An Interview with André Coelho

André Coelho (credit to: Ann-Kathrin Anthon)

André Coelho (credit to: Ann-Kathrin Anthon)

What made you become an activist for basic income, and devote so much time to it?

A revolution is taking place here and now, and each person has a choice: to be an active part in that revolution (to work for it to succeed), to be a passive part in it (to let it happen, if it must), or to fight against it. For me, the latter is just plain nonsensical. To be passive does not quite go along with my character, so I guess I could only go with the first one.

I identify with this revolutionary course – the implementation of basic income – because it’s about recognizing the humanity in us all, of our birth right to a decent living, and enough freedom to actually pursue happiness in this life.

What are other terms or phrases for ideas associated with, but not the same as, Basic Income (BI)? What characterizes them?

In most welfare states there are social benefits in place, paid in cash or in the form of tax credits. However, all of them are conditional, usually on income and/or willingness to take up a job. In Portugal, for instance, there is a minimum insertion income (RSI), which is only given to people who clearly show they have no other source of income.

There are also, for example, child benefits, disability benefits, income assistance…a whole set of income redistribution schemes, which always entail some conditionality. The only exceptions I know of, other than basic income pilot projects, are the Alaska and the Macau dividends. The latter two dividends, although unconditional, are not basic (not enough to cover basic expenses).

What makes the BI plan of action unique?

If I can put my finger on one main feature, I would say it is its unconditional nature. That’s what makes people roll their eyes around. What? Now we’re giving all this money to people, even if they don’t work? That’s just plain unfair.

Well, of course this is a short sighted opinion at best, and a plain lie at worst. It’s a limited view on our humanity. Usually people view themselves as active and willing to contribute with their work, but then are suspicious that their neighbours will do the same.

Of course that if everyone thinks this way we’ll arrive at an impossible proposition: that everyone is active and willing, while not being active nor willing, at the same time. But apart from our personal sensibilities, results from basic income pilot projects show that people contribute as much or more to society with their work, while receiving a basic income.

And even when slight decreases are observed, these are coupled with investments in education.

What are the most common success stories of BI or similar programs? Any failures? 

The basic income pilot projects I usually cite are the Namibian, Indian and Canadian experiences. The first two were experiments in very poor, rural contexts, while the Canadian one was both urban and rural, involving the entire local population.

In all these cases, people receiving the basic income did not stop working (clearly the opposite in the Namibian and Indian cases), health conditions improved, as well as education indicators. There were also other benefits, such as reduced crime rates (in Namibia and India).

I think that, in the context of basic income experimentations, there cannot be ‘failures’. If done properly, these experiments aim to widen our knowledge, while temporarily helping the populations in question.

Of course that, as it was the case in the United States experiments, the results can be “spun” in different ways for political purposes. But that is always a risk attached to any experiment, especially those related with social behaviour.

What country seems the most progressive and forward thinking in implementation of BI?

According to news information around these days, Finland seems to be the part of the world most willing to formally take up the idea of trying basic income. Finnish officials and partners are developing an experiment, which is setup to start in 2017.

However, I would not say that translates necessarily into greater progressiveness than other regions of the world. The Finish experiment is already plagued by several shortcomings, even before it has started (although I still think it’s worth it).

The Canadian central and regional governments, and particularly the latter, are also seriously considering experimenting with the basic income. As well as regional Dutch officials, who are already developing their own basic income experiments (similar to Finland’s experiment).

Let’s also not forget the Swiss case, that recently held a national referendum on the subject. And also Spain, particularly in the Basque region. However, the interest in basic income is growing quickly around the world, so who knows who will implement it first?

Activist networks for basic income are also spreading. At this moment, BIEN already has 30 national and regional affiliates, and this is expected to rise in the next few years.

What is your work on BI?

At Basic Income News, I do writing, editing, training and coordinating. I also represent BIEN, on occasions, as an advocate for basic income in international meetings (up until now, related to the CO-ACTE project).

Locally, I also participate in some actions for our activist network in Portugal, by writing articles, speaking at venues and organizing events.

Any advice for would-be policy makers or activists about strategies for the implementation of BI?

I guess that if I could choose one piece of advice it would be not to consider basic income as a ‘miraculous’ cure for all social problems. Basic income is a helpful tool, even a crucial one, but cannot replace a “systems approach” thinking about society, a holistic view.

Also I would recommend to self-analyse and make clear why each of us is defending basic income, and how we think it should be implemented. Because the devil is in the details, and basic income can get “dirty” when analysed in its implementation depth.

I have been, more than once, challenged by the possibility of a “right-wing” basic income, which would come as a replacement of all other social benefits and welfare state public systems, including health and education.

This approach to basic income is common among the “right-wing” side of the political spectrum. It is dangerous and a real possibility which all activists should be aware of if they really care about the wellbeing of present and future society.

Thank you for your time, André.

US: Per Caps, Basic Income, and Learning from Tribal Nations

US: Per Caps, Basic Income, and Learning from Tribal Nations

By Jennifer Lawson

Per capita payments, or ‘per caps’, as they are known in Indian Country, function as a kind of basic income for tribal nations that have them. In this piece, I want to examine the distinct difference between the thinking about such a basic income in Indian Country and the United States in general.

The other day, I was talking to a small group of non-native Americans about basic income. One of them said to me, “Basic income seems like something like that would take a long time to gain ground.”

In the United States in general, the thinking about basic income is not as far along as it is in Indian Country, where per caps have been a staple for many tribes for several years.

One of the first questions, for tribes that gained discretionary income in the last decade, has been, “What do we do with this money?”

Many tribal nations have tribally owned businesses and, unlike the general thinking in the United States, no one worries that this may be a form of communism or socialism. It is simply, for many tribal nations, in keeping with their tribal values to have a collectively owned business.

The revenue from such businesses, as well as the revenue from natural resources and other ways tribes gain money, provide the discretionary income that tribal nations work with.

The answer to the question, “What do we do with this money?” is answered differently by different tribal nations. Some provide services to their citizens, such as childcare, early childhood education, hospitals, and so forth. Others provide per caps to their members.

I do not want anyone to come away thinking that tribal nations are flushed with cash or that Native people are, in general, rich from per caps. Rather, I want to look at the differences between the tribal way of thinking and the United States’ way of thinking

From the tribal point of view, when you have a collectively owned business, it makes sense that one option would be to divide the revenue up and disperse it among citizens of the tribe. In general, what to do with the money is voted upon and the decision about what to do with the money is decided that way.

For non-native people, we do not have collectively owned businesses to decide how to divide the revenue. A large portion of people in the United States would rebuke such a business as socialism or communism.

However, we do have other ways of gaining access to a basic income without having collectively owned businesses. Some have suggested taxing pollution, for example.

For tribal nations, some of the arguments that are familiar to people in basic income have been espoused, both for and against. One worry, for example, is that people will not attend college because the thinking What’s the use? is in effect. That is, if you don’t need to attend college for future employment, why go? This thinking saddens many tribal people, who have a pre-colonial history of being interested in education, contrary to stereotypes.

But the biggest issue for tribes, which has become a real problem, is that of disenrollment. Disenrollment is, in effect, making people ineligible to be tribal citizens. While many tribal nations are growing as of late, some tribal nations with per caps have closed and/or tightened up their citizenship requirements to make per caps go further, and to allow each individual to have as much money from per caps as possible. If a tribal nation is doing pretty well economically, it does even better when the tribe is small.

With the large population of the United States, as well as our open citizenship requirements, where people may become citizens after completing various acts and learning about our government and founding documents, what we can afford to give our citizens depends on how we collect that money.

Because the issue of having collectively owned businesses seems to be less compatible with the values of the United States than of tribal nations, we of the United States have to be creative in how we decide to fund a basic income.
No matter the problems that tribal nations have experienced due to per caps, what is clear is that tribes that have the ability, and vote accordingly, can provide a basic income for their citizens. This should make us wonder why the United States, which has more wealth, opportunity, and so forth, cannot.

Looking over the state of per caps in Indian Country has made me, at least, realize that it can be done, and that we should do it. After all, if we had a basic income, I might be able to be in Standing Rock right now, standing with my Native brothers and sisters against the Dakota Access Pipeline—or engaging in other activist or cultural activities.
There is much that Indian Country can teach us. The issue of basic income is one we should look into further.

TAIWAN: A new political party to promote basic income is under preparation

TAIWAN: A new political party to promote basic income is under preparation

(Photo credit to: Lonely planet – Taroko Gorge, Taiwan)

A political party in Taiwan, called the Basic Welfare Party (formerly known as the Taiwan Republican Party) includes the basic income as a core policy. The groundwork for the party is still being established as of January 2017. The BWP was initiated by members of Taiwan Global Basic Income Social Welfare Promotion Association and Yu Hua Zhai charity vegetarian restaurants in Taiwan. The party’s goal is to promote constitutional, legislative and judicial reform. With these goals, the BWP hopes to contribute to the realization of a country that acknowledges the importance of social welfare and the law, ensuring the right to a minimum livelihood through the establishment of an unconditional basic income for all people. As of January 2017, the BWP does not yet have a chairperson and is seeking individuals to fill the role.

One important figure in Taiwan is Dr. Tien-Sheng Hsu, Taiwan’s Family Medicine and Psychiatrist medical doctor as well as the Seth mental and physical clinic president. On June 5, Dr. Hsu spoke about Switzerland’s movement for the referendum on a basic income in a public speech. When discussing the basic income policy, Hsu said that hypothetically if he were the president of the Republic of China, he would give every citizen 30,000 New Taiwan Dollars (NTD) per month. In the same speech, he claimed that independence and reliance must forever be actively interwoven. In some ways, reliance allows our creativity to flourish. Because of this, Hsu said that if everyone’s basic security was taken care of with 30,000 NTD, then people would be more willing to take risks to achieve their ideal careers or life.

Dr. Tien Sheng Hsu

Dr. Tien Sheng Hsu

On June 8, Dr. Hsu and a doctor of international relations, Dr. Xinyi Ma, hosted the talk show “Voice of A-Sheng” which discussed international and domestic Taiwanese news from the perspective of mental and physical health. This program also brought up the Switzerland referendum on basic income. Dr. Hsu and Dr. Ma discussed the possibility of the people of Taiwan launching its own basic income referendum.

Dr. Hsu and Ma wondered whether such a referendum would pass in Taiwan, but Hsu said he approved of the essence behind Switzerland’s proposal, which was to guarantee a basic standard of living for every person. Dr. Hsu also said an important consideration is how such a basic income would be funded in Taiwan.

On several occasions, Hsu seemed to joke that he should become the President of the Republic of China so he could give 30,000 NTD to every citizen. It us unclear if Hsu is serious about his presidential aspirations or if the comments were meant to illustrate the effects of a hypothetical basic income.

During the program, Dr. Hsu and Dr. Ma also analyzed the topic of unconditional basic income from a psychological perspective. They maintain that “You create your own reality.” They defend that, when people go back to their inner state of grace, with their basic survival guaranteed, they feel protected by love, wisdom, mercy, creativity and the magical power of the universe. Dr. Hsu and Dr. Ma begin with the premise that every person’s existence is loved, every person in the universe is cherished. From here the whole society is then built, letting our humanity gain greater degree of freedom within. They say that if most people move in this direction, perhaps the social system we desire could really be built. Take the people from Switzerland, Finland and Holland: these are regions from which the Taiwanese people can learn from.

According to Dr. Hsu and Dr. Ma, if the idea of the basic income does not bring in our inner-selves, but rather employs the violent power of government, then it has again been distorted. Thus we must create the basic income from within, rather than from extrinsic pressure that makes everyone adhere to a certain system. So, Dr. Hsu and Dr. Ma urge, let’s use our intrinsic nature to embark on this endeavor. We can then achieve the feeling of inner richness and, in a state of grace, the proper external reforms will follow.

Editors note: The above article was revised on January 23, 2017 to add context about the nature of Dr. Hsu’s comments and included links to the original speeches. The article was also updated to reflect the current status of the Basic Welfare Party and to reflect the name change of the group from the Taiwan Republican Party.

 

Written by Juku Shenguang: Founder, Vice-president and Secretary-General of Taiwan Global Basic Income Social Welfare Promotion Association

Translated by Tyler Prochazka

Reviewed by André Coelho and Kate McFarland

Referendum and basic income: Parallels with Brexit

Referendum and basic income: Parallels with Brexit

There was an uncanny similarity between two referenda held in June: the UK’s referendum on whether to remain in the European Union, and the Swiss referendum on a Citizen’s Income. In each case, the ballot paper asked a simple question: whether to remain or leave, and whether to establish a Citizen’s or Basic Income – an unconditional income for every Swiss citizen. In the latter case, the wording was explicit that the Swiss federal government was to decide on the level of the Basic Income and on the means of funding it.

And then in both cases the campaigns leading up to the referenda were less about the referenda questions than about very different issues.

In the Swiss case this was largely the fault of the proposers of the referendum question. The wording having carefully left the decision as to the level of the Citizen’s Income to the Swiss government, the campaigners then suggested a level of 2,500 Swiss francs per month – about £400 per week. It was largely this that led to so many members of the Swiss parliament asking people to vote against the proposal; it was the proposed figure that dominated the campaign; and it was the fear of the massive tax increase that would have been needed to fund such a large Citizen’s Income that led to so many people voting against the proposal. All of this could have been avoided quite easily. If the campaigners had wanted to inform the debate about potential levels of Citizen’s Income and possible funding methods then they could have undertaken the kind of careful costing work that we and others have undertaken in the UK. If that had happened, then the government could have made clear the level of Citizen’s Income that they would be likely to agree on if the referendum were to pass, and the debate and the decision might have been rather more rational.

Having said that, the referendum was in many ways a success. The referendum was held; it contributed significantly to media and public interest in Citizen’s Income, both in Switzerland and around the world; and 23% of the Swiss population approved of the idea. The referendum will be seen as an important stage in the Swiss and global Citizen’s Income debates.

In the British case there was always going to be a problem. Public understanding of the European Union is almost non-existent, so the only information that most people had available to them were the halftruths that campaigners on both sides and the press chose to feed to them. Members of the public were told that we could avoid EU workers having the right to live and work in the UK and trade within the single market, even though the European Commission had made it clear that remaining within the single market was conditional upon allowing EU workers to live and work in the UK. Throughout the campaign, leaving the EU was touted as a way of preventing immigration, whereas most immigration is from outside the EU and was therefore nothing to do with the question on the ballot paper.

There are two lessons to draw from these two referenda. One is that referenda are a bad idea in the context of an ill-informed public and a biassed media. The question on the ballot paper might be a simple one, but if it is about a complex reality then even generally well-informed members of the public might have little understanding of the possible consequences of a referendum result – whatever that result might be. In relation to complex issues about which members of the public understand little, representative democracy is the least bad system of government, and it is safer than referenda. It enables proposals informed by a civil service to be debated in a parliament and in committee, to be amended, to be tested in another parliament, and then amended again. Such a method has to be preferable to a one-shot referendum ill-informed by emotive campaigns. This is not to suggest that referenda are never appropriate. If the public is well informed about the issue on the ballot paper, if campaigns are based on evidence, if experts are heard, and if the print and other media see it as their role to educate rather than to persuade, then a referendum has some chance of assessing an informed population’s view on the question on the ballot paper. The 2014 referendum on Scottish independence came closer to this ideal referendum than either the Swiss Basic Income referendum or the recent British referendum on EU membership; and the Swiss Basic Income referendum came closer to it than the British referendum on EU membership. It would take a massive educational effort to enable the UK’s population to gain a sufficient understanding of the desirability and feasibility of a Citizen’s Income to enable it to compare a benefits system based on a Citizen’s Income with the current system. Whether such an educational effort is possible, or such an outcome feasible, must be in doubt: in which case the safer method will be for the institutions of representative democracy – Parliament and the Government – to evaluate the arguments for a Citizen’s Income and to decide in accordance with their findings.

The second lesson to draw is that careful research is essential if any future debate about Citizen’s Income is to be sufficiently well informed. It has been a pleasure to see recent well researched reports from the Royal Society of Arts, the Adam Smith Institute, and Compass, and up to date costings and other statistics relating to a particular illustrative Citizen’s Income scheme have recently been published by the Institute of Social and Economic Research at the University of Essex. We hope soon to be able to publish costings and other information relating to a couple more illustrative schemes, and we also hope to have available soon some information on how a range of typical households’ net incomes would be affected by some illustrative schemes. We would like to see even more research organisations involved in the rigorous testing of the financial feasibilities and consequences of illustrative schemes.

There is a connection between the Swiss and British referenda: EUROMOD, the microsimulation programme that we use to evaluate illustrative Citizen’s Income schemes. The programme’s development is funded by the European Union. We are very much hoping that the UK will continue to be involved in the European collaboration that makes such a useful piece of research infrastructure possible.

Another connection is the one between Citizen’s Income and important factors in the British European Union referendum. Widening inequality and deep social divisions appear to have been important motivations for voting to leave the EU, even though leaving the EU is unlikely to remedy the situation and might even make it worse. A Citizen’s Income would help to reduce inequality and to heal social division. It is therefore essential that widespread informed debate on Citizen’s Income should take place, and that the institutions of representative democracy should decide to implement a Citizen’s Income: perhaps informed by an advisory referendum.

US: President Obama calls UBI “a debate we’ll be having” in coming decades

US: President Obama calls UBI “a debate we’ll be having” in coming decades

United States President Barack Obama addressed universal basic income in a question in an October 12 interview with Wired Editor-in-Chief Scott Dadich and MIT Media Lab director Joi Ito.

The interview covers a plethora of issues surrounding the political, economic, and ethical implications of artificial intelligence. After discussing regulation, funding, and cyber security, among other topics, it is Obama who turns attention to the economic implications of AI and, in particular, the specter of technological unemployment:

One thing that we haven’t talked about too much, and I just want to go back to, is we really have to think through the economic implications. Because most people aren’t spending a lot of time right now worrying about singularity—they are worrying about “Well, is my job going to be replaced by a machine?”

He then expresses optimism regarding the possibility for continued job creation in the face of technological progress (“historically we’ve absorbed new technologies, and people find that new jobs are created, they migrate, and our standards of living generally go up”); however, he proceeds to warn that the government must do what it can to ensure that the gain do not simply go to a “small group at the top”:

Low-wage, low-skill individuals become more and more redundant, and their jobs may not be replaced, but wages are suppressed. And if we are going to successfully manage this transition, we are going to have to have a societal conversation about how we manage this. How are we training and ensuring the economy is inclusive if, in fact, we are producing more than ever, but more and more of it is going to a small group at the top? How do we make sure that folks have a living income? And what does this mean in terms of us supporting things like the arts or culture or making sure our veterans are getting cared for? The social compact has to accommodate these new technologies, and our economic models have to accommodate them.

Following up on Obama’s remarks, Ito broaches the topic of UBI:

… I don’t know what you think about universal basic income, but as we start to see people getting displaced there’s also this idea that we can look at other models—like academia or the arts, where people have a purpose that isn’t tied directly to money. I think one of the problems is that there’s this general notion of, how can you be smart if you don’t have any money? In academia, I see a lot of smart people without money.

In reply, Obama acknowledges that the debate over UBI would continue over the coming decades and, moreover, highlights another influential argument often given in its favor–recognition of the value of unpaid (and underpaid) labor:  

[W]hether a universal income is the right model—is it gonna be accepted by a broad base of people?—that’s a debate that we’ll be having over the next 10 or 20 years. You’re also right that the jobs that are going be displaced by AI are not just low-skill service jobs; they might be high-skill jobs but ones that are repeatable and that computers can do. What is indisputable, though, is that as AI gets further incorporated, and the society potentially gets wealthier, the link between production and distribution, how much you work and how much you make, gets further and further attenuated—the computers are doing a lot of the work. As a consequence, we have to make some tougher decisions. We underpay teachers, despite the fact that it’s a really hard job and a really hard thing for a computer to do well. So for us to reexamine what we value, what we are collectively willing to pay for—whether it’s teachers, nurses, caregivers, moms or dads who stay at home, artists, all the things that are incredibly valuable to us right now but don’t rank high on the pay totem pole—that’s a conversation we need to begin to have.

Last June, President Obama was asked about universal basic income in a Bloomberg Businessweek interview. Specifically, the interviewers asked about Obama’s view on UBI as a possible solution to economic disruption caused by globalization, and Obama replied by explaining that automation would likely produce even greater disruption (perhaps deliberately courting UBI supporters), while not taking a firm stance on–or even explicitly mentioning–UBI.

Obama’s recent remarks, then, may represent his most direct–and most sympathetic–comments on UBI to date.

On November 8, Americans will vote on the next President, to be inaugurated on January 20. Frontrunner Secretary of State Hillary Clinton has spoken about basic income rarely, and has not expressed support. In an interview with LinkedIn’s Daniel Roth (“From bots to Brexit: Hillary Clinton explains how she’ll manage this uneasy economy”), published on June 28, she directly rejected the policy –saying that she’s “not ready to go there” and instead focusing on job creation and expansion of the earned income tax credit.

References

Davey Alba (October 12, 2016) “We must remake society in the coming age of AI: Obama,” Wired.

Scott Dadich (October 12, 2016) “Barack Obama, Neural Nets, Self-Driving Cars, the Future of the World,” Wired.


Reviewed by Ali Özgür Abalı

Photo: “President Barack Obama observes the Cybernetic Human Robot” CC BY-ND 2.0 U.S. Embassy, Jakarta