China: Macao’s Wealth Partaking Scheme expands

China: Macao’s Wealth Partaking Scheme expands

Fernando Chui Sai On. Picture credit to: Plataforma Macau.

 

The Chief Executive of Macao (on of the Special Administrative Regions (SAR) in China), Fernando Chui Sai On, has announced on the 15th of November 2018, that the Wealth Partaking Scheme (WPS) has been increased to 10000 patacas/year (1094 €/year) for Macao’s permanent residents, and to 6000 patacas/year (656 €/year) for non-residents. That’s an 11% increase from previous values, set since 2014, and a 100% increase since 2008, the year of the scheme’s inception. This announcement is made as part of Macao’s 2019 Policy Address, an event occurring on that same date at the Legislative Assembly.

 

Macao, home to 663400 residents plus around 180000 non-resident workers, uses the WPS to redistribute gaming revenue, in a region which has been called “Vegas of China”. However, social unrest is around the corner, when some people have voiced that the local government has not dealt properly with the recent devastation by hurricane Hato earlier this year. That and due to rising inequality, which has risen to warning levels (above 0,4 in the Gini Index), according to the Macau Economic Association, aligned however with China’s inequality levels, above 0,4 at least since 2012. This seems to suggest that the WPS is more a way to “temper public dissatisfaction and widespread demonstrations”, as assistant professor Bruce Kwong of government and public administration at the University of Macao has put it, then an effective tool to reduce inequality.

 

 

More information at:

Scott Douglas Jacobsen, “China: News from Macau’s “Wealth Partaking Scheme”, Basic Income News, October 1st 2017

Claire Bott, “China: Macao to spend over $1.5bn on public subsidies including Wealth Partaking Scheme”, Basic Income News, October 1st 2017

Yi Wei Wong, “Cash handouts for Wealth Partaking Scheme increased”, Macau News Agency, November 15th 2018

Nelson Moura, “Cash handout to go up to MOP10,000”, Macau News Agency, November 14th 2018

Cecília U, “Cash handouts likely to increase”, Macau News Agency, November 13th 2018

Gap between rich and poor widens to warning levels”, Macau Daily Times, April 24th 2014

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: News from Macau’s “Wealth Partaking Scheme”

China: News from Macau’s “Wealth Partaking Scheme”

José Pereira Coutinho. Credit to: Macau Daily Times.

 

In the Legislative Assembly (AL) elections for The New Hope (Nova Esperança), a political party from Macau, candidacy is headed by lawmaker José Pereira Coutinho. He is urging for the redistribution of the second share of the Wealth Parking Scheme, as reported on by BIEN in late July, by the end of 2017.

Under this second share, local permanent residents will receive an increment in their annual unconditional (partial) basic income of US $1,128, while non-permanent residents will get more US $672. This constitutes a development considering what the program has been until now.

Coutinho urged political candidates at a press conference to act and not simply talk for solving people’s issues. The New Hope is looking for the construction of 80,000 affordable housing units. He also noted houses are not being built properly.

Moreover, Coutinho also proposed an increase in the health care voucher scheme from 600 (Macanese) Pataca (US $75) to 1,000 Pataca (US $124), with a 3,000 Pataca (US $372.76) handout for senior citizens.

More information at:

Renato Marques, “Al Election: New Hope Urges Gov’t to Double Wealth Partaking Scheme This Year“, Futurism, 5th September 2017

Wealth Partaking Scheme: Macau’s small UBI

Macau City

 

The government of the Macau Special Administrative Region (SAR) in China has announced the “Wealth Partaking Scheme 2017” (WPS), under which local permanent residents are entitled to receive a small annual unconditional basic income of 9,000 patacas [US $1,128 (1)] and non-permanent residents 5,400 patacas [US $672]. With the Administrative Regulation No. 18/2017, the scheme came into effect on 6th June 2017, and its implementation officially started on 3rd July.

Since 2008, the government of the Macao SAR has given an annual state bonus to its all citizens. The WPS 2017 is very similar to the 2016 one. This year, there are 638,600 Macau permanent residents entitled to WPS, and 62,000 non-permanent residents. The total budget for the WPS 2017 is 6,080 million patacas [US $757 million].

Recipients must have been holders of valid or renewable Macau SAR Resident Identity Cards as of December 31, 2016 to be entitled to receive the cash premium, according to a statement from the Financial Services Bureau (DSF). Holders of a valid or renewable Macau SAR Resident Identity Card who are currently residing abroad will be granted the cash premium, provided they can prove that they are unable to renew their Macau SAR Resident Identity Card due to being either bedridden or completely or partly paralyzed. Those who submitted the relevant documentation and were granted the cash premium in the previous year may be exempted from document resubmission if the Social Welfare Bureau (IAS) concludes that no new evidence is required.

A direct bank transfer will be arranged for those who are receiving financial assistance or senior citizen subsidies from the IAS, according to the statement. The same will apply to retired civil servants receiving a retirement pension and other persons receiving such a pension for the family of the deceased. Most of the rest of the populace will be awarded the cash premium through a crossed check via mail. The crossed check can only be deposited into the payee’s account. In this way, the DSF notes that even if one receives a check addressed to another, it cannot be cashed.

A different procedure applies to beneficiaries under the age of 18. They will each receive a check made payable either to themselves or their parents, which may be deposited either into the beneficiary’s account or the account of one of their parents.

In addition to the WPS state bonus, the Macao SAR government has injected an annual capital into all qualified Provident Fund Individual Accounts since 2010. Provident fund individual accounts are provided to Macao SAR residents of the age of 22, and they are used to receive the “incentive basic fund” and “special allocation from budget surplus”. No formalities are required for the individual accounts of those who are already on the list of special allocation from budget surplus, which is 7,000 patacas [US $872] for 2017. Individuals who are entitled to the allocation of funds for the first time will also be allocated the incentive basic fund of 10,000 patacas [US $1,245].

 

Notes:

(1)   – At July 2017 exchange rates.

More information at:

Governo da Região Administrativa Especial de Macau [Special Administrative Macao Regional Government], “Plano de Comparticipação Pecuniária no Desenvolvimento Económico do Ano 2017 [2017 Wealth Partaking Scheme]”, 2017

Governo da Região Administrativa Especial de Macau [Special Administrative Macao Regional Government], “Fundo de Segurança Social [Social Security Fund]”, 2017

Paulo Coutinho, “Handout distribution starts next month”, Macau Daily Times, July 3rd, 2017

Furui Cheng, “China: Macao gives an annual state bonus to all citizens”, Basic Income News, August 31st, 2016

Karl Widerquist, “China: Macau residents to receive annual basic income”, Basic Income News, June 30th, 2015

Karl Widerquist, “Macau: Government Distributes Temporary Basic Income”, Basic Income News, August 23rd, 2014

Article reviewed by Kate McFarland.

CHINA: Macau residents to receive annual basic income

CHINA: Macau residents to receive annual basic income

The government of Macau, a semi-autonomous city in China, has announced that this year’s “Wealth Partaking Scheme” (WPS) will distribute 9,000 Macanese Pataca (about US$1127) to each permanent resident and 5,400 Macanese Pataca (about US$676) for each non-permanent resident.

The only condition is to have a valid or renewable resident identity card delivered by the City of Macau.

The WPS is a Macanese government program that has distributed a yearly dividend to Macanese residents since 2008. A total of 675,696 people will receive the dividend, most of whom (607,465) will receive the full amount. The size of the dividend is the same as in 2014, but the number of recipients has increased by 40,000.

The WPS is essentially a small basic income, similar to the Alaska dividend. It is mean to ensure that all Macanese share the benefits of the region’s economic development to help mitigate the effects of inflation.


 

Credit picture: CC Kevin Jaako

For more information about the WPS see:

Kam Leong, “Wealth Partaking Scheme Susceptible,” Macau Business Daily, June 19, 2015.

Wikipedia, “Wealth Partaking Scheme,” Wikipedia: the free encyclopedia, accessed June 29, 2015.

Karl Widerquist, “MACAU: Government Distributes Temporary Basic Income,” Basic Income News, August 23, 2014.

A check for the Wealth Partaking Scheme in 2008