“Universal Basic Income”

Shedding Light on the Alternative

Universal Basic Income (UBI) is a concept proposing the provision of a fixed and regular amount of money to every citizen without conditions or restrictions. This concept aims to ensure a minimum standard of living for all, improving social and economic justice.

Advantages of the Universal Basic Income system:
Universal Basic Income can contribute to poverty alleviation and reduce dependence on social welfare. By providing every citizen with an amount sufficient to cover their basic needs, the standard of living, health, education, and economic opportunities for vulnerable and marginalized groups can be improved. It can also simplify administrative procedures and reduce the additional costs of managing complex and conditional social programs.
Furthermore, Universal Basic Income increases freedom of choice and innovation for citizens. With a stable and guaranteed income, citizens can decide how best to spend their time and resources. They can choose to work in areas that match their interests, skills, and ambitions, or dedicate themselves to learning, volunteering, arts, family care, or other community activities. Citizens can also take greater risks and innovate in entrepreneurship, research, and development.
Additionally, the system can enhance social stability and solidarity by narrowing the gap between the rich and the poor and promoting dignity and equality for all. It helps strengthen social bonds and trust between people and institutions. This system also aids in reducing violence, crime, discrimination, extremism, and social protests.

The Universal Basic Income system is an attractive and beneficial idea to face social and economic challenges, particularly in Syria and globally. However, this concept also faces several obstacles and criticisms from political, financial, and ethical perspectives. Therefore, the Universal Basic Income system must be carefully studied, and its practical experiments and effects on different communities evaluated before widespread implementation.

Economic theories behind the idea of Universal Basic Income:
Some economic theories support or criticize the idea of Universal Basic Income, including:

• Relative Income Theory: This theory suggests that consumption depends on individuals’ relative income, comparing their income with others in society. According to this theory, Universal Basic Income could increase consumption and well-being for individuals with below-average income but might also reduce the incentive to work, save, and invest for those with above-average income.
• Life Cycle Theory: This theory proposes that individuals plan their consumption and saving over their lifetime based on their future income expectations. According to this theory, Universal Basic Income could increase consumption in the early stages of life but could also lead to increased saving in later stages, especially if the basic income is not guaranteed or subject to change.
• Monetary Theory: This theory suggests that economic growth depends on the money supply in the economy, and governments can achieve economic stability by controlling the money supply. According to this theory, Universal Basic Income could increase the money supply in the economy but could also lead to increased inflation, fiscal deficits, and government intervention in the market.

Countries that have implemented the Universal Basic Income system:
Some countries have experimented with or implemented a Universal Basic Income or similar system, including:

• Finland: In 2017, Finland began a two-year experiment providing a monthly basic income of 560 euros (about 670 USD) to a random group of 2,000 unemployed people. The experiment aimed to measure the impact of basic income on the incentive to work and psychological and social well-being. The results showed that beneficiaries were happier, more confident, less anxious, and depressed, but there was no significant effect on employment rates.
• Canada: In 2018, the provinces of Ontario and Quebec started separate experiments providing a monthly basic income to individuals and low-income families. The experiments aimed to improve health, education, economic empowerment, and poverty reduction. However, the Ontario experiment was canceled after just one year due to a change in government and high costs, while the Quebec experiment continues.
• Iran: In 2010, Iran launched a program providing a monthly basic income of 29 USD to every citizen as an alternative to government subsidies for fuel and food. The program aimed to improve social justice, reduce poverty, inflation, and excessive consumption. Studies showed the program did not negatively affect employment rates or productivity but increased spending on basic goods, services, education, and health.

Other countries like India, Brazil, the United States, and the United Kingdom have also conducted limited, local, or private experiments in this area.
However, although “Universal Basic Income” is a temporary and beneficial solution, it fails to change anything related to the underlying production system. It accepts the existing system on its terms, doing nothing to change who controls production, the types of goods and services produced, under what conditions, and for whom.
In Syria:
The significant need in Syria, exacerbated by wars and displacement, becomes greater with the reduction of relief aid, calling for alternative economic programs, including this one. Syria has been suffering from a prolonged conflict since 2011, leading to enormous losses in human, material, economic, social, cultural, and environmental aspects. The country faces significant challenges in security, politics, humanitarian issues, reconstruction, and development, relying on limited and dwindling resources, and is affected by regional and international changes and conflicts.
Therefore, the Economic Office of the Syrian Future Movement recommends the following:

• Prioritize the concept of “Universal Basic Income” among the de facto authorities within the country, as well as among regional and international states.
• Develop financial plans for the necessary funding, whether through a government budget, domestic borrowing, or a zakat fund for Syrians inside and outside the country, managed by individuals known for their integrity and transparency.
• Determine the financial amount each Syrian citizen deserves, and study making this amount sufficient for the minimum standard of living through economic field studies.
• Set conditions and restrictions for beneficiaries of the basic income through mechanisms and standards that are evaluated periodically and enforced and monitored, in addition to studying the legal, administrative, political, and legitimacy impacts of those conditions.
• Establish political consensus initially in areas outside the regime’s control, starting from Northwestern Syria.
• Work on obtaining international support for this project, with civil society and the Syrian Future Movement potentially assisting in this regard.
• Emphasize the necessity of administrative reform in all aspects related to the success of the Universal Basic Income system.
  Finally, we recommend that opinion leaders and media professionals highlight the Universal Basic Income system.

Ammar Al-Amouri
Economic Office
Research and Studies Department
Studies
Syrian Future Movement (SFM)

References:
Universal Basic Income: Empowering Entrepreneurs to Achieve Their Dreams – FasterCapital
Wales Experiments with Adopting a Universal Basic Income of £19,200 per Year | Independent Arabiya (independentarabia.com)
The Relative Income Hypothesis: A Comparison of Methods – ScienceDirect
Limits of “Universal Basic Income” | Zero (alsifr.org)
Universal Basic Income from an Islamic Perspective | Hamad Bin Khalifa University (hbku.edu.qa)