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BASIC INCOME FROM SOCIAL IDEA TO SOCIAL POLICY JURGEN DE WISPELAERE UNIVERSITY OF TAMPERE [email protected] UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY SCHOOL OF SOCIAL SCIENCES AND HUMANITIES, UNIVERSITY OF TAMPERE

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Page 1: JURGEN.DEWISPELAERE@GMAIL.COM BASIC INCOME FROM …€¦ · Basic Income in Finland (Heikki Hiilamo) Economics of Experiments (Jani-Petri Laamanen) Finnish Basic Income Pilots (Olli

BASIC INCOME FROM SOCIAL IDEA TO SOCIAL POLICY

JURGEN DE WISPELAERE UNIVERSITY OF TAMPERE [email protected]

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY

SCHOOL OF SOCIAL SCIENCES AND HUMANITIES,UNIVERSITY OF TAMPERE

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UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

INTRODUCTION

▸ Course Structure and Assignment

▸ Basic Income - Utopia with a Pedigree

▸ What is Basic Income?

▸ Basic Income as Social Critique

▸ Basic Income as Social Policy

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COURSE OUTLINE AND ASSIGNMENTS

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STRUCTURE OF THE COURSE

▸ Introduction(Jurgen De Wispelaere)

▸ Decent Work(Pertti Koistinen)

▸ Welfare State(Bettina Leibetseder)

▸ Social Justice (Simon Birnbaum)

▸ Implementation (Lindsay Stirton and Jurgen DW)

▸ Constituency(Jurgen De Wispelaere)

▸ Political Coalitions(Jurgen De Wispelaere)

▸ Basic Income in Finland (Heikki Hiilamo)

▸ Economics of Experiments (Jani-Petri Laamanen)

▸ Finnish Basic Income Pilots(Olli Kangas)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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COURSE ASSIGNMENT

▸ Group project on a specific social policy issue related to basic income (4-5 people per group): the most important part is discussion between participants

▸ Prepare a short report documenting your process and results (5-8 pages)

▸ Introduction and problem formulation (what is your concern specifically?)

▸ Background discussion and review (what do we know about your problem?)

▸ Description of approach and results, which can be a particular proposal or a way to handle the issue (personal reflection but grounded in research)

▸ Conclusion: what have you achieved and where to go next

▸ Present your work at a student workshop on 23.5: 20mins presentation and 30mins discussion with fellow students

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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COURSE ASSIGNMENT (KEY DATES)

▸ Mon 7.3: group formation (by Antti, four groups of 5/6 students)

▸ Fri 8.4: email your topic (title and a short paragraph of explanation) to Antti & Jurgen

▸ Mon 11.4: if you like you can discuss your topic with us in person

▸ Mon 16.5: email draft report to Antti/Jurgen: we will provide some feedback before your presentation

▸ Mon 23.5: presentation of your project (use slides!) and discussion with fellow students (no recording of presentations)

▸ Mon 30.5: final report, which can take into account some points from the discussion (to be posted online)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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PRACTICAL INFO

▸ Course info at: https://www10.uta.fi/opas/teaching/course.htm?id=31925

▸ Contact

▸ Antti Halmetoja([email protected])

▸ Jurgen De Wispelaere ([email protected])

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME - UTOPIA WITH A PEDIGREE

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“TO CREATE A NATIONAL FUND, OUT OF WHICH THERE SHALL BE PAID TO EVERY PERSON … THE SUM OF TEN POUNDS PER ANNUM, DURING LIFE, TO EVERY PERSON NOW LIVING, OF THE AGE OF FIFTY YEARS, AND TO ALL OTHERS AS THEY SHALL ARRIVE AT THAT AGE ... IT IS PROPOSED THAT THE PAYMENTS, AS ALREADY STATED, BE MADE TO EVERY PERSON, RICH OR POOR.”

Thomas Paine, Agrarian Justice (1797)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME IN RECENT TIMES: THREE WAVES

▸ First Wave: Europe/North America in the 1970s/1980s

▸ Reaction to increased work activation (“end welfare as we know it”)

▸ Move to post-productivism and broader appreciation of social participation

▸ Second Wave: Latin America/Africa in the 1990s and 2000s

▸ Rise of Conditional Cash Transfers (CCTs) as core policy (health, education)

▸ CCTs seen as a road towards a full unconditional cash support scheme

▸ Third Wave: renewed interest in Europe/North America

▸ Post-crisis rethinking of economic policy, following failure of austerity politics

▸ Combining welfare state recalibration with increasing economic share of those most vulnerable (income security)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME TODAY: INCREASED POLICY ATTENTION

▸ The Swiss Citizen’s Initiative (achieved 2013, referendum planned for June 2016)

▸ The European Citizen’s Initiative (2013)

▸ Pilot project in Madhya Pradesh (India)

▸ Finnish Basic Income Experiment (planned for 2017-2019, preliminary design ongoing)

▸ Several municipalities in process of developing small pilot projects in Netherlands

▸ Increased interest in Canada, France

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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WHAT IS BASIC INCOME?

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BASIC INCOME IS UNIVERSAL

▸ Social support programs selectively target specific groups

▸ Unemployment insurance, disability benefits, social assistance, basic pensions, child benefit …

▸ Basic income …

▸ No selectivity: all citizens (residents?) are equally entitled

▸ Targeting within universalism? Focus on the bottom of the income distribution

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME IS INDIVIDUAL

▸ Social support programs have a strong household focus

▸ Earnings/benefits of one person affect entitlement of the partner

▸ Basic income is …

▸ Individually calculated (no household “tax”)

▸ Individually paid (income security)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME IS UNCONDITIONAL

▸ Social support programs are conditional on recipients satisfying a variety of criteria

▸ Basic income has …

▸ No means test (no income test, no asset test)

▸ No work (or willingness-to-work) test or corresponding obligations

▸ No restrictions on use (cash, not vouchers)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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ONE IDEA, SEVERAL MODELS?

▸ The policy core of the basic income ideal is universality, individuality and unconditionality

▸ Variation in concrete basic income models

▸ Level (partial vs. full basic income)

▸ Funding (income tax, wealth tax, green taxes …)

▸ Duration (life-long, several years …)

▸ Implementation (demogrant, negative income tax, …)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME AS SOCIAL CRITIQUE

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BASIC INCOME AND THE SOCIAL CONTRACT

▸ The post-war social contract has broken down

▸ Economic inequality and economic insecurity increased dramatically

▸ Stable jobs are disappearing and many are trapped in temporary insecure arrangements (“precariat”)

▸ Vast amounts of social contribution go unrecognised (care agenda)

▸ Austerity policies put further downward pressure on the most vulnerable

▸ Recent responses to social/economic pressures based on social investment and activation

▸ Austerity politics resists the funding commitment necessary to make the social investment state work (“austerity paradox”)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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SOCIAL TRANSFORMATION THROUGH BASIC INCOME

▸ Basic income’s transformative agenda

▸ Care and gender inequality

▸ Ecological considerations (post-productivism)

▸ Distribution and economic inequality

▸ From re-distribution to pre-distribution?

▸ Social inclusion: rethinking social participation outside of labor markets

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME AND SOCIAL JUSTICE

▸ “Principled approaches”: justice requires basic income

▸ Freedom-based justifications: basic income promotes freedom

▸ Democratic justifications: basic income precondition for democratic participation and citizenship

▸ Entitlement justifications: basic income is part of the common pool of resources that belongs to everyone

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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BASIC INCOME AS SOCIAL POLICY

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“ASKING ABOUT THE PROS OR CONS OF BASIC INCOME AS SUCH IS RATHER LIKE ASKING ABOUT THE PROS AND CONS OF KEEPING A FELINE AS A PET WITHOUT DISTINGUISHING BETWEEN A TIGER AND A TABBY.”

Brian Barry (2001)

BASIC INCOME IN OUR TIME? REASONS, CHALLENGES, LESSONS

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BASIC INCOME AS A “FAMILY” OF PROPOSALS

▸ Variation in design and implementation (different models)

▸ E.g. level or funding source

▸ Variation in policy effects depending on concrete model adopted

▸ Poverty, health, education, social participation etc …

▸ Variation in political effects depending on expected policy effects

▸ Different sets of winners and losers

▸ Impact on political feasibility and political stability (robustness, resilience)

▸ Division between progressive and conservative basic income cluster

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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THREE CHALLENGES: EVIDENCE, POLICY, POLITICS

▸ The evidence challenge: how do we know that basic income works (or which models work best)?

▸ Problem: basic income is a radically different scheme from what is currently in place, so how do we get the evidence?

▸ The policy challenge: basic income functions as part of a pre-existing policy environment, so how do we make sure basic income “fits”?

▸ Problem: different basic income models may require more changes in the background environment or other policies (adaptation/transformation)

▸ The political challenge: how do we shepherd basic income through the many political hurdles on the road to policy adoption? (political strategy)

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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DOES BASIC INCOME EXIST? (AND CAN WE GET SOME EVIDENCE FROM THESE CASES?)

▸ Key problem: comparability

▸ Legislation only? Law No. 10.835 (Lei de Renda Basica de Cidadania) in Brazil

▸ Shared features cases? Child benefit (Europe), Conditional cash transfers (Latin America/Africa), Universal Credit (UK)

▸ “Minimal” cases? Alaska Permanent Fund Dividend

▸ Experiments carried out elsewhere? Brazil, Namibia, India

▸ Need for new large-scale (national) pilot studies

▸ Finland, Netherlands but also interest in Canada, France and Portugal

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016

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POLITICAL HURDLES

▸ Constituency: who is the target population of basic income in terms of public support?

▸ Coalition: which political agents are part of a stable enacting policy coalition?

▸ Stability: how do we ensure basic income resists political pressure for change over time?

▸ Implementation: how do we ensure basic income is implemented in a manner that maximally promotes its goals while avoiding any negative effects?

UNIVERSAL BASIC INCOME: NEW AVENUES IN SOCIAL WELFARE POLICY - UTA2016