Taipei to hold second annual UBI Asia Pacific conference

Taipei to hold second annual UBI Asia Pacific conference

The second annual Basic Income Asia Pacific conference will be held in Taipei, Taiwan on March 17 and 18. This year’s theme is “Asia Pacific’s Economic Future.”

Keynote speeches will be delivered by Enno Schmidt, the Swiss referendum leader, and Dr. Sarath Davala, the lead researcher for the UNICEF basic income trials in India.

“The focus on Asia is necessary to understand how we are going to interpret the idea regionally – given Asia’s own specificities and peculiarities. This conference is going to open this much needed conversation. This event is yet another milestone achieved by the UBI Taiwan, one of the most dynamic national groups,” Davala said.

Leading thinkers in academia, government and NGOs from Taiwan, mainland China, India, Bangladesh, Singapore, the United Kingdom, and the United States will join the conference to discuss the challenges facing the Asia Pacific and potential solutions, such as basic income.

Dr. Hermann Aubie is a lecturer at Aston University in the United Kingdom. His research specializes on comparing basic income movements in East Asia and Europe.

“This conference offers a rare and precious opportunity in the Asia Pacific region to build upon the wave of renewed attention that Universal Basic Income gained in recent years to discuss actively how we can create a wider consensus and concrete initiatives that build upon existing basic income designs and pilot implementations across the world,” Aubie said.

The entire conference will be live-streamed on UBI Taiwan’s Facebook account, including both English and Chinese audio simultaneous translations.

Taiwan has recently lowered the threshold for referendums, which has opened the possibility for a UBI referendum in Taiwan. This will be a topic of particular focus for two of the presentations at the conference, including Schmidt who will present on how Taiwan can lead Asia with a UBI referendum.

“With the introduction of Direct Democracy this year in Taiwan, the UBI Taiwan proponents have the same chance and political tool to turn UBI into a nationwide discussion and to push it to a people’s vote like the Swiss have done,” Schmidt said.

The conference coincides with increased discussion of basic income in the Asia Pacific, with the UN Development Program holding roundtable discussions on basic income in Beijing, China last October and December, as well as Korea discussing designs for a a pilot program.

“With the second annual UBI Asia Pacific regional conference approaching, we have expanded into two days, allowing us to share our ideas of how to improve society through implementation of Universal Basic Income,” said Ping Xu, co-founder of UBI Taiwan and UBI Asia Pacific.

The conference will examine the economic and social challenges facing the Asia Pacifc region, and will assess what a basic income policy can do to address these issues, such as inequality, automation, globalization, demographics, and environmental issues.

Last year’s conference attracted 100 participants and thousands of online viewers. The conference helped bring attention to basic income in Taiwan, with the formation of a UBI summer fellowship program and discussions with the Taichung Social Affairs Bureau about a potential pilot program.

The event is organized by National Chengchi University’s (NCCU) College of Social Sciences, and NCCU’s International Master’s Program in Asia Pacific Studies. It will be held at NCCU on March 17 and NTU on March 18. The event’s volunteers and coordinating team are part of UBI Taiwan.

“At this juncture of history where poverty and inequality are rising rapidly, I think we urgently need a “new universalism” of the kind UBI promises. There’s a long road and a lot of work ahead of us to make it a reality, but as more and more people place their hope in UBI’s emancipatory potential to protect their livelihood, human rights and dignity, we just can’t afford to disappoint such expectations,” Aubie said.

Writing Assistance from: James Grant

China: Macao to spend over $1.5bn on public subsidies including Wealth Partaking Scheme

China: Macao to spend over $1.5bn on public subsidies including Wealth Partaking Scheme

The Macao region of China will spend more than 1.2 billion euros this year on public subsidies, including their Wealth Partaking Scheme, which functions as a very low-level form of basic income.

As reported by the Xinhua News Agency, the official press agency of the People’s Republic of China, the Macao region will be spending over 12bn patacas (1.2 billion €), the local currency, on various forms of public subsidy.

This will include the Wealth Partaking Scheme, which offers 9000 patacas (900 €) per year to every permanent resident, and 5400 patacas (542 €) per year to every non-permanent resident.

Other Macao public subsidies include regular payments to elderly and disabled people.

 

More information at:

Macao to spend 1.61 bln USD on public subsidies next year: chief executive“, XinhuaNET, 14th November 2017

CHINA: UNDP holds basic income roundtable in Beijing

CHINA: UNDP holds basic income roundtable in Beijing

In a sign of the major progress Universal Basic Income (UBI) has made in Asia, the United Nations Development Program in Beijing hosted a roundtable discussion on basic income last week. Professors from China’s most influential universities spoke at the roundtable about the potential for a basic income pilot program in China.

Patrick Haverman is the UNDP Deputy Country Director for China. Haverman said he wants to work with academia and government to determine if basic income experiments in different areas of China are feasible.

“With the Sustainable Development Goals firmly focused on the need to ‘leave no one behind’, careful consideration of a wide variety of responses will be essential,” Haverman said during his opening remarks. ”It is very important that we can foster collaborative discussions around potential options to address poverty and inequality into the future, and the role of UBI should not be overlooked.”

The roundtable also discussed the benefits and likely challenges of implementing a Universal Basic Income in China. A large topic was how UBI could improve on the dibao system, which is China’s means-tested unconditional cash transfer program. Dibao currently has issues with targeting the subsidies toward people in poverty, which many participants at the roundtable noted UBI’s universality could potentially alleviate.

Shi Li, a professor at Beijing Normal University, said Chinese people in poverty receive the dibao because of poor targeting. In his research, Li and other researchers found that nearly 88 percent of poor residents in China do not receive dibao stipends. Remarkably, administrative costs of means-testing were three times more than the actual transferred amount.

The large size and economic disparities across the mainland mean it may be difficult to implement a national UBI that is not adjusted based on residence, others noted.

The event was co-hosted by the International Labour Organization, which presented on the potential disruption of automation on employment during the roundtable. Haverman said an advantage in China is that smartphone penetration is high and many businesses now accept digital payments. This means it may be most efficient to send basic incomes to digital wallets.

“Almost everyone has a phone, so if we find a pilot zone I think we should take a look at it,” Haverman said.

Furui Cheng an associate professor at China University of Political Science and Law’s Business School, said the China Basic Income/Social Dividend Research Network is working with UNDP to plan the next steps for a pilot program in China.

Cheng said they are looking to work with local governments and raise money from technology companies.

“Basic income is the probable alternative for the future global social security system, which is facing unprecedent challenges now,” Cheng said. 

“We shall learn the experiences of global existing basic income experiments as much as possible, and we welcome any suggestions from any supporters,” she said.

Zhiyuan Cui, a professor at Tsinghua University, has written how China could emulate the Alaska Permanent Fund to implement UBI. Cui explained that Jay Hammond, the Alaskan governor who created the Permanent Fund, said he often felt “closer to Beijing than Washington DC.”

Yang Tuan of the Chinese Academy of Social Sciences said the size of China means it would be a good place “to come up with many types of experiments” for basic income.Tuan, who supported the implementation of dibao when she was working for China’s social security system, said the economic dynamics of China have changed since dibao started.

“(In the past) I have been against western mechanisms of social security,” she said. “But today I think the context of China is different.”

According to Haverman, the UNDP is planning to release up to three more working papers, addressing topics such as financing UBI in China, as well as its effect on work hours.

 

To see UNDP China’s press release, go here.

To see the original UNDP China working paper, go here.

To inquire about the UNDP project contact Cheng Furui: cfr1978@163.com

MACAU: Over 543,000 receive unconditional cash grants under 2017 Wealth Partaking Scheme

MACAU: Over 543,000 receive unconditional cash grants under 2017 Wealth Partaking Scheme

The Government of Macau has completed the most recent distribution of its annual wealth dividend, providing most residents of the city with an unconditional cash grant of about US$1,200.

The Macau Special Administrative Region (SAR), an autonomous region of the People’s Republic of China, is a resort city with lucrative tourism and gambling industries (described by Lonely Planet as the “Vegas of China” and a “mecca of gambling and glitz”). Macau is a host to many gambling and betting establishments and is said to rival Malasyain online gambling scene as well – such as the popular Kiss918 app. Those who can’t make the trip out to Macau or Vegas may want to see what gaming options they have available to them online – they could look into the afformentioned gambling apps or try something similar with sports betting sites like www.bangthebook.com. That said, the city’s lottery industry has helped to finance its Wealth Partaking Scheme (WPS). Initiated in 2008 and renewed each successive year, the WPS provides a cash dividend to all Macau residents.

All holders of a Macau Resident Identity Card are eligible to receive the WPS payments, including both permanent and non-permanent residents have been, although payments to permanent residents have been higher in each year of the program’s existence. Some people have chosen to take said payments and, instead of going to the local options, go online to www.paybyphonebillcasino.uk and similar options online. Considering the comfort of staying inside from this, it makes sense.

According to the Macau SAR government, the purpose of the scheme is to “share the fruits of economic development with general public”. However, researchers such as Bruce Kam Kwan Kwong argue the underlying motive of the scheme was simply to “stabilize the political atmosphere” in the face of large May Day protest rallies and other civil unrest.

On July 3, Macau SAR announced the 2017 WPS, under which permanent residents were entitled to 9,000 patacas (about US$1,200 or €950) and non-permanent residents to 5,400 patacas (about US$670 or €570). The amount of the payment has remained unchanged since 2014 (when the amount was increased from 8,000 patacas in 2013 and 7,000 patacas in 2012).

Disbursement of the payment was completed on September 15, with a total of 688,079 checks having been distributed (278,558 by direct transfer and 409,521 by mail). As of September 17, 264,758 of the mailed checked had been honored. Between honored checks and direct transfers, over 543,000 residents of Macau have already received the 2017 WPS dividend. (The Macau SAR government’s announcement does not state how many of these checks were sent to permanent versus non-permanent residents.) As of its 2016 census, Macau has a total population of 650,834.

For additional details concerning the disbursement and eligibility of the 2017 WPS, see Furui Cheng’s July 27 report in Basic Income News: “Wealth Partaking Scheme: Macau’s small UBI“.

Is Macau’s Wealth Partaking Scheme a Basic Income?

The answer is contentious, and, in part, a matter of semantics [1]. Certainly, the WPS shares salient characteristics of a basic income: it is paid in cash, universal and unconditional for all residents, and not means-tested. (Unlike, for example, Singapore’s Growth Dividend, the amount of the WPS dividend does not vary according to income level.)

On the other hand, it may be dubious to say that the WPS provides “regular” payments to residents. As a matter of fact, the WPS has been distributed annually since the scheme’s initial enactment in 2008. However, it is not guaranteed, and it might be more accurate to describe the annual payments as successive one-off grants. Karl Widerquist explained Basic Income News report on the 2014 dividend, “The government has now set the president that the Wealth Partaking Scheme will be in effect every year, but each year it has been created with one-time legislation without a promise of renewal. The amount, timing, and existence of the redistribution have to be renegotiated each year.” This continues to hold true in 2017.

Furthermore, while the most “official” definitions of ‘basic income’ (including BIEN’s) do not stipulate that the amount of the payment is stable, it might be argued that this it is implicitly accepted that it must be so (perhaps pegged to inflation on GDP). The amount of the WPS has historically not been stable, and was even cut significantly in the second year of the program’s existence (from 4,000 to 3,000 patacas for permanent residents).

Finally, the most contentious semantic dispute in the basic income community, arguably, is that regarding whether the term implies that the amount of the payments is high enough to secure at least a basic subsistence-level existence. Even if the WPS qualifies as a basic income on all other criteria (although this itself dubious), the dispute renders the final verdict a matter of definition. The amount of 9,000 patacas per year is far too low to meet minimal living expenses. According to Numbeo’s cost of living calculator, for example, the average monthly rent for a one-bedroom apartment is about is well over 7,000 patacas in the city center and about 6,000 patacas outside of the center [2]. For comparison, the average monthly net salary is over 14,000 patacas, and Macau’s only current minimum wage legislation, for cleaners and security guards, establishes a minimum salary of 6,240 patacas per month. Thus, on some definitions of the term (although not BIEN’s), Macau’s WPS would thereby fail to count as a basic income (although it might still be called a “partial basic income”).

At the least, Macau’s WPS, like Alaska’s Permanent Fund Dividend, is an example of a universal dividend program with some salient similarities to a “pure” basic income (the latter of which exists nowhere in present physical reality).


[1] While BIEN has voted to establish a specific definition of basic income, I have recently argued that an inclusive, umbrella organization should abstain from accepting a singular definition of ‘basic income’.


[2] The average price of draught beer is 35 patacas, meaning that the 2017 WPS would not even be sufficient to finance a daily draught beer.


Reviewed by Russell Ingram

Photo: Casino in Macau, CC BY-NC-ND 2.0 Bailey Cheng

China: Association for Promotion of UBI established

China: Association for Promotion of UBI established

Photo credit to: Basic Income Asia Pacific.

Zhang Chao and Gan Lin, high school seniors from the Chinese province of Zhejiang and founders of UBIForALL (Association for the Promotion of Universal Basic Income) recommend establishing a Universal Basic Income (UBI) city in an “undeveloped” area in China. Their prime motivation is to promote, research and develop literature on basic income, intended to be implemented within the Chinese (mainland) reality.

They wrote in August, shortly after having released UBIForALL on the 18th of July 2017: “I’m fully convinced that UBI will take its seat finally (…) so we either accept the UBI completely or suspend the process of UBI.”

The plan for these UBI cities involves buying inexpensive land, funded by governments, wealthy individuals, or unions, and possibly taxes on robots. It also suggests building infrastructure with volunteers and populating the city with UBICERS, who would be receiving the UBI and a special education in order to eliminate poverty and give a new sense of direction and purpose. Using high tech services such as driverless cars and other innovations for sustainable work, the city would avoid the inevitable crisis, when human beings, due to unemployment, are turned into members of an “useless class”.

“UBIC is a big social experiment both in psychology, economy, technology and the promotion of UBI”, Zhao and Gan conclude.