What and why basic income? It's the way human can live humanely.
Basic Income In Gyeonggi-do
Universal basic income
(U.B.I.) is a hot topic in the economic and political circles mustering
support, criticism, and speculation. While the topic has started receiving
attention in recent years, it’s by no means a new concept. In fact, it’s
conception can be traced back to 16th century Europe.
In South Korea, a
technologically advanced country facing rapid automation, there is a dire need
to plan policies that will protect the citizens. Since 2016, South Korea has
implemented several small scale basic income experiments ran by local city and
provincial governments.
Last year Gyeonggi-do opened
a new chapter in South Korean basic income debate introducing Youth Basic
Income project.
What is Basic Income?
Universal basic income
(U.B.I) is a public program where a periodic payment is delivered to all
individuals. U.B.I. is different from other welfare programs in that every
adult, regardless of their financial status, will be able to receive payment
equally and unconditionally.
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| What is important about basic income |
· Periodic:
it’s paid regularly at regular intervals.
· Cash
payment: the individuals decide how to spend it (as opposed to vouchers, food
stamps, etc.).
· Individual:
it’s paid to every individual (as opposed to couples, households, etc.).
· Universal:
it’s given to everyone as a right, without them having to prove their means.
· Unconditional:
the individual is not expected to fulfill any requirements to receive or keep
receiving the funds.
U.B.I. critics worry it could
lead people to leave the workforce and choose idle life. The proponents of the
basic income, however, cite numerous benefits including battling inequality,
balancing wealth distribution, fighting inhumane work conditions, countering
job losses due to AI and automation.
Some scientists add that
basic income can help alleviate our current environmental crisis by breaking the line between work and consumption, as well as reducing the human dependency on land.
The hope remains strong that
U.B.I. can enable the people to follow their interests and invest their time in
work they find meaningful.
The Gyeonggi-do Youth Basic Income Project
In 2016 Seongnam city in
Gyeonggi-do was the first Korean city to experiment with basic income. Since
then, many programs and plans are put to the test around the country. In 2019,
Gyeonggi-do started undertaking one of the biggest basic income plans in the
world with the launch of the Youth Basic Income project.
Gyeonggi-do started the
project focusing on empowering the youth while also strengthening the local
economy.
Gyeonggi-do’s Youth Basic Income Project Details
In 2019 Geyonggi-do’s Youth
Basic Income program launched to be the third biggest basic income policy in
the world. Under this new policy, the 24 years old residents of the province
will receive a payment of 1 Million Won total throughout 1 year. The payment is
given out once each quarter in the form of a local currency.
On average, the 24 years old
have just finished university and are transitioning to the job market. In South
Korea, many students have to take additional courses after finishing university
to convince the employers they have sufficient skills. On top of that, the job
market is extremely competitive making the job hunt lengthy and high pressure.
Gyeonggi-do plans to support the youth, who fall in a welfare dead zone, to
alleviate some of the pressures of early adult life.
Apart from the age group, one
of the special features of the policy is the use of local currency, a credit
that can be spent in local small businesses. The local currency can be spent
like cash, the participants decide how to spend it. This mechanism allows the
Gyeonggi-do government to support the youth and at the same time support the
local businesses. The policymakers hope the basic income plan, through careful
implementation, can benefit individuals in all stages of life.
What Did The Participants Think?
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| 2019 Gyeonggi-do Youth Basic Income Festival |
According to
Basic Income Korea Network(BIKN), the final survey shows a 77% satisfaction rate. One
of the main aspects of the program that the respondents liked was the fact that
the payments were given to every 24 years old and the plan was inclusive of
all. This suggests the importance of universality, as one of the main pillars
of U.B.I., for the success of similar programs. The respondents also mentioned
the cash-like nature of the payment as a positive point.
The recipients of the
Gyeonggi-do Youth Basic Income also stated that while the payments are not
enough to live on, it lead to psychological comfort, allowing them to focus on
their job search. In an interview, a participant said they were now more
interested in politics now after seeing how directly their lives are influenced
by it.
Hopes For The Future
As the basic income
experiments in different cities and provinces increase, Gyeonggi-do will be
developing and expanding its programs, aiming to leave an exemplary mark, and
paving the path for positive change in South Korea.
In 2020, the Youth Basic
income project will continue and it’s estimated that a matching number of
24-year-olds will be benefited. Gyeonggi-do is looking into new ways to fund
its expanding basic income policy by reforming taxes put on land possession and
real estate.
Besides, 2020 sees the launch
of a new basic income experiment in Gyeonggi-do which delivers payments to the
resident farmers.
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