Basic income around the world

Basic income is discussed in many countries. This article summarizes the national and regional debates, where it takes place, and is a complement to the main article on the subject: basic income

Basic income by country

Africa

Namibia

Omitara, one of the two poor villages in Namibia where basic income was tested in 2008-2009.

From January 2008 to December 2009, a pilot project with basic income grant was implemented in the Namibian villages of Otjievero and Omitara. The project was organized by the Namibian Basic Income Grant Coalition.[1][2] It was mainly funded by a German Protestant church, by individual contributions of German and Namibian citizens and by contributions of the German Ministry for Cooperation. The amount paid out per head was N$100 (around US$12).

Six months after the launch, the project was found to have significantly reduced child malnutrition and increased school attendance. It was also found to have increased the community's income significantly above the actual amount from the grants as it allowed citizens to partake in more productive economic activities.[3][4] The project team stated that this increase in economic activity contradicts critics' claims that a basic income would lead to laziness and dependency.[5] After the conclusion of the pilot project phase, a monthly bridging-allowance of N$80 (around US$10) was paid regularly to all who participated in the pilot until March 2012.[5]

One of the conclusions of the project was that, even with the restriction that only residents of the village for over a year since the pilot's start could benefit from the grant, there was a significant migration towards Otjivero-Omitara, despite the fact that the migrants wouldn't receive the grant. The project concluded that this phenomenon reveals the need to introduce such basic income systems as a universal national grant, in order to avoid migration to particular regions, towns or households.[5]

Another finding of the project was that after the introduction of the pilot, overall crime rates fell by 42%, specifically stock theft, which fell by 43% and other theft by nearly 20%.[5] These conclusions is derived from two empirical studies conducted by the Basic Income Grant Coalition. One study that covers the first 6 months of the project[6] and a second study about the first 12 months of the project.[7] No further empirical studies or project assessments have been published. However, there is no public access to the project database. Something the project representatives confirmed in Namibian press, including a justification of it.[8]

In May 2012, the community leader of Otjivero-Omitara, Ernst Gariseb, told a journalist of a Namibian newspaper: "Since two decades we are sitting here without work, development and perspectives." The journalist concluded: "Despite the support of the BIG there is not any development to be seen in Otjivero."[9]

South Africa

The Democratic Alliance has advocated basic income.[10]

Asia

India

Main article: Basic income in India

Two basic income pilot projects have been underway in India since January 2011.[11] According to the first communication of the pilot projects, positive results have been found.[12] Villages spent more on food and healthcare, children's school performance improved in 68 percent of families, time spent in school nearly tripled, personal savings tripled, and new business startups doubled.[13]

Japan

In Japan, New Party Nippon and the Greens Japan support basic income, along with some economists such as Toru Yamamori and Kaori Katada.[14]

Macau

Macau has distributed funds to all residents, permanent and non-permanent, since 2008, as part of the region's Wealth Partaking Scheme. In 2014, the government distributed 9,000 patacas (approx. US$1,127) to each permanent resident, and 5,400 patacas ($676) to non-permanent residents.[15]

South Korea

The Socialist Party supported basic income, along with delegate Geum Min in South Korea.[16]

The Middle East

Iraq

According to Aminah al-Thahabi, who writes for Niqash, most political groups, including political parties in the Parliament have adopted a position on the issue. Proponents of the basic income argue that the system would end the oil curse and that all Iraqis with this kind of system would be able to get a fair share of the country's oil resources. Opponents argue that the reform would be inflationary and that oil money would be better spent on infrastructure, especially since much of this is still in disastrous condition after years of sanctions and war. Johnny West, OpenOil consultancy, estimated that Iraq could introduce an annual basic income of 220 U.S. dollars per person in October 2012 and then level could increase with increased production. He also argues that Iraq has such great natural resources that poverty could be abolished in two years.[17]

Iran

Iran was the first country to introduce a national basic income in autumn 2010. It is paid to all citizens and replace the subsidies of petrol, fuel, and other supplies[18] that the country had for decades in order to reduce inequality and poverty. The sum corresponds (2012) to about 40 U.S. dollars per person per month, 480 U.S. dollars per year for a single individual and 2,300 U.S. dollars per year for a family of five people.[17] However, the total cost of the basic income system was considerably higher than the sum total spent on subsidies. Government has thus announced that the costs may have to be reduced and that means testing is one option to be considered.[19]

A first assessment of the experiences in Iran is provided by H. Talabani (2011).[20]

Europe

Belgium

Historically in Belgium, the most active group promoting basic income is the movement Vivant and the philosopher Philippe Van Parijs, who founded the Basic Income European network (BIEN) in 1987. A Belgian basic income network affiliated to the BIEN was founded in 2012 in Brussels[21]

Bulgaria

"The Blue Bird Foundation" joins the campaign surrounding "European Citizens' Initiative for Unconditional Basic Income" (ECIUBI) in the spring of 2013 and is also accepted as a member of the Citizens' Committee of ECIUBI. A facebookpage is created to get more attention and the official site, basicincome2013.eu, is translated into Bulgarian. The "Bulgarian National Radio" joins as a media partner and "Metroreklama" grants the right to advertise the Initiative in all metro stations and trains. Entrepreneur Toni Bajdarov proposed comprehensive model for basic income in Bulgaria, where self-financing is based on sovereign currency, reversed VAT and excise duties.[22]

The Facebook page gathers more volunteers and promotes the idea online. Spreading the idea offline proves to be more difficult though and not much is accomplished despite of the huge effort to get the attention of the big media, the trade unions and the NGO's. After several meetings, negotiations and countless emails the team gets the official support from: "The Artist Union of Bulgaria", "The Bulgarian Music Association", "The European Anti-Poverty Network" (Bulgaria), Citizens' Movement "DNES", "Zona Lovech", "The Bulgarian Association of the Economists" and with the support of Dr. Guy Standing the "CITUB" trade union which made the huge impact on the signature collection for the Initiative.

After this support the people started to take interest in the idea which resulted in an unseen support for an online voting initiative in the history of Bulgaria. After an exhausting 10-month battle Bulgaria made its quota for just about two days and by the end of the Initiative we've had over 235% above it.[23]

In December 2014 emerged the first political party in Bulgaria, which includes in its program basic income as a fundamental political action and promise. It was called Bulgarian Union for Direct Democracy - BUDD and defines the theme of the human right to a dignified life as supports it with the principles of direct democratic process and the new decentralized energy relations in the economy.[24]

Czech Republic

The first bigger discussion on universal basic income in the Czech Republic was initiated by philosophers and social scientists Marek Hrubec and Martin Brabec. Later, they published with Philippe Van Parijs a book "Všeobecný základní příjem. Právo na lenost, nebo na přežití?" ("Universal Basic Income. Right to Laziness, or Right to Survival?").[25] In 2013, activists and social scientists joined the European Citizens' Initiative for Unconditional Basic Income,[26] and have created a campaign to support unconditional basic income.[27] In the Czech Republic, unconditional basic income is supported by many individuals, NGOs (Alternativa zdola, ProAlt, Levá perspektiva, for example), and political parties. It is the program of the Green Party, the Communist Party, the Pirate Party, and the Party of Democratic Socialism. It is also supported by many Social Democrats.

Finland

In the 1970s, Finnish researchers were inspired by Milton Friedman's proposal for a negative income tax.[28]

In 1994, Osmo Soininvaara wrote a book advocating basic income.[29] The Young Finns advocated basic income in the 1990s.[28] The Centre Party began advocating liberalization of labor markets and basic income in the end of the 1990s.[28]

In 2003, the Research Institute of the Finnish Economy published the book "Kansantalous 2028" ("Economy 2028"), which concluded that a basic income and a flat income tax rate would be a good solution.

In 2007, Kansallinen sivistysliitto published the paper "Sisällä vai ulkona – kohti perustuloa?", which advocated basic income.[28]

In 2007-2011, the centre-right government was interested in adopting a basic income system. However, the SDP and trade unions affiliated with the party were aggressively opposed to basic income.[30][31]

In 2013, Libera Foundation published a detailed proposal for Life Account ("perustili"), a savings account that allows owners to withdraw money (up to a monthly maximum) even if their balance is negative. Everyone would receive the account at the age of 18 and the initial balance would be 20,000 euros. The initial balance would replace the current student grant system. Life account would resemble basic income.[32]

In 2014, the Centre Party as well as the Left Alliance and Green League, expressed support for basic income.[33]

In May 2015, the Sipilä Cabinet committed to carrying out a Basic Income experiment as part of a government programme.[34] In November 2015, Kela, the Finnish Social Insurance Institution launched a preliminary study to identify the model for implementing the experiment.[35][36]

France

The French region Aquitaine, where a basic income pilot will take place, according to a decision in the regional council.[37]

The debate in France started in the 1970s but as elsewhere in Europe it took a long time for it to become a major political issue. However, in 2015 the regional parliament in Aquitaine voted for an implementation of some kind of basic income experiment.[37] In January 2016, the Conseil national du numérique, a public Advisory body on Digital Affairs released a report which recommends to examine and experiment basic income.[38]

Advocates

Some of the most well-known defenders of basic income in France are Yoland Bresson,[39] André Gorz,[40][41] Baptiste Mylondo, Yann Moulier Boutang,[42] Toni Negri, Jean-Marc Ferry, Ignacio Ramonet, Jacques Marseille,[43] Christine Boutin, Dominique de Villepin, Karima Delli, Jean Desessard and Yves Cochet. The think tank Centre des Jeunes Dirigeants (CJD) ("Young policymakers trust") also call for a basic income of 400 euros per citizen.[44] The CJD's and Christine Boutin's basic income proposals are based on Marc de Basquiat financing model,[45] which demonstrates a way of financing a basic income of 400 euros for every adult and 200 per child, while other advocates such as Baptiste Mylondo and Jacques Marseille promote a "high enough" basic income, around 750 euros. However, unlike Mylondo and Marseille, De Basquiat's model doesn't reduce any pension, housing or unemployment benefits. ´

Opinions

In 2015, an opinion poll suggested that 60% of the population was in favor of a basic income.[46]

Germany

Götz W. Werner, a German proponent of basic income.

The debate about basic income started to grow in the 1980s when groups of unemployed people came out in favor of the reform.[47] For many years the idea was only supported openly by some academics, such as Claus Offe, and a few politicians and organizations. However, after the Hartz reforms, introduced by the Cabinet of Gerhard Schröder in 2003-2005 and subsequently modified, a debate regarding basic income was triggered.[48] 2009, Susanne Wiest, a house wife, made a presentation in the German Parliament about the basic income petition she had initiated and which received support from 52.973 people. 2010 there were several basic income demonstrations, the biggest in Berlin. 2011 the Pirate Party decided to advocate for a basic income alongside minimum wages.[49] Among the political parties in Germany, the Pirate Party officially endorsed basic income in 2011.[50] Inside the Christian Democratic Union, Dieter Althaus proposes a basic income model.[51] A group led by Katja Kipping also promotes basic income inside the leftist party Die Linke.[52] Also, within the Social Democratic Party of Germany, the Rhein-Erft-group favors basic income[53] since 2010. Within The Greens there are also many advocates.

Greece

Though the idea of basic income is not well known in Greece, several economists have worked on the topic. In 2010, the liberal party Drasi supported a proposal for a basic pension scheme, aiming at simplifying the hundreds of pension schemes in a country being hurt by the debt crisis and pressured by the troika to balance its public budget. Manos Matsaganis and Chrysa Leventi co-authored a study that demonstrate the feasibility of such a proposal.[54]

Other heterodox proposals suggest that a Greek exit from the eurozone could be an opportunity to implement a "monetary dividend" for every Greek citizen as a way to manage the financial collapse of the country.[55]

Hungary

Unconditional basic income is endorsed in Hungary by the FNA Group[56] (formed in 2011) and the Hungarian Pirate Party.[57] In 2014 the LÉT workgroup published a proposal, which involved paying 50,000 HUF per month to every adult and 25,000 HUF to every child; 90% of the cost would have been covered by rearranging existing social welfare, the rest by a dedicated new tax.[58] The proposal received no significant political support.

Iceland

In October 2014 the Icelandic Pirate Party put forth a parliamentary resolution calling on the Minister of Social Affairs and Housing and the Minister of Finance and Economic Affairs to appoint a workgroup to conceive ways to ensure every citizen an unconditional basic income.[59][60] It should be noted that although the next parliamentary election in Iceland will not be held before April 2017, as at March 2016 the Icelandic Pirate Party has held an overall lead in opinion polls since April 2015.

Ireland

Currently the chief advocacy group is Basic Income Ireland,[61] a member of BIEN. Social Justice Ireland has produced a fully costed proposal for 2012. Before that, the main advocate was CORI (Conference of Religious of Ireland), one of the social partners. Politically, the Green Party and Fianna Fail (the latter as of July 2015) favour a Basic Income.

As part of the agreement with the social partners including CORI, a green paper on Basic Income was published by the government in 2002,[62] but there has been no movement on a government level since then.

In 2013, during the European Citizen's Initiative campaign, six MEPs from the Republic of Ireland signed a statement in favour of Basic Income.[63]

Netherlands

The issue of the basic income gained prominence on the political agenda in Netherlands between the mid-1970s and mid-1990s.[64][65] In 2015 it was announced that the city of Utrecht and its local university will be conducting an experiment on basic income. Local authorities are planning to encourage other municipalities to engage in similar experiences.[66]

Norway

The Norwegian Green Party,[67] Norwegian Red Party,[68] Democrats in Norway[69][70] and the Norwegian Pirate Party[71] endorse basic income in Norway. The Liberal Party of Norway formerly endorsed a basic income guarantee in Norway, but dropped it from the platform before the 2013 election.[72]

The NGO BIEN Norge, affiliated with Basic Income Earth Network works to promote the system in Norway.[73]

Spain

Since 2001, the Red Renta Básica is the national network affiliated to the BIEN. It gathers researchers and activists for basic income.[74] From 2011 to 2012, the 15-M Movement also contributed a lot in spreading the idea among the Spanish society,[75] and political parties as Partido Andalucista in Andalusia and Podemos introduced it as one of its proposals.

In 2015, a citizen's initiative received 185,000 signatures, short of the required amount for the proposal to be discussed in parliament.[76]

Famous Spanish advocates of basic income include Daniel Raventos, David Casassas, José Luis Ley.

Switzerland

The association BIEN-Switzerland[77] (affiliated to the Basic Income Earth Network) promotes basic income in the francophone part of Switzerland. In the German-speaking part of Switzerland a group called "Initiative Grundeinkommen" is very active in promoting basic income.[78]

In 2006, the sociologist Jean Ziegler considered basic income as "one of the most pressing idea of all".[79]

In 2008, Daniel Häni and Enno Schmidt produced The Basic income, a cultural impulse, a movie that explains and praises the idea of a basic income. With more than 400,000 views,[80] the movie went viral and contributed a lot in spreading the idea among French and German speaking countries.

In April 2012, both groups launched a popular legislative initiative[81][82] which aimed at introducing basic income in the Swiss Federal Constitution. The campaign successfully collected enough signatures (126,000) by October 4,[83] thereby triggering a nationwide popular referendum in 2016, making Switzerland the first country where people were consulted by referendum on this issue.[84][85][86]

The proposal would have given 2500 francs monthly to every adult and 625 francs to every child. The government estimated the costs to be 208 million francs per year, most of which could have been covered by abolishing the existing social security system, but the last 25 million francs would have been only possible to collect by tax raises.[87] The trade union Syna brought its support for this initiative,[88] but none of the political parties supported the proposal, and both the federal government[89] and the National Council of Switzerland (lower house of parliament) called on the people to reject the proposal by referendum.[90] In the end, the proposal was overwhelmingly defeated with almost 77% voting against it.[91][92]

United Kingdom

Guy Standing, a British basic income advocate.

Basic income has been discussed and advocated for in United Kingdom for much of the 20th and 21st century. It started with the writings by Major C.H Douglas and Dennis Milner around 1920, got a down period during the war times, and is today still a political proposal or reform that the main political parties in England either won't touch or are simply against. However, there are some parties who are pro-basic income, most notably the Scottish National Party, which at its spring 2016 conference backed the principle of a universal basic income to replace the current welfare system.[93] Other parties supporting it are the Green Party of England and Wales,[94] the Scottish Green Party,[95] the Scottish Socialist Party[96] and the Pirate Party UK.[97] On 16 February 2016 Shadow Chancellor John McDonnell said that a basic income policy was under consideration by the Labour Party.[98]

Guy Standing is perhaps the most well known advocate of the idea nowadays. In his book The Precariat - the new dangerous class, he blames globalization for having plunged more and more people into the precariat, which he analyses as a new emerging social class.[99] He concludes on the necessity for "governments to provide basic security as a right"[100] through a basic income. Other advocates include Edward Skidelsky and Robert Skidelsky who argued for basic income in their book called How Much is Enough?.[101]

North America

Canada

William Aberhart, premier of Alberta, was inspired by Major C. H. Douglas Social Credit theory and tried to implement a basic income for Albertans during the 1930s. However, he was thwarted in his attempts by the Federal Government of the time.[102]

The city of Dauphin, Manitoba, Canada, took part in an experimental guaranteed income program ("Mincome") between 1974 and 1979.[103][104]

In November 2013, a poll commissioned by the Trudeau Foundation found that 46% of Canadians favoured and 42% opposed replacing current economic assistance with a guaranteed national income.[105]

Starting in 2014, the Liberal Party of Canada,[106] the Green Party of Canada,[107] the Pirate Party of Canada,[108] provincial party Québec Solidaire,[109] and conservative senator Hugh Segal[110] have been advocating for basic income in Canada. Mike Redmond, leader of the New Democratic Party of Prince Edward Island, has supported a basic income pilot project on Prince Edward Island.[111]

United States

During the 1960s there was a big debate in the United States regarding poverty and how to deal with it. One of the solutions that came up during this time was basic income, mostly in the form of a negative income tax.

In 1968, James Tobin, Paul Samuelson, John Kenneth Galbraith and another 1,200 economists signed a document calling for the US Congress to introduce in that year a system of income guarantees and supplements.[112] Martin Luther King, a famous civil rights activist and politician, also gave his support for the idea in his book Where Do We Go From Here: Chaos or Community?, published in 1967.[113][114] In 1969, Richard Nixon proposed a "Family Assistance Program" which resembled guaranteed income, in that benefits did not rapidly taper with additional earnings by the beneficiaries. Nixon's proposal only applied to families, but extended previous welfare by benefiting more than those without a 'father'.[115]

Other advocates from the 1960s and 1970s include Senator George McGovern who called for a 'demogrant' that was similar to a basic income and Mike Gravel who talked about a tax rebate paid in a monthly check from the government to all citizens as part of a transition away from income taxes and toward a pre-bated national sales tax (the FairTax).[116][117] Libertarian advocates include Milton Friedman[118] and Charles Murray.[119] Also worth mentioning is Jeremy Rifkin, who in his book The End of Work, argued that there may be an increasing need for such measures as automation would reduce the demand for workers in future.[120]

The Green Party of the United States in its 2010 platform advocated for a universal basic income to "every adult regardless of health, employment, or marital status, in order to minimize government bureaucracy and intrusiveness into people's lives."[121]

Permanent fund of Alaska

The Alaska Permanent Fund pays a partial basic income to all its residents since 1982.

Basic income pilots

Members of the Eastern Band of Cherokee Indians, based in North Carolina, receive payments of several thousand dollars twice a year.[122] These payments are dividends from the profits of the Harrah's Cherokee casino, and have been distributed since 1996. A study of the payments' effects on the children of the community found significant declines in poverty, behavioral problems, crime, substance abuse and psychiatric problems, and increases in on-time graduation. The effects were primarily found among those who were youngest when the payments began, and among those who were lifted out of poverty rather than those who were already well-off.[123][124] Y Combinator is planning to run a basic income study.[125]

Oceania

Australia

Basic Income has gained support from Australian academics such as John Tomlinson, John Wiseman, and Allan MacDonald.[126] The Queensland Greens were the first Australian party to adopt a Guaranteed Adequate Income (GAI) policy in 1999. In 2010, the Liberal Democratic Party announced support of a negative income tax with a 30% flat tax rate[127] and the Pirate Party of Australia announced its support in 2014.[128] Basic Income Guarantee Australia was accepted into the Basic Income Earth Network in 2006 as an affiliate member.[129] In August 2014, ACOSS made a recommendation to simplify the welfare system via a basic income support payment; however, this differs from a universal guaranteed income in that it would still be means-tested.[130]

New Zealand

In March 2016, leader of the New Zealand Labour Party Andrew Little announced a debate at their forthcoming Future of Work conference on the introduction of a universal basic income (UBI), to replace other forms of welfare. He said:

"We are keen to have that debate about whether the time has arrived for us to have a system that is seamless, easy to pass through, [with a] guaranteed basic income and [where] you can move in and out of work on a regular basis," or "an income support system that means every time you stop work you have to go through the palaver of stand-down periods, more bureaucracy, more form filling at the same time as you're trying to get into your next job."[131]

South America

Brazil

Basic income has been discussed in modern Brazil at least since the 1980s. In 2001 a law was introduced by Senator Eduardo Suplicy of the Brazilian Workers Party which mandated the progressive institution of such a welfare system. By this move Brazil became the first country in the world to pass such a law. Suplicy had previously introduced a bill to create a Negative Income Tax, but that bill failed to pass. The new bill called for a national and universal basic income to be instituted, beginning with those most in need. The bill was approved by the Senate in 2002 and by the Chamber of Deputies in 2003. President Lula da Silva signed it into law in 2004, and according to the bill it is the president´s responsibility to gradually implement the reform. Since then Brasil has started to implement the bill through the Bolsa Família-program, which was a centerpiece of President Luiz Inácio Lula da Silva's social policy, and is reputed to have played a role in his victory in the Brazilian presidential election, 2006.

Main article: Quatinga Velho

An independent and privately funded pilot project is currently in place in Brazil in Quatinga Velho[132] The project started 2008 and is organized by the non-profit organization ReCivitas.[133] It provides R$30 monthly which is 4.4% of the minimum salary in 2013 (as defined by the federal government) and is not enough to meet basic needs. "The real value of R$30,00 Basic Income at Quatinga Velho, just is sufficient to help people satisfy the most basic material needs. Children especially enjoy this Quatinga Velho benefit. The project ReCivitas succeeded with the use of extremely limited financial resource, to achieve significant social effects. Should be emphasized the positive impacts to the satisfaction of basic needs and quality of life of the project participants. The results indicate that the BI has contributed to sustainable development in Quatinga Velho. The effects were convincing, particularly in the area of assurance of basic needs, improving the quality of life and social skills."[134] "(..)This amount of money sounds very small to people from industrialized countries, but it has a large impact in a rural area of Brazil. The coordinators have verified gains in nutrition, clothing, living conditions, health (especially in children), construction of new housing, and improvements to existing ones. In informal interviews, the coordinators have noticed increased self-esteem and social interaction, reduction of social insecurity, and rising expectations of the future, especially regarding children. They noted that they have not observed increased use of alcohol or illicit drugs; significant changes in labor relations, birth, migration or emigration, or generation of political relations and economic dependency.Although the project leaders are examining the effects of the local basic income, the coordinators of the project told USBIG that the point of the project is not to study BIG. They are already convinced that model has been proven effective; they want to put it into practice. The goal is to put the policy in place. If governments are not ready to do it on a national scale with tax funding, Recivitas is attempting to do it on a small scale with private funding." [135]

See also

References

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