Finland and the Netherlands Experiment With Basic Income

Finland became the first country in Europe to announce plans for the implementation of a basic income program, according to the Basic Income Earth Network (BIEN). (To recap: a basic income is a universal, unconditional form of payment to individuals that covers their living costs. It allow people to choose to work more flexible hours and devote more time to non-work related activities, from caregiving and volunteering, to studying and leisure.)

The commitment consists of one line: ‘Implement a Basic Income experiment’, in the ‘Health and Welfare’ section of the programme.

The main party of government, the Centre Party and the new Prime Minister Juha Sipilä, are known to be supportive of Basic Income, but his new government partners, the populist Finns Party and conservative NCP have not spoken publicly on the issue. The scant reference to Basic Income raises some doubts about the government’s commitment to the policy.

So while it is far from a done deal — especially as the government has yet to release any further details, including a timeframe — it is nonetheless a big step, as few other countries, even in socially progressive Europe, have ever made such a formal, nationwide commitment.

Meanwhile, the fourth largest city in the Netherlands, another country that has been mulling over a basic income, is set to implement a plan of its own. The intention is not only to determine if a basic income will help people in absolute terms, but to see how its efficiency compares to the status quo of welfare payments. From The Independent:

University College Utrecht has paired with the city to place people on welfare on a living income, to see if a system of welfare without requirements will be successful.

Alderman for Work and Income Victor Everhardt told DeStad Utrecht: “One group is will have compensation and consideration for an allowance, another group with a basic income without rules and of course a control group which adhere to the current rules.”

“Our data shows that less than 1.5 percent abuse the welfare, but, before we get into all kinds of principled debate about whether we should or should not enter, we need to first examine if basic income even really works.

“What happens if someone gets a monthly amount without rules and controls? Will someone sitting passively at home or do people develop themselves and provide a meaningful contribution to our society?”

It is not surprising that the Dutch would lead the way in this experiment, given that they already have a well-established fondness for less traditional work environments — 46.1 percent of the labor force works part-time, the highest proportion in the European Union, and the nation is nonetheless broadly prosperous, with a high rate of life satisfaction. This is a country that already leads the way in work-life balance, so it would be interesting to see how this endeavor goes and whether it will catch on elsewhere in the country or beyond.

Finland and the Netherlands are the first developed nations to experiment with a guaranteed basic income since the 1970s, when Canada conducted a pilot project dubbed “Mincome” in a small town, with great results. Other experiments have been performed more recently in India, Namibia and Brazil, each one of them reporting measurable, positive outcomes in everything from poverty reduction to healthcare and general wellness.

As BIEN notes, there is an increasing interest in Basic Income worldwide, as well there should be: from mounting inequality to a dearth of well-paying and sustainable jobs, there are plenty of good reasons to consider at least trying out this streamlined and promising approach to alleviating poverty and improving quality of life.

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