Basic income works and works well (Universal Basic Income UBI in India)

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 Basic income works and works well (Universal Basic Income UBI in India)

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• Pilot projects in MP and Delhi : In 2010-2013, more than 6000 people were given modest basic incomes (in cash, monthly) without conditions, in MP and Delhi. It was roughly a third of subsistence. The pilots involved men, women, children, and were run through SEWA (Self-Employed Women‘s Assocaition) and UNICEF / UNDP.
• Surprisingly positive results : Individual transfers to everyone in the community led to positive outcomes - nutrition improved, sanitation was better, health care improved, school attendance went up, and women's status too improved. Quality of work being done went up!
• Was it a waste of money? The critics were proven wrong as community spirit improved significantly, and emancipatory results were seen.
• Paternalistic doles versus direct transfers : If we do not trust our citizens, we would love to remain in control and dish out subsidies that are inefficient, ineffective, inequitable and corruption-prone. Discretionary benevolence of elites blocks sensible reforms!
• 2017 Economic Survey of India : The ex-CEA Arvind Subramanian dedicated a chapter on this. The ways to do it would involve rolling back wasteful, distortionary, and regressive subsidies.
• Experiments : Various nations have tried UBI type projects, like Canada, Finland, Kenya, Namibia, Spain, US etc. India can take the lead, as we have a technological capacity (Aadhar etc.), the financial resources (huge subsidies!), and the crying need for a simple and transparent scheme to liberate our people stuck in economic insecurity.
• How to roll out the basic income scheme properly? The government must do it gradually, starting with low-income communities, and then moving up slowly. Training of manpower is a must.
• Do not select "particular type of people" : Governments must not focus on only farmers, or only women etc. That brings in corruptible processes, and huge resentment for those excluded.
• Money is fungible : If we give only to women, their menfolk will demand a share out of it, creating tension. But if women and men get it equally, then better gender relations result. Giving it to entire community (in a locality) fosters a multiplier effect.
• Farm loan waivers : It's a populist measure, and doesn't help much, as it is bad economics. Also, a generalisation of such waivers to other categories would be demanded.
• Modest basic income is best : All groups will gain. More special support can still be given to those with special needs.
• Summary : A modest basic income for all citizens is a model whose time has arrived, as it will foster greater economic freedom and a multiplier effect in the economy.

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