Basic income: Hope or hype?

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Unlocking Potential: Exploring the Power of Universal Basic Income

At Web Summit Vancouver 2025, a crucial discussion unfolded around the concept of universal basic income (UBI), exploring its potential to reshape our social safety net. Ms. Rhodes, Research Director at OpenResearch, Mr. Lila, Founder & CEO of Goodable, and Mr. Allardice, President & CEO of GiveDirectly, shared their insights and experiences.

The panel began by defining basic income as a regular cash transfer aimed at providing a minimum level of economic security. Mr. Allardice highlighted the growing evidence challenging traditional approaches to aid, suggesting that direct cash transfers empower individuals to make informed decisions about their needs. He emphasized the efficiency and dignity associated with this approach, citing data that demonstrates its effectiveness.

The conversation then shifted to the current relevance of UBI. Mr. Allardice pointed to the rapid pace of technological advancements and economic shifts, arguing that UBI could provide a crucial safety net during times of disruption. He also noted the inefficiencies of existing social safety net programs, suggesting that UBI could offer a more effective and streamlined approach.

Ms. Rhodes shared compelling anecdotes from her research, illustrating the transformative impact of cash transfers on individuals’ lives. She recounted stories of people using the funds to address immediate needs, pursue education, and make career changes that ultimately led to improved financial stability. She acknowledged that while the amount provided may not solve every problem, it offers crucial flexibility and agency.

Mr. Allardice discussed his organization’s work, including a long-term study comparing the effects of monthly payments versus lump-sum transfers. He revealed that lump-sum payments often lead to more significant investments in education, businesses, and other long-term ventures, while monthly payments tend to be used for daily consumption. He advocated for lump-sum payments as a catalyst for economic growth, particularly in struggling communities.

The panelists agreed that while UBI is not a panacea, it represents a crucial foundation for a more equitable and resilient future. They emphasized the need for further research and policy discussions to determine the optimal implementation strategies and address potential challenges. The discussion concluded with a call for continued exploration and collaboration to unlock the full potential of UBI.