Rethinking Welfare: Universal Basic Income

UBI is an economic concept in which the government provides every citizen with a fixed monthly amount, unconditionally, to cover their basic needs

• For a region like Sindh, where unemployment is high and many people survive only through daily wage labor, UBI could be transformative
• Preventing ghost beneficiaries through a reliable digital identification system

Abdullah Usman Morai | Sweden

Universal Basic Income (UBI) is an economic concept in which the government provides every citizen with a fixed monthly amount, unconditionally, to cover their basic needs such as shelter, food, education, and healthcare. While the idea has existed in different forms for centuries, the rise of Artificial Intelligence (AI) and full automation in recent decades has reignited the debate globally. People fear that once robots and machines begin to perform most jobs, what role will remain for human beings?

The Philosophy and Purpose of UBI

Supporters of UBI do not view it merely as a poverty-relief mechanism, but as a tool to establish broader economic and social equality. The central aims of UBI include:

1. Eliminating extreme poverty: by ensuring that no citizen falls into absolute hunger or homelessness.
2. Strengthening labor rights: when workers know that they have a guaranteed basic income for survival, they can refuse to work under exploitative conditions or for unfairly low wages. This pressure can improve both wages and workplace standards.
3. Simplifying welfare systems: replacing complex and bureaucratic social welfare schemes with a single, universal program, thereby reducing administrative costs, corruption, and inefficiency.
4. Encouraging creativity and entrepreneurship: when people are freed from constant financial stress, they can devote more energy to education, the arts, scientific research, community building, and launching small businesses.

UBI is not simply about money. It is about dignity, security, and granting individuals the freedom to pursue meaningful lives without the shadow of extreme deprivation.

Key Global Experiments with UBI

Over the past few decades, pilot projects have been carried out in different parts of the world to test the feasibility and impact of UBI.

• Finland (2017–2018): The Finnish government gave 2,000 unemployed citizens €560 per month for two years, unconditionally. The results showed that recipients did not necessarily find more jobs, but they became noticeably happier, healthier, and less stressed. They reported higher trust in public institutions, and healthcare costs fell as stress-related illnesses decreased.
• Ontario, Canada: A pilot project was launched in the province of Ontario, but was discontinued due to political changes. Even in its short span, many participants said that the income allowed them to afford better education and healthcare in expensive urban areas.
• Kenya: In rural parts of Kenya, villagers were given unconditional cash transfers. Instead of wasting the money on alcohol or luxuries, many people invested in livestock, small businesses, or their children’s education. This not only improved family living standards but also boosted local economic activity.

Other trials in countries like India, Namibia, and the Netherlands have produced similar outcomes, showing both benefits and challenges.

Criticism and Practical Challenges

Despite its appeal, UBI faces serious global criticism and practical hurdles.

• Financial cost: Providing every citizen of a country with a fixed monthly income would require vast sums of money. Where would this come from? Proponents suggest higher taxes on the wealthy, carbon taxes, or reallocating existing welfare funds. But politically, these steps are difficult to implement.
• Work disincentive: Critics argue that free money might make people lazy, reducing motivation to work, which in turn could lower national productivity.
• Inflation risks: If large amounts of money suddenly enter the market, prices of goods and services may rise, eroding the real value of UBI.
• Psychological concerns: Some argue that salaries are not only financial necessities but also linked to human dignity, purpose, and social identity. Receiving an income without work might, for some, undermine that sense of dignity.

UBI in the Context of Sindh

For a region like Sindh, where unemployment is high and many people survive only through daily wage labor, UBI could be transformative. It could reduce poverty dramatically and provide economic security to marginalized groups, especially women, rural workers, and families vulnerable to seasonal hardships like droughts or floods.

However, challenges would be immense:

• Ensuring transparency so that resources are not misused.
• Preventing ghost beneficiaries through a reliable digital identification system.
• Finding sustainable sources of funding in a region already struggling with budget deficits.

Unless major economic reforms accompany it, implementing UBI at scale in Sindh or Pakistan at large remains difficult.

Broader Reflections

UBI is not just a financial policy, it is a response to one of the defining questions of our age: What happens to work, wages, and dignity in an era of rapid technological change?

Experiments in countries like Finland and Kenya suggest that UBI can improve quality of life, health, happiness, and social trust. Yet, before adopting it on a global scale, humanity must carefully examine the costs, the sources of funding, and its long-term impact on economies and societies.

Ultimately, this debate is not merely about money. It is about the future of humanity, the meaning of labor, and the pursuit of social justice in a rapidly changing world.

Read: South Korea’s “Soft Power”

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Abdullah Soomro, penname Abdullah Usman Morai, hailing from Moro town of Sindh, province of Pakistan, is based in Stockholm Sweden. Currently he is working as Groundwater Engineer in Stockholm Sweden. He did BE (Agriculture) from Sindh Agriculture University Tando Jam and MSc water systems technology from KTH Stockholm Sweden as well as MSc Management from Stockholm University. Beside this he also did masters in journalism and economics from Shah Abdul Latif University Khairpur Mirs, Sindh. He is author of a travelogue book named ‘Musafatoon’. His second book is in process. He writes articles from time to time. A frequent traveler, he also does podcast on YouTube with channel name: VASJE Podcast.