WPA wants implementation of Universal Basic Income facilitated through cash transfers

By Mark DaCosta- In a statement dated October 21, the Working People’s Alliance (WPA) has expressed strong support for the recent announcement by President Irfaan Ali regarding a one-time cash transfer for Guyanese citizens. This proposal has reignited discussions on social support systems, reminiscent of the enthusiasm surrounding a similar concept introduced by economist Professor Clive Thomas at the Eusi Kwayana Emancipation Symposium in 2018. Although initially met with skepticism from some political leaders, the idea has since gained traction among the populace, particularly among working-class and impoverished communities, the statement noted.

According to the statement, the WPA views the implementation of a Universal Basic Income, facilitated through cash transfers, as a vital strategy for alleviating poverty in Guyana. The party argues that the country’s substantial oil and gas revenues present an ideal opportunity to adopt this initiative, which has seen success in various nations worldwide.

WPA officials noted a significant shift in attitudes towards cash transfers, as some former critics now recognise the potential benefits of such policies. However, the party cautioned that the government should avoid using this initiative as a political tool, as attempts to do so could undermine its significance.

Despite not claiming sole ownership of the cash transfer concept, the WPA states that it  takes pride in being the first political entity in Guyana to propose it as part of the national development agenda. They argue that this approach is the only aspect of the ongoing oil and gas discourse that resonates deeply with the broader population. Criticism directed towards Vice President Bharrat Jagdeo, who has attempted to assert the PPP’s authorship of the cash grant initiative, is viewed by the WPA as a desperate move by a government that has struggled to present substantial policies since coming to power in 2020.

The WPA – in the  statement – also expressed disappointment over the government’s decision to shift the cash transfer distribution method from household units to individuals. They believe that this change reflects a lack of seriousness and a misunderstanding of economic principles. The party said that distributing funds to individuals, rather than households, could result in many families — especially single-parent ones and those led by underage parents — being overlooked or inadequately supported.

The topic of underage parents being excluded from eligibility for the cash grants was also highlighted in an article published by Village Voice News (VVN), which pointed out that young parents face significant financial challenges that necessitate support, regardless of their age. This omission raises critical questions about the government’s commitment to social equity, particularly for vulnerable populations, including Indigenous communities, the VVN article argued.

The WPA has been actively refining what they term the “Buxton Proposal,” a framework for cash transfers that has evolved since its inception in 2018. The party’s Policy Committee, along with Professor Thomas, has been reportedly instrumental in this ongoing development.

The WPA maintains that their original estimate of an annual cash transfer of approximately $1 million remains relevant, particularly in light of increased projections regarding Guyana’s oil reserves. They argue that households could feasibly receive even more substantial support, given the country’s burgeoning wealth from its natural resources.

The WPA states that it is optimistic about the potential for cash transfers to make a meaningful impact on poverty alleviation in Guyana. They call for a serious examination of the proposal’s framework and urge the government to ensure that all eligible families, including those led by underage parents, receive the necessary support to thrive.