Philippe van Parijs: A world in crisis: boost or damper for basic income?

Some argue that global warming, the Covid pandemic and the war in Ukraine strengthen the case in favour of the introduction of an unconditional basic income. Others argue instead that they shatter the prospect of introducing it in the foreseeable future. Who is right? This question was the starting point of the lecture given by Philippe Van Parijs on January 19, 2023 in Freiburg as part of the FRIBIS Lecture Series.

The lecture was held in the context of the FRIBIS Winter School 2023, chaired by Philippe Van Parijs. The Winter School (January 16-20, 2023) was dedicated to the theme “Today’s Global Challenges and the UBI Debate”.

FRIBIS-Discussion-Paper: How is the declining share related to technological change – and what does this mean for the feasibility of a UBI?

As part of the FRIBIS Discussion Papers series, a new paper by Joe Chrisp, Aida Garcia-Lazaro, Nick Pearce has just been published:

Technological chance and growth regimes – Assessing the case for universal basic income in an era declining labour shares.

The starting point of their study is the diagnosis that there has been a substantial decline in labor force participation rates and a rise in inequality in most OECD countries in recent decades. They argue that the decline in labor share and the rise in inequality pose various problems for these countries, whether in terms of distributive justice, economic and social outcomes, such as insufficient aggregate income and demand, or democratic politics.

What role does technological change play in this development and does this change speak for or against the feasibility of an Unconditional Basic Income? These and other questions are addressed in the paper.

Joe Chrisp: Research Associate, Institute for Policy Research (IPR), University of Bath

Aida Garcia-Lazaro: Research Associate, Institute for Policy Research (IPR), University of Bath, FRIBIS Team Microsimulation

Nick Pearce: Director, Institute for Policy Research (IPR), University of Bath, FRIBIS Team Microsimulation

Götz Werner and his legacy in Freiburg, on the first anniversary of his death.

The founder of the dm drugstores (dm-Drogeriemarkt), Götz W. Werner, died a year ago, on February 8, 2022, at the age of 78. He had become widely known to the public for his advocacy of a Basic Income. This income was to guarantee human dignity and be available to everyone “from the cradle to the grave” with no strings attached. Götz Werner’s commitment to the idea of a Basic Income continues to have a particular impact in Freiburg, where he enabled research on the UBI through a generous grant to the University of Freiburg.

He chose Freiburg as the site of the new institute because this is where a significant part of the development of German ordoliberalism had taken place. His ideal was for a New Ordoliberalism (Neuer Ordoliberalismus) to emerge in Freiburg, closely linked to the concept of the UBI. In addition, his close friend and advisor, Benediktus Hardorp, who had done his PhD in Freiburg. Hardup contributed in particular to Götz Werner’s conviction that the focus on VAT was the right tax approach for the positive development of society. For him, the Freiburg tradition was a sign that this was the right place to develop promising new ideas.

When Götz Werner began advocating the idea of a Basic Income in public in the 1980s, he was already filling large halls and inspiring his audiences. While UBI was considered, for a long time, a mere utopia, it is now being discussed and tested in numerous pilot projects around the world. In Germany, its implementation is being considered again and again, both politically and in civil society.

Toward the end of his life, Götz Werner decided that he would give his intellectual legacy an academic, institutional foundation. With Bernhard Neumärker, Professor of Economic Policy and Constitutional Economic Theory at the University of Freiburg, he found the person to whom he could assign this task. Götz Werner and his wife Beatrice, herself a native of Freiburg, hence established the Götz Werner Chair (GWP), with Bernhard Neumärker as director. Eventually, in addition to the chair and the founding of an interdisciplinary center of excellence, the Freiburg Institute for Basic Income Studies (FRIBIS), was made possible through the financial support of the dm-Werner Foundation. The then rector of the university, Hans-Jochen Schiewer, recognized the socio-political relevance of UBI and gave his support to the initiative. The aim was to make the University of Freiburg a center of academic debate and civil-societal and political discussion on this topic for the future.

Today, FRIBIS consists of numerous staff members and mostly multinational research teams in which academics and actors from civil society work together. The teams are dedicated to specific societal issues that relate to basic income, including gender justice, ecological aspects of production and consumption, financing options and care work. FRIBIS is the world’s largest research center on UBI and therefore attracts leading researchers from all over the world.

FRIBIS-Annual-Conference 2022: Impressions and review

The FRIBIS Annual Conference 2022 was entitled “Basic Income and Development” and took place in Freiburg from October 10 to 12 October 2022. In view of the current global crises, the conference posed the question to what extent a basic income could provide viable solutions and generate new perspectives. Would it help to use environmental resources more sustainably, preserve biodiverse habitats and make social communities more resilient? Could it assist people in (post-) conflict regions to establish or secure social peace? Or would it have, as some critics suggest, the opposite effect instead? What are the potentials and risks of a basic income for development practices in the Global South, and how do they relate to concepts of redistribution and justice? These and other questions were addressed at the conference.

Due to the global dimension of the topic, the conference focused on international issues, with the collaboration of scholars and representatives from civil society ensuring a lively exchange.

In addition to three keynote lectures by Sarath Davala, Miram Laker-Oketta and Ugo Gentilini, there were a total of 19 panel sessions in various formats. Thanks to technical support from Meeting Owls, hybrid panels were also offered, allowing participants to discuss the topic with people from all over the world, in Freiburg. Two of the keynotes are now available as films (created by Enno Schmidt) on the FRIBIS-YouTube Channel.

The whole FRIBIS team was very happy with the engagement of the participants and we are already looking forward to the next Annual Conference!

Miriam Laker-Oketta: Basic Income and its role in addressing climate change and biodiversity loss

An exciting and lively talk by Miriam Laker-Oketta, research director of GiveDirectly, the world’s largest basic income project, on the role basic income plays in fighting climate change and preserving biodiversity.

From her rich experiential knowledge, Miriam Laker-Oketta provides real-life, real-world insight into what difference a basic income actually makes to people and their behavior, and how that affects climate change mitigation and biodiversity. GiveDirectly is now active in 11 countries. Miriam Laker-Oketta limits herself to Uganda, with cross-references to Kenya, Rwanda, and Congo.

After a brief introduction to the person by Prof. Sonny Mumbunan of the University of Indonesia and an introduction to the topic by Miriam Laker-Oketta, an impromptu audience poll follows, with half of the audience making suggestions as to why a basic income might be beneficial for climate and biodiversity, and the other half raising concerns of a contrary nature. Ms. Laker-Oketta then presents her solid and astonishing research findings, also exposing double standards and out-of-life claims against African countries. Her delight in research and the far-reaching as well as practical nature of her presentation make the lecture an experience and a gain in knowledge. After the lecture, basic income researchers and activists from various countries have their say with questions in the plenary discussion. Here, too, Laker-Oketta’s answers are illuminating and furthering. She fills mere suppositions with concrete empirical values, elicits the open research questions and elatedly leads to the right questions.

(Film, 80 min., Enno Schmidt)

 

FRIBIS at the BIEN Congress 2022: Basic Income in Times of Crisis and Transformation

From September 26 to 28, 2022, the 21st Congress of the Basic Income Earth Network (BIEN) will take place in Brisbane (Australia). Numerous members of FRIBIS will participate as speakers at the congress, which will be dedicated to the theme “What can basic income offer in a time of crisis and transformation?”.

The FRIBIS Gender and Universal Basic Income and Gender (UBIG) team will give a dedicated panel session on “Re-envisioning a feminist basic income framework” (27/09/22). Team coordinator Jessica Schulz and team members Toru Yamamori (Doshisha University), Almaz Zelleke (New York University, Shanghai), and Chloe Halpenny (University of Cambridge) will be participating, as well as Clem Davies, who works at the Götz Werner Chair for Economic Policy and Constitutional Economic Theory (GWP).

FRIBIS Director Bernhard Neumärker and Jette Weinel (FRIBIS team Basisgeld) will speak on “The Implications of UBI on Utility Functions and Tax Revenue” (9/27/22). Bernhard Neumärker will also give a talk on “The Net Basic Income: Towards A Resilient Governance and Welfare State Reform during a Crisis” (9/27/22) and participate in the Götz Werner Tribute Panel (9/28/22). The latter panel will also feature talks by FRIBIS Executive Director and GWP staff member Enno Schmidt and GWP Visiting Professor André Presse.

Gudrun Kaufmann, a member of the care team at FRIBIS, will discuss “Narrative Economics as an Approach to Universal Basic Income?” (9/26/22). Simon März, coordinator of the Expedition Basic Income team, will provide “A critical analysis of a proposed extensive UBI pilot study in Germany: is it advisable and how can municipalities finance it” (09/27/22).

The conference is not open to the public, but only to registered conference participants.

NetFi team coordinator Teodoro Criscione co-authored two papers on community currencies

Both papers are available online:

E. S. Mattsson, T. Criscione and W.O. Ruddick, Sarafu Community Inclusion Currency, 2020-2021. Scientific Data 9:426, Nature Publishing Group, 2022. Link: https://www.nature.com/articles/s41597-022-01539-4

We describe a dataset of account information and detailed transaction records for a digital complementary currency in Kenya. This “Sarafu system” initially encompassed several local, physical community currencies, which began transitioning to a feature-phone mobile interface in 2017. One unit of “Sarafu” is roughly equivalent in value to a Kenyan shilling. The published data includes anonymized account information for around 55,000 users and records of all Sarafu transactions conducted from January 25, 2020 to June 15, 2021. Transactions totaling around 300 million Sarafu capture various economic and financial activities such as purchases, transfers, and participation in savings and lending groups. So-called “chamas” are key to the operation of the Sarafu system and many such groups are labeled in the data. Describing this data contributes to research on the operation of community currencies, monetary systems, and economic networks in marginalized, food insecure areas. The observation period includes the first year of the COVID-19 pandemic and several documented pilot projects and interventions.

E. S. Mattsson, T. Criscione and F.W. Takes, Circulation of a Digital Community CurrencyarXiv preprint2207.08941, 2022. Link: https://arxiv.org/abs/2207.08941 (in review!!!)

Circulation is the characteristic feature of successful currency systems, from community currencies to cryptocurrencies to national currencies. In this paper, we propose a network analysis methodology for studying circulation given a system’s digital transaction records. This is applied to Sarafu, a digital community currency active in Kenya over a period that saw considerable economic disruption due to the COVID-19 pandemic. Representing Sarafu as a network of monetary flow among the 40,000 users reveals meaningful patterns at multiple scales. Circulation was highly modular, geographically localized, and occurring among users with diverse livelihoods. Network centrality highlights women’s participation, early adopters, and the especially prominent role of community-based financial institutions. These findings have concrete implications for humanitarian and development policy, helping articulate when community currencies might best support interventions in marginalized areas. Overall, networks of monetary flow allow for studying circulation within digital currency systems at a striking level of detail.

Basic Income and Sustainability: Perspectives from Constitutional Economics and Cultural Studies (Tandem Lecture)

On July 6, 2022, Bernhard Neumärker, Director of the Götz Werner Chair for Economic Policy and Constitutional Theory and head of FRIBIS, and Sebastian Kaufmann, Research Center “Nietzsche Commentary” of the Heidelberg Academy Of Sciences and Humanities and member of the FRIBIS team “Participation and UBI“, gave an interdisciplinary tandem lecture on the connection between UBI and sustainability.

In the first part of the lecture, Bernhard Neumärker discussed the connection between Basic Income and social sustainability from an economic perspective. In the second part, Sebastian Kaufmann explored from a cultural studies perspective the interconnections between the narratives surrounding UBI and ecological sustainability. The lecture was given as part of the event series “Alles im Blick? Interdisziplinäre Vortragsreihe Nachhaltigkeit“, in which sustainability is discussed as a shared topic between different disciplines (in German).

You can find the lecture on our YouTube channel.

02 August 2022: “Permissionless Innovation, Freedom, and Basic Income” by Dr. Otto Lehto

On Tuesday, 02 August 2022, the Basic Income Workshop Series continues with a contribution of Philosopher & former FRIBIS visiting scholar Dr. Otto Lehto: „Permissionless Innovation, Freedom, and Basic Income. He is going to present his input and subsequently have a discussion with the audience, Prof. Dr. Karl Widerquist & Prof. Dr. Bernhard Neumärker.

Time: 4pm – 5pm (CEST)

YouTube-Livestream: https://youtu.be/89QqLIbQ2kg

Do you wish to participate in the Zoom-Meeting directly? Send an E-Mail with your request to eventmanagement@fribis.uni-freiburg.de.

Basic income has been tied to real freedom for all (Van Parijs), capitalism and freedom(Friedman), freedom as the power to say no (Widerquist), and many other conceptions of freedom. All of these theories of freedom, despite their differences, involve an institutional structure of rights that gives people the right (both formal and substantive) to experiment with new things, to deviate from the expectations and demands of other people, and otherwise to innovate in a myriad ways. In my talk, I interrogate the relationship between the notion of freedom inherent in such popular
conceptions of basic income and the theories of innovation proposed in evolutionary political economy. (Schumpeter, Hayek, Hogdson, Beinhocker) I will argue that basic income could be seen as a tool of permissionless innovation, which grants people, especially poor people, the right to innovate without having to ask anybody for permission. I will normatively justify this right, not in terms of justice or equity, but in terms of a utilitarian theory of evolutionary welfare enhancement. I will argue that radical innovation is a compelling justification for a liberal implementation of basic income, and innovation should be encouraged in order to more effectively solve the problems of the poor. Crucially, socioeconomic innovation, in this technical sense, extends beyond the economic realm of goods, services, and technologies, to the cultural realm of habits, ideas, and social norms. However, the innovation perspective only justifies certain models of basic income that a) are tied to an extensive regime of market and civil freedoms and b) pass a comparative cost benefit analysis of institutional alternatives. This consequentialist conception challenges several prominent justifications, models, conceptualizations, and implementations of basic income, especially those that see UBI more as a means of stabilizing, equilibrating, or decelerating modernity.

Establishment of “Basic Income for Nature & Climate”: Interview with the team’s coordinator

The newly founded FRIBIS team Basic Income for Nature and Climate explores the connection between basic income, climate change, and biodiversity conservation. The team’s coordinator, the Indonesian researcher Ni Made Rahayu Maitri, has agreed to be interviewed about her research group.
1. What is your team about and what are you doing?
Our Basic Income for Nature and Climate (BINC) research group is interested to explore and investigate the possibility that a basic income scheme can contribute to addressing climate change and biodiversity loss, and thus can be linked to conservation objectives. If such a scheme is possible, we see that this can be a new and doable approach that can be used to address current social and ecological challenges that are associated with climate change and biodiversity loss. We are focusing our research in Tanah Papua where we propose a basic income scheme for nature and climate whereby the scheme distributes a regular dividend payment to all residing citizens in Tanah Papua via a so called “Forest Carbon Dividend” (FCD). The FCD will be funded from mobilizing financial resources or earnings that are generated from putting a value (price) on the forest carbon stocks that are stored in Tanah Papua’s forest.

2. What motivated you to establish the team?
The initiator of the scientific investigation into the basic income for nature and climate scheme in Tanah Papua which, thus, initiate the establishment of this team is our lead scientist, Sonny Mumbunan. He recognizes that Tanah Papua holds global importance in biodiversity conservation and climate change mitigation and adaptation, so, designing a basic income scheme that is linked to conservation objectives can hold a promising approach to addressing climate change and biodiversity issues. By linking financing sources to carbon stock that are stored in the forest, it could serve as a powerful incentive for the local population to conserve and maintain their forest land to enable a lasting basic income payment. Interested readers can learn more about our proposed scheme from our published report here.

3. What are your goals?
Through our current collaboration with FRIBIS, our immediate goal is to initiate policy dialogue in the local, national and international level. By also doing scientific investigations on the proposed basic income scheme in forest-rich districts, we intend to initiate a policy dialogue and discussion that are based on scientific evidence. In the long term, our goal is that the central government, provincial government and/or the donor community in Indonesia are considering to pilot a multi-year basic income scheme of this kind and undertake a basic income trial in one jurisdiction (district) of Tanah Papua.