by Andre Coelho | Sep 22, 2019 | News
The pilot project which is being carried out in Barcelona – B-MINCOME – combining guaranteed minimum income and active social policies in Barcelona’s deprived urban areas– published a report, on July 2019, with the results of its first operational year (2017-2018). The experiment, which began in October 2017 and is due by the end of 2019, aims to reduce poverty and social exclusion in highly vulnerable groups. During these 24 months, and based on a Randomised Control Trial model, 1000 households (randomly) selected from three of the city’s poorest districts (Nou Barris, Sant Andreu and Sant Martí) have been receiving a maximum cash transfer of €1675 a month. Of these 1000 households, 550 have also taken part in four active-inclusion policies which the project has set up: one for training and employment; one of fostering entrepreneurship in the social, solidarity and cooperative economy; one with grants for refurbishing flats in order to rent out rooms; and one involving community participation.
What makes this project so innovative is that it combines four modes of participation: Conditional (people randomly assigned to an active policy are obliged to take part in it), Unconditional (participation in these policies is not a condition for receiving the income), Limited (any additional income that might be obtained proportionally reduces the amount of the cash transfer) and Non-limited (where this additional income does not reduce the amount of the transfer).
Apart from reducing poverty and fostering personal autonomy, the B-MINCOME’s overall objective is to test which modality of income transfer is the most effective (concerning results) and the most efficient (concerning implementation costs). This experiment or pilot project is, therefore, an initial step towards implementing a municipal income-transfer system which should be consolidated in the near future.
In line with the results obtained in similar experiments, such as the one in Manitoba during the 1970s, the Finish one, the one suddenly cancelled in Ontario and those that are now coming to a close in various Dutch cities, such as Utrecht, the report now published by the Barcelona City Council shows very positive quantitative results. For example, an 11% average increase in general well-being and a 1,4% increase in economic well-being. It also shows an 8% reduction in the severe material privation index, and a reduction of up to 18% in ‘worrying about not having enough food’. It is also worth noting the 3% average reduction in the need to get money through means other than employment (e.g. by renting out rooms, a problem that especially affects the city of Barcelona) or the decreasing trend in developing mental illnesses and an improved quality of sleep, by 10% and 1% respectively – two results associated with a reduction in the financial stress suffered by these families. Furthermore, the qualitative and ethnographic evaluation of the project also reveals positive impacts, such as an increase of nearly 28% in happiness and general satisfaction with life, as well as a significant increase in engagement with and participation in neighbourhood and community life.
However, the report does not detect statistically significant changes in housing insecurity or in the households’ ability to cope with unexpected expenses (although this cash-transfer is not designed to make savings possible but only to meet basic expenses). Furthermore, no significant results have been observed regarding work placement or in other dimensions related to employment. However, it should be noted that this result was expected and is in line with other similar experiments, which also confirms the initial hypothesis: people in the Conditioned modality experienced a “lock-in effect”, as their (compulsory) participation in the active policies may have meant they had less time to look for work. However, it should be noted that most participants were suffering from a high degree of exclusion or job precariousness prior to the start of the project. It was, therefore, unrealistic to expect ambitious results in this sense.
The referred report only contains results obtained during the first year of the project, and hence the overall effectiveness and efficiency of the project can only be definitively evaluated in early 2020.
Given the recipients’ highly vulnerable profile, and the fact that these results come from a single year of (the pilot’s) implementation, there are motives for optimism. Final results are expected to be more significant and consistent from a statistical perspective, plus even more encouraging from a substantive point of view, i.e. in improving beneficiaries’ quality of life, increasing their freedom and autonomy and reducing their dependence on other public subsidies.
Written by Bru Laín (bru.lain@ub.edu). Affiliate professor of Sociology (University of Barcelona), researcher at the B-MINCOME project and Secretary of the Spanish Basic Income Network
Reviewed by André Coelho
by Andre Coelho | Jul 27, 2019 | News
Yv Bonnier Viger. Picture credit to: Huffpost Quebec
Gaspesie and Îles-de-la-Madeleine regional public health director Yv Bonnier Viger is convinced that basic income can have dramatic positive effects on people’s health. So much so that the local public health sector, plus other regional organizations focused on health, well-being and poverty alleviation, are pushing for a 20-year long experiment in these two localities, also including Bas-Saint-Laurent.
Viger already knows the usual results of basic income experiments: “The experiments done around the world have always given results that go along the same direction: reducing mortality, violence, urgent care visits, hospitalizations, etc.”, he says. Moreover, he is also aware that people (according to experiments) do not use unconditional cash to acquire superfluous things, or to stop working as a result of receiving it. In this context, an (basic income) experimental setup in this region would expectedly be confirming these same results tested at other locations.
This setup is being considered as a negative income tax (NIT), after knowing each recipient declared annual income. After surveying true living costs in the three municipalities abovementioned, the idea is to dispense (every two weeks) unconditional cash gradually, for all those earning less than 40000 CAN$/year. The income starting point – someone earning 0 CAN$/month – would then become 17500 CAN$/year, which approximately amounts to Quebec’s official poverty line.
Financing the experiment would be based on replacing conditional social aid already in place in the region, without touching, however, retirement income (which is based on lifetime contributions). The project’s overall annual cost has been estimated at 800 million CAN$, which is expected to diminish over time, as more savings are made available in the public health sector, social aid management and other public related expenditures.
More information at:
“Quebec is considering a 20-year basic income pilot”, Basic Income Today, July 19th 2019
(In French)
Stephanie Gendron, “Idée d’un projet-pilote de 20 ans pour un revenu de base dans l’Est-du-Québec”, Le Placoteux, June 26th 2019
by Andre Coelho | Jun 5, 2019 | News, Research
The reading of results from basic income type of experiments is, apparently, dependent on who is reading them. The Ontario present government officials did not think, for instance, that there were particular advantages or benefits from pursuing with the Ontario basic income experiment. The particulars of the Ontario (basic income) pilot cancellation have been extensively reported on (some examples below), so much so that a new report was published with some evidence of the benefits experienced by more than 400 participants, according to their responses. This may be another case of dissonance between government power and common citizens: what is felt by the latter as beneficial is discarded as ineffective and wasteful by the former. Why, then, was this basic income pilot program cancelled is a legitimate question one might ask, if the participants themselves felt it as a success.
For example, the baseline survey reported that at the start of the pilot 81% of participants were suffering from moderate to severe psychological stress); At the end over 70% had reported their mental state to have improved in several categories. This is attributed to having fewer financial worries such as debt. In addition, participants were apparently better able to buy edibles online canada and other treatments for their conditions, whereas before they may have refrained due to budget concerns. Due to the legalization of medical marijuana in several countries, such as the United States and Canada, many scientists are looking into the effects of CBD and cannabis. In terms of the physiological benefits of Cannabis, compounds like CBD seem to have anti-inflammatory properties, helping to relieve chronic muscle and joint pain. Nevertheless, when ingested, these effects might be amplified, so these relief properties could be felt in even greater strength with THC edibles that you can purchase from get kush or other such cannabis retailers online. There is growing evidence that CBD is an effective monotherapy or complementary therapy for the treatment of generalized anxiety disorder, social anxiety disorder, and post-traumatic stress disorder. Cannabis (rather a chemical in the Cannabis sativa plant known as cannabidiol) may be helpful in reducing anxiety, the most common mental health issue. The information provided here is not intended as medical advice and it is highly recommended that one consults a health expert before consuming CBD products. This is merely intended as an overview various types of CBD commodities (such as CBD Oil UK) of that may be of assistance to people suffering from anxiety or stress.
Overall, the participant experience compiled in this report partly mirror that of Finland’s basic income-type experience first results: more agency, anxiety relief, more social connection and financial security. The majority started eating better, and were able to make plans for the future…which evaporated as soon as the pilot was cancelled by Doug Ford’s government. In numbers, answers returned the following results (from Basic Income Canada Network):
- 88% of respondents reported less stress and anxiety and 73% had less depression.
- 58% improved their housing situation;
- 34% found the basic income supported employment by affording transportation to work, child care or ability to start or expand a business;
- 32% of respondents were able to go back to school or upgrade skills (note that a majority of employed participants in the government baseline survey – recipients and control group – said they were in dead-end jobs);
- 74% were able to make healthy food choices and 28% stopped using food banks;
- 46% were able to pay off debt;
- 52% were able to see friends and family more often, 55% were physically more able to do activities, and 45% reported fewer health problems;
- Many respondents talked about working hard their whole lives, often at multiple jobs, but never really having a life, until basic income made that possible.
More information at:
Kate McFarland, “ONTARIO, CANADA: New Government Declares Early End of Guaranteed Income Experiment“, Basic Income News, August 2nd 2018
Sara Bizarro, “Ontario, Canada: Reactions to Ontario Basic Income Pilot Cancelation“, Basic Income News, September 18th 2018
Daniel Fabbri, “Four Ontario Mayors asking the Federal Government to take over the Basic Income Pilot“, Basic Income News, September 30th 2018
André Coelho, “Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots“, Basic Income News, December 22nd 2018
Sheila Rogehr and Joli Scheidler-Benns, “Signposts to Success: report of a BICN Survey of Ontario Basic Income Recipients“, Basic Income Canada Network, February 2019
André Coelho, “When a few drops of rain allow flowers to blossom: Finland’s basic income experiment generates its preliminary results“, Basic Income News, February 16th 2019
by Tyler Prochazka | Jun 4, 2019 | Opinion
The wave of basic income experiments in the last two years was a positive development in giving Universal Basic Income (UBI) some level of attention and political legitimacy in Western countries.
It is time to recognize the experimental wave is coming to an end.
Basic income activists in the next wave of UBI political discussions should push for policy changes in the direction of basic income. There are ongoing and completed trials testing cash transfers in countries with different stages of economic development. It makes more sense to build a foundation for policy changes as these results trickle out over the next few years rather than pushing for yet another experiment.
In Canada, the push for experiments backfired because a Conservative government canceled it before any results could be collected. I supported Ontario’s experiment and there was value in the research.
However, Ontario’s cancellation demonstrated that as activists move forward, we must recognize that experiments do not create a political constituency. In Alaska, the partial basic income policy has broad and significant support because everyone has benefited from it. Building a constituency that can be expanded and deepened is where activist energy should be placed in the next stage.
UNICEF funded experiments in India helped make basic income a real political discussion there, and now basic income inspired policies are being proposed by both of the main parties and a minimum income is set to be implemented in the state of Sikkim.
Experiments in developing countries and regions where basic income is still not well known may still be politically necessary. In Western countries, though, activist energy on more experiments rather than policy action seems ill-placed since UBI has already entered mainstream discussion in the West.
Experiments have already shown us cash transfers make people happier, healthier, and free them to pursue what they are interested in. The myths about basic income have been consistently undermined, particularly the idea that it would decrease work in any meaningful way. More experiments will keep telling us that giving people cash is generally good in most of the ways we measure positive outcomes.
How many times do we need an experiment to tell us cash transfers do not make people “lazy”?
Those who will not be convinced by the existing and upcoming experimental results will not be convinced by yet another experiment. The reaction to Finland’s experiment is evidence that unpersuadable opponents will latch onto even neutral effects on employment to prove basic income is a “failure.”
To truly put UBI to the test in America and Europe, actual policies that incorporate significant elements of basic income should be pushed. Cory Booker’s baby bonds is a start. Expanding the Earned Income Tax Credit that incorporates students and caregivers would instantly help millions. Political campaigns such as Andrew Yang’s are also important to bring the debate to a mainstream audience.
That is not to say pilot programs with the intent of expansion are not helpful. These provide valuable information to governments on how to implement basic income. Pilot programs with the primary intent of yet more research on “laziness” are the issue.
However, as the experimental wave of basic income begins to sunset, activists must look toward the next wave, which should focus on concrete policy steps that realize the spirit of basic income.
For these reasons, I see more experiments as an inefficient use of activist energy in the West. Worse, pushing experiments focused on gathering more data trades off with more useful discussions of how to bring elements of UBI to reality in the near-term.
by Andre Coelho | May 18, 2019 | News, Research
The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) just published a new report entitled “A Basic Income for Scotland”.
The report is organized in four main sections:
- How the welfare system in the UK – and in Scotland in particular – is failing to reduce poverty and economic insecurity, within its own terms.
- Presentation of the updated findings on the basic income trial presently ongoing in Fife.
- Modelling the impact of a basic income in Scotland (by Landman Economics).
- Analysing political, legal and administrative scenarios enabling a first Scotland-wide basic income experiment, in the path for its implementation in the region.
The report also features direct input from potencial beneficiaries of the Fife basic income trial (which is still under study / consideration), a precious contribution from those directly affected by the current system of means-testing conditional social security. Taking the example of Fife, Painter and his colleagues have projected that “£2400 a year would half destitution and reduce relative household poverty by 8,5%. A basic income of £4800 a year would end destitution and reduce relative household poverty by 33%.” It’s relevant to notice that the Scottish living wage is currently £9 per hour, which for a regular 8 h/day job amounts to about 1440 £/month. So, these basic income amounts under consideration are only 14 and 28% of what it takes to live comfortably in Scotland.
Anthony Painter summarizes how a basic income in Scotland could be tested within a whole set of other public policies in place:
“In A Basic Income for Scotland we map how pilots of basic income could work with a full set of supports alongside cash payments. We call this community designed system of interlocking public, community, and employer supports wrapped around basic income a ‘Civic Basic income’.”
More information at:
Anthony Painter, “The case for basic income is growing. Scotland can take it forward”, RSA, May 8th 2019
