Basic income national proposal released by ‘UBI Taiwan’

Basic income national proposal released by ‘UBI Taiwan’

UBI Taiwan held a press conference to describe their proposal to give every Taiwanese citizen a basic income each month. Skeptics and supporters were given details of how Taiwan could feasibly implement such a policy.

Taiwan’s extremely low tax rates coupled with a highly developed economy make Taiwan a feasible candidate to establish an Unconditional Basic Income (UBI), the group said.

UBI Taiwan was established in 2016 to bring attention to this policy in Taiwan, where it has not yet been a major topic of national discussion.

On the heels of the press conference, UBI Taiwan has scheduled meetings with political party representatives in Taiwan.

The national proposal briefing cover

UBI Taiwan’s basic income proposal does not include a means-test or work requirement, which means, essentially, every Taiwanese citizen would receive a stipend. Under this proposal, adults would receive 10,000 NTD per month ($330 USD) and children 5,000 NTD per month ($165 USD).

The group argued such a policy could help to alleviate income inequality, which has been growing steadily in Taiwan. It may also address some of the financial anxieties related to having children, which has created a demographic crisis on the island.

According to the white paper briefing, UBI would lower the rate of low-income families in Taiwan by 66 percent – from 25 percent currently to 8.5 percent after basic income.

The proposed amount is two-thirds of Taipei’s poverty line, which is the highest in Taiwan.

The press conference was held on October 20 at National Taiwan University’s conference venue. They outlined several methods to realize such a policy in Taiwan, focusing on either immediate or gradual implementation.

An immediate implementation would have a “gross cost” of 15 percent of Taiwan’s GDP, the group said. Ray Song, the research director for this national proposal, said the “gross cost” is misleading because it does not account for how much individuals would pay back their basic income in taxes.

Oscar Han, UBI Taiwan’s lead welfare researcher, discusses the benefits of UBI. The press conference had immense interest and was unable to provide tickets to the large number of Taiwanese who applied to attend. 

The “net cost,” which calculates how much the government is actually sending out as a basic income and not receiving back in taxes, is 3.2 percent of Taiwan’s GDP, according to the research team’s calculation.

The group argued one step Taiwan should immediately take to pay for UBI is implementing a carbon tax.

A carbon tax in Taiwan would follow South Korea, which has recently implemented a carbon trading scheme, and Japan, which heavily taxes fossil fuels and is beginning a “climate change mitigation tax.”

Taiwan currently has no carbon tax, but rather subsidizes fossil fuels by 20 billion NTD a year.

A tax on carbon of around 900 NTD per ton that increases 60 NTD per year would generate 1.7 trillion NTD in revenue over ten years, according to the proposal’s white paper.

The Chung-Hua Institution for Economic Research also found a carbon tax in Taiwan could generate 239 billion NTD in revenue a year by 2021.

During the question and answer session, Tyler Prochazka, UBI Taiwan’s co-founder and fellowship director, said adding a UBI on top of Taiwan’s existing social welfare system would put Taiwan closer to average welfare spending in developed countries.

The UBI Taiwan research team leadership answers questions during the press conference. Left to right: Jiakuan Su, Tyler Prochazka, Ping Xu, Ray Song, Oscar Han

“It is noteworthy that 70 percent of Taiwanese would benefit from this policy,” said Oscar Han, UBI Taiwan’s lead researcher for social welfare.

Wealthier families would still receive the basic income, but they would likely pay more in taxes than they receive from UBI, Prochazka noted.

There are several overlapping the social welfare policies in Taiwan that could be substituted by basic income, according to Song.

During the question and answer session, one audience member was concerned that eliminating other social welfare could leave some people worse off.

Prochazka explained that UBI Taiwan is not advocating eliminating any particular social welfare program, but that some would naturally fade away because a basic income would raise many individuals above the qualifying standard to receive the aid.

Considering the political difficulties with immediate implementation of UBI, the other option outlined was to model Alaska’s Permanent Fund, which has been providing a partial basic income to Alaskan residents for decades based on oil revenues and other investments, and gradually phase-in a basic income starting with young Taiwanese.

The Taiwan Permanent Fund (TPF) would collect revenue from taxes, such as a pollution tax, and invest the revenue back into the economy in order to pay out the dividends as a basic income.

The TPF proposed by UBI Taiwan would require an increase in taxes of 5.2 percent of GDP, but it would require several years to phase-in as the fund grows from its investments.

There were audience members who said they thought the phase-in for the Taiwan Permanent Fund would take too long. Song said that their calculations for the phase-in were based on conservative adjustments to taxes.

“This is the most conservative version (of our Permanent Fund plan),” Song said. “If the public is willing to increase taxes more quickly, this would allow us to achieve faster implementation of a full UBI.”

One audience member was skeptical that a basic income would improve labor relations, and she thought business owners would lower their wages in response.

Jiakuan Su, the lead taxation researcher, said that a basic income could give an employee more influence over their employers.

”We have the evidence to show that even when you just give a basic livelihood, you can give an emancipatory potential for us to choose what our passions are, rather than to be forced by economic factors to go do things that we hate,” Prochazka said.

The proposal has been under preparation since this summer when UBI Taiwan began its fellowship research program with students selected from across Taiwan. During their research, the team collaborated with economists who study basic income from various countries, as well as Taiwanese professors to guide their work.

At the beginning of the press conference, UBI Taiwan played a video featuring their supporters from around the world. Among those who showed their support included Andy Stern, Barack Obama’s former economic adviser, Peter Knight, a former World Bank economist, and Enno Schmidt, the leader of the Switzerland basic income referendum.

“A country that is brave enough to face the issues and challenges of our time and to rethink its values, I think that country deserves the leading role in this innovative issue of a Universal Basic Income,” Schmidt said in his video address to the conference.

One of the fiercest criticisms of UBI is that it will increase laziness. Schmidt thinks the opposite is true.

“We are lazy today, just living in the given economic structures. UBI is a measure against this wasting of time, destruction of social relationships and environment,” Schmidt said. “It’s a measure that brings life and work closer together and will lead you to do more, work better, because it can be your work.”

Stern has been an influential advocate of basic income in the United States. He was previously the President of the Service Employees International Union, and has written a book on UBI called “Raising the Floor.” Stern has been providing advice to UBI Taiwan since this summer.

“It’s an amazing effort and it’s just beginning, but it has the potential to change the future of work and more importantly the economic security of everyone on Taiwan,” Stern said in his video for the conference.

Guy Standing, a professor at the University of London and a co-founder of Basic Income Earth Network, advised the UBI Taiwan research team over the summer as they were preparing the proposal.

Standing’s message to Taiwan is that UBI is feasible.

“It’s feasible. It’s affordable. We’ve done pilots in India where we gave very modest amounts for thousands of people and we’ve seen that it improves nutrition, health, reduces mental stress,” Standing said in his video address for UBI Taiwan.

Ping Xu, UBI Taiwan’s co-founder and coordinator, will travel to California this week to attend a cash-transfer conference and discuss her group’s research. She said she is proud of the work they accomplished on the national proposal.

“In this group of young researchers, you can see hope for the future of Taiwan,” Xu said.

Sarath Davala, the lead researcher for the Indian basic income experiment, has worked closely with UBI Taiwan over the past year. Davala said he is hopeful that the proposal will spark a conversation about basic income in Taiwan.

“The proposal is done after rigorous analysis of the existing welfare system. It can become a model for the countries in the region,” Davala said.

The conference took place on a rainy day, but the venue was nearly full of audience members, including some political party representatives and government officials.

“Even in the pouring rain, having so many people show up to the press conference was really encouraging to us,“ said Jaiyou Wei, a research associate for UBI Taiwan. ”But this press conference is only the beginning of our plans to spread UBI in Taiwan.”

 

‘UBI Taiwan’ completing national basic income proposal

‘UBI Taiwan’ completing national basic income proposal

Students from across Taiwan have assembled for the first UBI Taiwan Summer Fellowship. The group is studying and researching Universal Basic Income (UBI) this summer, with the goal of producing a national basic income proposal by September.

The summer fellows met for the first time mid July to be trained in communicating basic income with those that have never been introduced to the idea. The fellows have developed a comprehensive strategy to promote and research UBI in Taiwan.

There are over 30 students from universities across Taiwan participating in either communications or research focused tasks.

“The summer seminar is bringing together both theoretical and practical considerations as a way of creating positive public policy for people,” said Julio Linares, a recent graduate of National Chengchi University (NCCU).  Linares, originally from Guatemala, is helping to lead the research team and the seminar.

The fellows are producing a UBI white paper, which is scheduled to be completed by late August, to outline how Taiwan could implement UBI nationally. UBI Taiwan is planning to introduce the policy proposals to Taiwanese policymakers. They are also considering how to create a framework for a basic income pilot program experiment in Taiwan.

Within the fellowship are different teams focused on specific projects, such as social media and news production.

Dongyan Wu, also a NCCU student, is leading the news team for the summer fellowship. Wu said he believes UBI has the potential to transform Taiwan.

“If UBI is successful in Taiwan, everything we do, all our jobs and all the activities, will finally have meaning,” Wu said.

Tyler Prochazka, the fellowship director, started preparing the seminars and recruitment four months ago. Fellows were chosen from nearly 100 applicants based on their skill set and interest in understanding UBI.

Toru Yamamori, Cheng Furui, and Sarath Davala are scheduled to give presentations to the fellows in the coming weeks on various topics related to basic income. Enno Schmidt, the Swiss referendum leader, gave a presentation to the fellows last week.

Ping Xu, the coordinator for UBI Taiwan, said the summer fellowship is part of building up “the kind of future we want to see” in Taiwan.

James Davis, a rising senior from Columbia University in New York, flew to Taiwan for two months to help lead the summer seminar and oversee research for UBI Taiwan. Davis is the director of field research, which is producing the pilot program framework.

“UBI Taiwan’s mission is critical for the future of work in Taiwan. I have really enjoyed getting to know the volunteers, learning about their backgrounds, and sharing their passion for helping others,” Davis said.

Taiwan: Potential basic income pilot ‘under discussion’

Ping Xu from UBI Taiwan has disclosed that a Basic Income pilot project is under discussion.

Xu made her remarks at her talks at Doshisha University on 21 April and at Kyoto Basic Income Weekend event during 22 and 23 April.

UBI Taiwan is laying the groundwork for a potential pilot program, although discussions are at an early stage and no determination or funding has been confirmed as of June. According to Tyler Prochazka from UBI Taiwan:

• UBI Taiwan has met with the Taichung Social Affairs Bureau to discuss a potential pilot project.

• UBI Taiwan has met with village chiefs, NGOs, and other relevant authorities to begin preparing the framework for the potential pilot program. The organization is looking at several locations in Taiwan to determine viability of the project.

• Currently, there is no funding for the pilot program. Preliminary research is being completed to create a framework for the project if funding is made available.

• UBI Taiwan will complete a comprehensive pilot program proposal by August 2017 to present to relevant authorities. The proposal will be crafted in coordination with international experts and local experts in Taiwan.

• UBI Taiwan is working with Academia Sinica to collect the first national polling of Taiwanese attitudes toward UBI.

Further updates on UBI Taiwan’s progress will be disclosed throughout the summer. In July, UBI Taiwan will begin its Summer Fellowship program, working with students to complete the preliminary research for the pilot program and increase awareness of basic income.


Reviewed by Russell Ingram

Photo CC BY-NC-ND 2.0 Chen Tao Liao

David Green, “GETTING PAID TO DO NOTHING: WHY THE IDEA OF CHINA’S DIBAO IS CATCHING ON”

Hong Kong’s newspaper of record, South China Morning Post, recently covered the surge of interest in Universal Basic Income (UBI) in the Asia Pacific.

The author, David Green, points out the positive data that has been demonstrated thus far from cash-grant experiments, such as in India.

South Korea has had interest in basic income since the “youth dividend” was implemented in Seongnam city. BIEN held its Congress in South Korea last year.

The article notes that Taiwan is seeing increased interest in the idea of basic income since the first Asia Pacific focused Basic Income conference was held in Taipei.

The headline references China’s dibao program, which is a cash-grant minimum income guarantee. The dibao has many differences to UBI as conceived by Basic Income Earth Network (BIEN). Primarily, dibao  is not a universal cash-grant (dibao is means-tested and only given to those that are under the dibao poverty line).

Due to dibao’s means-tests, the article notes there are an array of issues with China’s minimum income guarantee, primarily that it does not reach the poor.

Tyler Prochazka, features editor of BI News, was quoted as advocating for China to create “special economic zones” to test a UBI.

David Green, “GETTING PAID TO DO NOTHING: WHY THE IDEA OF CHINA’S DIBAO IS CATCHING ON“, South China Morning Post, April 14, 2017.

Taiwan holds ‘historic’ basic income conference

Taiwan holds ‘historic’ basic income conference

The Universal Basic Income in the Asia Pacific international conference was held at National Chengchi University (NCCU) on March 18. This was the first conference dedicated to universal basic income (UBI) focused on the Asia Pacific region. Scholars, activists, officials, and guests traveled from all over the world to participate in the event.

All livestream videos are available on the UBI Taiwan Facebook page, and a HD version will be available shortly on UBI Taiwan’s YouTube page.

Around 100 people participated in the event in person, including participants who flew from America, Switzerland, Australia, South Korea, Singapore, and mainland China. There were nearly 1,000 streams of the Chinese-translation broadcast of the event, and there were over 1,200 views of the livestream videos on Facebook. A total of 16 different sessions were held, with over 100 questions posed to the UBI experts in-person and online. Furthermore, the event page has reached 35,000 unique viewers to date.

Enno Schmidt, leader of the Swiss referendum campaign, gave the keynote speech for the event: “Basic Income and Democracy.”

“The Asia Pacific UBI conference undoubtedly has been one of the historical steps in furthering the worldwide UBI movement, focused on the recognition of Asia Pacific, as well as unity and collaboration,” Schmidt said.

The event has been in preparation since November, when organizer Tyler Prochazka, an NCCU International Master’s Program in Asia-Pacific Studies (IMAS) student and features editor of Basic Income News, received a grant from the US State Department’s Critical Language Scholarship Alumni Development Fund along with James Davis, a junior from Columbia University. NCCU’s College of Social Sciences (CSS) later agreed to sponsor the event, and NCCU’s IMAS department provided additional assistance.

NCCU CSS Professor Ping-Yin Kuan provided the welcome speech for the event, where he discussed how he first learned about the idea of UBI while he was studying in the United States. His master’s thesis advisor was involved in the “Income Maintenance Experiment” in New Jersey, which tested a form of negative income tax in the 1960s and 1970s.

“As a student who came from Taiwan – at that time Taiwan was a relatively poor country – I was amazed by such a crazy idea. And I thought that only the US, a rich country, would come up with such a scheme,” Kuan said.

“After I became more familiar with issues of social inequality, I could see that it was not a crazy idea at all. The question that should have been asked then, and I believe should still be asked now, is why a country as rich as the US allows a significant proportion of its people to live below a basic decent condition,” Kuan expanded.

“Now Taiwan is considered a rich county, and we can certainly ask the same question here.”

Conference co-organizer James Davis prepared a documentary for the conference, meeting with prominent figures in finance, technology, and politics to discuss basic income.

“Universal basic income is the future of redistribution and welfare policy. It has the potential to alleviate global poverty and unleash an entrepreneurial spirit unlike anything we’ve seen before. These interviews explore the practical and ideological grounds of universal basic income, debunking the critics, and anticipating its challenges,” Davis said.

Sarath Davala, a researcher on the Indian basic income trial, presented on the “Transformative Power of Basic Income for India” via Skype.

“Universal basic income is the most radical idea of our contemporary times. It takes the discourses of democracy and poverty to the next level,” Davala said. He noted that UBI Taiwan “has created history by organizing the first regional activity in Taipei.”

“This conference is the foundation for future cooperation at the regional level, which is very much needed to take forward the basic income movement in each of the countries in the Asia Pacific region,” Davala said.

Ping Xu, coordinator for UBI Taiwan and co-organizer of the conference, presented on the feasibility of basic income for Taiwan.

“This is the first step for basic income in the Asia Pacific. It represents an awakening of human evolution toward traditional Asian culture and away from our current inhumane working standards,” Xu said.

Joffre Balce, secretary of the Association for Good Government in Australia, presented on “Rewriting the Textbook to Deliver Universal Human Dignity.”

“The first Asia Pacific Conference on Basic Income was a glimpse of how society can work together for a common vision — bold, innovative, diverse yet respectful of each other’s noble intentions, united in efforts and determined to realize each other’s vision for a society of equality in rights, the self-determination of the individual and the freedom to cooperate for a better society,” said Balce.

Ted Tan, the coordinator for research and information for UNI Asia and Pacific Regional, flew from Singapore to attend the event. He said he “hopes there will be another conference next year.”

“The conference was very interesting and it could have easily been extended for another half or one day. There is still much to discuss on the possibility of a universal basic income in this region, so I appreciate the inputs and sharing of all the experts in the same room,” Tan said.

Chung Yuan Christian University provided simultaneous Chinese translation for the event. Enzo Guo, a Taiwanese senior at Chung Yuan, led the group of translators.

“I felt so honored to interpret for those brilliant scholars with their ideas and findings. I benefited greatly by their talks. These are important matters that people living in Asia Pacific should know,” Guo said.

Musician Brandy Moore also provided her song “Just Because I’m Alive” for the conference and its promotional videos. Moore wrote the song after hearing about basic income in 2015 and performed it at a basic income conference in 2016 for the first time. In June, Moore will perform the song at NABIG 2017 in New York City.

“Being invited to put my song forward to be part of this recent basic income conference held in Taiwan was a wonderful additional surprise,” she said.

“Music reaches people on a heart level and it’s going to take both heads and hearts to make basic income a reality,” Moore said.

Purchases of Moore’s song will help fund basic income organizations after she recoups the funding to produce it.

Julio Linares, an NCCU student from Guatemala, had met many of the presenters at the BIEN Congress in South Korea, where he also presented.

“I argued how a Basic Income Fund (BIF) could work as a way of creating long-term investments whose profits are redirected back to people in the form of a monthly basic income while at the same time making the fund financially sustainable over time,” Linares said. “The attendees were not only from Taiwan but from different countries and they all showed great interest in the topic as it raised quite a lot of discussion.”

Petra Sevcikova, an NCCU IMAS student from the Czech Republic, organized the NCCU volunteers for the conference.

“After working in event management in Europe, helping to organize the UBI Conference in NCCU in Taipei was a new and extraordinary experience. I believe that the conference was unique and quite important for people interested in the basic income,” Sevcikova said.

Speakers included Gary Flomenhoft (University of Vermont, USA), Sarath Davala (India), Julio Linares (NCCU), Gregory Marston (University of Queensland, Australia), Joffre Balce (Australia), Munly Leong (Australia), Toru Yamamori (Doshisha University, Japan), Ping Xu (Taiwan), Enno Schmidt (Switzerland), Hyosang Ahn (Basic Income Korea Network), Cheng Furui (Chinese Academy of Social Sciences), and Tyler Prochazka (NCCU). The abstracts for each presentation can be found here. A compilation of the research will soon be published online.

For Kuan, bringing these scholars to Taiwan will help to highlight the important issue of inequality, as many social welfare systems in the Asia Pacific are “not working effectively.”

“It is important to bring regional scholars to share knowledge about basic income and spark new ways to think about social security. This is particularly important, not just in Taiwan, but the Asia Pacific in general,” Kuan said.

Yamamori presented on “What Can We Learn From a Grassroots Feminist UBI Movement?: Revisiting Keynes’s Prophecy” via Skype.

“While I was able to attend only via Skype, I could still feel positive vibes and energy from the venue. I know Tyler, Ping and others made a huge effort to make this conference successful,” he said.

“Let me show my gratitude to them and participants, and let us go forward for an unconditional basic income together,” Yamamori said.

Guo said he is optimistic that the conference will have a big impact on Taiwanese society.

“By gathering the elites and people from different fields together and discussing with each other, I believe this conference has undoubtedly paved the way for the popularization of UBI in Taiwan,” he said.

When reflecting on the potential of the UBI in the Asia Pacific, Schmidt said it can bring together all people from all backgrounds, both in the Asia Pacific and beyond.

“The idea of an unconditional basic income for everyone must remain clear, which is regardless of any life circumstances, rich or poor, beautiful or ugly. This idea does not exclude anybody, it does not fight against anything. The idea of UBI unites and connects people and restores our forgotten values,” Schmidt said.