The Self-Employed Women’s Association (SEWA) recently completed a large pilot project on Basic Income in India. The association’s June Newsletter reports on the methodology and findings of the study.
The project randomly assigned 8 out of 20 villages in the study to receive the grant, while the other 12 villages were used as controls. Every adult man and woman in the treatment villages received a grant of 200 Rupees (about US$3 or N$30) per month and every child received 100 Rupees per month. After one year, the amounts were increased to 300 Rupees and 150 Rupees respectively. A total of 6,000 individuals in the 8 villages received the grants for 12 to 17 months. The amount was equivalent to about 20 to 30 percent of household income for the lower-income families in the study.
Researchers conducting the study found that the grants significantly reduced hunger, malnutrition, and illness among recipients. Recipients increased ownership of livestock, reduced, improved school attendance, improved school attendance, and increased investment in agricultural implements. Researchers found no increase in alcohol consumption in the treatment villages. Importantly, the study also found that grant recipients worked more than people in the control villages and that they were three times more likely to start a new business. These results for a positive effect on work effort and earned income (found both the Uganda and the India studies) are confirmed by evidence from cash transfer programs. For example, in South Africa, the Old Age Pension, the Child Support Grant, and the Disability Grant all helped to raise labor force participation and employment.
From 1974 to 1979, a basic income social experiment known under the name of “Mincome Program” took place in a small Canadian town. Evelyn Forget, researcher, is one of the very few persons who have studied the sociological impact of the guaranteed income experiment. In this interview with Stanislas Jourdan, she explains more about her findings, 30 years after the experiment ended.
Research presented at the 2024 BIEN Congress explores China’s possible shift from existing social assistance programs toward Universal Basic Income (UBI), raising insights into poverty alleviation and social equity.
Conducted by interns Zhao Muge, Wu Yifan, and Huang Xinhe under the guidance of scholars Cheng Furui and Ye Jiabin, the study titled “Can China Move Towards the UBI?” evaluates China’s current Minimum Livelihood Guarantee (Dibao) and targeted poverty alleviation policies, proposing UBI as a potential next step.
The study highlights that China’s Dibao policy, intended to provide a minimum living allowance to low-income households, initially showed strong results in poverty reduction—particularly evident in rural areas. For example, a 1 percent increase in rural Dibao expenditure corresponded to a 6.8 percent reduction in poverty in regions like Shanxi Province from 2008 to 2018. However, over time, Dibao’s effectiveness declined due to welfare dependency, stigmatization of recipients, and administrative inefficiencies, including inadequate adjustment mechanisms for benefit standards and cases of resource misallocation. From 2015-2016, the reduction in the poverty rate in some parts of China was less than 30 percent.
Transitioning from subsistence allowances to targeted poverty alleviation was a necessary step to improve the efficiencies of the program, the study’s authors argued. The number of rural Dibao beneficiaries began to surpass urban beneficiaries around 2007 and peaked in 2013, prompting China to implement targeted poverty alleviation policies. From 2018 to 2020, the number of rural beneficiaries vastly exceeded urban beneficiaries, emphasizing the critical need for interventions targeting rural poverty. Next, the study discussed the advantages of targeted poverty alleviation compared to subsistence allowances. Case studies showed that targeted poverty alleviation can be implemented through infrastructure development, industry support, education, and other means. Compared to Dibao, targeted poverty alleviation places more emphasis on enabling self-development through comprehensive measures. As a result, it has a broader scope, more projects, and is more comprehensive and in-depth, leading to sustainable poverty alleviation.
The research also explores the theoretical and practical groundwork supporting UBI implementation in China. Theoretically, UBI aligns with China’s goal of common prosperity and narrowing the wealth gap. Practically, the COVID-19 pandemic provided an experimental foundation through widespread government-issued consumption vouchers, which effectively stimulated local economies, with economic multipliers ranging up to tenfold in certain cases.
The paper outlines several feasible pathways for China’s gradual implementation of UBI: using dividends from carbon emissions trading, establishing a permanent citizen trust fund financed by state-owned enterprises, adopting negative income tax schemes to enhance employment incentives, and distributing subsidies adjusted according to regional poverty lines and demographic factors.
Despite recognizing challenges, such as funding sources, potential increased tax burdens, and the risk of disincentivizing labor participation, the research strongly supports the viability and potential benefits of UBI. Ultimately, the authors conclude that by carefully addressing these challenges, China could successfully integrate aspects of UBI into its social welfare system, significantly reducing poverty, enhancing social equity, and driving sustainable economic growth.
“The growing popularity of basic income has led to extensive trials of the policy in numerous settings across the world. However, analysis of the politics of basic income, and in particular the political dynamics preceding and resulting from trial programs, lags. In response, we propose a research agenda that uses political scale to investigate where basic income trials emerge, how individual trials’ design and implementation parameters vary, and how those trials influence subsequent policy development. By focusing on the previously omitted variable of political scale, our approach addresses a number of key challenges in evaluating basic income trials. First, we provide a means of identifying negative and partial cases to remedy the small-N problem at the national and regional scales. Second, focusing on a given scale helps to identify specific incumbent programs and policy possibilities influenced by basic income trials. Third, our framework. draws attention to the importance of distinct, scale-based political dynamics in both securing basic income trials and converting trial programs into future policy changes.
UBI Taiwan hosted a press conference to spotlight the progress of its basic income pilot program for single-parent households. The event brought together policymakers, academics, and beneficiaries to celebrate this milestone and advocate for a more equitable future.
Two Taiwanese national legislators were present at the event, offering their support and emphasizing the broader implications of basic income for Taiwan. They stated they hoped this experiment could become a stepping stone for Taiwan to become a more fair and just society.
Yu-Ling Chang, Assistant Professor of Social Welfare at UC Berkeley, hailed the initiative as a pivotal development in Taiwan’s social welfare history. “Implementing the basic income experiment is a new milestone for social welfare in Taiwan,” she remarked.
Adding a personal dimension to the event, Ms. Yu, the first participant in UBI Taiwan’s basic income experiment, shared her experience. She expressed gratitude for the program, which provided much-needed stability and relief during a challenging period in her life. “The basic income gave me a moment to breathe,” she said, reflecting on how it allowed her to focus on her child and navigate life’s uncertainties, such as her recent battle with cancer.
A documentary about Yu’s journey with basic income will be released later this year.
To further raise awareness and funds for the single-parent basic income program, UBI Taiwan held a national charity debate competition in December. Students from Taiwan and Japan participated to deliberate on whether Southeast Asia should implement basic income, presenting diverse perspectives on issues such as entrepreneurialism, foreign direct investment, fiscal capacity, and governance challenges in developing nations.
The championship round showcased arguments from both sides, with opponents emphasizing feasibility concerns while proponents argued that the social costs of inaction outweigh the investment required to implement basic income.
The tournament raised over $1,000 USD, with the proceeds going toward developing the single-parent program. The fundraiser was organized by UBI Taiwan and Ascent Academy’s Youth Leadership Program, which is designed to connect young people with social impact initiatives in the spirit of basic income.
Beyond the debate competition, students in the Youth Leadership Program are developing additional programs to address pressing social issues. Current projects include initiatives to support the homeless using cash cards and provide educational resources for low-income students.
UBI Taiwan plans to expand the single-parent basic income program this fall. To support this initiative, the organization also hosted a fundraiser talent show in January, inviting supporters to perform in support of the program.
Jiakuan Su, chairman of UBI Taiwan, said he saw positive changes during the pilot program from finding a better job to improved educational development for the child.
“The value brought by basic income is not just the money, but more importantly the changes it brings to your life,” Su said.
