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What is Basic Income?

8/7/2015

6 Comments

 

Sarath Davala




Basic Income is an income that is paid by the government unconditionally to all its citizens. It is paid monthly to every individual irrespective of their social and economic status, i.e., without any means test or work requirement. The basic principle behind is that every citizen is entitled to a basic income, as a matter of right, so as to meet her basic material requirements of life.

The key words in this definition are: unconditional, individual, monthly payment,  universal. In its pure form, Basic Income should have all the four elements. 

Why Unconditional?
Conditionalities, as they are generally called, usually  accompany any welfare giving by the state. That is, in order to receive welfare assistance, whether it is in terms of cash or kind (food grains or other goods), the recipient has to first of all prove that he / she is eligible, and thereafter provide evidence that the assistance given is being used for the purpose for which it is meant. These conditionalities give discretion to the muscle-end of the bureaucracy, which inevitably leads to corruption. This results in what are called ‘inclusion errors’ and ‘exclusion errors’.  The inclusion errors refers to a situation wherein those who should not be in the receiving group manage to enter it, and the exclusion errors refer to a situation where those who should be present in the receiving group are excluded. The idea of making basic income unconditional is primarily to overcome these errors. 

Why Individual?
Basic Income is an entitlement to an individual, be it a child or an adult. It grants economic citizenship to each and every individual in the country, and recognises that person as an active member of the economy - contributing to it, and therefore having a right to partake in the proceeds of the economy.

Why Monthly Payments?
Monthly payments are perhaps the real cutting edge of basic income. A monthly income provides the recipient a future orientation and a sense of security and purpose. Basic income necessarily has to be a monthly income.

Why Universal?
Basic Income should be universal because the entitlement comes to each individual in his / her capacity as a citizen. In principle, it is an affirmation of citizenship and a basis for solidarity.

    

Sarath Davala is an indpendent sociologist based in Hyderabad, India. He may be contacted at sarathdavala@gmail.com
6 Comments
Dr. V. Janardhan
9/7/2015 10:13:44

'Basic income' is not only a must, I feel, it is also an indicator of a civilized society. The state as the representative of the people at large, would manage the scheme. This idea is an Utopia that is well realizable and within reach provided there is a collective Will that will be exercised.

The concept of 'basic income' must be 'promoted' as a NON-NEGOTIABLE idea; there can be no two opinions about it.

The idea has tremendous social, economic and political implications. Though it sounds benign it is a revolutionary idea.

This campaign augurs well for Indian society particularly while its applicability is global. Thus it is universal, rational and secular in these days of divisiveness and parochial tendencies that have eloquent intellectual supporters.

Join the campaign, one and all.

Janardhan

Reply
zoe
23/6/2018 06:16:40

am zoe i am also a philanthropist

Reply
John Champagne link
12/10/2015 23:38:42

Another reason that a basic income should be a universal policy is that our current economic system is messing up the Earth so very much and using resources so rapidly that we need a substantial brake applied to how rapidly we put pollution or take natural resources or disturb wildlife habitat. The most efficient and fair means of impeding an action is to charge fees to those who cause the adverse impact, per pound, per square meter, or according to whatever amount of lumens or decibels or other impact is being imposed on the environment ... if what is being put out or taken is something that most people think should be subject to limits.

A universal basic income arises as a consequence of taking account of environmental impacts as part of the costs of production. The proceeds of fees charged against industries that put pollution or take natural resources in pursuit of profit would be a monetary representation of the value of natural wealth. These proceeds would be a monetary representation of the value of resources that we all own in common. This money should be shared equally among all the world's people.

Is Civilization a Success or Failure, or is it Too Soon to Tell?:
http://gaiabrain.blogspot.com/2009/12/is-civilization-success-or-failure-or.html

Equal sharing of Natural Resources promotes Justice and Sustainability:
http://gaiabrain.blogspot.com/2011/06/golden-rule-and-public-property-rights.html

Reply
Kavim V Bhatnagar link
10/12/2015 09:24:03

While Basic Income could be provided on a Universal basis initially, I have the following two suggestions to improve effectiveness for poor.
1. There should be an 'OPTION 2 OPT OUT'. For those who are well off and richer than others, there should be an option provided to opt out of the program. This would provide greater savings that could be further used to increase the amount for poor. This shall be purely Voluntary in nature.
2. As the Nations progress and all citizens possess a National Id (Social Security Number etc.) that is Unique, an Economic Census may be performed to identity the people who may be termed as Below Poverty Line (BPL). This is scientifically possible once you have a single registry and a comprehensive robust database that could be revisited every year on a community basis. Let the community (rural in particular) decide who falls in which quintile of poverty and accordingly rank them (This is possible and I have witnessed this in a country like Rwanda in Africa). Once the systems are able to achieve and identify people in the BPL category, the UCTs can be seamlessly channeled to the BPL Households and the rest of the population may be moved out of it. This would largely depend on the Robust Systems that the Nations develop, rather than arbitrary by the Governments.
Finally, I take it for granted that the UCTs would be channeled Only through Bank accounts, Cards, Mobile Money etc. at near zero cost to the exchequer as well as the recipients.
Thanks
Kavim

Reply
Girdhari Lal
28/5/2017 00:23:35

It cannot be a big issue for the Modi Govt.There are 6 Crore extremely poor families under BPL category as per different parameters/findings as well as the data published by Govt. of India.To eliminate/ abolish poverty in India,these families need an annual Rs.12000/- DBT in their accounts to give them choices to spend this extra Rs.1000/- pm as per their needs of sufficient food, medicines, hospital/ Dr visits for healthcare for the newborn,/ infants/kids, pregnant women and of course Senior Citzens in the family.This is the minimum required for the family to fight hunger, undernourishment, malnutrition and lack of funds for medicines an hospital and doctor visits.Govt. of India and State Govts are together spending Rs.3,50,000Cr per year on more than 100 programmes for the welfare and benefit of the poor,SCs, STs,marginal and small farmers,Narega,food and fertilizer subsidies, welfare of women, children senior citizens, minories,weavers,widows and handicapped and so on, whereas just an additional Rs.54000Cr is required from July17 to March 18 and Rs.72000Cr for 2018-19. And everything else can be discussed lateron, Immediately Modi Ji should convene a Conference of all CMs,planners and leading Business, Commercial & Trade Organisations to provide / pool up immediately Rs.54000/- and then constitute a committee to plan for the coming years.Let us together remove the dark BLACK SPOT of poverty on the face of BHARAT MATA.

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Terrence M link
29/6/2022 05:04:12

Hi nice reading your blogg

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