A Universal Basic Income (UBI) will be an efficient substitute for a plethora of existing welfare schemes and subsidies, according to India's annual Economic Survey, the Hindu reports.
In a chapter ‘Universal Basic Income: A Conversation With and Within the Mahatma,’ the Survey dwelt at length on the pros and cons of introducing UBI in India before concluding that it was “a powerful idea whose time even if not ripe for implementation is ripe for serious discussion.”
The report justified the introduction of UBI citing several reasons such as promoting social justice, reducing poverty and an unconditional cash transfer that lets the beneficiary decide how she uses the money and generating employment by promoting labour flexibility since it allows “individuals to have partial or calibrated engagements with the labour market without fear of losing benefits.”
It also said the move would bring in administrative efficiency as a direct cash transfer through a JAM (Jan Dhan-Aadhar-Mobile) platform would be more efficient compared to the “existing welfare schemes which are riddled with misallocation, leakages and exclusion of the poor.”
The report advocated a “target quasi-universality rate of 75%,” which would entail a cost of 4.9-4.2% of the GDP, well within the ball park of 5% of the GDP, which is what existing centrally sponsored schemes cost the exchequer.
According to Professor Guy Standing, a founding member of the Basic Income Earth Network, told Business Insider UBI trials in India had been “remarkably positive”, giving people a sense of control over their money, reducing debt and empowering women, the Independent adds.
SOURCES
http://www.thehindu.com/business/%E2%80%98Time-ripe-for-discussions-on-Universal-Basic-Income%E2%80%99/article17124378.ece
http://www.independent.co.uk/news/world/asia/india-universal-basic-income-combat-alleviate-poverty-economic-survey-a7555416.html
http://indiabudget.nic.in/es2016-17/echap09.pdf
Showing posts with label Guy Standing. Show all posts
Showing posts with label Guy Standing. Show all posts
Wednesday, 1 February 2017
Wednesday, 18 January 2017
An urgent necessity
Guy Standing argues that "the 20th century income distribution system has broken down irretrievably."
"Globalisation, technological change and the move to flexible labour markets has channelled more and more income to rentiers – those owning financial, physical or so-called intellectual property – while real wages stagnate," he writes in The Guardian.
"The income of the precariat is falling and becoming more volatile. And chronic insecurity will not be overcome by minimum wage laws, tax credits, means-tested benefits or workfare. In short, a basic income is becoming a political imperative," he says.
Noting a range of pilot programs under way around the world, he stresses that "pilots can only test certain behavioural aspects of paying a basic income and seeing what people do differently."
On the other hand, UBI proponents "rest their case on more fundamental justifications – social justice, freedom and economic security" which cannot be tested by pilots.
Nevertheless, he notes that several pilots showed positive effects. "A well-known experiment in the Canadian town of Dauphin in the 1970s showed that recipients of the basic income suffered less from ill-health and mental stress," for example.
Moreover, in the largest Indian pilot, about 6,000 men people in eight villages received a small basic income for 18 months. Four positive effects were observed: benefits to welfare, positive equity effects, positive economic effects, including more work and labour, raised productivity and output, and reduced inequality, and finally, there was a growth in secondary, self-employed work.
"Globalisation, technological change and the move to flexible labour markets has channelled more and more income to rentiers – those owning financial, physical or so-called intellectual property – while real wages stagnate," he writes in The Guardian.
"The income of the precariat is falling and becoming more volatile. And chronic insecurity will not be overcome by minimum wage laws, tax credits, means-tested benefits or workfare. In short, a basic income is becoming a political imperative," he says.
Noting a range of pilot programs under way around the world, he stresses that "pilots can only test certain behavioural aspects of paying a basic income and seeing what people do differently."
On the other hand, UBI proponents "rest their case on more fundamental justifications – social justice, freedom and economic security" which cannot be tested by pilots.
Nevertheless, he notes that several pilots showed positive effects. "A well-known experiment in the Canadian town of Dauphin in the 1970s showed that recipients of the basic income suffered less from ill-health and mental stress," for example.
Moreover, in the largest Indian pilot, about 6,000 men people in eight villages received a small basic income for 18 months. Four positive effects were observed: benefits to welfare, positive equity effects, positive economic effects, including more work and labour, raised productivity and output, and reduced inequality, and finally, there was a growth in secondary, self-employed work.
SOURCE
Monday, 16 January 2017
Boosting the freelance economy
Michael Grothaus at Fast Company argues that a universal basic income could help make the freelance economy more possible and realistic.
He cites Marjukka Turunen, the head of the legal unit in benefit services at KELA, the Finnish government social security institution that is overseeing the project.
"Studies have shown one of the top reasons more people don’t become entrepreneurs is because they don’t have the capital to both support themselves and start a business at the same time. This means they can’t afford to leave their current job to start their own small business," argues Marjukka Turunen. "UBI would give them a solid financial foundation to do this."
He also draws on Guy Standing from the School of Oriental and African Studies, University of London, and co-president of the Basic Income Earth Network, who also believes that the UBI could boost the freelance economy in five ways.
He cites Marjukka Turunen, the head of the legal unit in benefit services at KELA, the Finnish government social security institution that is overseeing the project.
"Studies have shown one of the top reasons more people don’t become entrepreneurs is because they don’t have the capital to both support themselves and start a business at the same time. This means they can’t afford to leave their current job to start their own small business," argues Marjukka Turunen. "UBI would give them a solid financial foundation to do this."
He also draws on Guy Standing from the School of Oriental and African Studies, University of London, and co-president of the Basic Income Earth Network, who also believes that the UBI could boost the freelance economy in five ways.
1. It could help people retrain for in-demand jobs.
2. It could inspire people to take risks and start their own businesses.
3. It could help freelancers maintain health insurance coverage.
4. It could help freelancers say "no" to abusive clients.
5. It could help compensate freelancers for the unpaid work they do.
2. It could inspire people to take risks and start their own businesses.
3. It could help freelancers maintain health insurance coverage.
4. It could help freelancers say "no" to abusive clients.
5. It could help compensate freelancers for the unpaid work they do.
SOURCE
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