13 November 2018

Social Europe: The Finnish Basic Income Experiment – Correcting The Narrative

Well, not quite. The Finnish government’s refusal to extend or expand the experiment may not come as much of a surprise once the budgetary implications are taken into account but it nevertheless amounts to one more disappointment amongst those closely watching how the experiment is progressing. And disappointments have been plentiful with this project. After a promising start, the first blow came when the Sipilä government ignored most of the suggestions and recommendations of the research consortium led by Kela (the Social Insurance Institution of Finland) and charged with preparing the experimental design — incidentally, appointed by the very same Juha Sipilä.

The design now being rolled out is much more limited than many had hoped for. Repeated requests for additional budget or postponing the starting date were ignored. Much-needed coordination between the different ministries involved was not forthcoming. The government also delayed appointing the team charged with evaluating the result until the experiment was well into its second year – with detrimental effects for any attempt to gain a more comprehensive insight into the experiment’s wellbeing effects.

Meanwhile, the coalition government didn’t dither and recently embarked on a series of highly contentious reforms, such as introducing a new regime for the unemployed consisting of trimonthly interviews, increased waiting periods and substantial cuts in the eligibility periods for unemployment benefits. All of this is topped by a so-called “active model” that requires jobseekers to either work on a part-time basis or intensively participate in activation measures or face a 4.65 percent benefit cut. Together these new measures represent a major attempt to shift the Finnish social security system even more in the direction of an activation welfare state at the same time as the government is experimenting with unconditional basic income.

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