by Kate McFarland | Sep 1, 2017 | Research
Teppo Eskelinen and Johanna Perkiö have published “Micro-investment perspective and the potential of the universal basic income” in Development Policy Review (June 2017).
Eskelinen and Perkiö analyze basic income as a tool to promote micro-investments by poor individuals and households, hypothesizing that a basic income would impart to such households a “greater confidence to undertake more risky activities, knowing they will have a minimum income to fall back on.”
As they explain in the abstract, the authors “aim to estimate potential impacts of the BI by synthesising existing knowledge. This estimation will not be quantitative, but rather show likely outcomes of a BI scheme. We will complement existing knowledge by exploring cognate cash transfer policies and other experiences that bear similarity to the BI.”
As a core part of their analysis, the authors examine the pilot studies conducted in the Namibian village of Otjivero-Omitara (2008 to 2009) and the Indian state of Madhya Pradesh (2011 to 2013), looking especially at the effects on “labour, behavioural impacts, psychological impacts, and investment in human capital.” Regarding psychological impacts, they point out that, in the Madhya Pradesh experiment, “households receiving cash grants were three times more likely to start a new business or production activity than control group households,” which appears to affirm their conjecture that “the availability of money combined with a sense of security is what eventually determines the occurrence of micro-investment.” Regarding behavior, they note a “recurring observation” that part of recipients’ additional income was “invested in income-generating activities.”
Eskelinen is a philosopher and social scientist who has published on political theory, political economy, global justice, and development theory. He is senior lecturer at University of Jyväskylä.
Perkiö is a doctoral candidate in the social sciences at the University of Tampere, writing her dissertation on the history of the basic income debate in Finland (see her November 2016 presentation for Kela). Many of her previous articles and blog posts on basic income available online, including the Transform! Network discussion paper “Basic Income Proposals in Finland, Germany and Spain,” the International Solidarity Work report “Universal Basic Income – A New Tool for Development Policy?,” and a response to the OECD’s recent critical report on basic income, published on Kela’s blog.
Reviewed by Russell Ingram
Photo: Store in Madhya Pradesh, CC BY 2.0 Brian Gratwicke
by Kate McFarland | Aug 31, 2017 | News
Nature Needs More, a wildlife conservation group based in Australia, is currently investigating the potential of basic income to help curb illegal hunting.
Founded in 2013 under the name Breaking The Brand, the group’s first advocacy and educational campaigns focused on curbing the demand for the products of illegal hunting, such as rhinoceros horns. As its work progressed, however, Breaking The Brand realized that its demand reduction campaigns could not be sufficient to stop illegal wildlife trade; successful wildlife conservation “needs more”.
Now called Nature Needs More, the organization is exploring new strategies, including a basic income pilot project designed to measure its effects on hunting and wildlife conservation.
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Elephants in Namibia, CC BY-NC 2.0 Frans Vandewalle
Nature Needs More is inspired in part by the Basic Income Grant Pilot Project conducted in 2008 in the Namibian town of Otjivero. Prior to the introduction of the basic income grant, the local police station commander told researchers that poaching was the most common criminal activity, stating, “Poverty and unemployment are the reasons for these criminal activities. Otjivero is a tiny place and there is no source of income there. Most people hunt or poach just for survival.” In 2007, 20 instances of illegal hunting and trespassing were recorded between January 15 and October 31. In 2008, however, after the introduction of the basic income pilot, the count fell to only one instance during the same time period.
As Nature Needs More notes on its website, current basic income experiments–such as the 12-year randomized control trial that the non-profit GiveDirectly is due to launch in rural Kenya in September–are not linked to conservation outcomes.
Thus, the organization is considering the possibility of launching its own basic income experiment within the next two years.
Describing its hypothesis, Nature Needs More states, “Financial security would not only mean less poaching for food [and] less illegal harvesting … but would [also] mean wildlife trafficking syndicates would have less leverage to recruit poachers from the impoverished communities neighbouring key conservation areas.”
The organization is also exploring whether a basic income might help conservation areas convert to ecotourism as a revenue source.
Reviewed by Caroline Pearce
Rhino photo CC BY-NC-ND 2.0 Martin Heigan
by Kate McFarland | Aug 29, 2017 | Research
Ville-Veikko Pulkka, a public policy researcher and doctoral candidate at the University of Helsinki, has published his paper “A free lunch with robots – can a basic income stabilise the digital economy?” in European Review of Labour and Research.
Pulkka was previously employed as part of the research team at Kela, the Finnish Social Insurance Institution, responsible for the design and preparation of the nation’s two-year experiment replacing conditional unemployment benefits with an unconditional basic income.
The Finnish experiment has been the topic of most of his previous published work and presentations related to basic income (including presentations at conferences in Switzerland, Poland, Finland, and Ireland).
Pulkka’s research at the University of Helsinki, including his doctoral dissertation, centers on the implications of the digital economy for labor and public policy.
“A free lunch with robots,” his latest publication on basic income, moves away from focus on the Finnish experiment to explore the latter topic in more general terms:
The discussion on the possible implications of the digital economy for labour continues unabated. An essential dimension of the discussion is the widely shared view that a basic income could guarantee sufficient purchasing power for unemployed, underemployed and precarious workers should technological unemployment and labour market insecurity increase. A budget-neutral basic income has serious limitations as an economic stabilisation grant, but if financing proposals are revised, these limitations can be tackled. Even though guaranteeing sufficient purchasing power for unemployed, underemployed and precarious workers does not necessarily require an unconditional universal benefit, it seems clear that traditional activation based on strict means-testing and obligations will not be a strategy flexible enough to guarantee sufficient consumer demand in fluctuating labour markets. An economically sustainable solution might be to reduce means-testing gradually and to study carefully the effects.
The full article is available behind a paywall here.
Reviewed by Russell Ingram.
Photo CC BY-NC 2.0 Helen Taylor
by Florie Barnhoorn | Aug 28, 2017 | News
As the social assistance experiments in several Dutch municipalities will begin this fall, Studium Generale of Utrecht University has organized an event dedicated to ‘Free Money‘.
Studium Generale is a university’s public platform for knowledge sharing and reflection by organizing lectures, seminars and other activities aimed at students and the general public. Entrance is always free and accessible without reservation.
In the Netherlands, municipalities are responsible for the provision of tailor-made benefits to anyone who has insufficient means to support him or herself, and for achieving the purpose of the Participation Act, that is, making recipients independent from social assistance. Several municipalities are conducting two-year experiments, in the context of which they have the option of implementing social assistance regulations in an alternative way.
Each experiment will include at least three treatment groups, who are subjected to various regimes, and a control group. The restrictiveness of obligations between the groups will vary, from a group which has fewer obligations imposed on it to a group which is even more intensively supervised. In addition, participants in a third treatment group may retain a limited amount of their income from work on top of their payments. See the links at the bottom of this article for more details.
Researchers of Utrecht University, one of the four universities that will supervise the experiments scientifically, have been critical about the design of the pilots because of its limited scope and complicated nature.
The experiments, as they are proposed now, raise a number of questions, such as: why don’t we all give a basic income? Is it too expensive, or are there any other objections?
Rutger Bregman (The Correspondent) and Professor Ingrid Robeyns (political philosopher and economist at Utrecht University) will address these issues during the “Free Money” event on October 25, 2017.
Rutger Bregman has written several books on ‘Free Money’ — for instance, Utopia for Realists — and was one of the speakers at TED2017 in Vancouver last April.
Ingrid Robeyns holds the chair in Ethics of Institutions. In her teaching she focuses on normative and applied ethics and (normative) political philosophy. She has been teaching about justice theories and economic ethics at the masters level in recent years. In her own research, Robeyns addresses a number of normative issues related to demography, gender, family, and institutional economy. Robeyns writes for the English-language group blog Crooked Timber and occasionally on her own site Buiten Categorie. She will also be one of the speakers during BIEN’s 17th Congress next September in Portugal.
The event will take place on October 25, 2017. The language is Dutch. Those interested are invited to join the discussion on Facebook event. For more details, see here.
Previous information on social assistance experiments in The Netherlands:
Florie Barnhoorn, “The Netherlands: Amsterdam on collision course over social assistance experiments” (August 5, 2017).
Florie Barnhoorn, “The Netherlands: All that’s left is the action. Where do we stand with the experiments?” (June 2, 2017).
Kate McFarland, “The Netherlands: Social Assistance Experiments Under Review” (May 9, 2017).
Florie Barnhoorn, “The Netherlands: Design of BI Experiments Proposed” (October 26, 2016).
Credit Picture Flickr.com CC Ealasaid.
Thanks to Kate McFarland for reviewing this article.
by Patrick Hoare | Aug 23, 2017 | News
Lodewijk Asscher and Jetta Klijnsma (composition). Credit to: Wikipedia.
Lodewijk Asscher and Jetta Klijnsma, the Minister and the Secretary, respectively, for the Ministry of Social Affairs and Employment in the Netherlands, have dismissed the idea that a Basic Income could form part of a solution to deal with the increasing levels of unemployment amongst older people in the country.
Answering questions on the Radar Extra documentary ‘Chance of Work: 3 percent’, which investigated the high rates of unemployment amongst the over 55s and their difficulty in returning to the world of work, the ministers accepted that the unemployment rate was too high, but rejected the notion that an older unemployed person had only a 3 percent chance of returning to work. They claimed instead that “the chance of finding work is significantly greater… and will increase further with an improving economy and additional government measures”, adding further that, according to a paper published by the UWV (Employee Insurance Agency) in May 2017, 35 percent of those receiving unemployment benefit over the age of 55 return to work within a year.
When it was suggested by the interviewers that a Basic Income might allow the older unemployed to contribute to society in a different way, the ministers stated that “unconditional basic income is not a realistic or economically viable option”, reasoning that “regardless of the cost, as basic income increases so labour supply decreases, supplementing a low wage economy”. They also explained that Basic Income did not fit with the party’s political ambitions, which are built around a focus on “increasing employment” and a “commitment to participation”, the result of which, they believe, will offer people “a social network, self-confidence and opportunities for development”.
The extent to which these comments will be concerning for Basic Income proponents is unclear, however, given the heavy losses the Labour Party suffered in the March 2017 elections, which saw support plummet from 38 to just 9 seats, seventh place in the final standings. Though a government has yet to form, the prospect of the Labour Party participating in a coalition, therefore, seems remote. In addition, Jetta Klijnsma, the likely outgoing Secretary for the Ministry of Social Affairs and Employment, has recently authorized for 5 municipalities to carry out Basic Income experiments. The Radar Extra petition to experiment with Basic Income in over 55s has also already been signed by over 70,000 people.
A full transcript of the Radar Extra interview with the two ministers can be found here.
More information at:
In Dutch:
Menno de Vries, “WW’ers vaker aan het werk [Unemployed more often at work]”, May 2017
“Petitie basisinkomen 55-plussers [Basic Income petition for people older than 55 years old]”, Radar, 2017
In English:
“VVD wins 33 seats but coalition partner Labour is hammered”, DutchNews.nl, 16th March 2017
Kate McFarland, “THE NETHERLANDS: Government authorizes social assistance experiments in first five municipalities”, Basic Income News, 11th July 2017
Pedro Alves, “Netherlands: Basic Income petition in the Netherlands for people over 55 years old was signed more than 50000 times”, Basic Income News, 6th July 2017