A letter demanding to take swift action to address the threat of climate change, with over 600 signatories, was proposed earlier this year (on the tenth of January) to the American Congress.
Afterwards, a resolution was proposed on February 7 by Alexandria Ocasio-Cortez (AOC), outlining the ambitious Green New Deal, which calls for the federal government to have a pivotal role in the green transition.
The Green New Deal (GND) sets out to reach a reduction in greenhouse gases emission from human sources of 40 to 60 percent from 2010 levels in 2030, and net zero emissions by 2050, in order to tackle climate change.
These ambitious targets would be met via expansionary economic policies (the opposite of austerity): the GND requires a great involvement of the federal government,, which would be required to pump large amounts of money into the economy in order to support the transition, even more so as one of the milestone of the proposals is the promise of employment for everybody. In order to do so while decarbonizing the economy, governments and central banks would need to use state expenditure, incurring in an increase in national debt.
To be able to grant full employment, the state will need to act as an employer of last resort, as many job will be lost in the green transition, both in the industries that operates directly in the extraction of fossil fuels and in those which are dependent on them, the article states.
While it is true that many jobs will be created in the new green industries, Shuppeter maintains that two main issues remain: whether workers will be able to retrain in order to enter the new jobs created, and whether those new jobs will last in time, rather than just peak in the immediate, remains to be seen.
Given that full employment in the short-medium term appears quite unrealistic, what the author suggests is, rather than state created jobs, the introduction of Universal Basic Income (UBI).
UBI would not only be a more efficient way to administer benefits (rather than the plethora of existing means-tested social welfare payments), but would also protect workers in a time of transition.
Shuppeter writes that the workers harmed by the green new deal may find more support in UBI than in a job guarantee, which would inevitably force somebody in jobs they don’t want, created for the sake of creating employment: on the other hand, UBI would allow people to reinstate themselves in the new green economy. Moreover, UBI would stimulate the economy and empower people to engage in a more sustainable lifestyle.
“To win popular support for the Green New Deal its benefits must be truly universal. What better way to guarantee a just, green transition and ensure no one is left behind than universal basic income?”
Written by: Eduardo Matarazzo Suplicy and Mônica Dallari
This January, we discovered an extraordinary pioneer effort towards poverty eradication in poor rural villages in Kenya: the transfer of Universal Basic Income (UBI). Through the initiative of GiveDirectly, an institution created by four graduates of Harvard University and MIT, Silicon Valley institutions and other organizations contributed to the formation of a US$30 million fund to benefit about 20,000 Kenyans in the most important and thorough study about UBI in history. In the visits to rural villages in the Kisumu and Siaya areas, reports were unanimous in stating that with UBI contributed to a significant improvement in the quality of life of all the beneficiaries.
Lula da Silva on the far left; Eduardo Suplicy on the far right
Upon learning that GiveDirectly was carrying out this experiment in Kenya, we decided to write a letter to them, in which I (Eduardo) introduced myself as the author of the Brazilian Law 10.835 / 2004, which establishes the implementation, in stages, the UBI for all people in Brazil, including foreigners residing here for five years or more. As honorary co-chair of BIEN (Basic Income Earth Network), I said I would like to know about the experiment. This request was accepted by Caroline Teti, GiveDirectly’s external relations director in Nairobi.
Eduardo Suplicy visits Grameen Bank with Muhammad Yunus, in Dhaka Bangladesh. July 2007
How the UBI program works
GiveDirectly´s office in Nairobi. January 2019
As soon as we arrived in Nairobi, we met with her and started a dialogue with the coordinator of a team of 34 people who work in the call center. The call center is responsible for the quarterly contacts with each one of the 21,000 adult beneficiaries of the UBI experiment. In 2016, GiveDirectly started the pilot to provide a UBI payment in Kisumu, Siaya and Bomet counties. More than 630,000 people in these counties live below the poverty line, defined by the Kenyan government as less than US$15 a month per household member, in rural areas, and $28 a month per household member in urban areas.
For the execution of the experiment, 295 villages (14,474 residences) were randomly selected, divided into four groups:
Control Group: 100 villages that do not receive payments;
Long-Term UBI: 44 villages in which adults (over 18 years old) receive sufficient income for basic needs, about US$0.75 per day, or $22 per month for 12 years;
Short Term UBI: 80 villages where adults receive sufficient income for basic needs, about $0.75 per day or $22 per month for 2 years;
Lump Sum UBI (or UBI Cash Payment): In 71 villages, families receive UBI in the fixed amount of US$1,000 divided into two payments of $500.
The transfers are made through M-Pesa, a mobile money service created in 2007 by Safaricom, a Vodafone telephone company in Kenya. The platform enables financial transactions that are safe, fast and cheap through a cell phone, such as deposits, transfers, and savings. The platform does not need a bank account.
View of the National Park at Nairobi. January 2019
Small retailers in rural villages across the country were trained and became agents of M-Pesa services. Beneficiaries can withdraw money or shop at accredited establishments in all villages in Kenya. Those who did not have cell phones were able to purchase a low-cost GiveDirectly device. Today, 80 percent of the country’s adult population has a cell phone.
From the visits to the beneficiaries of the Kenyan experiment of UBI, we can say that the improvement in the well-being of the people is very significant. This was what we were able to witness in all the residences we visited and in the dialogue with beneficiaries of UBI. Mothers and fathers spoke of the concern to prioritize the education of children and adolescents, ensuring attendance and completion of school. This became possible due to UBI, which even helped in the hiring of auxiliary teachers. In general, our respondents stated that they were better fed and had access to a greater variety of foods.
The benefit of the UBI resulted in people being able to work more intensely and productively, especially because they were able to acquire better working equipment, such as tools, motorcycles to transport people or make deliveries, livestock (goat and cattle) to supply meat and milk, fishing equipment to get more fish in the lake to sell them, land purchasing for vegetable and fruit trees planting. These activities directly increased their income. Some families have invested in systems to better capture rainwater or solar energy collectors in order to have electricity. Households purchased better furniture, such as mattresses, sofas, tables, chairs and small electrical appliances, such as a stereo or radio. Straw roofs have been replaced with steel that contains gutters.
Sunset at Lake Victoria. January 2019
It is important to note that we do not perceive any use of alcohol or other drugs. A study by Innovation Poverty Action1, IPA, corroborates our observation since there was no increase in spending on tobacco, alcohol or gambling. The impression we have goes in the opposite direction; behaviors based on solidarity and cooperation between individuals have been reinforced.
Perhaps most remarkable was the redefinition of gender roles. Because women also receive the benefit, we hear from them how they feel freer in deciding where to spend their money, and we record reports of how couples have come to the table on UBI payday to talk about the household budget. Households frequently organize groups to pool money for a larger purchase or to assume a higher value expenditure. In Kenya, polygamy is allowed. We sometimes see that the UBI contributed to greater solidarity between the wives of one husband, and even between his widows and children.
The agility and speed provided by the digital income transfer system were also fundamental. Each beneficiary is notified by SMS when the transfer is made, being able to make purchases in the M-Pesa accredited establishments, or if she prefers, to exchange the credit for money.
City of Kisumu. January 2019
Another important development was numerous reports demonstrating a noticeable decrease in violence against women and other criminal acts, such as theft in the villages. The direct income transfer done in this way has avoided incorrect procedures and corruption.
M-Pesa Agency. January 2019
For those who want to know more about this Universal Basic Income (UBI) experiment in Kenya and other countries, please access the website. The website provides testimonials from beneficiaries of the UBI collected by the people who work in the call center, available to everyone. You will have confirmed the positive impression of this remarkable pioneering experiment on Universal Basic Income. In addition, you will have the opportunity for this remarkable and important experiment. If you would like more information, write to info@givedirectly.org.
Call Center at the GiveDirectly´s Office. January 2019
Visiting Barack Obama’s Grandmother Sarah Obama
Eduardo Suplicy visits Mama Sarah Obama, in Kogelo. January 2019
On our last day in Kenya, we visited Mama Sarah Obama, Barack Obama’s grandmother, at her farm in Kogelo, another rural village. At first, we would have only three minutes to be with her because of her age, 98 years, but we talked with Mama Sarah and Obama’s aunt, Marsat Oniango, for almost 30 minutes. Enthusiastic about the conversation, they assured me they would send President Obama a letter that I had with me, the same one I had handed to him on October 5, 2017, during a lecture in Sao Paulo.
I spoke of my enthusiasm when I watched on TV the homage Obama paid to South African President Nelson Mandela on his 100th birthday in the packed stadium of Johannesburg. In that speech, the former US president made an important statement, expressing concern about “artificial intelligence that is accelerating. Now we will have automobiles without drivers, more and more automated services, which will mean the need to provide work for all. We will have to be more imaginative because the impact of change will require us to rethink our political and social arrangements to protect the economic security and dignity that comes with work. It’s not just money that a job provides. It provides dignity, structure, a sense of place and purpose. And we will have to consider new ways of thinking about these problems, such as universal income, review of working hours, how to train our young people in this new scenario, how to make each person an entrepreneur of some level.”
I concluded by expressing my certainty that this positive experiment in the Universal Basic Income in the country of Obama’s father and grandfather, whose graves we visited on the grounds of Mama Sarah’s house, will resonate very favorably throughout the world.
Steps after the trip
Eduardo Matarazzo Suplicy
Steel Roof to capture rainwater
The fact of having experienced a real immersion in the subject of Basic Income in such a short space of time and in two very different dimensions, that is, the theoretical academic approach of the conference in Cambridge and the opportunity to make field observations during our visits to Kenya, provoked a series of reflections, which made me desire to act.
The trip was made throughout the month of January 2019, coinciding with the inauguration and first month of the government of Jair Bolsonaro. The campaign of the victorious candidate in the 2018 election, his statements after confirmation of his election and the movements of the transition process between the Temer government and the new occupants of the Planalto indicate that the new government has an economic agenda that is based on intentions to resume growth and development of the country, generate jobs and guarantee some stability in public accounts. Despite the fact that I belong to the party that opposed the Bolsonaro candidacy, I believe that certain principles of equity, income distribution, and assistance to the most excluded are values of democracy that are not exclusive to this or that political aspect. So I decided that it was time to warn President Jair Bolsonaro, Minister of Economy Paulo Guedes and the Special Secretary of the Federal Revenue of Brazil Marcos Cintra Cavalcante de Albuquerque about the pertinence to take the steps towards the Citizenship Basic Income.
Philippe Van Parijs and Eduardo Suplicy at the University of Cambridge. January 14th, 2019
Soon after coming back to Brazil, I wrote a letter to these three government officials who had just taken their first steps and offered two copies of works that I believe are fundamental to understanding the concept of basic income: My book “Citizen’s Income: The Exit is Through the Door,” and “Basic Income – A Radical Proposal for a Free Society and a Sane Economy” by Philippe Van Parijs and Yannick Vanderborght, which contains a foreword by myself.
In my argument, I stress the fact that Law 10.835 / 2004, which establishes the Citizen Basic Income, Universal and Unconditional, was approved by all the parties in both houses of the National Congress, including by the then deputy Jair Bolsonaro. I reminded the President “in case the President of the Republic wishes to comply with Article 3 of the Constitution on the fundamental objectives of the Republic of Brazil, in a manner compatible with what is expressed in its program of government, to guarantee a minimum income for all Brazilian families, as liberal thinkers like Milton Friedman argue, the most effective way to do so will be through the implementation of the Citizenship Basic Income, a concept that Friedman considered another way to apply the Negative Income Tax.”
Beneficiary receives credit by SMS. January 2019
In the letter, I also summarized some up-to-date information on the subject, such as the fact that today “more than 40 countries are debating, conducting experiments and considering the implementation of Unconditional Basic Income.” I briefly reported on the visit I had just made: “The results so far are highly promising, as I found out in person. Brazil would have all the conditions to carry out local experiments, as indeed has been the desire of several municipalities like Santo Antônio do Pinhal, Apiaí and Maricá. In the City Council of São Paulo, a Law Project of Mayor Fernando Haddad is in process, already approved in the Commissions of Constitution and Justice and Public Administration, to establish, in stages, UBI in cooperation with the state and federal governments.” Finally, I suggested that a Working Group, possibly coordinated by IPEA, to study the steps towards the Citizenship Basic Income. I stated that I had already spoken with both the Perseu Abramo Foundation of the Workers Party and the Fernando Henrique Cardoso Foundation, linked to the PSDB, who have already been willing to discuss basic income with the newly elected government.
The letter, as well as the volumes, were delivered to Marcos Cintra Cavalcante de Albuquerque, current Special Secretary of the Federal Revenue of Brazil, with whom I had a hearing on February 1, 2019. At the same time, I delivered a letter to the then president and future president of IPEA, Ernesto Lozardo, and Carlos Von Doellinger, detailing how this Working Group could be constituted and reporting my dialogue with former President Fernando Henrique Cardoso during the electoral process. “Given that a number of Presidential candidates were in agreement with this objective, we could very possibly meet the various economic teams of the various candidates to work on this subject.” Sérgio Fausto, the working coordinator of the FHC Foundation, suggested that this meeting should be held after the elections in the first half of 2019.
On the other hand, Márcio Pochmann, President of the Perseu Abramo Foundation, accepted the proposal to create a Working Group for this purpose, and two meetings of this group have already been held. I believe it will be common sense for IPEA to coordinate the efforts of these various institutions linked to the parties whose candidates have made proposals to do this.
It is up to the Government to take the suggested steps.
Which analytical models exist to defend UBI, and how convincing are they? What would the introduction of an UBI mean for different parts of society? What would be the associated opportunities and risks?
To answer these, and many more questions, the Christian-Albrechts-University of Kiel has programmed a series of interdisciplinary lectures, in order to share both further directions of research and also to make some academic contributions. These academic events will happen between April 23rd and July 2nd 2019, at designated rooms and auditoriums at the University, as indicated below.
This lecture series come from various academic disciplines and touch on a broad spectrum of questions and aspects. They will also be accessible to interested members of the public. At the end of each 45-60 minutes paper presentation, there will be space for discussion between the authors and the audience. The papers will be recorded and made accessible after the event.
General and increasingly extensive discussions of the reforming idea of an unconditional basic income (UBI) seem to have come to stay, especially among the younger generations. One basic income experiment after another is springing up around the world. For the first time in Germany, the current state of Schleswig-Holstein has taken up the theme, and has introduced a ‘social security for work yet to be undertaken’ in the state parliament, alongside its coalition agreement. So, the idea of an UBI in particular, together with the Liberal Party’s [FDP = Freie Demoktratische Partei] concept of a citizen’s wage and further initiatives, are being discussed in Germany, and trials are being conceived.
Such a UBI would definitely represent a deep intrusion into the pre-existing architecture of the welfare state, the job market, the economy, the family life of both female and male citizens, and the whole community in Germany and abroad. The moral model of a ‘working society’, which developed alongside industrialisation and the rise of capitalism and whose scope has extended ever further in the last few decades, would be abandoned or at least significantly marginalised. That’s because UBI would change the normative way of life for every adult until retirement age, which still is paid employment. The broad distribution of material prosperity, mostly organised in accordance with the criterion of performance at work, would also change considerably.
Summary of lectures:
23rd April 2019 (Tuesday): Dr. Alexander Lorch – Philosophical reflections on an unconditional basic income.
26th April 2019 (Friday): Prof. Dr. Roswitha Ploch – Unconditional basic income – opportunities and hurdles in the political implementation of a good idea
30th April 2019 (Tuesday): Dr. Thieß Peterson – Macroeconomic effects of an unconditional basic income
10th May 2019 (Friday): Prof. Dr. Hilmar Schneider – Do we need an unconditional basic income or better Maths lessons?
17th May 2019 (Friday): Prof. Dr. Ute Fischer – Liberation or backwards roll? Opportunities and limits of a UBI from the perspective of gender.
24th May 2019 (Friday): Prof. Dr. Gesine Stephan – Field experiments in labour market research: potential, challenges and practical examples
31st May 2019 (Friday): Prof. Dr. Ueli Mäder – Social security democratised (rather than economised)
7th June 2019 (Friday): Prof. Dr. Michael Opielka – Basic income in the labour of the future. On the relationship between payment in cash, kind and service in the welfare state of the future.
11th June 2019 (Tuesday): Prof. Dr. Thomas Straubhaar – Unconditional basic income. From Utopia to reality.
21st June 2019 (Friday): Prof. Dr. Nicole Mayer-Ahuja – Unconditional basic income – an emancipatory response to changes in the world of work?
2nd July 2019 (Tuesday): Dr. Manuel Franzmann – Democritisation of leisure? Unconditional basic income from the point of view of educational theory.
Bidar has started getting interested in basic income in 2015. As a defender of basic income, Bidar has tried, in the referenced book and in his speaking venues and interviews, to detach his arguments from strictly economic grounds, but to solidify a sound philosophical defence. According to him, the “how much” question amounts to an obsession, since present-day society is obsessed with money and its derived consumption habits. He doesn’t aim to minimize the economic issue, but to amplify the debate to a much larger sphere.
Because in order to mobilize people, to get them to stand up for their rights, time is needed. Most people are just too busy making ends meet, working to feed the children and paying the rent, so a basic income can come as way to provide people with the necessary time to become full-right citizens.
He says the times we live in are the “Kairos” of the age, an historical moment to act, to achieve crucial change. The capitalist system just captures and condenses wealth, leading to unprecedent levels of inequality. Our task now is to redistribute the abundance we are today are able to produce. Since we no longer need to work so much to produce wealth, in the XXI century, due to automation and computerization, we are now, or should be, able to free ourselves from the necessity to “work for a living”, and maybe start working to live…and be happy.
He cites new generations: according to him, young people are much less “docile” regarding impositions from the job market, than previous generations. They want to align their work with their beliefs and aspirations, and not only to work as a way to guarantee survival (in the midst of a hostile society). That may even include, sometimes, to stop completely from working, since everyone needs to breathe, to stop running and reflect at certain moments in their lives.
Bidar looks at basic income also as a tool that allows people to participate in their community and society at large, instead of just hoping that things arrive at their doorstep provided by a handful of politicians. He poses fundamental questions of what to do with our time: what mobilizes us? How do we choose to use our time?
Because, it seems, society is entirely unbalanced, and tilted towards work. That means that the availability of quality time will help people to re-centre their lives in a better balance between work, culture (each person’s place in society and their own choices within their social culture) and political activity (truthful, responsible and active citizens).
He says that “you cannot improvise freedom”, which in this case means that the actual societal freedom a basic income can supply must be a very concrete, planned and conscient step to take. It takes a lot of reflection, discussion and agreement to implement such conditions for freedom. According to him, children and youngsters in general should be supported in their education, so they develop self-confidence and trust in their creative freedom, rather than just being told what to do.
He defends opening up the marketplace, so people have true choice in what to do with their lives, in a sense trusting them to be responsible in living out their freedom. He also understands that suffering in the job market is rampant in today’s society, and that must end. People have little or no choice, which resembles totalitarian systems. To that end, the link between income and work must be broken. There is a social emergence, so basic income should be immediately implemented, even if in a partial form (for the most vulnerable members of society, e.g.: disabled, young people, women in some circumstances). However, he questions if people in general are ready for the level of freedom basic income allows, even though he states that such a policy is crucial to tackle the social and ecological crisis humanity faces nowadays.
To resolve the apparent paradox – that people may not be prepared for the kind of living they need to be living in order to solve the social and ecological crisis – he points to education. He believes in the human being, and that humans are capable of great things, but education and individual conscience are fundamental to evolve and transition to a new way of living.
A nearly-packed auditorium of mostly young Taiwanese arrived on an early Saturday morning to learn about Universal Basic Income and its role in addressing key trends for the next generation.
This is the third year UBI Taiwan held its international summit in Taipei to push discussion of basic income on March 16. This year’s conference focused on the challenges Taiwan and the global economy is facing in the coming decade and what steps could be taken to make basic income a feasible solution.
Dr. Sarath Davala, vice chair of Basic Income Earth Network, was the keynote speaker for the second year in a row. Davala said this year’s attendees were even more enthusiastic.
“UBI Taiwan exudes unique energy and dedication to the idea of basic income. This kind of energy is perhaps rare in the basic income movement. Nowhere in the world, have I seen such critical mass of students collectively excited about basic income,” Davala said.
Dr. Ryan Engen, an economic officer at the American Institute in Taiwan (AIT), the unofficial U.S. embassy in Taiwan, gave the opening speech for the conference. Engen said basic income is “perhaps the most promising policy” to address Taiwan and the world’s economic transformations.
“If you can succeed in what you are trying to do, I actually think it has the potential to be the tipping point that changes the direction for the rest of the world, and that’s not an exaggeration,” Engen said.
In justifying the need to explore basic income, Engen discussed how the return on capital has outstripped income, which has exacerbated global income inequality.
The world is moving toward nationalism as a result of globalization and automation, which requires “creating a new global social contract that leaves nobody behind,” Engen said.
Guy Standing, BIEN’s co-founder, provided a video message for the conference Taiwan. He said Taiwan’s activists should frame basic income primarily in human rights terms, rather than as just an economic policy.
“Basic income is a matter of social justice,” Standing said. “We believe every man, woman, and child has a right to a share of the public wealth of the Commons from the wealth generated over generations, whether it is in Taiwan, China, Britain or anywhere else.”
Standing said while basic income would reduce poverty, this should not be the primary focus of Taiwan’s UBI movement.
“We must constantly stress the ethical basis of the campaign for basic income,” Standing said.
In the final round-table discussion, Ta-Ching Shih, a Taiwanese economic specialist at AIT, said basic income activists in Taiwan must first get attention to the idea and then focus on the policy specifics later.
Peter Knight, a former World Bank economist and a member of Fernand Braudel Institute of World Economics, also produced a video message for the conference where he discussed the economic rationale for basic income.
Knight said Taiwan is likely to face high levels of job automation in the coming years, along with Japan, Singapore, and South Korea. Taiwan’s coming status as a super-aged society may also induce consideration of whether basic income could help alleviate this issue, he said.
“UBI and progressive taxation to finance it, and the use of advanced labor-saving technologies are the key policies for Taiwan to achieve economic, social, political, and ecological sustainability,” Knight said.
Professor Ku Yun-wen from National Taiwan University’s Social Work Department went through a detailed analysis of Taiwan’s welfare policies and discussed how basic income may fit into the system.
Ku had previously written a report on UBI for Taiwan’s National Development Council, Taiwan’s Executive Yuan policy planning agency.
Professor Fong from National Taiwan University’s Economic’s Department provided insight into some of the relevant economic trends to basic income, such as increasing automation and its potential impact in Taiwan.
The conference was assisted in funding from the U.S. State Department’s Critical Language Scholarship through the Alumni Development Fund (ADF).
Before Alan Krueger passed away, he discussed the prospects of basic income in Taiwan with James Davis, one of the managers for this ADF project. Krueger was the former chair of President Barack Obama’s Council of Economic Advisers.
Krueger agreed Taiwan implementing basic income would likely inspire conversation around the world. However, Krueger said “there is a lot of work to be done.”
Professor Hou-ming Huang, the director of National Chengchi University’s Sociology Department, presented on the economic and philosophical transitions of humanity throughout history.
A journalist from Taiwan’s magazine The Reporter spoke on the misinformation that is often spread in Taiwan and global media regarding basic income.
Despite this misinformation, Davala said he is optimistic about the future of basic income’s development in Taiwan.
“I am sure that the debate in Taiwan will progress beyond conference halls and to the policy corridors,” Davala said.
Engen ended his remarks by noting Taiwan could play a very important role in the global UBI movement.
Taiwan is a “melting pot” of international influence and is at the center of global supply chains, Engen pointed out. Taiwan is also the “most progressive example in all of the Indo-Pacific,” he said.
“UBI happening here in Taiwan is very different than it happening anywhere else because Taiwan is a fully developed market democracy that is a technology epicenter of the world,” Engen said. “If UBI happened here it would send ripple effects around the world.”
In the run-up to the conference, Elyse Mark and Brian Anderson, who were also managers of the ADF project, produced interviews with U.S. scholars. Mark interviewed a legislative director for a councilmember of the District of Columbia council who produced a policy report on implementing minimum income in DC. Anderson interviewed an economist to understand the benefits of basic income across Taiwan and the United States. Davis also worked with Stanford’s Basic Income Lab to understand the context for how research there could help propel basic income frameworks for Taiwan.
