New World Bank Publication on Cash Transfers during the Covid-19 Pandemic

New World Bank Publication on Cash Transfers during the Covid-19 Pandemic

We know the features of the nearly 4,000 social protection responses to Covid-19 globally; but what are we learning from over two years of pandemic measures? A new paper by Ugo Gentilini, Global Lead for Social Assistance with the Social Protection and Jobs Global Practice at the World Bank, brings together large datasets and about 300 papers to assess and reflect upon the largest scale up of cash transfers in history. In particular, the paper flashes out differences between Covid-19 and other crises; it lays out an anatomy of global responses and offers novel data analysis around stylized international trends; synthesizes fresh empirical evidence on response effectiveness based on over 40 evaluations; discusses country level operational practices as emerging from an array of high and lower-income contexts; and distills key 10 insights with possible future implications. You can download the report here or learn more about it from this blog.

Ukraine’s Basic Income: an antidote to war

Ukraine’s Basic Income: an antidote to war

The idea of Basic Income is catching on around the world as it is getting more and more support, especially after cash payments many countries paid during the Covid-19 pandemic and Russia’s so-called “special military operation” in Ukraine. 

A Basic Income is a periodic cash payment unconditionally delivered to all on an individual basis, without a means-test or work requirement. This is the first phrase you can see when you open BIEN’s website. So where should states get money for it? For example, from natural resources, as Alaska Permanent Fund does, and from taxes including a tax on robots, carbon tax, as well as a tax on cryptocurrencies, etc. The view that the state should supplement the income of the poor has a long history. For example, one way to increase the incomes of the poor proposed by Milton Friedman is a negative income tax. The idea is quite simple: richer people pay taxes and poorer ones get some percentage of this. 

Ukrainians receive financial aid in the amount of 6500 hryvnias (just over US$200) under the program “ePidtrymka” for loss of part of wages (income), work (economic activity), which are temporarily stopped because of military actions during the current military struggle in Ukraine. It’s just a one-time payment with several strict conditions, including a territorial one. The deadline for submitting applications was March 31, 2022. So, what should other people do after April 1? Why shouldn’t children, women, single parents, young people, the disabled, and the unemployed be taken care of? Every Ukrainian needs to be paid because of the economic collapse and losses of income.

But is $200 enough to help someone who lost a family, home, or job? Is $200 enough to help anyone start life over in Europe or in an almost destroyed country? If this person is gravely ill? What about mental health, which was destroyed, of children, women, and youth? Every Ukrainian needs to be paid at least 500 Euros every month at best for the war’s duration until normal life is fully restored. I believe these brave people deserve more! Ukrainian people should be rewarded with UBI forever. This will be the greatest social experiment in history as well as a clear example for other countries and peoples.

Not only thousands of Ukrainians but also thousands of Russians are dying because of the actions of the Russian authorities. Let’s remember the dramatic events in Bucha, Ukraine, and in other cities. The Ukrainian government suspects soldiers from Khabarovsk, Buryatia, the Far East, and others of committing crimes. These are depressed regions with low incomes and high unemployment, despite their vast territories and natural resources. Residents have little choice: either to serve in the army and security services or to migrate to richer regions of the country. So, these hungry soldiers saw that people in Bucha were living their normal comfortable life. Maybe that’s why they were so cruel? Of course, it’s hard for me to reflect on why they acted like animals. But I strongly believe that they wouldn’t invade another country if they were receiving a basic income.

The situation is similar in other Russian regions like Tuva, Ingushetia, Kabardino-Balkaria Republic, Altai, Jewish Autonomous Region. That doesn’t mean that in other regions the situation is better. Maybe just a little. Official statistics (according to the “new methodology”) indicate that there were more than 16 million people below the poverty line at the end of 2021 in Russia. According to the old methodology, there were more than 20 million people in need. Official Russian statistics are underestimated by two to three times, according to the experts. Anyway, what will happen to Russians after the war and devastating economic sanctions? Of course, I’m not making a comparison between “lost a job” and “lost a life”. However, in my opinion, very few people would participate in an unjust war if they had a basic income and a stable and prosperous life. Therefore, Russians also need a basic income. People would be critical of the propaganda if they have more opportunities.

Ukraine is a brave country that is fighting against Russia’s military intervention and is protecting the entire world from danger. Of course, the other countries support Ukraine. Ukrainians need to be paid basic income. I may repeat it forever. Basic Income has the potential to eliminate the need for war, and that’s why it is important to raise awareness of what Basic Income can do. Ukrainians need to live their calm normal life instead of hiding in their basements as they do right now. Millions of people were forced to flee Ukraine, many had to bury their children or parents in the yards. Nobody knows their feelings. I hope that nobody will ever do that again. 

The war has affected the entire global community. Does the world forget the Chernobyl accident in 1986? Doesn’t the world read or hear about Russian soldiers in the Chernobyl nuclear power plant? Quoting a CNN report, “Although Chernobyl is not an active power plant, the sarcophagus above the reactor that exploded nearly 36 years ago needs to be maintained to avoid further radiation leaks. There is also a considerable amount of spent nuclear fuel that needs to be looked after”.

These miserable soldiers were ordered to dig trenches in that area, which is particularly radioactive. This zone right now is under the control of Ukrainian soldiers, but Russian soldiers may come back. This may be a bigger ecological problem than CO2 emissions for the whole world. What about the threat of Russian use of tactical nuclear weapons? Why do people worry about CO2 while so many people keep dying right now: young, old, children, men, and women? What could happen to the world after nuclear weapons are used? 

Ukraine is a strong country. We are proud as well as terribly sorry about all the events that happen there. Crying and praying for it to end soon, to stop people’s unfair death. This is the whole world’s inexcusable mistake. We could have avoided so many deaths if a Basic Income had been introduced to the world. UBI will reduce humanity’s aggression and destroy the economic, political, and psychological causes of war.

Instability in the world is increasing. Food, gasoline, gas, and service prices are increasing all over the world, including in Africa and Asia. I know that heating prices are high right now in Europe. Soon it will be summer, but later fall and winter will come. The whole planet suffers from Russian military action in the center of Europe and is terrified at the thought of a world nuclear war. We should think about basic income today. No, that’s not right. We should have thought about it yesterday before these disasters. The 99% shouldn’t suffer from the decisions of the 1%. People need to be more independent from the government. 

Article by: Irina Soloveva, Jr.

The BIEN hubs project: Appointment of a Co-ordinator

The BIEN hubs project: Appointment of a Co-ordinator

Since 1986, BIEN has facilitated the global Basic Income debate. It is now looking forward to an exciting new three-year BIEN Hubs project, funded by the Mustardseed Trust, that will further expand and globalise its activity, and enable it to meet the many demands now being placed upon it by the increasingly lively Basic Income debate.

We are therefore looking for a paid Co-ordinator who will enable BIEN to meet its constitutional objectives and the objectives of the BIEN Hubs project. For further details, please click here.

If you would like to apply, please download, complete, and send the application form, which you can find here.

Closing date for applications: 12 noon London time (British Summer Time, UTC+1) on Tuesday the 19th of April 2022

Interviews will take place by Zoom on the 2nd, 3rd and 4th of May 2022 during the period 11:00 to 14:00 London time (British Summer Time, UTC+1)

Götz Werner – the First Inspirer of UBI in Germany – Has Died at Age 78

Götz Werner – the First Inspirer of UBI in Germany – Has Died at Age 78

The photo of Götz Werner was taken by Enno Schmidt.

The entrepreneur Götz Werner was the best-known and most influential proponent of the universal basic income in Germany since 2005. With him, the UBI became a topic in the media and in society.

His presentation of the idea was also an inspiration and substantial basis for the Swiss popular initiative and vote on UBI and for many other activities of others on the UBI. About two years ago, his state of health no longer permitted any public appearances.

On February 8th, 2022, he passed away in the age of 78.

His strong public appeal and talent to inspire was not only because he had a high social status as a successful and repeatedly awarded entrepreneur, credible with his statements about economy, money and work as someone who had made it in the existing society, but it was his authentic way of putting people first. His presence made others feel joyful, uplifted and assured of a future development despite all the hardships.

His involvement with the UBI was a logical consequence of his entrepreneurial career. For him, basic income was not a contradiction to business, to productivity, but its prerequisite. If you asked him something to which you expected a business answer, he answered with human, idealistic ones. If you asked him something for which you expected a human, ideal answer, he answered in business terms. There was no difference. And what he said lived with the people in the company right down to all the branches at all levels. Not as a parroting of a corporate philosophy, but as an attitude to life and a living space.

The dm pharmacy chain that he founded has today more than 66.000 employees, 43.000 in Germany alone, almost 4.000 branches and an annual turnover of more than 12 billion Euros.

“The company is a platform for biographies,” Götz Werner said. He considered the division between working time and free time to be wrong. Because both are life time. My lifetime is me. I cannot separate myself and my lifetime. Only I can determine my lifetime. No one else can dispose of my lifetime. It is only out of my freedom and determination that I can devote my lifetime to others. But it’s always me. Freedom is not nice talk, it is the very nature of human existence. “The goal of people is freedom-generation“, Götz Werner noted. In the company, people spend their life time, develop skills and unfold their lives. That is what the company is there for. “People are not means, but ends.” They are not a means to the end (purpose) of the company, but the company is a means to the end (purpose) of the people. “A company is a social-artistic cultural event.” In the development of the company, Götz Werner could seem like a sculptor, a social sculpturer, and who sometimes keeps taking a step back to see how it is right and coherent. Action and reflection. He himself changed with his insights and with the changes in the company.

Entrepreneurs create jobs? “Nonsense,” he answered. “No entrepreneur comes into the office in the morning and considers: how can I create a lot of jobs today? Instead, he thinks: how can I optimize processes, how can I do something better for the customers?” But he had created tens of thousands of jobs with the dm drugstore chain, he was further asked. “Where we have opened a new branch, other shops in the area have gone out of business because of it. Previous jobs have been lost where we have offered new ones. New jobs are primarily created today where work is being done to eliminate jobs elsewhere.”

After countless interviews with applicants, a light came on for him: “First people need an income, then they can get involved with our working community and see where they can and want to contribute best.” First an income, then you can engage in the work. Notice the order. That is the order of the free man.

At an event at the University of Karlsruhe, he called out to the thousand listeners: “Your work and the work we all do can never be paid for. But an income makes it possible.” Because my work is my lifetime and my contribution to others. This cannot be paid for because you cannot buy people. Income makes work possible. It does not pay it. “In our society based on the division of labor, we all live from what others do for us. The more productive others can be, the better for me. So it makes sense to create the best conditions for everyone to be productive.” This framework is the UBI. ” Work costs nothing. But everyone needs an income. And everyone works. Even the unemployed. They work too. They also do something. Everyone wants to work, wants to do something that makes sense, for which they experience appreciation.” “Only with the UBI we have a free labor market.” For a free market presupposes the freedom of market participants to be able to say no to a bad offer and yes to a good one. No to underpaid bad or pointless work. Yes to something that makes sense, that I want, even if the pay is not high or it is not paid at all. For Götz Werner, it was evidence from his professional life that made it clear to him that wage dependency stands in the way of real cooperation on an equal footing. Of course, earned income remains beyond the basic income. But the question of existence is not tied to a paid job or the requirements of social welfare. “Today, many people do not have a working place, but only an income place,” Götz Werner remarked. Needless jobs that only give an income and power to the employer to rule about staff. This fits with what David Graeber described in his book Bullshit Jobs.

But how can a UBI be financed, Götz Werner was asked again and again. And again and again he answered: “It’s already financed, isn’t it?” Incredulous amazement on the part of the questioner. “Yes, we live in paradisiacal conditions. We have enough goods and services for all, and we could produce even more. Everything that can be produced can also be financed. Provided one has the good will to do so.” Götz Werner saw: The fact that we are all alive proves that the basic income is already financed. If someone did not have even as much as a basic income, in whatever way, they could not live. This basic income is made unconditional. We look at economics under “a money veil”. We do not live on money. You can’t eat money and you can’t wear money. “We live from what others do for us.” And there is enough of that and could even be more. We no longer live in times of scarcity. That is why the basic income is already financed. Because the goods and commodities and services are there. Money is only a legal means of exchanging goods and services.

And how does the funding take place in practice? Götz Werner’s friend and advisor Benediktus Hardorp had explained VAT to him. Götz Werner understood the advantages. Not elevating taxes where people do something for others, income, but where we all claim the services of others for ourselves, consumption. Much more correct and fairer, much simpler in the calculations. Only value-added tax, all others no more. But he wondered: Where is the social component in VAT? And he came up with it himself: an unconditional basic income amount to all economic participants, that is, to all people, all consumers, paid out at the beginning of the month as a refund of the VAT to be paid in the prices in the extent of the necessities of life. For him, VAT and UBI belonged together. They complement each other and pull in the same direction. Releasing the initiative of the people.

Because Götz Werner’s portrayal of the UBI had grown out of entrepreneurial activity, out of insight and evidentiary experiences, because it did not mean or favor any class of society, but rather the human being in his freedom, of which work is a part, he had an effect on people.

Götz Werner has given his shares in the company to a foundation. When his health began to deteriorate, he decided to bundle his financial support for the debate on UBi into an institution and the science and, together with his wife Beatrice, to endow a professorship at the University of Freiburg. The Götz Werner Chair with Prof. Bernhard Neumärker as chair holder. The dm Werner Foundation also finances the Freiburg Institute for Basic Income Studies, FRIBIS, at the university of Freiburg, Germany.

His son Christoph continues to run the company. He has adopted one of his father’s mottos: “Who want, find ways, who don’t want, finds reasons.”

Basic Income March 2021: Taking Stock, Celebrating Our Progress, and Getting Inspired

Basic Income March 2021: Taking Stock, Celebrating Our Progress, and Getting Inspired

The Basic Income March serves as our movement’s annual reminder to pause, take stock and celebrate our progress. This year was full of things to celebrate: from the over 90 pilots taking place across the U.S. to the extended Child Tax Credit – the first national guaranteed basic income legislation for families. While our movement celebrated this momentum across 31 cities – national and local press took notice. Teen Vogue touted the movement as one that resonates with the youth and local outlets took note of local community celebrations of pilot demonstrations.

Basic income advocates organized a variety of different events across the country. While some put on traditional events like marches and rallies, others hosted open skates, enjoyed barbecues at the park, put on concerts, and tabled at art fairs. Organizers did an amazing job on-the-ground of bringing people together for these events safely, taking appropriate COVID precautions.

A new addition to this year’s events was the involvement of organizations leading pilots in their cities. The organizing of the Denver and Chicago events were based on deep partnerships between local volunteer organizers and staff and partners working on Pilots in those cities. This led to strong turnout, great programs, and deeper celebration of local and national progress made for basic income. These were such a success; we anticipate increasing the number of events in 2022 that are led by pilot organizations.

Organizers across the country hosted events that included activities encouraging deep engagement with the community around the idea of basic income. Some provided posters with different financial responsibilities like rent, student loans, childcare, savings, and participants placed stickers next to items they would use a basic income for.  Others had people write down a wish for their lives if they received basic income and added it to a collective art installation.

At the core of this celebration and the core of our movement is community engagement. Our design for this year led us to connect with volunteer organizers on a deeper level, the interactive activities during events allowed organizers to connect more deeply with their community and pilot supported events ensured larger turnouts bringing the movement to a wider audience. 

It has been a joy to bring together our friends and advocates, both established and new. Along with our partner organizations and organizers, we invite new faces and facets to build on the foundation of our movement. We begin 2022 with gratitude to work in such a dynamic and growing space.