by Kate McFarland | Feb 26, 2017 | News
The city of Barcelona is preparing to test an income maintenance program in one of its poorest districts. While it has been called a ‘basic income’, the tested programs diverge in several ways from BIEN’s definition of the term.
Urban Innovative Actions (UIA), an initiative of the European Commission that supports projects investigating “innovative and creative solutions” in urban areas, has allocated €4.85 million (about $5.15 million) to fund a three-year pilot study of guaranteed minimum income (GMI) in Barcelona, Spain. The project is dubbed “B-Mincome” in reference to Mincome, a well-known study of GMI conducted in the late 1970s in Manitoba, Canada.
In the B-Mincome experiment, 1,000 randomly selected households in the Besos district — one of Barcelona’s most economically disadvantaged areas — will receive cash subsidies of an amount sufficient to ensure that their earnings exceed the poverty line. At the time of this writing, the City Council of Barcelona is still finalizing the design of the study. However, the city plans to test several types of GMI schemes, and it plans to investigate them in conjunction with improvements in public services.
According to Project Manager Fernando Barreiro, the objective of B-Mincome is to “test and analyse how effective forms of universal economic support, combined with access to services such as housing, education, work and community participation can reduce poverty.” Results from the pilot will be used in a comparative analysis of the cost and effectiveness of different anti-poverty policies, “with the ultimate goal of developing more efficient welfare services.”
While the B-Mincome pilot bears some similarity to a universal basic income (UBI), and has been called by this name, it should be noted that the program to be tested is neither universal nor individual. Moreover, some of the GMI schemes to be tested may not be unconditional.
First, the B-Mincome program will provide a cash supplement to boost low incomes rather than a uniform and universal cash grant (as was also the case in the Manitoba’s Mincome experiment). These supplements will guarantee that no participant in the study has a household income below poverty level. However, as typical of GMI schemes, the amount of the supplement will be reduced if a household’s income increases during the course of the experiment.
Moreover, the design of the study will promote the targeting of the most disadvantaged recipients. Researchers will employ a randomized block design to ensure the representation of various types of households that tend to suffer the most poverty (e.g. immigrants, single-parent families, the long-term unemployed, and unemployed youth).
Second, as already implied, the payments will be to households rather than individuals.
Finally, some of the variations to be examined are likely to impose conditions of the receipt of the benefit. Barreiro has related, for example, that the city is considering testing a GMI program that makes benefits conditional searching for a job, participating in a training program, or doing work for the community. Such a program would be analyzed for its efficiency and effectiveness against a GMI lacking these conditions.
To develop B-Mincome, the Barcelona City Council has partnered with four research organizations and institutions: the Young Foundation, the Institute of Governance and Public Policy (IGOP) at the Autonomous University of Barcelona, the Polytechnic University of Catalonia, and the Catalan Institution for Evaluation of Public Policies (IVALUA). The city is also consulting with contacts within the governments of Finland, the Canadian province of Ontario, and the Dutch municipality of Utrecht, which are currently running or about to run their own similar pilot studies.
Sources
The Young Foundation, “Young Foundation partners with Barcelona City Council to help deliver radical project in the fight against poverty” (press release), October 28, 2016.
“Linking the Urban Development Network and the Urban Innovative Actions in Barcelona,” Urban Innovative Actions, January 9, 2017.
“B-MINCOME – Combining guaranteed minimum income and active social policies in deprived urban areas,” Urban Innovative Actions.
Fernando Barreiro, personal communication.
Photo: “Homeless in Barcelona” CC BY-NC 2.0 Melvin Gaal
Note: A previous version of this article incorrectly listed IESE as one of the City of Barcelona’s partners in the pilot. It has been corrected to IVALUA. (Edited March 2, 2017.)
by Pierre Madden | Feb 24, 2017 | Opinion
Translated from a series of French fictional stories based on the basic income: https://revenudebase.quebec/histoires/ (in French)
Written by the Revenu de Base Quebec Team
Translated by Pierre Madden
Notice
These stories are fiction. Let’s face it, Basic Income is not yet a reality anywhere (with the exception of Alaska), only a promising proposal, tested successfully on a small scale. While any resemblance to persons living or dead is purely coincidental, the situations described do resemble what real people experience every day and illustrate how Basic Income can work in practice and what impact it can have on peoples’ lives.
1. Mady and her family
Her name is really Madelyn. Everyone calls her Mady. 57 years old and recently widowed, her husband’s long illness forced her to cut her work hours in half. She was on the edge of bankruptcy. Things are better now that she is back to full-time. Going through something like bankruptcy can be tough on a person, that is why there are steps in place to help them through this with assistance like a Chapter 13 Bankruptcy Attorney Milwaukee firm or a firm within their area, that can stop foreclosures and repossessions of property. Luckily Mady didn’t get to this stage.
Her youngest, Samuel, born just before it was too late, is now 20 and still in school. He lives at home. If he hadn’t worked at least 15 hours per week since the age of 15, the phone, the scooter, the computer and the few name brand clothes he splurged on would have been out of reach. He took an extra year to finish junior college: taking all the required courses was not always possible. He is about to start college in another city. Mady doesn’t know how she is going to be able to help him pay for 4 years of university. Her other children, Helen and James,35 and 33, have their little families. They get by…
Actually, James is doing much better than Helen. Even if he and his wife don’t have permanent jobs, they manage to make enough at consulting for him and translation for her, to have a relatively comfortable life with their two kids. To get to that point, they had to survive 3 lean years around the time the children were born. They had no paid parental leave. The problem now is managing everything. Day care for one child, elementary school for the other, a bit of sports and music for all, and the constant search for contracts, a job in itself for freelance workers.
“Poor Helen!” laments Mady, “her boyfriend left her with three kids” and she calls him names we can’t print. She met him in her early thirties; they were in love; she felt it was time to have kids; now or never; he seemed to agree. Four eventful years and three children later she finds herself in an all too common misery: rare odd jobs, trading services with other “single parents” who can’t afford childcare, clothes from hand-me-downs or thrift shops, expensive rent, minimal groceries, finicky welfare agents and all the rest.
However, it is her parents that worry Mady the most. Her mother is 82 and her father 87. He is becoming senile; she is in good health. She is exhausted taking care of her husband. Mady can see that her mother won’t last long. After sixty years of marriage, she refuses to be separated from her man. Mady’s siblings live in other cities so sooner or later she will have to pick up the slack: if not with her father , then with her mother. She worries a lot about how she will manage.
Mady, her family and a basic income for all.
Let’s imagine what it would be like…
Although Helen would be no less alone with her children, she would benefit the most from a Basic Income. Her personal allocation, combined with those of her children, would not necessarily amount to more than what she receives now in aid. However these sums are without condition, without meetings with government agents, without reports, without intrusion into her private life.
Best of all, she could build on this revenue by earning more without penalty: she could really think of improving her situation by working more and more, progressively, while still taking the time to raise her kids. The future would hold promise for her and her family.
James and his wife would have had an easier time when the children were born. They could have worked a bit less and enjoyed a less crazy life. Then again, young and ambitious, they liked the hectic pace. For sure, with less uncertainty comes less stress.
Samuel would probably be a year ahead in his studies, his child’s Basic Income permitting him to not work or work much less, just to pay for a few indulgences or to help out his mother during his father’s illness. On turning 18, he gets the full adult Basic Income; at university in another city, with an apartment, food and schooling to pay, his finances would still be very tight.
Mady, for her part, would not have risked bankruptcy during her husband’s illness. She could even have stopped working to care for him. Also, she would have less apprehension at the thought of caring for her parents or of her children caring for her in the future.
2.Peter Martin Inc.
Young and prosperous industrialist, Peter Martin’s success does not go unnoticed: big house with three garages, an equally imposing cottage by a prestigious lake, a sleek and fast number to get him from his homes to the factory. Family finances certainly benefit from his wife’s medical specialist income. And their two kids can dream of studying anywhere on the planet, a planet they know well, having traveled all over, both with their parents and alone.
Peter is past forty and greying: he had to work hard to get to where he is; he had to go through a bankruptcy and several other very difficult periods. Even if in the past few years his company is in constant growth, he never gets a moment’s rest: competition is fierce and worldwide. He has to constantly win new markets in an increasingly complex environment and continue to offer high-quality innovative products to distinguish himself from everybody else.
And if only that was the end of it! Creating products, exploring markets, that’s what he does best; that’s why he built his business. He started with a few employees and worked directly with them on the shop floor. Now that there are several hundred more, it’s a different game. Recruitment and employee turnover have become factors as critical as competition and innovation. That is why implementing effective performance appraisals of employees is important to make sure they are working to their highest level, and management is doing what they are required to meet employee’s needs. To support these appraisals, employers can also look at adding in a management strategy such as real-time feedback that can help with tracking the employee’s work that they have been completing throughout the year, so when the appraisal comes they can have all the information needed at that moment.
Easy, the life of a rich industrialist? Only on the surface. Exhilarating for sure, though; Peter Martin would not think of trading places with anyone.
Peter Martin Inc., 20 years later
At the age when a salaried worker has retired, Peter Martin is still going strong and has just gone through most eventful period in his professional life: the implementation of Basic Income.
When this “thing” began to appear in the public debate, he was dead set against it
like most of his business colleagues: he thought it was raving lunacy. However, as general support for this social measure grew, at home in Quebec, in Canada and globally, he had to take it seriously.
The fundamental discussions he had had with his employees to establish joint management of his factories and profit sharing had shown him how far such measures could contribute to improving the working climate and even the product quality, not a negligible bonus. Discussions with his employees about Basic Income, heated at first, finally convinced him to take the project seriously.
From an opponent he became a supporter unlike most of his entrepreneur colleagues. When the policy was finally adopted, he couldn’t help feeling a bit nervous…
Guess what? No cataclysm occurred; no massive resignation of his personnel, his main fear. Of course a few left: most of them, temporarily, to look after a sick family member or to complete a personal project. Crazy demands for raises did not materialize. In fact, filling entry level jobs became easier and turnover in highly specialized employees dropped. Workers’ motivation improved and productivity went up. An unexpected consequence was the sharp drop in sick days, because lower stress levels employees felt in their lives and in their work.
3. Gwen and Max’s story
Small family that wants to devote more time and money to their kids, Gwen and Max were married in 2003. Tom was born in 2005, Marie in 2008, Tom is a little boy in perfect health. Unfortunately, his sister was born with a hearing deficit that delayed speech and reading development. Thanks to the help from the local hospital and from her teachers, Marie is improving every day.
Max was a union worker in the automotive industry. He was laid off in 2008 after the economic crisis and now works part-time operator mechanic, and while he worked there he may or may not have been using an auto repair invoice template for the work he does in the side but unfortunately doesn’t now due to a sharp drop in pay. If he could pay for the training, he would upgrade his skills to get a commercial job.
Gwen tops up the family revenue by working part-time in local businesses. Her hours change constantly, which on top of low pay, prevents her from being with her children as much as she would like. The parents are concerned that they won’t be able to provide their kids with the best chances of success such as the school aid programs and other opportunities available to their classmates.
If Gwen, Max, Tom and Marie could benefit from a Basic Income, their situation would improve considerably. Marie could take dance classes after school to help with her integration and get support to improve her reading. Tom could afford hockey equipment and join the school team. Thanks to a secure source of funds each month, Max could undertake the training needed to reorient his career. Gwen could spend more time with her children by not having to work while they are at home. This small additional revenue would greatly improve their family life and the future prospects of both parents and children.
4. Jane’s story: raising your child alone
Jane is 40, her daughter Emily is 12. It’s just the two of them. Emily’s father left them when she was 4. Jane wants to make sure that her daughter does not follow in her footsteps. Jane works as a waitress in a local restaurant and has trouble making ends meet. Paying the bills while still putting healthy food on the table for Emily is a challenge. Jane finds welfare humiliating so she has not applied for government aid even if she is eligible. She would like to earn more but has neither the training nor the opportunities to increase her revenues.
With a Basic Income, added to her waitress salary, Jane would be better able to take care of her daughter, spend more time with her when necessary, provide balanced meals, let her study, do sports. Jane just needs more freedom in her choices, without having to answer to the government.
With a Basic Income, Jane’s economic situation would have no impact on Emily’s schooling. Her daughter would have the same chance of professional success as children born in more privileged environments.
5. The story of Gabe, entrepreneur
Gabe has always dreamed of being his own boss. Although, at the moment, he works for a big company and earns a comfortable living, what he really wants is to start his own business. When he was in college, Gabe invented a more efficient cement pouring system which could save up to 25% of the time needed to lay foundation in large construction sites. Unfortunately, because he had to pay back his student loans, Gabe was unable to launch his business and instead took a job in a civil engineering firm.
In 2012, because of rising rent, he bought a little condo. He was about to make a move when he realized that his monthly payments made it unrealistic to leave a stable job and go for it. In case things did not work out, he would lose his condo and have to go crawling back to his old employer.
A Basic Income would give Gabe the financial security he needs to create his business. Indeed, the monthly amount would be sufficient to cover his student and condo payments and have enough to eat. A bank loan would become possible in order to launch his company. He would then have the credibility to approach his current employer to enlist his support for the project. Gabe figures it would take a year of hard work to demonstrate the potential of his new technology and start generating revenues.
Basic Income is the launching pad he needs to become his own boss.
6. Arnold Choi’s story
Arnold arrived in Canada in 2013 with only a work permit in hand. Now he is a permanent resident and well on the way to becoming a Canadian citizen.
As an engineer from China, he came to Montreal to earn money to send back to his family back in Beijing. Arnold fell in love with Canada. He is well integrated in the community, goes to church every Sunday and volunteers at a food bank.
He works as an engineer in a buildings and public works company and has been able to put aside enough money to think of bringing his wife Suzanne and their children to Canada.
Unfortunately, his father became very ill in 2014. Arnold had to return to Beijing, to look after him and accompany him in his final days. Medical and funeral expenses were substantial and now Arnold can no longer afford to bring his family to Canada.
With a Basic Income, Arnold could have brought his family to Canada and supported them in their new life. Arnold can appreciate to what extent the Canadian population is the fruit of immigration. Arnold being a member of the community, it is only fair that he should bring his family. A Basic Income would give him enough security to reunite his family and perhaps make new citizens for Canada.
by BIEN | Feb 20, 2017 | News
(Image Credit to University of Toronto)
You are a family doctor, with unique insights into the Canadian health care system. Your new book, Better Now: Six Big Ideas to Improve Health Care for All Canadians, poses, as per the title, six big ideas to improve the Canadian health care system. What inspired you to write this book?
Each chapter in the book was named after a patient in my practice who I was inspired by and this is a book about their stories. I think that when people pick up a copy of Better Now, they will see themselves in the stories, or a friend or a family member. Many of us have had similar experiences in the doctor’s office, or we know of someone who has. As a family doctor, I see the challenges my patients face because of problems in the system. These problems often feel outside the control of both individual patients and providers. But as someone who studies health system issues, I know that a lot of those problems can be fixed, and importantly we can fix them in ways that build on the value of fairness that is so important to Canadians. I felt a book was a good way to give voice to these issues and to try to get people like my patients and your readers more engaged in pushing for improvements.
Big idea 1 is the return to relationships. What does this mean for Canadian health care?
We know that around 85% of Canadians have a family doctor, so that’s a great place to start. But having a good relationship with your doctor comes next. This relationship should be one where there is open communication, so that we as doctors have the chance to really understand what patients need when they come in to see us. In my book, I say that the notion of being seen by “someone who knows you” is central to primary care. The best place to integrate all your health needs is a place where, like the bar in Cheers, everybody knows your name. So, for example, if you come in to see me for a cold, I would help you with that, but while you were there, we might also sit and talk about other concerns you may be having, discuss your family history with a disease, talk about screening and what we need to better manage your health. This relationship can also help to guard against overtreatment or over-doctoring. For example, in my book, I talk about my patient Abida and how we’ve worked to reduce the number of medications she takes and the specialists she meets with over the years, to her benefit. We’ve also tried to limit the number of times she goes in to the emergency room by making sure that she sees me more often, vs. other healthcare providers who many not know about as much about her health history.
Big idea 2 is a nation with a drug problem. What is our drug problem in Canada? What is the remedy or the solution for it?
Drugs have always been an issue, whether legal or illegal. For example, lots of families have seen their loved ones experience horrible side effects because of prescription drugs that have been through rigorous trials. You can visit website to find out more about how they seek compensation for this. Anway, a bigger issue with drugs is that some people just can’t afford them. We know that one in five Canadian households report that someone in that household is not taking their medicine out of concerns about costs. We need a public drug plan that covers all Canadians and does not have high co-payments so that patients can afford to take their life-saving medications. A strong national pharmacare program would solve our access problems and save Canadians billions of dollars. If done right, a pharmacare program could also help to reduce overmedication and inappropriate prescribing – problems that affect too many Canadians, especially seniors. Canadians believe in the principle that access to health care should be based on need, not ability to pay. That principle needs to be extended beyond doctors and hospitals to include universal access to a publicly-funded formulary of essential medicines.
Big idea 5 is a basic income for basic health. That is important to BIEN. It is, specifically, a basic income guarantee. What is the specific definition of a basic income guarantee in big idea 5? How would this impact the Canadian health care system?
A basic income guarantee means that if your income falls below a certain level, you would be topped up to a level sufficient to meet your basic needs. It’s a departure from our current social assistance program in two ways:
- A basic income would ensure that everyone in Canada has income above the “poverty line.”
- It would work through the tax system and be easier to administer with the only eligibility requirement being a person’s income. Who you live with or whether you were searching for work or attending a training program wouldn’t be factored into whether you are eligible to receive support.
Medicine isn’t the only thing that makes us healthy. If you can’t afford good food, your rent or safe housing, it’s harder to be healthy, so we need a basic income for basic health. By ensuring that everyone has access to a basic income, we can improve health and decrease costs in the health care system by reducing or eliminating poverty. For example, in Manitoba in the 1970s, a small income top-up for people in poverty reduced hospitalizations by 8.5%. If we could find a drug as effective as that, we would put it in the water supply!
About the Author
Danielle Martin is a family physician in Toronto and Vice President, Medical Affairs and Health System Solutions at Women’s College Hospital. Her book, Better Now: Six Big Ideas to Improve Health Care for All Canadians, was released by Penguin Random House in January 2017. For more information on her current book tour watch here and follow @docdanielle on Twitter.
