Basic income pilots

Basic income pilots are experiments with basic income or the related concept negative income tax, including partial basic income and similar programs. The following list gives an overview of the most well known basic income pilots, including those which haven´t started yet but where political decisions are made.

North America

Pilots in United States in the 1960s and 1970s

Beginning in the end of 1960s there were five basic income-experiments in the United States, all of which took the form of a negative income tax. Alicia H. Munnell, examining experiments in Indiana, Seattle and Denver,[1] explains that Gary Burtless found a moderate reduction in work effort (17% among women, 7% among men). She also found that the money was not squandered on frivolous products such as drugs and luxury goods. There was an increase in school attendance, but otherwise, no noticeable improvements to health and well-being and a negligible effect on homeownership rates.

MINCOME in Manitoba

A similar experiment took place in Manitoba, Canada, 1974-1979. According to a study by Evelyn Forget in 2011 there were some reduction in work hours, but on the other hand more people studied and the overall health got better.[2] Also worth noting is the a system which is a kind of partial basic income financed by the state's oil revenues, and the promotion of a local basic income in Prince Edward Island, Canada. [3]

Native American casinos and tribal profit sharing

A longitudinal study of 1,420 low income children in rural North Carolina designed to observe their mental condition had the unintended result of also measuring the effect of an unconditional cash transfer on a subset of this group.[4] The Great Smoky Mountains Study of Youth found that a quarter of the families (those belonging to the Eastern Band of Cherokee Indians) experienced a surge in annual income due to a newly built casino. During this study, a portion of the profits of this casino were distributed unconditionally to all tribal members on a semi-annual basis.[5] Key findings of this study include: lower instances of behavioral and emotional disorders among the children, an improved relationship between parents and their children, and a reduction in parental alcohol consumption.[6]

Africa

Ojivero-Omitara

The Namibia BIG Coalition launched a pilot program in Ojivero-Omitara from January 2008 to December 2009.[7] The group found, despite large in-migration of non-BI receiving families to the area, a decrease in poverty, an increase in economic activity, reduced crime, reduced child malnutrition and increased school attendance as well as other positive effects.

Uganda

A program in Uganda randomly awarded a fixed amount of money to 535 young applicants aged 15-35. The results showed that "the program increases business assets by 57%, work hours by 17%, and earnings by 38%"[8]

Asia

Madhya Pradesh, India

The basic income project in Madhya Pradesh, India, started in 2010, involves 20 villages.[9] The villagers in eight of these got basic income and the other villagers were control groups. According to the first communication of the pilot projects, positive results were found.[10] Villages spent more on food and healthcare, children's school performance improved in 68% of families, time spent in school nearly tripled, personal savings tripled, and new business startups doubled.[11] The study also found an increase in economic activity as well as an increase in savings, an improvement in housing and sanitation, improved nutrition, less food poverty, improved health and schooling, greater inclusion of the disabled in society and a lack of frivolous spending.[12]

Latin America

Bolsa Familia

Bolsa Familia is a Brazilian federal anti-poverty program with strong resemblance of basic income. It is a cash grant is given to families below a certain income level, provided they meet certain basic conditions such as sending their child to school. Other similar programmes exist in several Latin American countries, including the Oportunidades programme in Mexico.

Quatinga Velho

Quatinga Velho is a Brazilian village in the Quatinga district of the Mogi das Cruzes municipality, which is becoming well-known because of the basic income-project which is taking place there.[13] The project started 2008 and is organized by the non-profit organization ReCivitas.[14] The funding has so far been based entirely on private donations.[15] In June 2011 83 people in the village got 30 Brazilian reals per person and month.[16] The organization hopes that all people in the village will eventually get the basic income, and also that similar projects will get going in other villages in and outside Brazil. The organizers are currently building a social bank, so that the basic income in the future can be financed through investments rather than donations. The idea is that the bank will operate as an investment bank, but the profit will go to basic income instead of a dividend to shareholders and managers.[17]

Europe

Netherlands

The City of Utrecht, the fourth most populated City of the Netherlands, is starting up a basic income experiment. However, the basic income will not go to everyone in the city, but to a group of people who already receives social security (that is, selective social security, benefits with conditions). The purpose is to see how payments without conditions, that is basic income, affects those people. For example if they are more likely to get a job. Besides Utrecht there are reportedly 30 other cities in Netherlands who also consider basic income experiments, supposedly along the same lines.[18]

Finland

Sipilä Cabinet, elected in June 2015, is committed to implement a basic income experiment[19] which will be conducted as a nationwide trial for two years from 2017.[20]

Non-geographic basic income experiments

GiveDirectly

The private charity GiveDirectly has been operating since 2009 and operates by giving cash directly to the world's poorest families. From the outset, they set out to test their efforts through experiments and have found a positive effect on people's lives and incomes from the grants.[21] One study from Haushofer and Shapiro in 2013 found a 34% increase in earnings, a 52% increase in assets, 42% reduction in days children go without food and a 0% effect on alcohol or tobacco spending. GiveDirectly is rated amongst the most deserving charities by charity-rating organisations GiveWell.[22]

References

  1. ↑ http://www.bostonfed.org/economic/conf/conf30/conf30a.pdf
  2. ↑ http://public.econ.duke.edu/~erw/197/forget-cea%20%282%29.pdf
  3. ↑ C-BIG PEI
  4. ↑ http://www.washingtonpost.com/news/wonkblog/wp/2015/10/08/the-remarkable-ways-a-little-money-can-change-a-childs-personality-for-life/
  5. ↑ http://www.nber.org/papers/w21562.pdf
  6. ↑ http://www.washingtonpost.com/news/wonkblog/wp/2015/10/08/the-remarkable-ways-a-little-money-can-change-a-childs-personality-for-life/
  7. ↑ http://www.bignam.org/BIG_pilot.html
  8. ↑ http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2268552
  9. ↑ http://www.guystanding.com/files/documents/Basic_Income_Pilots_in_India_note_for_inaugural.pdf
  10. ↑ "INDIA: Basic Income Pilot Project Finds Positive Results," Basic Income News, BIEN (22 September 2012).
  11. ↑ Fernandez, Benjamin (4 May 2013). "Rupees in your pocket". Le Monde diplomatique. Retrieved 5 May 2013.
  12. ↑ http://unicef.in/Uploads/Publications/Resources/pub_doc83.pdf
  13. ↑ http://observatoriodaimprensa.com.br/caderno-da-cidadania/_ed737_renda_basica_garantida_exemplo_de_acao_social/
  14. ↑ http://www25.senado.leg.br/web/atividade/pronunciamentos/-/p/texto/378543
  15. ↑ http://www.basicincome.org/news/2013/07/international-googlefives-2-5-million-to-a-direct-cash-transfer-charity/
  16. ↑ http://www.basicincome.org/news/2011/06/brazil-recivitas-expands-its-local-big-to-83-people-as-it-charters-the-big-social-bank/
  17. ↑ http://www.recivitas.org/#!publicaes/c1fcp
  18. ↑ Upton, Liam 30 Dutch Municipalities show Interest in Experimenting with Basic Income Basicincome.org 16 juni 2015 (last 25 oktober 2015))
  19. ↑ Upton, Liam FINLAND: New Government Commits to a Basic Income Experiment Basicincome.org 16 juni 2015 (last 25 oktober 2015)
  20. ↑ Matthews, Dylan (8 December 2015). "Finland's hugely exciting experiment in basic income, explained". Vox. Retrieved 29 January 2016.
  21. ↑ https://www.givedirectly.org/research-at-give-directly.html
  22. ↑ http://www.givewell.org/charities/top-charities
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