When individuals in eight out of 20 villages in Madhya Pradesh, India, were provided with monthly payments as part of a randomized control trial on universal basic income, the results defied what some top economists had expected.
More than 6,000 people received the unconditional cash transfers, which at 300 rupees per adult and 150 rupees per child were calculated as being at or just above the poverty line. Rather than losing their incentive to work, recipients worked and produced more; and rather than wasting the money, many of them invested it — in better seeds, equipment repairs, and even new businesses.
The idea of a universal basic income is nothing new. Thomas More floated it in his 16th century “Utopia.” A modern day update, “Utopia for Realists,” argues that it should transition from radical thinking to mainstream policy. Rising income inequality, growing frustrations with modern social welfare programs and other efforts to fight poverty, and concerns about the future of the global workforce are all adding urgency to the debate. Some lift universal basic income up as a solution to the automation revolution, which could see more jobs performed by machines. Others call it a poor tool to fight poverty. Even champions of the controversial idea acknowledge it would be challenging, if not impossible, to implement at a large scale.
About the author
Catherine Cheneycatherinecheney
Catherine Cheney is the Senior Editor for Special Coverage at Devex. She leads the editorial vision of Devex’s news events and editorial coverage of key moments on the global development calendar. Catherine joined Devex as a reporter, focusing on technology and innovation in making progress on the Sustainable Development Goals. Prior to joining Devex, Catherine earned her bachelor’s and master’s degrees from Yale University, and worked as a web producer for POLITICO, a reporter for World Politics Review, and special projects editor at NationSwell. She has reported domestically and internationally for outlets including The Atlantic and the Washington Post. Catherine also works for the Solutions Journalism Network, a non profit organization that supports journalists and news organizations to report on responses to problems.
