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Universal Basic Income: In Action

Manak Suri

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Universal Basic Income presents a case to be considered, now stronger than ever, as automation hits us in recurring waves and machines are slowly beginning to take over much of the work that was done by human beings. If you aren’t caught up with the idea behind UBI and what its implementation could mean for us, you might want to read our previous article on the subject. Now, let’s focus our attention on the practicality of the scheme and let’s have a look at some of the existing cases of UBI in different parts of the world along with their results so far, and have a look at who all are backing the program to become the political norm in the coming decades.

Basic Income Around the World

Pilot programs of UBI have been held in different parts of the world. Besides Finland and Ontario, Canada, which began experimenting with UBI this year itself, countries such as Brazil, the city of Utrecht in The Netherlands and even Oakland in California, the United States have implemented varying UBI schemes on parts of their population. Hawaii passed a legislation this year which aims at forming working groups in order to study the effects of UBI. Elsewhere in the United States, the state of Alaska boasts of a genuine UBI program which has existed since 1976. The Alaskan Permanent Fund or the AFP, which is funded by oil reserves gives dividends to its permanent citizens every year. However, also in 2017, 77% of Swiss voters rejected a UBI proposal from being introduced in the country. Now lets take a look at the cases in Finland and Ontario individually.

In Ontario, Canada trials of UBI have recently begun involving 4,000 citizens between the ages of 18 and 64 who expect to receive a total of a little over 12,000 dollars a year. Couples are entitled to nearly twice of the amount. The plan is to study the effect of such a scheme on the health and well being of the subjects, their earnings and also their productivity. While the experiment is still in its initial stages and it’s too early to make any decisions, a few of the participants have already shown signs of a positive change. In addition to boosting the income of some who fall in the lower end of the earning bracket, the scheme has greatly improved their mental well-being, enabled them to afford healthier food and pay more attention to their health and visit their families more often. Other participants have also expressed that the safety net provided to them by the scheme has enabled them to focus on work they want to do and also on helping others.

Unsurprisingly, automation was a major factor in the decision to introduce the scheme in the province. Ontario’s Premier Kathleen Wynne said of the same,” I see it on a daily basis. I go into a factory and the floor plant manager can tell me where there were 20 people and there is one machine. We need to understand what it might look like if there is, in fact, the labour disruption that some economists are predicting.” Ontario has a population of nearly 14 million people. Positive results overall from the scheme may further result in its adoption throughout the province including all 14 million of its populace.

In January this year, 2,000 people were randomly selected across Finland to be part of a trial of one of the most advanced UBI schemes in the world, undertaken by the Finnish Social Insurance Institute. Under the scheme, the selected citizens receive  €560 (£495) from the Finnish government regardless of their employment status and how much they earn. Some of the cases in the country show that UBI provides the participants with more flexibility in their working pattern, encourages entrepreneurial spirit to take up what one would like to do, and also create more time and focus on volunteering and charity work.

Ms. Sini Martinnen, one of the beneficiaries of the program who noted the above changes in her lifestyle spoke of the same. “So there’s value in other things you do – if there’s just not enough work for everyone you have to figure out how to inspire people to be creative and do other kinds of stuff”, she said. Her statement falls in line with the kind of environment being created due to automation. Otherwise, you will have a lot of different social problems that will be very expensive – more expensive than the basic income system”, she added.

What Studies Say

The success of UBI among small populations in Ontario or in a Scandinavian country such as Finland does not necessarily mean they will work in larger countries. UBI may be introduced in a limited form in parts of UK, where we may be able to better assess the case of basic income and its viability over a population that is more diverse and layered with complexity at every step of implementation.

Nevertheless, studies on the matter precede trials in many countries. Considering the point, a recent study by the Roosevelt Institute on universal basic income and its effects suggests that the introduction of UBI in the United States would boost the US Economy by $2.5 trillion. The study, titled “Modeling the Macroeconomic Effects of a Universal Basic Income” suggests that a UBI of $1,000 a month to every American adult will lead to a growth of the economy by 12.56 percent over a period of 12 years, resulting in an increase in the GDP of the country by nearly $2.5 trillion. It reaches the statement after considering three different versions of unconditional cash payments. Another assumption taken up in the study to arrive at the given conclusion was that room for UBI in the budget would be made by increasing the deficit and not by increasing taxes. “When paying for the policy by increasing taxes on households rather than paying for the policy with debt, the policy is not expansionary,” the study says. “In effect, it is giving to households with one hand what it is taking away with the other. There is no net effect.”

In the midst of these studies, theories and trials UBI has attracted support and critics from all corners. In the final article of this series, we’ll take a look at who all are backing the program to become the political norm in the coming decades and what are the pros and cons tossed around in the debate around universal basic income.

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A student of economics with a keen eye for developments in the geopolitical sphere, Manak is a curious individual with a penchant for writing about anything that makes him ponder long enough.

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On the issue of cyber security of critical infrastructures

Alexandra Goman

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There is a lot of talk in regards to cyberattacks nowadays. A regular user worries about its data and tries to secure by all means necessary. Yet, no one really thinks whether the power plants or nuclear facilities are well secured. Everyone assumes that they should be secured.

The reality, however, differs. According to many reports of cyber security companies, there is an increased risk of cyberattacks, targeting SCADA and ICS. Supervisory Control and Data Acquisition (SCADA) is used for the systems that control physical equipment – power plants, oil and gas pipelines, they can also control or monitor processes such as heating or energy consumption. Along with Industrial Control Systems (ICS) they control critical elements of industrial automation processes. Exploiting vulnerabilities of critical infrastructures can lead to the consequences of unimaginable scale. (These types of attacks are actually used in a cyberwar scenarios and hypothetical military settings).

Source: Fortinet, 2015

There are many reasons why these systems are vulnerable for attacks. First of all, the main problem is that these systems have an old design; they were built before they were connected to any networks. They were later configured to connect via Ethernet, and that’s when they became a part of a larger infrastructure. The more advanced SCADA system is becoming, the more vulnerabilities are these to exploit. The updates should be regular and on time. Secondly, there is a lack of monitoring. New devices that are connected allow remote monitoring, but not all devices have the same reporting capabilities. There are also authentication issues (weak passwords, authentication process), however, this is supposed to restrict unauthorized access (See Common SCADA Threats and Vulnerabilities at Patriot Technologies, Inc. Online).

In these scenarios, there is no certainty to know what is going to backfire because of the complexity of communications and power networks. This is also called a cascading effect of attacks. Not knowing who is connected to who may cause major disruptions. The example of the US East Coast power blackout in 2003 proves this point (a failure in one element of the grid spreads across other electrical networks). However, given this, it is also complicated for an attacker to predict consequences, if an attack executed. This kind of attack can easily escalate into more serious conflict, so it might not be the best option for states to employ such methods.

Moreover, there is a risk to damage a critical infrastructure unintentionally. That is if a virus or worm did not intend to target SCADA but happen to spread there as well. The uncontrollability of the code may seriously impair the desire to use it, especially when it comes to nation-states. For instance, in 2003 a worm penetrated a private network of the US Davis-Besse Nuclear Power Station and disabled a safety monitoring system for 5 hours. In 2009, French fighter jets could not take off because they were infected with a virus.

Indeed, a scenario where an attacker gains access to a SCADA system and manipulates with the system, causing disruptions on a large-scale, might be hypothetical but it does not make it less possible in the future. However, the only known case so far, which affected an industrial control centre, is Stuxnet. It did not result in many deaths, yet it drew attention of the experts on the plausibility of future more sophisticated attacks. These potential upcoming attacks might cause the level of destruction, comparable to that of a conventional attack, therefore resulting in war.

Further reading:

Bradbury, D. (2012). SCADA: a Critical Vulnerability. Computer Fraud & Security, 4, p. 11-14.

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Briefly about the Russian Political Discourse

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As you may have noticed, the recent international discourse has been rotating around Russia and its relations to other countries for a long time. Needless to say that after the events in Georgia/Ukraine, this discourse is far from friendly. Some even say that rhetoric of the Cold War has returned. What makes people abroad wonder is why Russia chooses to respond to its foreign partners in this particular way? Why is it the way it is?

To begin with, there are several reasons that shape Russian rhetoric. First of all, they are historical and cultural values. Russia sees itself as a defender of its rights and identity and someone who is not going to follow someone else’s rules. Back to the 13th century, the grand prince (rus. knyaz) Aleksander Nevsky only accepted submission  to the Golden Horde to protect the Russian culture and belief, therefore depriving the West of the opportunity to take over its territories.  This mentality still governs the minds of people. Today, current political rhetoric is doing the same by refusing the Western pressure and external interference into its business.

After the Golden Horde, Russia has managed to maintain its unity. Back then, the East saw the country to be an heir to the great Byzantine Empire. Meanwhile, the enormous size of the country was rather intimidating; and even more, when it started acquiring new territories (remember reaction to the situation with Crimea).

On the one hand, Moscow tries to present itself strong when it communicates with the Europe; on the other hand, the Western neighbours seem to use the same old-fashioned strategy to isolate the big neighbour. Since the time of Ivan the Terrible, no one really has wanted strong and stable Russia and there were steps before to prevent the unity of Eurasia.

The long history of Russia plays a big role in forming the modern mind of the citizen and current political rhetoric. Russian people and the government would not admit defeat and would do anything possible to prevail, even if it means to live in humble circumstances for some time (think of the continuous sanctions).

The tough policy of Peter the Great, the emperor of Russia, has brought the country to a new level in comparison to others. At that time already, all the international questions were only resolved with the help of Russia. In the following years, the power of the country kept growing only to solidify during the rule of Catherine the Great. The famous grand chancellor of Russia and the chief of foreign policy Bezborodko used to say, “I don’t know how it will be at your time, but at this time not a single gun is allowed to fire without our permission”[1]. Now, Russia tries to achieve similar influence.

The period after the World War II proved to be fruitful for the development of the European countries. While the US and USSR were competing, Europe was free from deciding on serious issues, so it could absorb and enjoy the time of quiet development.

Nonetheless, there has been a clear confrontation between the two ideologies, Nazism and Communism. Even though the USSR did not try to exterminate the nations, the scary ghost of the USSR keeps frightening the rest of the world. The impression of “evil USSR” flying over the international relations is still there and penetrates the minds of the people.

After the collapse of the USSR, there was a chance to promote peace and peaceful coexistence.  Russia has repeatedly expressed its interest in it, yet the Western partners have chosen another way:  NATO enlargement to the East (which is believed to be a broken promise).  Interestingly enough, George Kennan, the so-called creator of containment policy of Soviet expansion, considered the NATO expansion a tragic mistake.

All in all, abovementioned factors play a significant role in shaping the Russian political discourse. Cultural and historical values, national pride (and therefore negative feeling towards the Western sanctions) as well as the use of state symbols to unite the country are the most important rhetoric tools in the Russian language arsenal. Its constant and regular transmission through the media and other communication channels make this rhetoric influential and persuasive.

[1] [URL: http://www.istmira.com/istoriya-rossii-s-drevnejshix-vremen-do-nashix/290-kakovy-itogi-i-posledstviya-vneshnej-politiki.html] [дата обращения: 20.05.2016]

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Yes, You Should Start Caring About Politics!

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One of the most common things that you hear from people a lot of the time is something along the lines of “I just don’t really care about politics.” In fact, you might have even said something along those lines yourself. And it can be tempting to fall into this line of thinking. After all, politics are hardly the most exciting or exotic things in the world. However, the truth is that they impact your life in different ways every single day and if you choose to ignore politics, then that just meant that you’re going to end up falling victim to policies that harm you and the people around you. With that in mind, here are some ways that you can start being more politically minded right now.

Know the issues

Do you know where you stand on many of the most important issues of the modern day? Do you know what most of those issues are? The truth is that many people would rather ignore a lot of the problems that society and the world at large face simply because it can feel as though they’re too big to deal with. Things like the economy, climate change, and social justice aren’t just abstract concepts; they’re things that impact the lives of real people every single day. Being more informed about the issues will allow you to have a much better understanding of your own political views.

Know who to speak to

Do you know who your senator is? Your representative? Most people tend to only know major politicians who have held office at one point or another. Sure, you probably know the president or a senator like John Mccain. But what about all of the other senators like Doug Jones or Mike Crapo? These are the people you can actually contact if you want to start making some changes in the world. Getting to know who you can contact can help you feel much more involved in the modern political process.

Forget about personalities and focus on policies

Modern politics has become as much of a game of personalities as anything else. But the truth is that the personalities of individual politicians are far less important than the policies that they and their party want to enact. After all, the policies are the things that will actually make a difference in people’s lives. You should never vote just because you like or dislike the way that a particular politician talks or what their personality seems to be like. Always vote on policies, not personalities.

Now, this doesn’t mean that you should suddenly let politics take over every conversation that you have or that you need to be constantly thinking about it. But trying to bury your head in the sand and ignore the things that are going on around you isn’t going to do you any good. The only way that you can start to make some genuine changes in the world is if you face up to the realities of the modern world and try to do something about it.

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