General Elections of 2019
Sikkim is preparing to implement UBI
Even before independence try
What is UBI?
What is pro Standing Theory?
Two main features of the UBI concept
It is universal in its nature, not targeted (targeted). This is an unconditional cash transfer, for which there is no need to prove any identity.
UBI is guaranteed a minimum basic income which will be given by the government every month without any but-but-every citizen For this, it is important for a person to be a citizen of that country, where it is to be implemented.
Was mentioned in the 2016-17 Economic Survey
Poverty assessment in the country
Successful Pilot Project in Madhya Pradesh
Potential Challenges in UBI’s Way
The biggest dispute over this is that what kind of benefits should be met in the country of inequalities and diversity?
But the Economic Survey 2016-17 clearly states that the entire population of the country can not be brought under UBI’s scope, hence it is the biggest challenge to identify its real beneficiaries.
If UBI is started by assessing one of the three suggestions given in the survey, then there will be a possibility of getting out of the actual entitlement plan, as with every welfare scheme.
Now almost everyone has their specific base number in the country, a fixed amount can be reached every month in the bank account linked to that number, such as in the case of LPG subsidy is being done now.
What is going to be noticed here is that the foundation basically establishes every person’s identity, but it does not classify people. In such a situation, it would be OK to proceed with UBI without identifying the beneficiary better.
The most complex question is what will be the ‘value’ of UBI? If it is a poverty line, then Rs. 3200 / – in rural areas and Rs. 40 in urban areas, approximately Rs. 1200 per month and Rs. 19,400 rupees per annum. Can a person fulfill his needs?
UBI ends after applying subsidy system
It is considered partially to apply to Stockton in the state of California in the US . 100 people here will be given 500 dollars a month for one and a half years.
In January 2017, Finland had provided UBI for 2000 to 25 years of age, but it stopped after two years. All these people were given 560 Euro per month.
UBI’s biggest ever experiment has begun in the African country of Kenya . The American charity institution GiveDirectly officially started trial of rural Kenya UBI. This is being used on all residents of Kenya’s nearly 120 villages. There are more than 16 thousand people in total, who are giving some cash transfer during the term without the use. Some of these villages have to be provided UBI facility for 12 years.
Experimental UBI facilities are being provided in some areas of Brazil . In 2004, there was a Bolsa Familia Program , which started to give families a certain amount including children. By 2013, every family was given assistance of around 30 dollars per month, which was 4.4 percent of the minimum wages. When its findings were noticed, it was discovered that this helped Brazil reduce the level of malnutrition.
Iran also launched a scheme like UBI in 2011, which aims to end subsidy on gas and petroleum. At first, the scheme saw an increase in fuel prices, but after some time the situation became normal. Under this, each family was given approximately 40 dollars per month.
Between 2005 and 2009, the Mexican government introduced a policy called Programa de Apoyo , under which each family was given 10 percent of the minimum wage rate or equivalent foodgrains. But it was canceled due to the careless negligence done in its implementation.
Under a pilot project, two villages in the underdeveloped African country, Namibia , were also granted facility of UBI for a period of one year between 2008-09. This scheme funded by the German Protestant Church decreased the food problem of those villages during this time period.
Switzerland also made a referendum on last year, but the public dismissed it because of the fear of UBI’s financial impact and the motivation to work for the people in its due.
Policy Commission’s stance on UBI