India’s Chief Economic Advisor, Arvind Subramanian, recently told reporters that he would “bet” that one or two Indian states would be implementing universal basic income (UBI) by 2020.
The high-level government advisor’s comments occurred within the context of the release of the 2017-2018 Economic Survey of India. The Economic Survey is a regular report which examines the country’s current economic status, and attempts to make some predictions regarding future growth.
The last Economic Survey, for 2016-2017, gave some details regarding the possibility of India adopting a form of UBI. The survey explored the possibility of an income which would be quasi-universal, being distributed to approximately 75% of the population. This does not match BIEN’s own definition of UBI, but was referred to as a UBI within the survey. This was not the only scheme that the government entertained, if you want to know all schemes of indian government in hindi visit:- Sarkari Yojana UP Here is All Information of the government yojana.
While its approach to the subject was broadly positive, the 2016-2017 Economic Survey stopped short of recommending that a UBI be implemented across the country. Subramanian has spoken positively on UBI in the past, saying during an interview in April of last year, “There could be, potentially, several positive impacts – you provide people with a minimum wherewithal with which they can access credit, with which they can invest – and one of the things I think is worth emphasising about UBI is the kind of psychological liberation you can provide for people.” However, in the same interview, he also indicated some issues which could arise, stating, “You can’t pay for it [UBI] unless you get rid of something else.”
A recent report from Carnegie India, India’s Basic Income Bedevilled by Details, by Shaksam Khosla, praised Subramanian for bringing “substantial rigour” to the debate on UBI in India, but also recommended that, prior to any implementation, a large-scale experimental test of the system should be carried out. The Carnegie Endowment for International Peace (CEIP) describes itself as a global network of policy research centres with the aim of advancing peace through analysis and development of new policy ideas, as well as direct engagement with government, business and civil society. Khosla is a Research Analyst with Carnegie India, the CEIP’s sixth international centre to be set up.
Arvind Subramanian took office in October 2014. He previously worked for the International Monetary Fund, and has also been a Senior Fellow at the Centre for Global Development in America.
The India Network for Basic Income (INBI) has released a video in order to promote unconditional basic income. The video, titled I also want to go to school, has been put out in advance of the 19th Basic Income Earth Network (BIEN) Congress, which is to be held in India and will be hosted by INBI.
The video shows a series of young children, the majority of whom are girls, looking directly at the camera. The words “I also want to go to school” are shown over the images, followed by the words “Basic income for me and my people”.
Although India does have non-fee-paying government-run schools, it can often be difficult for children of impoverished families to attend these, as they may be expected to help earn money to support themselves and their relatives, or to help with housework.
A short-term universal basic income (UBI) pilot in India has been found to have positive effects years after it concluded, according to a recent follow-up study. Researchers who returned to the villages involved in the original pilot study, which took place in 2012-2013, found that many of the improvements caused by a year of basic income had been wholly or partially maintained.
In a few cases, there had even been what are called “momentum effects”, in which behaviour changes due to the year-long UBI had continued to build during the intervening years. For example, in the original study, it was found that, prior to the provision of the UBI, women (or “the spouse of the head of the household” as it is expressed in the report) made decisions on how to spend money only about 9% of the time. At the end of the original study, women were making monetary decisions nearly a quarter of the time, while in the recent follow-up, this had gone up to virtually one-third of the time.
Other instances where positive and long-term effects have been maintained well after the end of the subsidy include an improvement in regular income (related to using the UBI to invest in farming equipment or to set up businesses), and a considerably larger percentage of girls in education.
However, there are also some areas where the effects of the UBI have been found to have been rolled back over the years. One of the most prominent of these is in the area of indebtedness. In the original study, the villagers who were provided with the UBI found that 70% had reduced their debt, but the new study found that there is no longer any statistically significant difference in indebtedness between those who had received the UBI and those who had not.
The study also includes a number of case studies and quotations, including one from the head of the village school, who stated, “The experiment gave a major push to the economy of the village in many ways. In front of my eyes, I could see things changing. Equally, I have also noticed a major positive behavioural change in these people because of that experiment.”
The original study, which was a pilot to test the effects of UBI, involved nearly 140 people in two villages, one of which was provided with a UBI and one of which acted as a control. Every precaution was taken to ensure that the two villages were as similar as possible in all socio-economic characteristics.
The study’s authors include Guy Standing, who is a Professorial Research Associate at SOAS University of London and co-founder of BIEN, as well as Sarath Davala, a sociologist who co-wrote a book entitled Basic Income: A Transformative Policy for India with Standing and Renana Jhabvala, another of the study’s authors. The report concludes by recommending that further UBI pilot studies take place, that existing welfare studies be analysed, and that an Independent Commission on Universal Basic Income is established.
Asked to comment, Davala provided the following statement: “We went back after four years to the same village that received Basic Income for a year in 2012. It was heartening to see that some of the effects still continued when we compared with the situation in the control village. So, what does that show? That unconditional basic income payments have a deeper psychological impact, and that even when they are given for a short period like a year, they do leave a lasting positive impact. They provide people with a sense of economic security. This is a very valuable insight for us and policy makers.”
A letter has been made by the campaign as a draft statement on values, which can be found here.
BIEN has reported on Goa several times (Madhavan, 2017; Shanahan, 2017; McFarland, 2017; McFarland, 2016). The article invokes the Intergenerational Equity principles, or IE, which is the protection of the inheritance resources for future generations.
“In Goa, over an eight year period (2004-2012), 95% of the value of the minerals was lost. The per-head loss from recent “legal” lease renewals was Rs.10 lakhs,” the Director of the Goa Foundation, Claude Alvares, said, “Data from across the country for iron ore, coal, oil and gas shows a similar trend. Everyone is losing equally, while a few are becoming super-rich. This is looting economics, not trickle-down economics.”
The Future We Need proposes some principles for a National Mineral Policy which regards natural resources as the Commons, in such a way that people in general are entrusted as the natural custodians of these resources In this new agreement, the Commons shall be preserved, and if sold the income must be equally shared by all.
On August 2, 2017, the Supreme Court (SC) of India delivered a judgement imposing a 100% penalty on illegal mining in Odisha, India and asked the Government to review the National Mineral Policy (2008). The court also called for an expert committee to be setup to identify the lapses that have occurred over the years enabling rampant illegal or unlawful mining in Odisha.
The 29 member committee to review the policy was established on August 14, 2017. A draft report by the committee is due on October 31, 2017, and the final submission to the SC on December 31, 2017. The first meeting of the Committee was held on August 28, 2017 where civil society representatives were not present.
The Goa Foundation, an environmental NGO based in Goa, India has submitted a note to the committee highlighting specific recommendations on the Mineral Policy. Titled “The Future We Need”, this 44 page document outlines recommendations for proper valuation, management and extraction of mineral resources to ensure inter-generational equity and environmental sustainability. Among others, it includes a recommendation to establish a Future Generation Fund, where capital received from the sale of minerals can be deposited for distribution to all citizens.
As previously outlined on Basic Income News, The Goa Foundation and the associated Goenchi Mati Movement (GMM) have been advocating for mining reform in India, including establishment of a permanent fund, which would be used to finance a citizen’s dividend – a kind of Basic Income. The movement has received political support in the country and abroad, including from Labour MP and Shadow Chancellor of the Exchequer in the UK who met with GMM in Christmas of 2016.
The idea of a permanent fund has also received previous mention from the SC. The SC in its landmark judgement in the case of mining in Goa in 2014 included the creation of a Goan Iron Ore Permanent Fund. The idea of creation of Permanent Funds based on extracting economic rent from oil or other natural resources dates back to 1876, and at present over 50 countries/sub-nations have created such a fund.
The Goa Foundation has published its 44 pages policy note and letter, and has presented its recommendations to the Committee at its 3rd meeting on September 26.
