by Josh Martin | Feb 28, 2016 | News
In the wake of numerous Canadian groups, including the Canadian Medical Association, espousing support for a basic income, Ontario has taken a definitive step forward in committing to studying the idea further by making a budget commitment to undertake a basic income pilot project. While basic income support has been rising in Canada over the past few years, this represents a major breakthrough for the basic income cause in Canada.
According to the full text of the budget, which can be found in this article, the specific text related to the basic income pilot is as follows:
In the 2015 Budget, Ontario introduced a consultation on social assistance rate restructuring. Through ongoing discussions, there emerged a clear consensus on the need to move policy considerations beyond social assistance rates to include aspects of the broader income security system.
As a result, this year, the government will continue to engage with delivery partners, clients and sector advocates to chart the path to comprehensive reform that effectively reduces poverty, supports people in their efforts to participate in the economy, and provides human services in a way that makes sense to the people who need them. This process will look across government and at the broader income security landscape to ensure that various existing and future programs work together to help Ontarians. The government will also engage with First Nation, Inuit and Metis communities to ensure that the path forward recognizes unique challenges on- and off-reserve and helps all Ontarians live a better life.
One area of research that will inform the path to comprehensive reform will be the evaluation of a Basic Income pilot. The pilot project will test a growing view at home and abroad that a basic income could build on the success of minimum wage policies and increases in child benefits by providing more consistent and predictable support in the context of today’s dynamic labour market. The pilot would also test whether a basic income would provide a more efficient way of delivering income support, strengthen the attachment to the labour force, and achieve savings in other areas, such as health care and housing supports. The government will work with communities, researchers and other stakeholders in 2016 to determine how best to design and implement a Basic Income pilot.”
While details of the pilot are still forthcoming, the news of a provincial government committing to a pilot is an exciting development for the future of a basic income in Canada.
by Andre Coelho | Feb 24, 2016 | News
Last week, an important conference was held in Lisbon focused on basic income (BI) and its implications. Although similar initiatives have occurred in Portugal in the past, this was the first conference of its scale; it brought together national and international speakers, received a large amount of media attention and was organized by multiple partnering organizations: Grupo de Estudos Políticos, the political party PAN (Pessoas, Animais e Natureza), Movimento Rendimento Básico Incondicional – Portugal, Grupo de Teoria Política – CEHUM, and IHC (Instituto de História Contemporânea). This initiative accompanies PAN’s intention to propose, in parliament, a countrywide BI feasibility study.
The conference spanned two days, the 15th and 16th of February, and drew an audience of around 100 people.
The first day’s session, held in a conference room at the parliament building, was chaired by PAN’s Jorge Silva and presented keynote speakers such as Amílcar Moreira, Jurgen De Wispelaere, Roberto Merrill, Sjir Hoeijmakers, Pedro Teixeira and Miguel Horta. It also included the presence of political party representatives Ivan Gonçalves (PS), Ricardo Moreira (Bloco de Esquerda) and Miguel Santos (PAN).
Jorge Silva. Credit to: Luís Gaspar
Roberto Merrill opened up the session, presenting a theoretical framework for basic income: pre-distribution (instead of redistribution). According to his research, social problems do not derive from the lack of jobs but from restrictions in access to resources. He also listed a range of authors and most prominent publications on the subject.
Jurgen De Wispelaere’s presentation focused on the Finnish BI experiment, which is planned to begin next year. This two-year experiment is aimed at assessing the ability of BI to eliminate the poverty trap and reduce complexity, bureaucracy and costs in social security. According to Jurgen, the fundamental reasons to experiment with BI are to demonstrate its potential, raise awareness and build a political coalition. Finland’s experiment will necessarily have shortcomings, such as its limited duration, sample size and resources, but it nevertheless can be used to study a wide array of effects, such as popular opinion and preferences and the impact of a BI on labor markets, social security and poverty.
The next speaker, Sjir Hoeijmakers, presented the municipal experiments in the Netherlands, which are expected to start by late 2016 or early 2017 and involve at least 90 municipalities. Although there are around 300 municipalities in the Netherlands, the 90 that have already agreed to participate in the study represent more than 50% of the country’s population; thus, there seems to be a strong public support for these initiatives. In his talk, Sjir described the main worries that prompted the experiments: technology replacing jobs, and the complexity, conditionality and lack of freedom under the traditional social security system.
Jurgen De Wispelaere. Credit to: Luís Gaspar.
Amílcar Moreira and Pedro Teixeira presented more cautious views regarding basic income, although both were generally supportive. Amílcar warned that Portuguese social politics have historically been very conservative and favorable to the establishment of conditions on social security. Pedro presented a model for financing a basic income of 200 €/month, which he considers politically easier to implement than higher-valued BI proposals. He warned, however, that there would be a need to finance a BI through taxes other than labor (e.g., taxes on property, natural resources and pollution), since labor taxes are already imposing too much stress on the middle class.
The last keynote speaker of the day, Miguel Horta, presented his BI study, according to which higher redistributions occur with higher income inequality. In his model, which is self-balanced and budget neutral, a 50% tax on labor income can finance a 435 €/month BI in Portugal, with 25% of it given to children up to 18 years old. The current labor tax would be replaced, and a few social security programs would be rendered irrelevant, which would leave the fund for a BI only 2200 M € short. Miguel reasoned that this relatively small amount could be obtained from savings in health, security, very high pensions (caps), tightened fiscal collection on high incomes and reduced costs associated with bureaucracy.
After the last keynote address, the audience had time to interact with the speakers, and the political party representatives presented their views on BI. Among the political party representative, Ricardo Moreira of the left-wing party Bloco de Esquerda was the only to clearly oppose BI. Ricardo views BI as a right-wing tool to wipe out the welfare state.
Miguel Horta. Credit to: Luís Gaspar.
On the second day of the conference discussion continued at the FCSH university campus, with authors André Barata and Renato Carmo presenting their arguments for BI. Renato suggested that an exclusively national attempt to implement BI is too difficult, however, and instead recommended an approach like that proposed by Van Parijs, who calls for an European dividend. José Neves also defended BI, while cautioning activists to avoid purely cost/benefit logic, as if BI were a simple matter of arithmetic. He also called for a wider trust network in society, which comes when one considers every member of society as potentially creative and productive. Mariana Duarte Silva, an arts and co-work manager in Lisboa, also presented her arguments for BI, focusing on its universal nature, although admitted that she learned of the concept only when she was invited to this conference. Another newcomer to the BI discussion was workers’ and women’s activist Lina Lopes, from the union UGT, who found the concept interesting and promising. Lina suggested that BI could start out as a distribution to caretakers (the majority of which are women).
José Augusto Oliveira, representing the workers union CGTP, presented an opposing view of BI. Like Ricardo Moreira, José Augusto adheres to a full-employment ideal and believes that BI would effectively subsidize sloth. António Dores used his speaking opportunity to challenge the way in which social NGOs are managed at present: hostage to conditional financing schemes, which end up wrapped in dubious financial practices if not blatant corruption. Dores also denounced the precarious work conditions within these NGOs, concluding that BI would revitalize NGOs and provide dignity to a host of volunteers who participate in these organizations.
João José Fernandes, CEO of the Portuguese NGO Oikos, delivered an interesting and timely presentation on food (in)security, the main reason the national health service in Portugal is presently under tremendous stress. It turns out, according to Fernandes, that food intake problems are correlated with unemployment, most notably with insufficient income. This trend is aggravated by low levels of education. Fernandes pointed out that, for an average Portuguese adult, the minimum income for maintaining a healthy diet is around 200 €/month. He argued that any BI proposal must take this into account, and that the amount of the basic income must be adequate to cover a healthy diet, in addition to other basic necessities.
Three final presentations were given by Glória Fonseca, from Movimento de Trabalhadores Cristãos (Christian Workers Movement), robotics specialist and BI activist Dario Figueira, and Jurgen De Wispelaere. Glória focused on the natural link between Christian values and BI. Dario reviewed BI pilot studies worldwide, presenting their main results. Finally, Jurgen spoke on political feasibility and challenges; he surveyed the political obstacles to BI implementation, and recommending caution and clear-sightedness at every step of the way.
Throughout the entire conference, the audience was very active in questioning the authors and speakers, generating a healthy and useful debate about many facets of BI. The event was closely covered by the media, who interviewed for SIC Notícias TV André Silva from PAN and some of the main speakers for publication in newspapers and magazines. (See the list of publications below.)
Conference room at Portuguese Parliament. Credit to: Luís Gaspar.
More information at:
Language: Portuguese
Sofia Rodrigues, “PAN vai propor estudo sobre atribuição do Rendimento Básico Incondicional [PAN is proposing a study on Basic Income]“, Público online, 15th February, 2016
Sábado Magazine, Entrevista a Jurgen De Wispelaere [Interview with Jurgen De Wispelaere], 18th February, 2016
Paulo Chitas, “Especialista defende que o rendimento básico não promove a inatividade [Specialist defends that the Basic Income does not promote inactivity]“, Visão Magazine online, 15th February, 2016
Maria João Lopes, “E se tivéssemos direito a um rendimento só por nascermos [What if we were entitled to an income just for being born?]“, Público online, 15th February, 2016 (interview with Jorge Silva)
Maria João Lopes, “Com um RBI, há mais liberdade para ter um trabalho, remunerado ou não [With a Basic Income there is greater freedom to work, getting paid or not]“, Público online, 15th February, 2016 (interview with Roberto Merrill)
Movimento Rendimento Básico – Portugal website.
Political party PAN – political priorities.
by Dawn Howard | Feb 12, 2016 | Opinion
Founded in 2014 by futurist and philosopher Zoltan Istvan, the Transhumanist Party is an American non-profit political organization, which advocates the use of non-discriminatory implementations of science and technology to solve a majority of the world’s problems. Despite being in its early stages, the Transhumanist party has been incredibly inspirational for millions of people who are seeking modern, progressive solutions to the challenges we face as a species.
The current leader of the Transhumanist Party, Zoltan Istvan, is running for US president in 2016. At the heart of Zoltan’s platform is a focus on the use of science and technology in the pursuit of immortality. He also promotes free education for all, an end to US military actions abroad, and the implementation of a Universal Basic Income (UBI).
Zoltan’s campaign platform can found here.
Zoltan was kind enough to answer a few questions for Basic Income News, specifically regarding his support for a UBI.
Dawn Howard: You have made UBI part of your 2016 presidential election platform. Can you tell us who you are thinking about appointing as your chief economics advisor? Does he or she have experience designing or implementing UBI pilots?
Zoltan Istvan: A UBI Plan is a huge part of my campaign. As someone who contemplates technology all day long, I am sure that robots are going to take many if not nearly all jobs in the next 10 to 35 years. So we need a way to transition society to being able to happily live in an age where there are no jobs. UBI is the perfect vehicle.
While I have advisors helping me sort out the basics of implementing a basic income, I can’t reveal who might fill the role of implementing that program. But we would draw on experts that have already had some experience in their own nations of doing so.
DH: Several countries including Canada, India and most recently Finland have already tested or are in the process of testing basic income for a small portion of their population. How do you feel about this type of research, and do you think it could work in the US?
ZI: One of the best things to happen to the world in the last few years is having smaller populated nations test out a UBI. It gives the larger nations the evidence they need to confidently implement their own plans one day, and it offers a road map to follow.
DH: Many in the UBI community speak of a “transition” in terms of the timeline between passing legislation and full implementation. In as little or as much detail as you wish, can you tell us what you think this transition would look like?
ZI: I think the transition would probably take five to six years to fulfill from the point legislation passed to everyone having a basic income. While I support a quick transition, we also must be careful not to disturb our national economy too much as this historic process takes place. It would be better to do it slowly, but correctly, rather than force it and lead to a recession, or worse. Capitalism is changing due to technology, and may not even survive 30 years into the future. We must be able to change with it and help the needs of every single citizen out there. But we must also not be hasty.
For more information about Zoltan’s presidential campaign, visit his web site here.
Photo: Zoltan Istvan, leader of the Transhumanist Party and US presidential candidate. Credit: Business Insider.
by Marc de Basquiat | Feb 1, 2016 | Opinion
Multiple surveys across many countries show an increasing support for the idea of providing every citizen with a monthly lump-sum allowance to ensure everyone can meet their basic subsistence needs. In France, the IFOP (a leading French national market research institute) has shown that this support goes beyond political orientation divisions. From the question: “Are you in favour of implementing a guaranteed basic income for all citizens which would replace most existing allowances?” came a positive answer, depending on the degree of support for one party or another, from 72% to 79% for left wing sympathizers and from 50% to 54% for right wing sympathizers.
However, what would an unconditional basic income in France look like in concrete terms?
The Finland experiment
Since the election in April of the Finnish pro-basic income coalition, the topic has given rise to renewed international interest. All started when the Prime Minister of Finland Juha Sipilä announced the launch of a series of pilots, the most important being a “universal basic income” [1], in order to reform the social security system in response to the evolution of the labour market. This will also allow the evaluation of how to reinforce autonomy and incentives to work, as well as reducing bureaucracy and the complexity inherent in accessing social assistance.
The lead role in this project has been given to professor Olli Kangas (KELA) who has outlined the following schedule[2]: preparation phase from December 5th, 2015 to November 15th, 2016; two-year experimentation starting in 2017; evaluation in 2019.
Olli Kangas explained that the work group will evaluate at least four options:
- a “full basic income” (~800 €) replacing almost all basic and insurance-based benefits;
- a “partial basic income” (~550 €) replacing all basic benefits but leaving intact almost all insurance-based benefits;
- a negative income tax in which benefits would phase out as people earn more money;
- miscellaneous other approaches including a universal income and additional components.
Everyone who has recognised the need for major reforms of our social protection mechanisms perceives the announcement of the Finish pilot as an opportunity. However, we need to give time to our Finnish friends for their project to mature.
Which options are possible in France?
The Association for the Introduction of an Existence Income (AIRE) has been working on these questions since 1989, gathering studies and proposals from numerous experts, philosophers, economists, sociologists, politicians, etc. The French Movement for a Basic Income (MFRB) created in 2013 involves activists from a wide variety of backgrounds, leading actions through the country and enriching proposals by bringing together citizen experiences from the grass-roots[3].
Despite apparent simplicity, an unconditional basic income would require a series of structural choices. Precise adjustment of the parameters would need to be made in order to ensure it performs optimally in terms of justice and efficiency. Considering the vast number of options, it would be fallacious to believe that there is an ideal solution. Actually several options that must be weighted by parliamentary and experts in order to create a consensus that is adapted to the reality of our country.
Our experience leads us to recommend a universal income that would vary based on the beneficiary’s age. In particular the case for children should be processed separately, which means organizing an in-depth discussion about the French family assistance policy. This means replacing all or part of the actual eight allowances[4] by a lump-sum for each child. A key stake is to eliminate the high variability of the State grants according to the child’s rank within the family, the matrimonial status of the parents or the parent’s income (knowing that a single child of a middle-income level couple currently receives a remarkably low grant). The potential variation of the universal income amount according to child age (3, 14, 18 year old thresholds) must also be further investigated.
Similarly a discussion is needed regarding senior citizens. The question of incentive to work disappears with the elderly, but the dependency issue arises. Do we need to define a higher amount above 65 years old? How should the matrimonial life conditions be integrated? The ASPA[5] level (800 € for a single person, 1242 € for a couple) gives an indication but not a clear answer on the solution to be implemented.
The coordination with housing allowances constitutes a third theme to be carefully analysed. Acknowledging the inflationary effect of housing allowances (APL) on the rental market price, some politicians and economists[6] are investigating the potential effects of merging the APL and the RSA[7]. As the AIRE association is attached to the Tinbergen rule[8], we are highly reluctant to support this proposal, but the underlying issues must nonetheless be addressed. In any case, it is important to revisit conditionality links between several allowances and the housing grant, in particular the existence of a problematic “housing lump-sum” component within the RSA.
The last framing issue is to define the scope of beneficiaries for a “universal income”. Despite this designation, it is necessary to limit eligibility to a national community. This needs to be defined in terms of residence and/or nationality, probably through continuity of the rules applying today for the RSA beneficiaries. However, this still creates a variety of fundamental questions, for example the potential right to the universal income for prisoners or asylum seekers (currently receiving the ATA[9]).
Three scenarios for a universal basic income for “active age” adults
Similarly to the Finnish approach, we identify three quite different scenarios to defining a universal basic income that would be paid to any adult in France.
- Baseline: extend the distribution of the “RSA single person allowance” to the whole country population (excluding the housing lump-sum component), being 470 € by month in 2016, financed by a flat tax system replacing several current basic social and family allowances as well as tax mechanisms.
- Maximised: distribute equally to the whole population the entirety of the social protection budget, including pensions and unemployment benefit. This would mean about 800 € per month.
- Dynamic: delete all employment incentives to companies and allowing a massive flexibility improvement in terms of minimum salary, in order to finance a basic income ranging between 500 € and 550 € by month. This would also replace a major part of the social and tax mechanisms but leave intact all insurance-based benefits.
The financial feasibility of scenario A is proven and it does not lead to a large upheaval of the redistribution operating in France. It allows a massive simplification of the social and tax systems, facilitating the daily life of the population and reducing operational costs. This scenario, like the following ones, eliminates many inconsistencies, iniquities, and numerous more-or-less known perverse effects. In terms of microeconomic analysis, it implies a massive evolution neither by an income effect nor by a substitution effect, unlike the other scenarios. However, when it comes to tax in france for non residents, one may have to pay tax on income that comes from French sources. In other words, if you work for a French company, even if you do not reside permanently in France, the income you earn will be taxed.
Scenario B designates the losers: those who contributed all along with their life for pensions and unemployment benefits and who would be left without those related benefits. Neither the AIRE nor the MFRB association support this scenario. Such an approach – if it proves to be meaningful – could be considered only through a very long migration phase from one system to another. This would need to be built cautiously, with the implication of the labor unions. Besides, the high level of the benefit leads to a high income effect, many people being possibly satisfied by this amount without seeking a complementary paid activity. The substitution effect contributes on the same way, due to the high level of contribution necessary to finance it.
Scenario C is probably the most audacious challenge, by lightening massively legal constrains framing the labour market, leaving it up to individual and collective negotiations. Citizens with better secured economic status are then on a better position to decide whether to accept or not professional opportunity offers, or to create their own activity by minimising their personal and family risks. The micro-economic analysis is more ambiguous, the income effect being stronger than in scenario A and on the contrary the substitution effect encouraging the activity thanks to a higher flexibility of the labour market.
Of course, the consensus that will emerge from a parliamentary work gathering representatives of all parties and the support of experts from diverse fields could finally be a combination of those three scenarios with potential integration of others approaches. In any case, no option presented in this note should be excluded without in-depth investigation.
Special thanks to Xuan-Mai Kempf for translating the text from French.
ENDNOTES
[1] https://www.kela.fi/web/en/press-releases/-/asset_publisher/LgL2IQBbkg98/content/universal-basic-income-options-to-be-weighed?_101_INSTANCE_LgL2IQBbkg98_redirect=%2Fweb%2Fen%2Fpress-releases
[2] https://www.vox.com/2015/12/8/9872554/finland-basic-income-experiment
[3] Some discussion papers from the field can be tough however well documented. For instance, in order to rebel against the home control by the family assistance administration: https://www.lesenrages.antifa-net.fr/la-caf-contre-les-femmes/
[4] Family allowances, premium for age, family complement for 3 children, basic allowance for child under three, school yearly allowance, RSA increase for each child, income tax reduction according to the number of children, tax reduction for child schooling.
[5] Solidarity allowance for elderly persons.
[6] Cf. the « Unique social allowance » of François Fillon or the IPP report: https://www.ipp.eu/publication/juin-2015-reformer-les-aides-personnelles-au-logement/
[7] RSA: Revenu de Solidarité Active, is the main French allowance providing a minimum guaranteed revenue.
[8] Based on the name of the first Nobel Prize for Economics winner, Jan Tinbergen, a supporter of an unconditional basic income, who stipulated that for each policy objective, one policy instrument is needed, and one only.
[9] Allocation Temporaire d’Attente.
by Andre Coelho | Jan 29, 2016 | News
The deadline for the call for proposals for the 16th BIEN Congress has been extended to Monday, February 29, 2016. The organizers invite people from all over the world to make a proposal and participate in the Congress. The call for proposals with links to more information is below, and you can find more information on the Congress website.
16th BIEN Congress: Social and Ecological Transformation and Basic Income
Seoul, Korea, 7–9 July 2016
Organized by the Basic Income Korean Network
Today the basic income attracts the public attention as a positive alternative beyond an idea. We can see it as important political parties in Europe have adopted the unconditional basic income as a policy objective. One reason for the increased public attention is that many people are coming to believe that the existing system is unsustainable in face of economic and ecological crises. Under these circumstances, we will discuss a more concrete and positive alternative under the theme of Social and Ecological Transformation and Basic Income.
BIEN Conference 2016
The discussion will be around the topics below.
- Economic models of post neoliberalism and the position and role of basic income in them
- The role of basic income in pursuit of expanding democracy in the political arena and in society as a whole
- The role of basic income in the transition to an ecological society and the accompanying cultural society
- The role of basic income in the transformation from the work-based society, presuming it as an element of the de-commodification of labor force
- The ear of the precariat and basic income
- The role of basic income in enhancing gender equality
- Basic income as a tool for the resolution of the youth, unemployment problem
- Evaluation and prospect of various pilot projects
- Post-human prospects and basic income
The above topics are not intended to limit the boundaries, but to set as references for a broader discussion. We invite all interested individuals and groups to participate. Those who want to present should submit abstracts(up to one page in A4 in Korean or 300 words in English) to bien2016.callforpapers@gmail.com by February 29th 2016.
16th BIEN Congress
We are happy to inform you that seven keynote speakers will attend the congress and some more keynote speakers could be with us. Seven keynote speakers are: Louise Haagh (York University, England), Yamamori Toru (Doshisha University, Japan), Jan Otto Andersson (ÅboAkademi University, Finland), SarathDavala (India), Minister and Bishop ZephaniaKameeta (Namibia), Zhiyuan Cui (Tsinghua University, China) and Gonzalo Hernandez Licona (Mexico).
Korean Basic Income Week will be held along with the 16th BIEN congress. We also invite all interested individuals and groups to participate in this event which will be comprised of concerts, film-screenings, performances and campaigns. Those who want to give proposals for Basic Income Week should submit them to bien2016.callforpapers@gmail.com by February 29th 2016.
16th BIEN Congress
Programs of the congress and Basic Income Week will be compiled from all submissions and proposals by March 31st 2016. We will send a message to all those who have made a submission shortly afterwards. If you have any question, please contact us at bien2016.callforpapers@gmail.com.
Finally, we will run a day-care center for children under 8 for the participants with to use. Contact us at contact@bien2016.org please.
For more information, click here for the Congress website.
