities will get the freedom to experiment with fewer regulations under the existing social welfare schemes. Some of the benefit claimants will be temporarily relieved of the duty to apply for jobs or to follow a reintegration program. Others may earn a bit without having their payment reduced from their benefits. The Secretary of State for Social Affairs and Employment, Jetta Klijnsma, has now agreed because the scientific assessment framework – a partnership between the four major cities and four collaborating universities – is now ready. If after the summer recess the Council of Ministers and the First and Second Chamber quickly agree, the cities of Utrecht, Tilburg, Groningen and Wageningen can start with the experiments in January 2017.
Authors: Florie Barnhoorn, Adriaan Planken
by Kate McFarland | Jul 29, 2016 | Research
Vijay Joshi, Emeritus Professor of Economics at the University of Oxford, has recently published a new book, India’s Long Road: The Search for Prosperity, in which he argues in favor of a basic income for all citizens of India.
From the product description at Amazon.com:
Vijay Joshi argues that the foundations of rapid, durable and inclusive economic growth in India are distinctly shaky. He lays out a penetrating analysis of the country’s recent faltering performance, set against the backdrop of its political economy and charts the course it should follow to achieve widely shared prosperity.
Joshi argues that for India to realize its huge potential, the relation among the state, the market and the private sector must be comprehensively realigned. Deeper liberalization is very necessary but far from sufficient. The state needs to perform much more effectively many core tasks that belong squarely in its domain. His radical reform model includes a fiscally affordable scheme to provide a regular ‘basic income’ for all citizens that would speedily abolish extreme poverty.
Joshi’s research interests are in macroeconomics, international economics, and development economics. Outside of his appointment at Oxford, he has held various positions in government and business offices; for example, he has served as the Officer on Special Duty in India’s Ministry of Finance, the Director of J. P. Morgan’s Indian Investment Trust, an adviser to the Governor of the Reserve Bank of India, and a consultant to international organizations including the World Bank and the OECD.
Bibliographical entry:
Vijay Joshi, India’s Long Road: The Search for Prosperity, Oxford University Press, 2016.
Reviews focusing on Joshi’s support of basic income:
Ishan Bakshi, “Oxford’s Joshi proposes basic income for all,” Business Standard, July 19, 2016.
Jaimini Bhagwati, “Scrutinising India’s Economic Past Can Guide Us to a Brighter Future,” The Wire, July 20, 2016.
“Govt should wind up subsidies and provide basic income to everyone: Joshi,” WebIndia 123, July 15, 2016.
Photo credit: Chatham House (December 2012)
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