Europe: European Green Perspectives on Basic Income

Europe: European Green Perspectives on Basic Income

The Green European Foundation (GEF) has published its report on UBI: European Green Perspectives on Basic Income, on 18th February 2019.

GEF is one of the ‘political foundations at European level’ (a.k.a. Eurofoundations) that are research and advocacy organisations funded by the European Parliament.

GEF ran a project ‘Basic Income for all EU citizens?’ for the past two years (2017-2018). This report is one of its outcomes. The report’s forewords by Susanne Rieger and Ville Ylikahri outlines the aim of the project: ‘investigating the [UBI] proposal’s potential in relation to employment, the recognition of work beyond paid work, and the gendered division of the labour’ (p.5). This threefold aim is in sharp contrast to the narrow focus of the Finnish Government experiment run concurrently with the GEF’s project. The Finnish Government only focused on employment and paid no attention to unpaid work and the gender division of labour.

The report contains the accessible introduction, ‘Twelve Questions and Answers on Universal Basic Income’ by Natalie Bennet, a former leader of the Green Party of England and Wales. It is followed by 9 substantial articles. The report’s concluding chapter evaluates the EU-wide UBI proposal from ‘Social Europe’ perspective.

GEF continues to work on UBI with its new project ‘Basic Income – European Public Debate’.

You can access PDF of the report or order a hardcopy here.


Image: GEF’s report on UBI,  from GEF’s homepage.

Article reviewed by Russel Ingram.

Anil Sasi: “Universal Basic Income: The ‘money for nothing’ idea”

Anil Sasi: “Universal Basic Income: The ‘money for nothing’ idea”

Children playing in Sikkim, India. Picture credit to: India Today

Anil Sasi’s article starts from the Sikkim announcement to implement a basic income in the state, up until 2022. After describing the basic income concept in broad strokes, explains the Indian tapestry of conditional social benefits, in cash and in kind, which is riddled with inefficiency and corruption. It refers that, so as to finance a basic income, the structure of existing benefit programs would have to be completely changed, “in order to free up resources so that a particular amount can be directed to people on a periodic basis”. From there, Sasi goes on to describe a few of the most relevant basic income-like pilot programs and experiments, using that to contextualize the Sikkim situation.

As in many other regions in the world, the planning for a basic income implementation involves slashing on existing conditional programs, some of which might be rendered obsolete on their own terms (emptied out of beneficiaries, due to mean-testing). Sasi points out, though, that this cutting on governmental subsidy programs might be dangerous, even counterproductive, citing economist Bhalchandra Mungekar, a former member of Rajya Sabha and the Planning Commission. Interestingly enough, however, Mungekar was one of the Congress party leaders to promptly backup Rahul Ghandi’s announcement of a national basic income implementation in India, were the party elected in the next general elections in May.

More information at:

André Coelho, “India: Sikkim state is on the verge of becoming the first place on Earth implementing a basic income”, Basic Income News, January 11th 2019

André Coelho, “India: Basic income is being promised to all poor people in India”, Basic Income News, February 1st 2019

Anil Sasi, “Universal Basic Income: The ‘money for nothing’ idea”, The Indian Express, January 11th 2019

India: The Indian government also promises basic income to farmers

India: The Indian government also promises basic income to farmers

Masked Narodi supporters, in 2014. Picture credit to: Aljazeera

Just a few days after Rahul Gandhi, leader of the Congress Party, announced the intention of implementing a “nationwide minimum income for the poor”, Prime Minister Narenda Modi’s government now proposes a “basic income for poor farmers”. This policy was set as a part of a supposedly interim budget, only up to the elections date (May 2019), although in this case expenditure was scheduled up to December 1st 2019, in a clear bet to win these elections and continue in power.

The cited interim budget was presented by (acting) finance minister Piyush Goyal, and the “basic income for poor farmers” is expected to affect millions of small farmers, who will be paid 6000 Rupees per year (84 US$/year), in principle as an unconditional cash transfer. 6000 Rupees averages around 3% of a typical family yearly net living wage (~183000 Rupees), and 6% that of a single adult (96900 Rupees). It is inferred that the hand-out to farmers would be to the farmer, as the owner of the land parcel, hence to his/her family. In this context, the policy promise is not individual (only if the farmer is single and has no dependent children), nor enough to cover minimum necessities (not basic), nor universal (only for farmers). The “basic income” term, therefore, is used by Modi’s government in a very loose manner, which might indicate more of an intent to get an electoral edge, particularly over the latest Congress proposal.

There is a general acceptance in India that transferring money directly to poor people avoids the corruption of the current subsidies system, and so such a policy as a kind of basic income makes sense to many. Unemployment is another important issue, but, interestingly enough, this might be ameliorated by the implementation of a basic income (type of policy), according to Gareth Price, from the Chatham House think tank. This is because direct, unconditional money in the pockets of people will most likely drive an economic expansion. Despite this reasoning, in other allegedly developed nations, such as France, the ability to work in paid jobs is still seen as central to the social contract. There, policy makers are more afraid people will just sit back and give up on contributing with their work to society, than they are confident that basic income will help those at the bottom of the income scale to fully participate in the economy, as workers and consumers.

More information at:

André Coelho, “India: Basic income is being promised to all poor people in India”, Basic Income News, February 1st 2019

Adam Withnall, “India budget: Modi announces universal basic income for farmers in bid for rural vote ahead of elections”, Independent, February 1st 2019

Expenditure and Living Wage calculation in India

André Coelho, “France: Law proposal to experiment with basic income rejected before even discussed”, Basic Income News, February 10th 2019

When people ask me where online to find empirical research on the effects of Basic Income….

When people ask me where to find empirical research on the effects of Basic Income online, I tend to recommend the following sources, both for the sources themselves and for the many more sources you’ll find in their bibliographies:

Karl Widerquist A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens, Palgrave Macmillan, December 2018. In case you can’t find my book at your university library, I posted an early draft of it (and as far as I know everything I write) for free on my personal website.

Karl Widerquist “A Failure to Communicate: What (If Anything) Can we Learn from the Negative Income Tax Experiments?” The Journal of Socio-Economics (2005). You can find an early free version here.

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Calnitsky, D. (2018) ‘The employer response to the guaranteed annual income’, Socio-Economic Review, 25, 75–25.

Kangas, O., Simanainen, M. and Honkanen, P. (2017) ‘Basic income in the Finnish context’, Intereconomics, 52, 2, 87–91.

Karl Widerquist, “The Cost of Basic Income: Back-of-the-Envelope Calculations,” Basic Income Studies, 2017. Again if you don’t have access through your university, you can find an early version of The Cost of Basic Income on my personal website.

Basic Income: An Anthology of Contemporary Research” is helpful, although only a small part of it is empirical.

Widerquist, K., Howard, M. (Editors) Alaska’s Permanent Fund Dividend: Examining Its Suitability as a Model and Exporting the Alaska Model: Adapting the Permanent Fund Dividend for Reform around the World, two books both published by Palgrave Macmillan in 2012. Contact the editors (karl@widerquist.com) if you have trouble locating the books.

Evelyn Forget, “The town with no poverty: The health effects of a Canadian guaranteed annual income field experiment,” Canadian Public Policy, 2011

Go to Google Scholar: search “basic income” and/or other names for the concept with our without additional key words to narrow it down. Scroll through as many pages of links as you have time for.

Go through the tables of contents for each issue of the journal Basic Income Studies.

Go through the news on Basic Income News, as far back as you have time for, looking for mentions of and links to new research.

Go to the “Basic Income FAQ/wiki,” on Reddit and look for the empirical articles.

I’m leaving out a lot of good stuff because I can’t find it online, but those things together should give you a good idea of the current state of UBI research.

What links would you add (please answer only if you can give the full information about it including an actual links to it)?

Portugal: Aftermath of Conference on Basic Income

Portugal: Aftermath of Conference on Basic Income

Minho, Portugal. Picture credit to: Notícias ao Minuto

 

Last Wednesday there was a Conference on Basic Income at Universidade do Minho, called “Rendimento Básico: uma Ferramenta para uma Europa Social? [Basic Income: a Tool for a Social Europe?]”. It was organized by Centro de Ética, Política e Sociedade [Center for Ethics, Politics and Society] (CEPS), together with several institutional partners, for instance Universidade do Porto (Porto University) and Ministério do Trabalho, Solidariedade e Segurança Social (Social Security, Solidarity and Work Ministry).

 

This Conference featured presentations and contributions from several specialists, politicians and students, such as Philippe van Parijs, Jurgen de Wispelaere, Jamie Cooke, Evelyn Forget, Roberto Merrill, Gonçalo Marcelo, José António Vieira da Silva (Social Security, Solidarity and Work minister) and Ana Carla Pereira (European Commission Social Protection Systems Head of Unit), among others.

 

On the aftermath of this event, several interviews and articles were published, confirming the rising interest in basic income within the Portuguese reality. Interviewed by Público newspaper, van Parijs clarified that, although automation is largely seen as the prime mover of basic income, at least in “developed” countries, it is “not at the bottom of the basic income proposal”. According to him, basic income is, rather, a way to include everyone in work. Answering a series of questions focused on the perceived problems with basic income – work disincentive, contrary to work ethic, social cleavages, menace to the welfare state – van Parijs defended the proposal as non-conflicting with the work ethic, since people can choose better what to work for with a basic income, and also as collaborating with the welfare state and its function to provide material security.

 

Minister Vieira da Silva, also interviewed by Público, believes that basic income, if ever to become a reality, can only be implemented at an European scale. His greatest fear is that, with basic income, society will become polarized between the employed, who would (in his view) be financing basic income, and the unemployed, who would only be surviving on that unconditional stipend. He also claims that basic income experiments “have not been very successful”, and that basic income in Portugal “seems an option still far away from implementation”. The minister has not justified any of these assertions, which may unveil doubts on his knowledge about the successful experiments already undertaken (e.g.: India, Namibia, Canada), and the most recent events in India related to unconditional cash transfers. Nevertheless, Vieira da Silva acknowledges that in an era of robotization, basic income can be seen as an investment, “guaranteeing access to consumption for everyone”.

 

Ex-Work and Solidarity minister, Paulo Pedroso was also interviewed in this sequence of opinion on basic income. To Pedroso, people should simply not be exempted from their duty to contribute to society. However, he also acknowledges that creating a financial floor which eliminates the possibility of not having enough resources to live with dignity, is a good idea. Hence, he supports universality, but not unconditionality. More, according to Pedroso, basic income “aims to replace the welfare state”, which is an opinion shared by many on the Left on the Portuguese political spectrum, namely Francisco Louçã. The ex-minister assumes that the implementation of a basic income in Portugal will demand so much financial resources that the government would be forced to cut on essential services, like education and health, although that has aldready been proven unnecessary. Pedroso’s views on basic income do not come as a surprise, though, as he already had delivered his opinions before, having then stated that basic income “amounts to suicide”.

 

Discussions in Portugal about welfare, taxation and, ultimately, basic income, do not seem to share a rational basis. From several interviews it becomes clear that opinions get formed on emotional grounds – particularly fear and hesitation – and not over evidence. However, the conversation continues, in the midst of international experimentation (with basic income-related policies) and tentative implementation moves (India).

 

 

More information at:

[in Portuguese]

São José Almeida e Sónia Sapage, “O rendimento básico incondicional é um remédio para a armadilha do desemprego [Basic Income is a medicine for the unemployment trap]”, Público (online), January 27th 2019

Tiago Mendes Dias, “Para Vieira da Silva, o rendimento básico deve ter uma escala europeia [To Vieira da Silva, basic income shall have na european scale]”, Público (online), January 24th 2019

Sónia Sapage, “O Rendimento Básico Incondicional ainda não passou da fase da utopia [Basic Income has not yet passed the utopian phase]”, Público (online), January 29th 2019

André Coelho, “Portugal: Basic income event attracts politicians and social science experts”, Basic Income News, Mat 28th 2017