Tradeoff causes a significant increase in inequality---turns case
Isabel Ortiz et al 18 (Director of the Global Social Justice Program at Joseph Stiglitz's Initiative for Policy Dialogue, based at Columbia University, New York, was the Director of the Social Protection Department at the United Nations' International Labour Organization, was Associate Director of Policy and Strategy for UNICEF (New York, 2009-2012) and Senior Advisor at the Department of Economic and Social Affairs of the United Nations), “Universal Basic Income proposals in light of ILO standards: Key issues and global costing,” 2018, International Labour Organization, https://www.ilo.org/wcmsp5/groups/public/---ed_protect/---soc_sec/documents/publication/wcms_648602.pdf
The capacity of a UBI to prevent poverty, reduce inequality and promote social justice depend on the question to what extent it fully meets the needs of the population. However, some UBI proposals devote little thought on to what extent cash benefits would need to be complemented by effective access to services, namely in the areas of health, education, care and other basic services, as well as to employment services and active labour market policies. Many observers are concerned that the introduction of a UBI could possibly undermine the provision of such services, in contexts where its fiscal costs were to displace the budget allocations for such services (e.g. Ruckert et al., 2017). This may lead to the privatisation of public services, or a growing divide between underfunded public services, and private services for those who can afford to pay for them (most likely those who can rely on substantial incomes on top of a UBI).
Such consequences may significantly increase inequality, and constrain the access to services for some categories of the population, particularly those who can rely only on a basic income. Recommendation No. 202 emphasises the complementarity of preventive, promotional and active measures, benefits and social services. Effective access to health care, including maternity care, is one of the four guarantees of a national social protection floor. It also highlights the essential complementary role of employment policies, including active labour market policies, which is particularly important for facilitating labour market transitions and re-skilling in the context of rapid economic and technological change. More generally, the Recommendation also stresses the importance of high-quality public services that enhance the delivery of social security systems, including in the areas of health care, education and care, and which play an essential role in promoting effective access to health, education and work, and promoting gender equality.
In view of the significant implications of a possible negative impact on the effective access to health, education, care and other services, a careful analysis of the possible impacts of the introduction of a UBI on access to services is indispensable. The essential role of universal access to services is highlighted in proposals for Universal Basic Services, focusing mainly on housing, food, transport and information/IT to ensure full participation in modern societies (UCL IGP, 2017).