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| India Sikkim state landscape |
One of the possible link is the 'new' transient nature of poverty. Because of the increased global and local climate risks. Several studies of economists prove that poverty is transient in nature, i.e., individuals move in and out of poverty (Dercon and Shapiro 2007).
Therefore, the idea of a Basic Income is interesting to get the poor from their poverty and, given the transient nature of poverty, a Basic Income could provide insurance against economic shocks in many poorer countries. Policymakers should take into account the transient nature of poverty with including a much larger share of the population.
Finland pilot: self-perceived well-being improved, during the first year, no effects on employment.
In the same previous post, I presented two pilots: the Kenya pilot with preliminary results that GiveDirectly, a New York-based nonprofit has initiated in a rural village in Western Kenya, in October 2016, and the pilot launch in Finland. Just a a reminder, in January 2017, 2000 Finnish unemployed people received their first cash transfer of 560 euros, which they will continue to receive each month, until 31 December 2018. They were randomly selected from 25 to 58 years to participate in a study to assess the impact of universal basic income. During the evaluation of the basic income experiment they study the effects of the basic income on the employment status, income and well-being of the participants. The results are preliminary, and it is not yet possible to draw any firm conclusions regarding the effects of the basic income experiment.
Preliminary results of the Finland pilot: the recipients of a basic income perceived their well-being as being better than did the control group. 55% of the recipients of a basic income and 46% of the control group perceived their state of health as good or very good. 17% of the recipients of a basic income and 25% of the control group experienced quite a high degree or a very high degree of stress.
The recipients of a basic income had less stress symptoms as well as less difficulties to concentrate and less health problems than the control group. They were also more confident in their future and in their ability to influence societal issues’, says a lead researcher at Kela.
India Sikkim state is on the verge of becoming the first place on Earth implementing a basic income
Sikkim, the second smallest state in India, has grown a reputation, over the years, for environmental consciousness, ethnical diversity and tourism. It is also the home of one of the most educated people on Earth, with a 98% literacy rate.
The Sikkim Democratic Front (SDF), the democratically elected party governing the state since 1994, has written basic income into its manifesto for the 2019 Assembly elections, and aims to have it implemented by 2022.This initiative is not intended as a pilot test, but as an actual implementation.
As for financing the basic income scheme, SDF officials are considering surplus energy generation revenue (from hydropower) and redirecting costs from welfare programs which cease to be relevant.
Germany
A pilot is being prepared in Germany in 2019
Interesting projects to follow...
Sources
Kela, the Social Insurance Institution of Finland, is a government agency that provides basic economic security for everyone living in Finland.
