Basic income in the Middle East

Basic income (also known as citizen's income and, depending on the construction, sometimes negative income tax) is being debated in at least three countries in the Middle East, Iran, Iraq and Libya. The common starting point for these discussion is the fact that there are large parts of the population who are poor and at the countries at the same time have vast natural resources, mainly oil.

In the autumn of 2010 Iran became the first country in the world to implement a national basic income.

Discussions by country

Iraq

According to Aminah al-Thahabi, who writes for Niqash, most political groups, including political parties in the Parliament have adopted a position on the issue. Proponents of the basic income argue that the system would end the oil curse and that all Iraqis with this kind of system would be able to get a fair share of the country's oil resources. Opponents argue that the reform would be inflationary and that oil money would be better spent on infrastructure, especially since much of this is still in disastrous condition after years of sanctions and war. Johnny West, OpenOil consultancy, estimated that Iraq could introduce an annual basic income of 220 U.S. dollars per person in October 2012 and then level could increase with increased production. He also argues that Iraq has such great natural resources that poverty could be abolished in two years.[1]

Iran

Iran was the first country to introduce a national basic income in autumn 2010. It is paid to all citizens and replace the subsidies of fuel and other supplies that the country had for decades in order to reduce inequality and poverty. The sum corresponds (2012) to about 40 U.S. dollars per person per month, 480 U.S. dollars per year for a single individual and 2,300 U.S. dollars per year for a family of five people.[1] However, the total cost of the basic income system was considerably higher than the sum total spent on subsidies. Government has thus announced that the costs may have to be reduced and that means testing is one option to be considered.[2]

See also

References

  1. ↑ 1.0 1.1 USBIG NEWSLETTER Vol. 13, no. 64 Spring 2012 (Read 2 December 2012)
  2. ↑ Hamid Tabatabai, IRAN : Basic Income Might Become Means Tested (Read 7 December 2012)

External links