Universal Basic Income Around The World

Universal basic income (UBI) 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: universal basic income.

Africa

Namibia

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. 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 (8% of the average income, around US$12).

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. The project team stated that this increase in economic activity contradicts critics' claims that a basic income would lead to laziness and dependence. 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.

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.

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%. These conclusions are derived from two empirical studies conducted by the Basic Income Grant Coalition. One study that covers the first 6 months of the project and a second study about the first 12 months of the project. 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.

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."

South Africa

According to Jeremy Seekings, University of Cape Town, basic income activists have managed to keep the proposal alive in the South African debate ever since the 1990s, but the proposals have nonetheless not gained a lot of support within the policy-making and political elite. Nor has the idea gained a lot of public support. As he sees it, both the elite and the public remain opposed to the extension of social grants to working-age adults. He also argues that the basic income activism is a rather intellectual enterprise, done by only a few, who are lacking strong organisational or popular bases. But on the other hand, the Covid 19-pandemic (of 2020 and 2021) has forced the government to act, to go some steps in the direction of basic income:

Quasi-basic income during the Covid 19 pandemic

The Minister for Social Development Lindiwe Zulu, announced in April 2020 that the government were about to pay out a basic income grant because of the pandemic. Not to everyone, but to everyone in working age that don't receive any other economic help from the government. The grant, R350 per month, started to be paid out in May and ended in October 2020. In October, just before the grant was ending, SA Communist Party (SACP) leader Blade Nzimande called on the government to convert the grant into a “universal basic income guarantee”. He argued the grant was offering a survival lifeline to millions. Mary Burton, writing an opinion piece for Business Day in September 2020, also argues for the government to introduce a real basic income. She writes: "This is not at all the same thing as the temporary “Covid-19 grant” recently introduced to address the situation of unemployed people between the ages of 18 and 59. The difficulties experienced by the department of social development in administering this grant have shown how complex that system is, where checks have to be carried out as to whether the applicants meet all the necessary criteria to qualify for it. Nevertheless, it has brought vital help to millions of people, and has provided useful lessons both in terms of administration and as an illustration of its benefit." Zulu, however, are also pushing for a real basic income. She is hoping that it can be introduced in March 2021, but for that to happen the Finance Ministry of South Africa must also be on board with the plan.

Political parties in favour of (a real) basic income:

* The Democratic Alliance

Asia

East Asia

Japan

In Japan, New Party Nippon included a basic income proposal in their manifesto in 2009 (the party dissolved in 2015). Of the currently active and registered political parties in Japan, the Greens Japan support a universal basic income, as do Reiwa Shinsengumi whenever inflation is below 2%. A number of economists in Japan also support UBI, such as Toru Yamamori and Kaori Katada.

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.

South Korea

*In South Korea the Youth Allowance Program was started in 2016 in the City of Seongnam, which would give every 24 years old citizens 250,000 won (~215 USD) every quarter in the form of a “local currency” that could only be used in local businesses. This program was later expanded to the entire Province of Gyeonggi in 2018.
*The Socialist Party supported basic income, along with delegate Geum Min in South Korea.

South Asia

India

Two basic income pilot projects have been underway in India since January 2011. According to the first communication of the pilot projects, positive results have been found. 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.

West Asia (Middle East)

Iran

Iran was the first country to introduce a national basic income in Autumn 2010. It is paid to all citizens and replaces the subsidies of petrol, fuel, and other supplies that the country had for decades in order to reduce inequality and poverty. In 2010, the sum corresponded to about 40 U.S. dollars per person per month, 480 U.S. dollars per year for a single individual, which could reach to $2300 per year for a family of five.USBIG NEWSLETTER
Vol. 13, no. 64 Spring 2012 (Read 2 December 2012)

The initial public and political reaction to the program was negative. Local press claimed that the poor were abandoning their jobs due to the extra money, and the Government has considered introducing means testing to reduce the costs of the program.

A first assessment of the experiences in Iran was provided in 2011 by H. Talabani. Another assessment published in 2017 found no evidence of cash transfers recipients reduced their participation the labor force.

Europe

The Baltic countries (Estonia, Latvia, Lithuania)

Swedbank, a Swedish bank, included a piece about basic income in the Baltic region in its Macro Research Report in December 2017. In the first part of the article the bank wrote:

"The recent growing interest in UBI has been fuelled by rising fears of job losses due to automation and globalisation, as well as the growing inequality of income and opportunity across some advanced economies. The increasing discontent among citizens who have lost out to automation and globalisation and the rise of the precariat, the so-called new deprived social class facing insecurity and underemployment,15 pose a considerable threat to political stability and democratic values, as indicated by the recent election outcomes in the US, the UK, and some other EU countries. The proponents of UBI argue that greater income security via this measure could be a possible solution to these problems and could help tame voter discontent and prevent them from supporting populists."

After having discussed the potential pros and cons with basic income, and after having dismissed the idea of a full basic income, because of the cost. The bank, still, thinks that reforms in the direction of basic income could be on the table. They suggest that a partial basic income could be a good start, or perhaps a once-in-a-lifetime payout for all young adults.

"However, some parts of the basic income model could be used in simplifying and improving the efficiency of the existing social security systems. Governments could make the existing benefits more accessible by eliminating unnecessary conditions and means testing in order to reach those who fall outside the system. This could also help cut administrative costs. A more gradual phasing out of benefits would reduce the unemployment trap and increase the incentives for the unemployed to enter the labour market. In order to make the transition to basic income more gradual and limit the cost increases, governments, instead of implementing full-scale UBI, could consider a “partial” basic income that would apply only to new cohorts. Lithuania has taken a step in this direction by replacing the additional non-taxable income with lump-sum cash benefits paid to all children, without regard to family income. Maybe, as a start, a similar basic income or, simply, a once- in- a-lifetime payout could be introduced to young adults, which would at least partly level the playing field for poorer youngsters. However, payments to young cohorts only may be met with resistance from the older ones. Yet another alternative to UBI is a negative income tax..."

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.

Bulgaria

In December 2014, one year after the European basic income initiative, Bulgarian Union for Direct Democracy, a new party, was created. Besides direct democracy the party also included basic income in its program.

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?"). In 2013, activists and social scientists joined the European Citizens' Initiative for Unconditional Basic Income, and have created a campaign to support unconditional basic income. 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.

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

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.

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.

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.

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

In 2018, Finland ended the universal basic income experiment. The experiment was temporary.

France

Advocates

Some of the most well-known defenders of basic income in France are Benoit Hamon, Yoland Bresson, André Gorz, Baptiste Mylondo, Yann Moulier Boutang, Toni Negri, Jean-Marc Ferry, Ignacio Ramonet, , 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, per month. The CJD's and Christine Boutin's basic income proposals are based on
Marc de Basquiat financing model, which demonstrates a way of financing a basic income of about 500 euros for every adult and 250 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.

Germany

The debate about basic income started to grow in the 1980s when groups of unemployed people came out in favor of the reform.Ronald Blaschk
The basic income debate in Germany and some basic reflections
(accessdate=13 December 2012) 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. In 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. In 2010, there were several basic income demonstrations, the biggest in Berlin. In 2011, the Pirate Party decided to advocate for a basic income alongside minimum wages. Among the political parties in Germany, the Pirate Party officially endorsed basic income in 2011. Inside the Christian Democratic Union, Dieter Althaus proposes a basic income model. A group led by Katja Kipping also promotes basic income inside the leftist party Die Linke. Also, within the Social Democratic Party of Germany, the Rhein-Erft-group favors basic income since 2010. Within The Greens there are also many advocates. In 2016 the Basic Income Alliance was formed, a single-issue political party that advocates for a universal basic income.

A commission of the German parliament discussed basic income in 2013 and concluded that it is "unrealizable" because:

* it would cause a significant decrease in the motivation to work among citizens, with unpredictable consequences for the national economy
* it would require a complete restructuring of the taxation, social insurance and pension systems, which will cost a significant amount of money
* the current system of social help in Germany is regarded as more effective because it is more personalized: the amount of help provided depends on the financial situation of the recipient; for some socially vulnerable groups, the basic income could be insufficient
* it would cause a vast increase in immigration
* it would cause a rise in the shadow economy
* the corresponding rise of taxes would cause more inequality: higher taxes would cause higher prices of everyday products, harming the finances of poor people
* no viable way to finance basic income in Germany was found

Greece

Though the idea of basic income is not well known in Greece, several economists have worked on the topic. In 2010, the now dissolved 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.

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.

The economist and leader of the MeRA25 party, Yanis Varoufakis, is a supporter of a universal basic income that is funded from returns on capital rather than taxation, where "a percentage of capital stock (shares) from every initial public offering (IPO) be channelled into a Commons Capital Depository, with the associated dividends funding a universal basic dividend (UBD)."

Hungary

Unconditional basic income is endorsed in Hungary by the FNA Group (formed in 2011) and the Hungarian Pirate Party. 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. 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. The Pirate Party currently holds 6 out of 63 seats in the Icelandic Parliament.

Ireland

The chief advocacy group is Basic Income Ireland, 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.

As part of the agreement with the social partners including CORI, a green paper on Basic Income was published by the Irish government in 2002, 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.

Netherlands

The issue of the basic income gained prominence on the political agenda in Netherlands between the mid-1970s and mid-1990s. 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.

Norway

The Green Party and The Pirate Party endorse basic income in Norway. The Red Party, The Democrats and The Liberal Party formerly endorsed a basic income guarantee in Norway. The Liberal Party dropped it from the platform before the 2013 election. But has of the 2021 election again supported the idea as a means to decrease bureaucracy.

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

Portugal

The political parties LIVRE and People Animals Nature