Renowned economist Tavneet Suri has recently stirred up the debate on Universal Basic Income (UBI) by discussing her fieldwork in rural and poor regions of Kenya. Her research has shown promising results when it comes to the direct distribution of cash to individuals in these areas. In this article, we will take a closer look at Suri’s findings and what they could possibly mean for the broader concept of UBI.
Suri, a professor of applied economics at Massachusetts Institute of Technology, has been studying the impact of cash transfers in developing countries for more than a decade now. Her recent research in Kenya involved providing direct cash transfers to individuals living in remote and impoverished regions of the country. The results were surprising, and Suri believes that they could have a significant impact on the global discussion around UBI.
The concept of UBI has gained traction in recent years as a potential solution to address poverty and income inequality. It involves providing a fixed amount of money to all citizens, regardless of their income or employment status. However, critics have raised concerns about the feasibility and effectiveness of such a policy. Suri’s research in Kenya provides some valuable insights into these concerns.
In her fieldwork, Suri and her team randomly selected 10,500 households in rural Kenya to receive cash transfers of around $500 over a period of two years. The results showed a significant improvement in the lives of these households. The recipients reported an increase in their consumption, investments in education and health, and a sense of financial security. These outcomes were also observed in the long term, even after the cash transfers ended.
One of the most striking findings of Suri’s research was the impact on women. The cash transfers were given to women with no restrictions on how they could use the money. This had a transformative effect on the lives of women in these communities. They were able to make decisions for their families, invest in their businesses, and improve their overall well-being. This shift in power dynamics within households has the potential to break the cycle of poverty and empower women in these regions.
Suri’s research has also addressed the concerns around the feasibility of UBI. She contends that her findings show that the distribution of cash directly to the recipients is a viable option. The system was efficient, with only a small percentage of the money going towards administrative costs. Moreover, the recipients spent the money in a way that benefited the local economy, further boosting the argument for direct cash transfers.
The success of Suri’s research in Kenya has broader implications for the concept of UBI. The results show that providing a basic income to individuals can have a positive impact on economic growth, poverty reduction, and gender equality. It also challenges the conventional notion that cash handouts create a culture of dependency. Suri argues that the recipients did not become complacent but instead used the money to improve their lives and the lives of their families.
Suri’s research has become even more relevant in the wake of the COVID-19 pandemic. The virus has exacerbated the existing economic inequalities, and the need for a safety net for vulnerable populations has become even more apparent. The success of cash transfers in Kenya could serve as a model for governments and policymakers to consider while designing social protection programs for their citizens.
In conclusion, Tavneet Suri’s fieldwork in Kenya has shed light on the potential of direct cash transfers as a means to alleviate poverty and empower individuals in developing countries. The positive outcomes of this research have significant implications for the global discussion on UBI. Suri’s findings challenge the traditional notions around the feasibility and effectiveness of UBI and provide a strong case for its implementation. It is now up to governments and policymakers to consider these results and take necessary steps towards creating a more equitable society. As Suri herself puts it, “The future of social protection is in giving people cash.”
