Is Taiwan ready for a basic income referendum?

Is Taiwan ready for a basic income referendum?

Taiwan has seen its first series of referendums since the significant liberalization of its referendum law early this year. The results could have implications for the basic income movement in Taiwan and possibly the Asia Pacific.

There has been discussion among Taiwan’s basic income activists to organize Asia’s first basic income referendum on the island.

In January, the new referendum law came into effect in Taiwan, lowering the threshold for the number of signatures required to get a referendum on the ballot. The law also decreased the voting participation requirement from 50 percent to 25 percent.

Such a change made it realistic for a basic income referendum to make it to the ballot in Taiwan.

During the election last weekend, seven of the ten referendums were passed, the first such national referendums to pass in Taiwan’s history. Long lines waited for hours to vote, as many carefully studied the referendum language.

Most notably, opponents of gay marriage successfully passed three anti-LGBT referendums (two pro-LGBT referendums failed to pass), putting Taiwan’s legislature in a precarious position since its top court mandated that same-sex marriage must be legally recognized by May 2019.

How the referendum results will affect legislative action is unclear, since there is no precedent for legislating referendum results in Taiwan. Additionally, the referendum law does not create clear enforcement mechanisms to compel the legislature to act (except in the case of abolishing laws, which must take place within three days of the referendum result).

Regardless of how legally binding the results actually are, Taiwan’s legislature will feel pressure from the popular results to follow the principles of the referendums.

If Taiwan’s government fails to put the referendum results into law, it could have a chilling effect on future referendum movements and create questions about Taiwan’s democracy. There have already been signals from Taiwan’s presidential office that approved referendums regarding nuclear and coal will not lead to a change in energy strategy.

On the other hand, a robust response from the legislature will mobilize activists to utilize referendums as a key legislative strategy. It is likely that 2020 will see a wave of even more referendums than this year.

If some an income guarantee referendum were to pass, Taiwan’s government would only be compelled to submit a proposal and discuss the policy. There would have to be a significant societal mandate from the referendum to ensure the legislature will act to pass a law.

Polling from Academia Sinica and UBI Taiwan find 40 percent to 47 percent respectively of Taiwanese support basic income. As was seen with the competing gay rights referendums, using referendum as a vehicle to advance basic income can also mobilize opposition groups.

The LGBT referendums invited a wave of international attention. Certainly, a basic income referendum would attract regional and international attention as well.

However, a premature basic income referendum without institutional support and lacking a broad activist movement to defend the idea poses substantial risks. Basic income is still a new idea in Taiwan and Asia in general, and misunderstandings could derail the idea before it has an opportunity to develop in the region.

Anti-LGBT groups outspent the pro-LGBT movement and used misinformation and scare tactics to successfully persuade a large portion of Taiwan that LGBT marriage threatened the next generation of families. 

It is without question that a basic income referendum would invite backlash from invested groups, who would probably have more financial resources than the nascent basic income movement in Taiwan.

Would an overwhelming vote in opposition to basic income do more harm than good for the movement in Taiwan and the Asia Pacific?

Certainly, Switzerland’s referendum was incredibly successful in propeling discussion of the idea around the world, even though it failed at the ballot box. However, both civic society and basic income activism are far more mature in Europe than in Taiwan.

A rejected basic income referendum in Taiwan could be portrayed as yet another global failure for UBI, along with the cancelled experiment in Canada, the ending of the Finland pilot, and even the rejection of the original Swiss referendum.

If I had to wager, I would bet that the societal discussion over basic income generated from a Taiwanese referendum will be overall helpful to advancing the movement in the Asia Pacific even if it does fail. This is especially true since backlash from opposition groups is inevitable anyway.

It is essential, though, that the basic income movement in Taiwan and beyond carefully consider its strategy to make UBI a reality.

International: Basic Income Earth Conference 2019 announcement

International: Basic Income Earth Conference 2019 announcement

 

India Network for Basic Income (INBI) will host the 19th BIEN Congress in Hyderabad, India, from 22nd to 25th of August 2019. At a time when the welfare state is undergoing major crisis, all around the world, and the discussion around basic income is gaining traction, it is ever more important to give voice to speakers and participants to present and debate this crucial new approach to social security. Being an international Congress, participants and speakers will be coming from different parts of the world, which only adds to the diversity of views and opinions a real global debate like the one referred above needs. Last year’s 18th BIEN Congress was held in Tampere, Finland, organized by the local BIEN affiliate.

 

The Congress organization results from a partnership between INBI and the NALSAR University of Law, which will house the Congress in its state-of-the-art campus on the outskirts of Hyderabad. INBI is also partnering with SEWA Madhya Pradesh, one of the largest membership-based women’s organization in the world and which played a key role in the Madhya Pradesh basic income pilot study. With SEWA, INBI will be producing short films and planning several campaign events in Madhya Pradesh and other parts of the country in the run up for the Congress. The days running up to the Congress will also host a major Hackathon in Hyderabad, organized by another INBI’s partner organization, the WisoCoLab. This event will also feature discussions around basic income and will feed in the Congress with a sum of its activities. Finally, the Mustardseed Trust is also partnering with INBI, as a financial supporter to the Congress, and in presenting a session at the Congress under “Basic Income and Caring Economy”.

 

The Congress itself will have plenary sessions, dynamic plenaries (panel of experts, with a moderator) and parallel sessions, in a structure similar to other BIEN Congresses. As in the latest Congress in Finland, there will also be a basic income short film festival integrated into to program schedule. New features planned are the BIEN Civic Forum, and the Basic Income Ideas Bazaar. The former, happening in the 22nd of August, intends to bring together different stakeholders in a given national or regional context to share views and debate basic income. The idea is to bring together policy-makers, corporate leaders and academics at the highest levels in the Indian context so as to strengthen the basic income debate in India. The latter is a space where organizations, artists and groups working on basic income who wish to showcase their work can do so at a nominal cost.

 

A formal Call for Papers to the Congress will soon be released.

 

 

More information at:

André Coelho, “Finland / International: BIEN Congress 2018 (part 2)”, Basic Income News, September 5th 2018

Europe: New UBI Research from CESifo

Europe: New UBI Research from CESifo

Photo by Stefan Kühn, CC BY-SA 3.0

The CESifo Group of Munich is a European research group that seeks to employ both high-quality economic theory and the methods of an empirical institute. Operating since 1999, CESifo is a collaboration between the Center for Economic Studies (CES), the ifo Institute (“Information and Forschung” or research), and the CESifo GmbH (Munich Society for the Promotion of Economic Research).

CESifo publishes a quarterly journal, the latest issue of which is devoted to Unconditional Basic Income (UBI).  Five of seven pieces within this 48-page publication present a variety of perspectives on UBI research and theory, predominantly addressing the European context.

  1. Straubhaar, Thomas, “Universal Basic Income – New Answer to New Questions for the German Welfare State in the 21st Century”, CESifo Forum 19 (3), 2018, 03–09 | DetailsPDF Download

The focus: Transforming social support in Germany by replacing Bismarckian welfare state ideals

Straubhaar describes a series of proximate social and economic changes due to globalization, aging societies, income polarization, and dissolution of traditional economic safety nets. He comments that the contemporary version of the welfare state is founded upon 19th century Bismarckian principles that rely on a classic population pyramid (weighted by youth at the bottom), a male-breadwinner model, a fast-growing economy, and a labor-focused Protestant work ethic, none of which will continue to be relevant indefinitely. He proposes UBI as a welfare state model that would completely replace all other publicly financed social support and provide a 21st century solution to the aforementioned changes, particularly in Germany, but as a model for the rest of the world.

  1. Torry, Malcolm, “Some Lessons from the Recent UK Debate about Universal Basic Income”, CESifo Forum 19 (3), 2018, 10–14 | DetailsPDF Download

The focus: Enhancing UBI data distribution and ensuring that discussions maintain a clear definition of the difference between UBI and other related economic policies

Torry highlights a number of key events and issues from the UK that have broader relevance for the global community interested in UBI. The first discusses the important use of microsimulation to predict the impact of economic policies on households of varying incomes (for example, to estimate the loss of disposable income to low-income families if means-tested benefits remain or are removed). The second relates a story in which a public organization cherry-picked UBI data, to which Torry simply says that high-quality research ought to be better distributed. The third and fourth call the reader’s attention to the importance of using specific definitions of UBI schemes and not allowing the term to be misused.

  1. De Wispelaere, Jurgen, Antti Halmetoja and Ville-Veikko Pulkka, “The Rise (and Fall) of the Basic Income Experiment in Finland”, CESifo Forum 19 (3), 2018, 15–19 | DetailsPDF Download

The focus: Improving the international understanding of Finland’s basic income experiment, its origins, and its limitations

The Finnish basic income experiment began as a one-line commitment in the national Government Programme in 2015. Kela, the Finnish Social Insurance Institution, proposed several experiment design options, and a two-year control trial began in January 2017. Kela will evaluate the results and present them to Parliament in 2019.

Basic income stakeholders have become increasingly critical of the trial parameters, raising concerns about the limits of the sample and the pilot’s restricted scope and goals. The authors argue that proponents of UBI initially overstated the extent of the Finnish government’s commitment and capabilities, heralding the commitment as a “watershed” moment for European basic income, when in fact the Finnish experiment and others have been limited from the outset by policy inertia, existing budgetary and taxation systems, and other institutional limitations. The pilot program is designed to assess basic income as a means of activating the labour market, a politically safe goal, and was never likely to result in policy changes of the kind UBI advocates desire to see.

  1. Colombino, Ugo and Nizamul Islam, “Basic Income and Flat Tax: The Italian Scenario”, CESifo Forum 19 (3), 2018, 20–29 | DetailsPDF Download

The focus: Evaluating proposed basic income-related policy packages in Italy and comparing their political origins

Like other European countries, Italy has seen several basic income proposals that have yet to be implemented. Several current potential models are rooted in different political ideologies and thus provide an interesting comparison. The first, “Reddito di Inclusione,” (RdI) is a basic income scheme that targets the most impoverished segment of the population in practice but is intended to be universal. The second, “Reddito di Cittadinanza” (RdC) is means-tested and only covers the population “below the relative poverty threshold” (20). Another model, proposed by Istituo Bruno Leoni (a think tank), involves both basic income and a flat tax.

The authors provide a basic overview of the differences between UBI, means-tested guaranteed income, and negative income tax. They then simulate and evaluate the various government-proposed combinations of policies, concluding that while it is possible to design a fiscally neutral policy package, current government proposals have not yet done so.

  1. Widerquist, Karl, “The Devil’s in the Caveats: A Brief Discussion of the Difficulties of Basic Income Experiments”, CESifo Forum 19 (3), 2018, 30–35 | DetailsPDF Download

The focus: Making UBI research accessible and understandable, particularly with regard to its limitations

Widerquist’s basic thesis is that, contrary to popular representations of policy research, all UBI experiments contain a significant list of caveats. He argues that science journalism has not done an adequate job of communicating the limitations of UBI studies, or indeed any social sciences research, to the public. Furthermore, specialist researchers’ lists of caveats are inadequate for communicating a study’s limitations. Widerquist has an upcoming book that will address both best practices in UBI research given its inherent difficulties and best practices in communication the results of said research to the public and policymakers. In this article, he identifies four broad strategies: (1) iteratively designing studies with public feedback, so that research directly addresses the questions relevant to local stakeholders; (2) highlighting UBI’s impact in publications, rather than its side-effects (even though the latter might be more interesting to researchers); (3) attempting to define a “bottom line” or generalizable conclusion from research; and (4) addressing and discussing ethical controversies.

  1. Clauss, Michael and Stefan Remhof, “A Euro Area Finance Ministry – Recipe for Improved Governance?”, CESifo Forum 19 (3), 2018, 36–43 | DetailsPDF Download

The authors discuss the possibility and potential function of a euro-area finance ministry. Such an organization could either martial Europe’s national fiscal policies to align them throughout the region, or it could be one more “layer” of fiscal authority in each European nation. This paper does not explicitly address UBI.

  1. Nam, Chang Woon and Peter Steinhoff, “The ‘Make in India’ Initiative”, CESifo Forum 19 (3), 2018, 44–45 | DetailsPDF Download

The authors discuss a 2014 federal initiative to promote industrial manufacturing in India. This paper does not explicitly address UBI.

More information at:

“CESifo Forum 03/2018 (Autumn): Unconditional Basic Income”, 01-48, ifo Institute, Munich, 2018

 

 

United States: “Inherent Good” documentary starts fund-raising campaign

United States: “Inherent Good” documentary starts fund-raising campaign

“Do we trust each other”?

 

That is the ultimate question the new documentary named “Inherent Good” ends up asking. This film project, still ongoing, aims at exploring the Universal Basic Income (UBI) idea, particularly in small in-land communities in the United States of America, seriously hit by the latest financial crisis.

 

Los Angeles-based filmmakers are collecting funds for the Inherent Good project at the moment, with a release date aimed for Spring 2019. The documentary will accompany the launch of a basic income pilot experiment called The Magnolia Mother’s Trust. This experiment, organized by Springboard to Opportunities and in a partnership with the Economic Security Project, will dispense 1000$/month for one year to 15 families in Jackson, Mississipi, no strings attached. Accurately, the experiment does not equate to a basic income, since it is given to families, and not individuals, but the money is handed with no conditions on how it shall be spent. One particular aspect of the experiment is that these families are all “headed by an African American female living in affordable housing in the United States”.

 

The idea is, according to the film’s director Steve Borst, not only to “document the unveiling of this new pilot program, but [also] to help shift the poverty narrative by providing a platform that empowers these women to share their critical stories with the rest of the world.” The film will be starred by author and comedian Trae Crowder, and will go through his hometown Celina, a small rural town in northern Tennessee. Trae’s connection to this project is related to the “abject poverty” of his family when he was growing up in this region of the country.

 

The documentary will focus on personal stories of local people, local history and how the “extra cash could boost the local economy.” Moreover, the film also aims to address “common concerns about UBI, including the fear that people will stop working or misuse the money. Ultimately, the film is a meditation: on people, the future of America, and the inherent good within all of us that makes UBI an idea worthy of serious contemplation”.

 

The film’s project team include producers Rennie Soga and Chris Panizzon. A teaser can be watched in the following video.

https://vimeo.com/294850722

Hungary: Basic income related activity in Hungary

Hungary: Basic income related activity in Hungary

In spite of its right-wing government, spearheaded by Prime Minister Viktor Orbán, there is already a seed of activity for basic income advocacy in Hungary. A recently formed group, named First Hungarian Universal Basic Income Association, has an active social media profile and has organized meetings and conferences to present and discuss basic income, the latest of which will be held next 23 to 25th of November in Budapest. The Progressive Hungary Foundation is also participating in the event.

 

There is also a political party defending the basic income proposal, the Dialogue for Hungary. A working group within this party has produced a concrete basic income implementation proposal for Hungary. According to Sarath Davala, co-chair of the Basic Income Earth Network (BIEN), “there is a great deal of curiosity about basic income” in Hungary. On the 31st of August 2018, Dialogue for Hungary promoted a presentation where Davala spoke about the Indian basic income pilot, a packed event at which several Members of the Hungarian Parliament were present.

 

Reference research work on basic income has also been produced by Hungarian scholars. Titled “Basic income as a Realist’s Transformative Strategy”, this work is authored by Gabor Scheiring, Miklós Sebők and Bence Tordai (Hungarian Parliament Member). The abstract can be read as follows:

 

“Progressive politics needs bold new visions that can be contrasted to current processes of erosion. Based on research conducted at the Progressive Hungary Foundation as well as on already existing policy proposals we elaborate a basic income scheme in line with the recent proposal of Iván Szelényi (2014) that could be immediately implemented in Hungary. In this chapter we first analyze the political rationale of the proposal illuminating the careful balance between desirability, feasibility and achievability. The most important moral argument in favor of the basic income is that it allows a basic freedom and a basic sense of security for everyone (Van Parijs, 1995). These general arguments have been laid out in detail already so we concentrate on the politics of our scheme. Next, we describe in detail the working of the scheme as divided into various eligibility groups and we also present detailed financial evidence that the proposal can be introduced immediately without impairing the balance of the budget. We conclude our proposal by pointing out the social effects of the scheme as well as elaborating the first steps towards implementing the proposal at the EU level.“

 

 

More information at:

André Coelho, “Hungary: Prime Minister Viktor Orbán speaks harshly against basic income”, Basic Income News, March 21st 2018

Gabor Scheiring, Miklós Sebők and Bence Tordai, “Basic income as a Realist’s Transformative Strategy”, Research Gate, 2015