Wave of Universal basic income (UBI)

UBI, a basic income to all as a periodic cash on an individual basis without means of test or work requirements.

Why do we need UBI-

Rapid acceleration of robotics and automation technology has lead to fear of significant job loss because of that UBI got global ground.No doubt new jobs under automation will be created but those jobs will be highly skilled which can’t absorb masses for employment.

Some Billionaire’s perspective-

1- Billionaire technocrat Elon Musk said that the job losses would be so severe,the government would be forced to pay people to live. 

2- Mark Zuckerberg said  the greatest successes come from having the freedom to fail. UBI enable us for that freedom.

Lot of pilot projects already have been initiated across the the globe and many more are in row. In developing countries lot of schemes and subsidies are provided by government for poverty elevation. Whether these schemes performing up to mark or not itself is an debatable issues.

               Indian view on UBI-

As per the budget of 2018-19, showed that there were about 950 central and centrally sponsored schemes in the country. These schemes accounted for about 5% of the GDP and if add state schemes the number would be even larger. Implementation of that huge number of schemes efficiently is about to impossible. By subsume all these schemes, this would be helpful for the implementation of 1 scheme called UBI.

A pilot project was implemented in Madhya Pradesh by SEWA and UNICEF from June 2011 to November 2012, where unconditional cash were provided. 

In outcome of pilot project found that people become more productive when they get basic income. They tried to improve their quality of life, educate their children. Recently Sikkim has announced to implement UBI by 2022.

• Concerns with UBI-

1. Critics of UBI argued that introduction of UBI will lead to laziness in people and overall productivity of the country will reduce.
2. Simplistic UBI can’t solve the fundamental problems of the economy. First we need to strengthen our institutions to deliver the services like public safety, justice, basic education and health which should be available to all citizens regardless of their ability to pay for them. The building of state institutions to deliver and regulate services requires stronger management, administrative machinery and political capabilities.
3. Idea of UBI has been in discussion for decades no country has been fully implemented it till now. Proposal of UBI was rejected by 3/4th majority in Switzerland. Similar case in Finland, started a pilot project has now discontinued. Moreover pilot project in Finland was not strict UBI but a social protection scheme aimed only at unemployed.

• Alternatives/ way forward-

1. Former chief economic adviser Arvind Subramanian proposed Quasi universal basic rural income (QUBRI) which target only at poorer people in rural india 
2. Instead of UBI for structural solution we should go for universal basic capital (UBC). In this people own the wealth they generate as shareholders of their collective enterprises like amul,SEWA, grameen etc.
3. Strengthen the missing middle level institution for aggregation of tiny enterprise and representation of workers 
4. Best antidote to poverty is enabling citizens to earn their livings by proving jobs for those who are willing to work. For that MGNREGA scheme should be strengthen so the people can earn decent income.

We have to be conscious about economic inequalities because it increases social and political inequalities. Those with more wealth can change the rule of the game to protect and increase their wealth and power. Thus opportunities for progress becomes unequal. Therefore, economic inequalities must be reduced to create a more just society. Article 25 of universal declaration of human rights which was adopted by United nation general assembly in 1948 states that “everyone has the right to a standard of living adequate for the health and well being of himself and his family including food,clothing,housing and medical care. Moreover right to security in the event of unemployment, sickness, disability, old age or any other circumstances beyond his control.So far we are all living with these insecurities. Therefore, it is a high time to enable people to earn good income. So that they can create and maintain their quality lives.