by Joe Timothy | Dec 19, 2015 | News
After months of meetings, studies and reports on Basic Income, Namibia takes another step forward towards adopting a basic income policy. President Hage Geingob has announced new plans that will aim to eradicate poverty by 2025. At the heart of this radical strategy is the introduction of basic income grants.
The “Harambe towards prosperity” Masterplan sets out a variety of new policy ideas to kick-start the Namibian economy. These ideas are aimed at building a stronger infrastructure, and introducing major economic and social developments. Alongside basic income grants the plan also commits to major infrastructure projects such as: improved commuter trains, housing for government employees, and improved energy and water provision.
The central goal of the plan is to eradicate poverty by 2025, and the government believes that basic income grants will be the primary mechanism by which this happens. The government hopes to introduce cash payments to each citizen regardless of age or income.
However, unlike a pure form of basic income, Namibia’s may come with some conditions. “The basic income grant will be revised and linked to the activities of the food bank. Other conditions may be attached to the BIG, thereby making it a conditional basic income grant,” stated President Geingob.
These ambitious plans don’t come without their challenges, however. Namibia has major problems with housing, water supply and very high levels of unemployment. These issues along with recently criticized infrastructure projects may prove to be major challenges to President Geingob’s plans and thereby the introduction of any basic income grants. Nonetheless, basic income has been on the political agenda in Namibia for some time and this is another step in introducing it into mainstream politics and decision-making.
For more information, see the following source:
Shinovene Immanuel, “Geingob makes more promises” , The Namibian, December 15, 2015
by Vito Laterza | Dec 15, 2015 | News
New Orleans-based writer and basic income advocate Scott Santens has become the first person to successfully crowdfund a perpetual monthly basic income. Starting his campaign on October 13, 2014 on the crowdfunding platform Patreon, Santens achieved his goal of $1,000 per month fourteen months later on December 11 with the help of 143 funders ranging from venture capitalists and Facebook engineers to women’s rights advocates and artists who all believe everyone needs a basic income.
Basic income is quickly gaining prominence in think tanks and policy circles worldwide due to growing concerns brought on by advancing technologies like self-driving vehicles and artificial intelligence, and also growing inequality. It is the idea that everyone should receive, individually and without conditions, an income floor sufficient to cover the most basic needs of life like food and shelter. All income earned through the labor market would then be earned on top of one’s basic income as additional income, and many existing government programs would no longer be required as a direct result. This idea is not new, having at one time been advocated by both Milton Friedman and Martin Luther King Jr., but today’s advocates from both the right and left think its day may have come.
“Basic Income has been taking off with incredible speed in the last few years,” says BIEN co-chair and author Karl Widerquist of SFS-Qatar, Georgetown University. “Activist movements for basic income are growing, and it’s already getting serious attention from governments in Finland, the Netherlands, Switzerland, and other places. The success of Scott’s campaign for the first crowdfunded basic income in the United States is both a reflection of the growth in the basic income movement and a catalyst for further growth as Scott’s life now demonstrates how basic income can work.”
Such a real-life demonstration is possible through Patreon. As a Kickstarter-like crowdfunding platform, but for creators instead of products, Patreon supports ongoing campaigns for content creators like musicians, artists, 
bloggers, vloggers, podcasters, and photographers that are funded by fans of their work with small pledges of monthly support.
“Patreon is supporting the emerging creative class. We see a future where creators like Scott can earn a living doing what they are passionate about,” says Graham Hunter, Patreon Director of Marketing. “A recent grad from Art or Music school right now doesn’t necessarily feel confident that the value that they provide will be valued by the world; Patreon is changing that.”
Having reached his goal, Scott plans to continue his advocacy for universal basic income and has also promised to give any and all future pledges of support to others on Patreon who have pledged to do the same. This is what he calls “The BIG Patreon Creator Pledge” to assist others on Patreon in attaining their own basic incomes. “Creators want to create. Creators don’t need to be paid to create. However, creators also need to eat. Creators need to have homes. Creators can’t create so long as they aren’t free to create,” wrote Santens earlier this year on his blog in an open thank you letter to Patreon. “People need to be free to create and until universal basic income exists, Patreon can make that possible.”
Scott’s track record as writer and basic income advocate is impressive. His pieces about universal basic income have appeared on The Huffington Post, the Institute for Ethics and Emerging Technologies (IEET), The Daily Dot, and Quartz. He has presented at the first World Summit on Technological Unemployment and participated as a panelist at the Brookings Institute. As an organizer, he helped plan the first Basic Income Create-A-Thon. He is an advisor to the Universal Income Project, a founding committee member of the nonprofit D.C.-based organization Basic Income Action, a coordinating committee member of the U.S. Basic Income Guarantee Network, and founder of the BIG Patreon Creator Pledge.
You can follow Scott’s writings on his personal blog and also on The Huffington Post. On social media, you can find him on Twitter, Facebook, and Reddit where he moderates the/r/BasicIncome community.
by Nicole Teke | Dec 13, 2015 | Opinion
In the past few months, basic income has been widely debated in the French public arena and mainstream media are starting to pay attention to it. This trend has been influenced by the announcement of pilot projects in the Netherlands and Finland, and the upcoming referendum in Switzerland.
Recently, there have been important developments in the national political arena too. On November 13, an amendment to the 2016 Budget Law proposing the adoption of a basic income was debated in the National Assembly, one of the two houses of Parliament. The proposal was introduced by Frédéric Lefebvre, MP from the right-wing party Les Républicains. The amendment was not approved, but the chairman of the Finance Commission, Gilles Carrez, approved the creation of a multi-party parliamentary working group on the issue.
This constitutes a real improvement in terms of political discussions on this topic. However, BIEN French chapter, the French Movement for Basic Income (FMBI), has expressed concern about the proposed measure. The amendment promotes the introduction of a universal income for all French citizens – but not other residents – that would replace all welfare benefits. All unemployment and housing benefits, as well as student allowances and old-age pensions, would subsequently be suppressed. (You can read the amendment in French here.)
Most people who depend on their social benefits would be strongly affected. The amendment seems to have been designed to reduce public debt, without taking into consideration the negative impact it could have on the welfare system. The proposed basic income does not sit well with FMBI’s stance. A basic income should not undermine the welfare system, but reinforce it. It should also promote more freedom of choice.
The amendment mentions recent developments in Finland. In the Finnish case too, there are concerns that the government might be experimenting with a basic income to replace other social benefits and reduce public spending. As far as the French proposal goes, it does not consider the implications for citizens and residents, especially those in the most vulnerable groups. It also fails to look at how the proposed basic income would enhance individual freedom of choice.
This is just the beginning of a serious political discussion. There is still a lot of work to do to develop proposals about the kind of basic income France should adopt. Yet, the fact that there is growing debate in all spheres of French society is a positive and welcome development.
by Vito Laterza | Dec 9, 2015 | News
In the last week, the basic income experiment in Finland has gone viral, making headlines around the world, from UK-based Telegraph to Russia Today. Not all the reports however were correct. Here is what we know.
Update March 2016: KELA has published its recommendations – see a summary here.
Some articles mistakenly gave the impression that the Finnish government has already made plans to introduce a nation-wide basic income. As we reported before here and here, for now the government has committed to implement a basic income experiment. KELA, the Finnish government agency in charge of welfare benefits, rectified the misperception on Tuesday.
In a previous statement released on November 19, KELA provided additional information about the experiment. It highlighted four objectives behind the program. It aims to find feasible options for an overhaul of the social security system in response to labor market changes. Some of these trends include the growth of temporary contracts and freelance work that is not covered by the current work-based benefits structure. The experiment will also explore how to make the system more effective in terms of providing incentives for work, and avoiding the poverty trap – benefit recipients are discouraged from taking up employment, if the additional income received from a job is only marginally higher than means-tested benefits. Another goal is to reduce bureaucracy and simplify complex and costly procedures for administering benefits.
The experiment will be carried out in a context marked by three years of economic downturn, which has led to rising unemployment and pressures on public spending. The current center-right government took office after general elections in April this year, and is carrying out a wide-ranging program of cuts that will affect education, health and welfare provisions.
A working group has been created with the task of providing a preliminary study that will lead to the actual experiment. The study will identify a model for basic income to be tested. The experiment will evaluate the effects of giving a basic income to members of different population groups, and produce an overall cost estimate.
The preliminary study is a collaboration between Kela’s Research Department, the Universities of Helsinki, Tampere, Turku and Eastern Finland, the Sitra Innovation Fund, the think tank Tänk, and the VATT Institute for Economic Research. Kela’s research director Professor Olli Kangas is the project’s head. The study is already under way. A decision by government on the details of the basic income experiment is expected in the second half of next year. The experiment is scheduled to start in 2017.
The American news website Vox published a PowerPoint presentation by Kangas that highlights some of the issues currently under discussion in the working group. BIEN-Finland President Otto Lehto stresses that this should be read as a general indication, rather than an official position of government or the working group.
The government has set aside 20 million euros for two years for the experiment. There are several options that the working group will consider. The first is a full basic income, where the amount paid to participants would be high enough to replace “almost all insurance-based benefits”, hence a significant monthly sum. As in other European welfare states, Finland has an insurance system where workers receive their unemployment and pension benefits from sector-specific funds. These are usually higher than the basic benefits administered to welfare beneficiaries regardless of their occupational status. The figure of 800 euros per month circulated by many news outlets is to be read as a possibility under this option, rather than anything set in stone.
The second option is a partial basic income that would replace basic benefits, but leave intact almost all existing insurance-based benefits. The presentation notes that, in this case, the monthly sum should not be lower than the existing level of basic benefits, which is around 550 euros per month. The same figure was reported in several media without the appropriate context.
A third option is that of a negative income tax, where income transfers are made through the taxation system. Other models might also be considered, including the option of a participation income given to unemployed people as an incentive to seek additional income – this alternative is discussed by Kangas himself and Jan Otto Andersson in a 2002 paper.
The size of the sample and the geographical areas covered are other key topics to be addressed. According to Kela, the next step will be the delivery of a review of available evidence from universal basic income models tested in other countries, which will be presented to government in spring 2016. In a recent survey carried out by Kela, nearly 70% of respondents support the idea of a universal basic income, and most of them think it should be set at around 1000 euros per month.
Here is a list of relevant sources for more information:
Kela, “Universal basic income options to be weighed,” November 19, 2015.
Kela, “Contrary to reports, basic income study still at preliminary stage,” December 8, 2015.
Kela, “Experimental study on a universal basic income.”
Olli Kangas, “Experimenting basic income in Finland,” presentation, December 8, 2015.
Liam Upton, “Finland: New government commits to a basic income experiment,” Basic Income News, June 16, 2015.
Stanislas Jourdan, “Finland: Government forms research team to design basic income pilots,” Basic Income News, October 15, 2015.
“Kela to prepare basic income proposal,” Yle, October 31, 2015.
Ben Schiller, “How Finland’s exciting basic income experiment will work – and what we can learn from it,” Fast Company, December 7, 2015.
Dylan Matthews, “Finland’s hugely exciting experiment in basic income, explained,” Vox, December 8, 2015.
Jan Otto Andersson and Olli Kangas, “Popular support for basic income in Sweden and Finland,” Conference paper presented at the 9th BIEN Congress, 2002.
by Vito Laterza | Dec 8, 2015 | News
Guy Standing, renowned economist, noted author and honorary president of BIEN, was recently interviewed by the Equal Times, a global media platform that focuses on work and social justice.
Guy Standing makes a forceful case for basic income that takes into account the current global conditions of the labor market and the economy. He draws on his vast wealth of knowledge and presents complex concepts in a clear and synthetic manner.
Standing argues that:
– Basic income is key to get people out of the poverty trap, as people experience few gains merely by moving from unemployment benefits to low-paying jobs.
– Trade unions’ opposition to basic income is misguided, as unions and workers would actually benefit from a basic income.
– The struggles for a minimum wage are a positive development, but a minimum wage does not guarantee the welfare of the growing number of people who are not formally employed.
– Evidence from projects in Africa and India indicates that people are more cooperative and more productive when given a basic income, contrary to fears that a basic income would reduce productivity.
– An unconditional basic income would be an effective tool to fight poverty in developing countries, whereas conditional forms of social assistance drive down wages and increase dependency and exploitation.
– Basic income is affordable. One way to finance it is to overhaul the existing benefit system, while also cutting subsidies and tax breaks to big corporations and rich people.
– Basic income is not a panacea, but an essential measure to improve the worsening conditions of the “precariat”, the growing class of people who have little or no prospects of finding a full-time permanent job in their lifetime.
Chris Burns interviews Guy Standing, “Most unions have failed to respond to the needs and aspirations of the precariat,” Equal Times, November 26, 2015.
