25 March 2016, BIEN, Universal basic income: a search for alternative models. With the expressed commitment of the Prime minister Juha Sipilä’s centre-to-right Government to conduct an experiment to evaluate the effects of a basic income system, the idea of a universal basic income has come to the forefront of the Finnish political discourse. Discussions centring on the idea of a universally guaranteed basic income have a long and varied history in the Finnish political arena, and several initiatives and practical models have been made public since the 1980s. A recent working paper published by the Finnish Social Insurance Institution (Kela) charts the history of the basic income debate and outlines solutions put forward for a true basic income system or one that bears some features of a universal basic income. The working paper will be used as background to analysis preparing the ground for the planned basic income experiment. An idea with a long history The working paper begins by presenting the history of ideas behind the discussion on a universal basic income or citizen’s wage, the latter being a term which is often used alongside ’basic income’ in the Finnish debate. Read More here
Category Archives: PLEA Network
24 March 2016, Renew Economy, Five things we learned about Malcolm’s attempts not to be Tony. Plus ça change. The more it changes, the more it stays the same. And that ageless expression seems to apply with Malcolm Turnbull’s desperate efforts to convince people that he is not Tony Abbott, that he is not the sword carrier for Abbott’s policies as his predecessor suggests, and that he is not a slave to the conservative rump of his party. This week, Turnbull turned to clean energy to show that his spots are not the same as Abbott’s. If publicity and headlines are the main indicators, it has been a smashing success. Mainstream media has lapped it up: “PM’s climate of change,” hoorayed Fairfax. “Coalition saves two clean energy funds,” chorused the ABC. “PM tilts at green windmills,” booed the Murdoch media. (That editorial is probably worth a complete dissection on its own, so many errors, misconceptions and prejudices in such a few short paragraphs, but time is not infinite). But what really happened this week? In the face of opposition in the Senate, Turnbull bowed to the inevitable and decided to keep the Clean Energy Finance Corporation. That is good. And that is change. The CEFC – once decried by its newest biggest supporter, environment minister Greg Hunt as a great big green hedge fund – has been behind many of the most important new clean energy projects and initiatives in the country, underwriting finance for large-scale solar projects, innovative solar thermal installations, battery storage trials, and any amount of energy efficiency and rooftop solar support. And in doing this it has also delivered a significant return to the government. Hunt should now feel free to turn up at one of its project openings. Turnbull then took $1 billion out of the CEFC kitty and rebadged it with his favourite buzzword, “innovation” and claimed the creation of a “new” thing called the “Clean Energy Innovation Fund”. But it does not represent new funding. Read More here
23 March 2016, The Age, 50 years after “The Lucky Country”, Australia’s sustainability challenge remains. More than 50 years ago Donald Horne, then working in an advertising agency, described Australia as “a lucky country run mainly by second-rate people who share its luck”. The phrase “the lucky country” quickly became part of the language, though its message was often misrepresented. Horne’s 1964 book sounded three loud warnings about Australia’s future: the challenge of our geographical position, the need for “a revolution in economic priorities”, and the need for a discussion of what sort of country we want to become. Those warnings are even more urgent today after 50 years of inaction by our second-rate leaders. I’ve revisited Donald Horne’s ideas and updated them for the 21st century. An additional complication is the accumulating evidence that we are not living sustainably. Heading Backwards? The need for change was underlined by a 2015 UN report on sustainability. Australia ranks 18th of the 34 developed countries, below the UK, New Zealand and Canada, based on indicators covering economic, social and environmental progress. We are among the worst of the affluent countries on resource use, waste production, greenhouse gases released per unit of economic output, and our obesity rate. We are also well below average on social indicators such as education level, gender pay gap and proportion of women in parliament, as well as economic indicators such as the poverty rate and the degree of inequality. Interestingly, the top four countries were the Scandinavian nations of Norway, Sweden, Denmark and Finland. The United States ranked 29th. It is a reminder that only ideologues with no concern for evidence could still be seeing the United States as a model to which we should aspire, rather than the much more successful Scandinavian approach. Read More here
23 March 2016, Renew Economy, Turnbull’s sleight of hand on clean energy investment. Prime Minister Malcolm Turnbull has put his own stamp on clean energy investment in Australia, dumping Coalition plans to scrap the Clean Energy Finance Corporation, but announcing new plans to essentially de-fund the Australian Renewable Energy Agency and replace it with a new “Clean Energy Innovation Fund.” The retention of the CEFC will be welcome and signals a potential shift from the anti-renewable policy stance of the Abbott regime that preceded him. But the move to de-fund ARENA and create a “new” fund using money already allocated to the CEFC is nothing but a sleight of hand, and an elaborate ruse by Turnbull to save more than a $1.3 billion and get his new pet-word “innovation” included in a financing scheme. It may also be designed to meet Australia’s Paris commitment to invest “new money” in clean energy innovation. But the move may back-fire, because although the new set-up will continue to support near commercial projects, the technologies and ideas at the formative stage of the innovation process may be left stranded, without funding. According to the former chairman of ARENA, Greg Bourne, Australian innovation may move overseas to get the necessary support. So much for the innovation nation. The Turnbull government has been showing less interest in ARENA, and its cost to the budget, and over the last few months has allowed not renewed contracts for directors, and allowed it to narrow to a single director, the head of Greg Hunt’s environment department. ARENA will continue to manage its current projects, and complete its $100 million funding program for large scale solar projects. But after that its funding will be stopped and it will effectively be morphed – along with its staff – into an annexe of the CEFC and the new fund. Under the new plan hatched by Turnbull and Hunt, ARENA’s grants-based funding strategy will be replaced by “innovative” finance such as debt and equity funding – effectively lending money and buying shares in the investments. Read More here