Universal Basic Income
Cash transfer interventions have become increasingly popular as poverty reduction interventions in both developing and developed countries over the past few years. The rise in popularity of these programs comes from their ability to meet set goals, address what beneficiaries want, and allow governments to run them smoothly with low administrative costs.
Haiti has implemented various cash transfer programs, both unconditional and conditional, targeting selected population groups. However, all these programs shared the common characteristic of being limited in time, geographic coverage, and scope. It is worth pausing to consider how these programs can be reshaped by combining them with similar interventions and transforming them into a Universal Basic Income (UBI). This UBI would be granted unconditionally every month to all Haitians living in the country.
Implementing a universal basic income (UBI), initially set at $120 a month and consistently maintained at a level significantly below the average monthly income from employment, could provide a faster route out of poverty for many individuals and families. This income would be adjusted as necessary to exceed the poverty line consistently. One of the expected benefits of UBI is that it will automatically improve the country's ranking on the Sustainable Development Goals (SDGs) Index, which, as of 2025, stands at 156th out of 166 countries.
A review of the United Nations (UN) 2025 Sustainable Development Report (SDR) reveals that countries with the top rankings on the SDG Index (e.g., Finland, Sweden, Denmark, Germany, France, Austria, Norway, Croatia, Poland, Czechia) tend to have in place comprehensive social support for their populations, while those lagging in the low rankings (e.g., Haiti, Liberia, Madagascar, Niger, Afghanistan, Dem. Rep. of the Congo, Rep. of Yemen, Somalia, Chad, Central African Republic) consistently lack such support. Implementing a universal basic income in the country could be a necessary first step towards poverty reduction.
Top-ranking countries are more peaceful, democratic, and economically prosperous, with higher Human Development Index (HDI) scores, resulting in better living standards and a higher quality of life. Low-ranking countries often struggle with economic instability, political unrest, and conflict, resulting in a low quality of life and a low HDI. They face challenges like low income, inadequate education, and short life expectancy.
However, there are concerns that unconditional cash transfer programs, such as UBI, may become financially unfeasible and unsustainable. Additionally, these programs could allocate funds to individuals who do not need such assistance. To address these concerns, the government can offer an option for individuals to opt out of receiving the universal basic income if they do not want or need it.
Critics can argue that such a program could strain government budgets and divert funds from other essential services, potentially worsening overall socio-economic conditions. Those concerns highlight UBI's program affordability and proportionality, but do not diminish its necessity. Indeed, focusing on the welfare and well-being of individuals and families is the primary role of governments and a crucial first step in improving overall socioeconomic conditions.
The purpose of the proposed universal basic income is not to replace the income needed to support all individuals' and families' needs; instead, it is to assist with their basic needs. Therefore, it provides only a lower bound on the income required for sustaining life, which is the base amount of income necessary for a minimal standard of living.
Unavoidably, implementing a universal basic income requires diverting funds from other essential services, which is a desirable trade-off. The higher the poverty levels, the greater the demand for necessary services and their use. Given the widespread poverty across the country, a universal basic income could be an essential first step towards alleviating it.
The challenge is to design it as affordably and sustainably as possible while minimizing the program's administrative burden. In light of this discussion, it is worth considering limiting basic income to an encompassing population group unified by a shared characteristic, which may be more effective than a universal approach. This approach could ensure resources are allocated specifically to those in need, diminish the risk of waste, and address the affordability condition.