Abstract
The article gives an overview of universal basic income as one of the instruments of the asset-based policy, analyses its theoretical concept and practical examples. Latest trends in Europe, especially in Finland and Switzerland, are overviewed and possibilities to implement such an instrument in Lithuania are evaluated. Research methods of scientific literature analysis, comparative and logical analysis of statistical data, data grouping and presentation were used. Article finds out that the concept of basic income is being implemented on a small scale in the US state of Alaska and in a small autonomous territory of China – Macao. Finland and Switzerland are determined to fully implement the concept of basic income by providing monthly benefits to all their citizens. Although Lithuania is categorized as a country with high income inequality and high level of poverty risk, currently it is not possible to implement the concept of basic income in Lithuania: the state social insurance fund budget would not be able to fund sufficient benefits, and the benefits that could be provided by the budget would not comply with the objectives of the concept of basic income.
Highlights
High income inequality and high level of poverty impede the development of the society and the state, and have a significant impact on the level of population health, education possibilities, housing conditions and crime
Lithuania is categorized as a country with high income inequality: using the Gini coefficient1 as a measure of income inequality, Lithuania takes only the 26th place among the EU countries, leaving behind only Latvia and Bulgaria
The Gini coefficient remained at the same level, while the level of poverty risk decreased by only 0.9 p.p (Statistics Lithuania 2015)
Summary
High income inequality and high level of poverty impede the development of the society and the state, and have a significant impact on the level of population health, education possibilities, housing conditions and crime. Measures for combating poverty and social inequality are focused on the issues of income and consumption, with particular emphasis on the idea of progressive personal income tax and the increase of various benefits for the poor. Such measures – known as the income support or security policy – are used in order to support persons during times when they do not have sufficient income and are faced with temporary or permanent difficulties such as unemployment, health problems, accidents or old age. Today’s post-industrial economy requires an active social policy, based on saving, investments and asset accumulation, encouraging personal development and motivating people to improve their knowledge, skills and possibilities. Research methods: scientific literature analysis, comparative and logical analysis of statistical data, data grouping and presentation
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