Dr. Ambrose Pinto SJ

In a world of growing global inequalities especially in wealthier countries a case has been made for universal basic income to all citizens. The proponents of basic universal income argue for payment of a regular and guaranteed income to country’s citizens as a right.

Trials to materialize the idea are already getting a shape. Silicon Valley Incubator Y Combintor is likely to test the scheme in California. In the UK the idea is backed by the Green Party and examined by the Labour Party.

The Royal Society of Arts has supported the concept and what is astonishing is the pro-market think-tank, the Adam Smith Institute is comfortable with the idea.

The growing fragility of the jobs market is one of the important factors that are driving the scheme. Markets have become volatile and there has been growing unemployment. In the context, it is held universal basic income would bring a more robust safety net and make the population feel economically secure.

Case of India

Given the extensive poverty at times leading to starvation deaths, due to unequal distribution of wealth India needs the scheme more than other countries both to address the issue of hunger and the problem of violence. International Food Policy Research Institute has placed India at an abysmal 97th place globally in combating hunger. India is home to 194.6 million undernourished people, the highest in the world, according to the annual report by the Food and Agriculture Organization of the United Nations released in 2015.

Thirty nine per cent of Indian children under the age of five show stunted growth while 15% are getting so little food, it increases their chances of dying significantly. By the age of five one out of twenty children dies due to hunger or malnourishment.

In fact India is worse off than some of the African countries for hunger. In some countries like Kenya, Malawi and even Iraq the states offer food security to their people. Except Pakistan, all of India’s neighbours – Nepal, Bangladesh, China, Sri Lanka and Myanmar – manage to outrank India on this list of hunger.

Will Universal basic income succeed?

Critics of the idea say that UBI is simply not feasible because India is too large a country and the costs would be exorbitant. The money the country has will not be able to address the need for food for millions. There are others who say that UBI can be introduced in India in a gradual manner and it does not have to be expensive. The country could go for a more affordable form of UBI. Instead of starting the scheme for all, the scheme could start with a UBI for children and gradually expanded to women and the rest. The country cannot let people die of hunger and malnutrition simply because they could not find a job. In most advanced countries, social security systems are in place. Instead of offering various subsidies the country could invest major part of it in UBI

Universal is not targeted

Given the nature of the country and its diversity targeting welfare services could have problems. Targeting sounds great in principle. But identifying millions of Below Poverty Line (BPL) families across the country and monitoring that targeted benefits are actually reaching them is administratively costly. According to several official studies and surveys nearly half the subsidized foodgrains distributed through the targeted public distribution system (TPDS) for BPL families do not reach the intended beneficiaries. A scheme without a target is simpler and easier to administer. People often fall in and out of poverty. When the scheme covers all, all are helped. The universal basic income is to provide unconditional cash to every individual or household. Because of its universality, the movement for a universal basic income has attracted support from both the left and right ends of the political spectrum.

Will it encourage idleness?

There are people who allege that the scheme can encourage idleness. The argument has not been substantiated. Instead one is more inclined to believe that people crave for better quality of life and instead of encouraging laziness it could help out in new initiatives in the context of weakened labour markets. The urgency of the scheme cannot be undermined given the uncertainty of the markets. UBI could also help to partly offset the rapid rise in inequality. It is true while the Swiss electorate voted against the idea of a UBI, Canada, Finland and the Netherlands are now reportedly considering a referendum on the issue. It is time India examines the idea seriously to prevent hunger among the impoverished and insecurity among those who suddenly become jobless due to the uncertainties of the markets.

(Dr. Ambrose Pinto SJ is the Principal of St. Aloysius Degree College, Cox Town, Bangalore 560005)