Thoughts on Universal Basic Income

Consider the government has decided to give money to every citizen in its country every month unconditionally. By unconditionally I mean you don’t have to do anything at all! Sounds like a fantasy right? Well not really. The idea of universal basic income has been floating around for decades and there are several places where this idea is being currently tested.

Let me explain why this idea is worth considering.

First, let’s agree on some common things. The reason majority of the people go to work is because they need money to pay their monthly bill. So with Universal Basic Income in place, those who are truly passionate about something can follow them without having to do a mundane job.

Well one might argue that most of the population will stop working if they are given free money. Let me ask you something, will you stop working if I give you Rs.5000 every month? Of course not. Universal basic income ensures that every citizen has enough money to meet his basic needs but not lead a luxurious life. So even with universal basic income in place, I am sure 99% of the people will still go to their job.

Then one might wonder why bother giving money to everyone if 99% of the people end up going to their same old work. The whole universal basic income concept is all about empowering the remaining 1%. It was always that one person who made a revolutionary discovery and not the majority of the population.

But for that 1% to unleash their true potential they should have enough free time and the only way to ensure they get free time is through Universal Basic Income. Moreover, this will also reduce the female infanticide, farmer suicide and most of the social evils drastically.

Next question is how will the government pay for all of this? Switzerland has already voted on Universal Basic income (Although the people rejected the proposal ). But with most jobs getting replaced by machines, Universal Basic Income will be viewed seriously in a couple of decades rather than a Utopian fantasy.

This is what will happen if Universal Basic Income is implemented in Rocky’s world.

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Is the Universal Basic Income a good idea for Country like India?

Sikkim recently declared to include the Universal Basic Income scheme in its manifesto ahead of the Assembly election in 2019 and aims to implement it by 2022. If everything goes according to the plan, it will be the first state to implement UBI in India.

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What is Universal Basic Income

A basic income is a periodic cash payment unconditionally delivered to all on an individual basis, without means test or work requirement. Considered a viable way to reform social security to address the shortcomings that the current system is rife with – targeting and delivery – the main motive behind UBI is to address the behavioural, design, and implementation downsides in the currently used systems of unemployment and social security benefits.

Why the UBI is a good idea?

Several countries have conducted pilot studies to explore the feasibility of making basic income a social security mainstay. Most notably, the Finnish government implemented a 24-month pilot in January 2017. In his article on UBI and initial observations from the pilot, the Guardian columnist Aditya Chakrabortty discusses how UBI’s potential rests on it being unconditional. By guaranteeing some income periodically, it liberates the recipients to pursue work they find meaningful, which in turns results in better economic outcomes.

Canada and Netherlands have also launched UBI pilots in early 2017, both as a social security measure and as an alternative to developmental aid. These examples are from the developed world. What about the developing world like india?

Can basic income work in India?

The Economic Survey of India 2016-17 discussed UBI as a viable alternative to a plethora of state subsidies targeting poverty alleviation. According to the ESI, if we considered a basic income transfer of INR1000 per month (approximately $15/month), we would have 20 million beneficiaries. Even a basic income of $4 per individual per month can reduce India’s poverty level by 16%, from its current level of 22%. The cost to do this would be 2% of GDP, the same amount we currently spend in total on food, fuel, and fertiliser subsidies. In early 2017 when the then Chief Economic Advisor to the Government of India, Dr. Arvind Subramanian, included a substantial chapter [2] on UBI in his annual Economic Survey (2016-17) which was presented to the Indian Parliament.

Economists feel the basic income should be fixed at a level that is just above the poverty line in a country. In India, various panels, including the Rangarajan committee, have fixed this level at between Rs 32 and Rs 47.

Universal basic income: a 500-year-old idea with a new kick : Click here

"Germany: The first basic income experiment in Germany will start in 2019"

An 18-month basic income trial was conducted in Madhya Pradesh in 2010. Every man, woman, and child across 8 villages received a monthly cash transfer, while another village was used as a control group. The money was paid individually, initially as cash, and after three months was debited into their bank or cooperative accounts, without any conditions.

For a detailed post on how UBI will affect Indian citizens, read this post : Thoughts on Universal Basic Income

UBI potentially solves the pressing issues faced by social security in India. By virtue of being universal, it eliminates any risk of leakage. By leveraging the JanDhan-Aadhar-Mobile (JAM) trinity, UBI can ensure efficient delivery. More importantly, UBI is targeted individually, making it a social security measure that could reach even the most marginalised sections of the population.

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India has officially become a surveillance state now!

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On December 20, The Government had issued notification on providing extraordinary power to 10 government agencies. It created big chaos among public & Opposition parties. It is contrary to supreme court judgement on Right to privacy

( Puttaswamy vs UOI ) which states that Privacy is a basic fundamental right.

This order is clearly inconsistent with the Supreme Court’s judgement declaring the right to privacy a part of the right to life and personal liberty under Article 21 and as a part of the freedoms guaranteed by Part III of the Constitution. As per order it gives free hand to investigation agencies to have access to citizen's privacy. It clearly dismays individuals sovereignty in India.

Cyber security vs Surveillance State

Meanwhile CBI has asked social media platforms to use Microsoft's PhotoDNA application to assist in criminal investigation. Internationally these methods are being used in child sex abuse cases. Even though Government argued that It comes under reasonable restriction it still violates right to privacy of citizens.

PhotoDNA can be used to stop propagation of images related to the exploitation of children. Vigilantes are still wary of Governmet's motive. Whether It is for Cyber security or surveillance. Power's which is given to agencies should be limited. If we give free hand to agencies, It might be exploited in most of the cases.

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