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Economy
Article
The article discusses universal basic capital as an alternative to universal basic income
Analysis
Universal Basic income (UBI)
- UBI is a minimum income (direct cash transfers) guaranteed by the state to every individual every month.
- It is premised on the belief that every person should have a right to a basic income to cover their needs, just by virtue of being citizens.
Quasi-universal basic rural income (QUBRI)
- It seeks to target only poorer people in the rural areas. It will not cover the masses of urban poor working for low and uncertain wages.
Issues with UBI:
- It is financially unviable
- UBI will not solve the fundamental problems of the economy- lack of public safety, discrimination, and inadequate access to basic education and health
- UBI cannot eradicate mass poverty as poverty is interplay of many factors.
Way ahead for equitable growth
- Focus on building state capacity- strengthening of institutions of the state to deliver basic services such as public safety, justice, and basic education and health, which should be available to all citizens regardless of their ability to pay for them
- It is also important to regulate delivery of services by the private sector and ensure fair competition in the market
- Strengthen the missing middle-level institutions for aggregation of tiny enterprises and representation of workers.
- Universal Basic Capital: The heart of the idea is to give all citizens equal access to capital. In this alternative approach to UBI, people own the wealth they generate as shareholders of their collective enterprises.
