In recent years, the idea of introducing a universal basic income has been actively discussed in various countries. In the first case, the state pays the assigned amount to all citizens regardless of their financial standing and labor status. In the second case, only residents who meet certain criteria, for example, those who have an income below the national average, receive payments.
The artificial intelligence boom that the world is currently experiencing has only sharpened the debate on the need for universal payments for all.
Finam.ru discusses the advantages and disadvantages of universal basic income and the experience of different countries in introducing it.
Advantages and disadvantages of universal basic income
The idea of an universal basic income may seem relatively new, but its origins lie in the distant XVI century in Thomas More's “Utopia”. And in 1795, the “godfather” of the United States, philosopher Thomas Paine proposed a national fund to pay each adult “rich or poor” a land rent of £10 a year until the age of 50. Paine reasoned that land was the common property of mankind, and the introduction of private property had deprived many people of this collective right.
Artificial intelligence technologies are rapidly developing in the modern world, which, according to billionaire Ilon Musk, in the future will be able to completely replace humans in work. This will lead to the fact that sooner or later millions of people may lose their earnings and will have to look for a livelihood. Thus, the world will still come to the idea of a universal basic income.
Supporters of its introduction emphasize that in this way the benefits of the modern world will be distributed among people more fairly, and representatives of low-paid but socially necessary professions, for example, cleaners, will receive a fair wage for their work. In addition, supporters of a universal basic income believe that people will have more opportunities to fulfill own potential in the work that they really like, for example, in creativity, and students are more likely to choose those professions that interest them, not those that bring more money.
The Guardian writes about Irish artist Elinor O'Donovan, who was lucky enough to qualify for a basic income program and receive 1,400 euros a month from the government. According to O'Donovan, this amount fully covered her daily needs, allowed her to give up temporary part-time jobs and concentrate on her art.
Opponents of a universal basic income say there is a risk of a growing number of slackers who will have enough money to live on and no incentive to work. Low-skilled and low-paid professions will suffer first of all, for which no one will accept any more. In addition, they warn of higher taxes for everyone and a possible rise in inflation, which will offset the positive effect of the introduction of unconditional payments.
13 countries with active universal basic income programs
In 2024, no country in the world has ever implemented the idea of unconditional payments to all citizens, but according to the Stanford Basic Income Lab, 13 countries currently have some form of universal basic income programs in place.
In Brazil's Marica, as of 2019, 93,000 of the city's 197,000 residents receive $84 of basic income each month.
In Canada, British Columbia's guaranteed basic income program targets people leaving juvenile care. Starting in 2022, local youth leaving care receive up to $1250 monthly until age 26.
Macau, a special administrative region in China, has been providing universal basic income to permanent and non-permanent residents since 2008: $1250 and $750 per year, respectively.
In Germany, the non-profit organization Mein Grundeinkommen has been providing universal income through a lottery since 2014. Since then, 1,500 people have won in the program. Participants receive between $1,100 and $1,320 monthly.
In Tamil Nadu, a state in India, the Guaranteed Basic Income program targets women who need help. Women 21 years of age and older with an annual income of less than $3,000 participate. They receive $12 per month from the government.
In 2010, the Iranian government passed the Targeted Subsidy Reform Law, beginning direct transfers of payments to residents of the country. More than 70 million Iranians receive about $4 a month, which, according to the Stanford Basic Income Lab, is 29% of the country's median household income.
The Irish government provides some artists with €325 a week as part of a guaranteed basic income program. 2,000 people participate.
GiveDirectly, a non-profit organization, provides a basic income of $22.5 per month to 20,847 Kenyan villagers.
In Liberia, GiveDirectly pays 13,795 villagers the sum of $1224 for 36 months.
In Seoul, South Korea, the Safe Income Project compensates for the difference between the income of poor households and the national average income.
In Togo, the government has been implementing a basic income program called Novissi (translated from the Ewe language as “solidarity”) since 2020. It initially targeted workers in urban areas affected by COVID-19, and later expanded to rural areas. More than 800,000 low-income workers in Togo are currently receiving payments from the State. Under the program, men and women receive $19.41 and $64.7 twice a month respectively.
In Wales, the government is piloting a basic income project, providing financial assistance to young people who have recently left care. From age 18, they receive $1640 a month for 24 months.
In the U.S., 16 states and Washington, D.C., are implementing basic income pilot programs. In addition, the Alaska Permanent Fund has been paying local residents $1,000 to $2,000 annually since 1982, thus distributing a portion of the state's oil and gas revenues to citizens.