Download universal basic assets - Institute for the Future

UNIVERSALBASICASSETS:
ManifestoandActionPlan
byMarinaGorbis
Growingeconomicinequalitycombinedwithadvancesinartificialintelligenceand
automationisalreadyde-stabilizingmanysocieties.Unlessweactnow,thesituation
islikelytogetworse,leadingtogreatersocialupheavalsanddemiseofdemocratic
governancesystems.Inthismomentoftransitionweurgentlyneedtodevelopnew
frameworksandprototypenewapproachestobuildingparticipatoryeconomies
andsocietiesthatdeliverbothsocialandeconomicequity.WeproposeUniversal
BasicAssetsasaframeworkforachievingthis.
WeNeedtoChangetheGame
“Themarketplaceinwhichmostcommercetakesplacetodayisnotapre-existing
conditionoftheuniverse.It’snotnature.It’sagame,withveryparticularrules,set
inmotionbyrealpeoplewithrealpurposes,”writesauthorandprofessorofmedia
studiesDouglasRushkoffinanessaytitled,“EconomicsisNotNaturalScience.”
Indeed,marketsaremoreakintogameboardswithcertainsetsofrulesdesignedto
optimizeparticularoutcomesreflectingprevailingpowerstructures,culturalnorms,
andtechnologycapabilities.Takeforexampletherulesgoverningcorporationsthat
arekeyvehiclesofthemarketeconomy.Evermindfulofthepoliticalinfluenceof
EastIndiaTradingCompanyinearlycolonialgovernance,thefoundingfathersmade
effortstocurtailcorporatepower.Corporationsweregivencharterstooperatefor
alimitedamountoftime—20to30years—andonlyforthepurposeofservinga
publicmission.Theywereexpectedtodeveloplargecommercialventureslike
roads,canals,railroads,andeducationalinstitutions.(Harvardwasthefirst
charteredcorporationintheUS.).Importantly,investorsintheseearlycorporations
wereusuallyalsotheircustomers.Companieswerecreatedinordertoensurethat
theywouldprovidegoodserviceatareasonablepricetothesamepeoplewho
pooledmoneytocreatethem,nottomaximizeinvestmentreturns.Itisonly
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
1of9
recentlythattherulesofthegamehavechanged.Theprevailingphilosophy
governingcorporationshasbecome“shareholdervalue,”makingprofitsfor
shareholderstheprimaryandtypicallyonlygoalforpubliclytradedcorporations.
Rulesgoverningcorporationsandthelargereconomyhaveevolvedaccordingly,
shapingrequirementsforcorporateformation,governance,andoversight.
Whilesuchruleshavefosteredeconomicgrowthandenabledformationofmegacorporateorganizations,todaytheyarealsoproducinghighlydeleterioussocialand
ecologicaloutcomes.Thisisthecaseforboththoseleftbehindintheeconomy
optimizingforshareholdervalueandthosedisproportionatelybenefitingfromit.
Thenumbersarestriking.Lastyear,accordingtoarecentstudybyOxfam
International,theeightrichestpeopleintheworldcollectivelyownedasmuch
wealthasthebottom3.5billionpeople(approximatelyhalftheworld’spopulation)!
Thistopnumberdeclinedfrom388peoplein2010to85peoplein2014,to8today.
Oxfamclaimsthat,ifthistrendcontinues,bytheendof2016thetop1%willown
morewealththaneveryoneelseintheworldcombined.
Thiswealthcomesatapricenotonlyforthepoorbutalsofortheextremelywealthy
themselves.Somehavetobuildprotectivebunkersonsecludedislandsasthey
preparefortheinevitablesocialupheavals.Historicalresearchshowsthat
concentrationofwealthandpowerrequiresinvestmentsinvastnetworksof
expensivesecurityinstitutionsleadingtowhatDr.RachelKleinfeldcallsprivilege
violence.Suchviolencestemsfroma“powerstructurethatallowsorenables
violenceagainstsomecitizensasthepriceformaintainingextremeprivilege.”
Thesocialinstabilitycausedbyvasteconomicdisparitiesislikelytogrowdeeper
underthepressureoftwoforces.Thefirstistheunrelentingprogressionofglobal
warmingthatisalreadydrivingmassivedislocationsofthepoorestandparticularly
vulnerablepopulations.Todaytheglobalnumberofrefugeesisestimatedatover60
millionpeople,thelargestnumberinpost-WorldWarIIhistory.Thegrowthofthis
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
2of9
precariouspopulationisnotonlyahumanitarianconcernbutalsoathreattothe
stabilityofnationsthatarepoorlypreparedtocopewiththesuddeninfluxofnew
migrants.Thesituationislikelytoworseasmorepeopleareforcedtoleavetheir
homesbecauseofclimatedisruption.
Thesecondforce—rapidadvancesinautomation,artificialintelligence,andmachine
learning—isunderminingestablishedarrangementsforincomegenerationforvast
swathsofpopulationsindevelopedanddevelopingcountriesalike.Growing
numbersofpeoplearemakinglivelihoodsinvarioustypesofalternative,often
precariousemploymentarrangements(gig,on-demand,freelance,etc.)ratherthan
instable,well-payingjobsthatcomewithessentialsocialbenefitsandrisk
protections.Automation,globalconnectivity,artificialintelligenceandawholesetof
newtechnologicaltoolsaremakingitpossibletoproducegoodsandservicesin
abundancewithoutemployinglargenumbersofworkersorengagingworkersin
flexiblebutalsoprecariousways.Asaresult,thesystemthatworkedrelativelywell
underconditionsofscarcityispoorlysuitedtofulfilltheneedsofmanywhen
productsandknowledgecanbeproducedinabundancebyrelativelyfewpeopleor
inanautomatedfashion.
UniversalBasicAssets:ANewOperatingSystem
Todayweurgentlyneedtochangetherulesoftheeconomicgametoallowusto
producenotonlymaterialabundanceforthefewbutalsobetterlivesforthemany.
Weneedtobuildanewoperatingsystemforoureconomyandourglobalsociety.
Andwithnewtechnologies,newgeopoliticalrealitiesofahighlyinterconnected
world,newknowledgeaccumulatedovercenturiesofhumanendeavor,wehavethe
toolstodoso.Recentlymanypeopleandorganizationshavebeencomingaroundto
thenotionof(UBI)asthesolutiontogrowinginequalityandloomingautomation.
Thisconceptinvolvesprovidingunconditionalpaymentofsomeamountsofmoney
toeachindividualinasociety.Iwouldarguethatthisisagoodinterimorpartial
solution,butbyitself,itdoesnotchangethegameortheoperatingsystemthat
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
3of9
createshighlyinequitableeconomicreturns.Inaworldinwhichmonetaryrewards
increasinglyaccruetocapitalandnottolabor,economicdisparitiesbetweenasset
orequityownersandeveryoneelsearelikelytogroweverlargerastheresultof
automationandnetworkdynamicsthatfostercreationofmonopoliesoroligopolies.
Ifweareseriousaboutchangingthegame,weneedtofocusonuniversalbasicassets
(UBA),acore,basicsetofresourcesthateverypersonisentitledto,fromhousing
andhealthcaretoeducationandfinancialsecurity.IndesigningUBA,weshouldtake
intoaccountequitabledistributionoftraditionalphysicalandfinancialassetslike
land,money,andgoods,aswellasthegrowingpoolsofdigitalassets(data,digital
currencies,reputations,etc.).Weshouldtakeintoaccountthecreationofnewkinds
ofassetsthatrecognizeandassignvaluetoexchangesweengageinasapartof
maintainingthesocialfabricofoursocietybutthatdonotcurrentlycarrywiththem
monetaryvalue(caring,creativeoutput,knowledgegeneration,etc.).Inessence,we
needtolookattheconceptofassetsinitsbroadestsense,recognizingthreeclasses
ofassets:private,public,open.
PrivateAssets
Privateassetsareresourcesthatweownindividually.Housing,land,personal
money,andretirementaccountsfallintothiscategory.
Theideaofgivingpeopleequitableaccesstoassetssuchaslandhasbeenaround
sinceThomasPaine’spublicationofAgrarianJusticein1795.Sincethentheideahas
beenpromulgatedbythinkersandactivistsalongthepoliticalspectrum,withsome
focusingonre-distributionofincomesintheformofvarioustypesoftaxesinorder
toachievegreatereconomicequity(UBIcomesunderthisumbrella)andothers
framingtheissuearoundequalaccesstoopportunity,(thatis,givingpeopleamore
equalstartingpointforachievingeconomicandsocialmobility).Inthislatter
category,legalscholarsBruceAckermanandAnneAlstott,forexample,propose
creationofTheStakeholderSocietybymeansofawealthtaxandgrantingof
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
4of9
$80,000toeveryoneuponreachigtheageofmaturity.TheUK’sChildTrustand
effortstocreateIndividualDevelopmentAccounts(IDA’s)intheUSsimilarlyaimat
givingchildrenaheadstartwhilehelpingthemunderstandpersonalfinanceandthe
importanceofsavingforandinvestinginthefuture.
PublicAssets
Publicassetsincluderesourcescollectivelyownedbythepublicandthatare
managedbydifferenttypesofgovernmentbodiesontheirbehalf.Theycaninclude
everythingfromnationalparkstomineralandculturalresourcestocriticalpartsof
physicalordigitalinfrastructure.
Thefourcountriesthathaveconsistentlybeenatthetopinglobalrankingsofsocial
mobilityareDenmark,Norway,Finland,andCanada.Whatdistinguishesallfour
countriesandothersatthetopishighlevelofaccesstopublicresources—
education,healthcare,transportationandothers.NobelPrize-winningeconomist
JosephStiglitzwroteaboutScandanavia’seducationsystemsandsocialpoliciesthat
leadtohighlevelsofaccesstopublicresourcesasplayingakeyroleincreating
higherdegreesofsocialmobility.Thisaccesstopublicresourcesthatare
geographicallydefinedoftenleadstogeographyasthedefiningfactorinthedestiny
ofmany.Researchshowsthat,forchildrenborntofamiliesatthebottomfifthofthe
population,thechanceofreachingthetopfifthofincomelevelsduringtheirlifetime
is10percentiftheyliveinSanFrancisco,NewYork,orBoston.Thechanceforthe
samechildrenlivinginCharlotte,Columbus,orAtlantais5percent,andforthose
fromMemphis,only2.8percent.Thisislargelyduetothemanypublicaffordances
indifferentareas—publicschools,transportation,healthcare—aswellasaccessto
good,wellpayingjobs.
Inherrecentbook,TheEntrepreneurialState:DebunkingPublicvs.PrivateSector
Myths,economistMarianMazzucatotracesthekeyrolethatpublicinvestments
madebytheUSgovernmenthaveplayedinthedevelopmentofmostthe
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
5of9
technologieswewidelyusetoday—GPS,mobilephone,personalcomputers,
computerdisplays,andmanyothers.Itwouldn’tbeanexaggerationtosaythat
noneoftheiconiccompaniessurroundingus,fromAppletoUberandTesla,would
bearoundifnotforpublicinvestmentsbytheDefenseDepartmentandother
governmentagenciesinmanyofourpublicuniversitiesandresearchlabs.Private
andpublicassetcreationaretightlylinked,onecannotexistwithouttheother.
OpenAssets
Openassetsareresourcesthatareownedandmanagedneitherprivatelyorbya
government.Theyareopentoanyoneandgovernedbyadefinedgroup.Openassets
arecreatedinwhatMITMediaLabresearcherandIFTFaffiliateJohnClippinger
callsthe“opensector.”AccordingtoClippinger,intheopensector,agroupof
“founders”createasetofinitialconditionsfromwhichrulesemergethroughthe
interactionsofparticipants.
ClippingercitestheexampleoftheBritishCommonLaw,abasisforAmerica’slegal
system,whichevolvedfromcustomsandnorms,eventuallybeingcodifiedinto
constantlyevolvinglaws.“Itwasn’ttop-down.Itwasconstantlyreinventingitself
aroundthecircumstances,andtherewasnosinglepointofcontrol.”Thisishowthe
opensoftwarecommunityoperatestoday,andthisisexactlyhowthehighly
distributedblockchaincommunityisevolving,withpracticesandnormsemerging
organicallythroughtheprocessofinteractionsandnegotiationsbetween
communitymembers.Wikipediaisanotherfamiliarexampleofacommunitybound
bycommonpracticesandprinciplesthathasestablishedanarchitectureandasetof
practicesforenteringandeditinginformation,whichinturn,hasmadeitpossibleto
createanopenresourceusedbybillionsofpeopleworldwide.
Weareattheearlystagesofcreatingapowerfulnewclassofopendigitalassets.
Blockchain-basedcryptocurrenciesarethefirstiterationoftheseassets,
representingmonetaryorfinancialvalue.Buttheyarealreadyspawningallkindsof
tokenstorepresentdifferentkindsofvalue—artisticvalue,communityvalue,or
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
6of9
evenmoralvalue.Andoverthenextfewyears,wecanexpecttoseerapid
experimentationwithwaystocreate,define,anddistributethesetokens,and
ultimatelylinkthemtophysicalobjectsandallkindsofservices,aswellaspolitical
andsocialintent.Already,onlinestoreslikeCarbonshopperaresellingeco-goods
thatcanonlybeboughtwithCarboncoins,embeddingenvironmentalistvalues—
andeconomicvalue—inthegoodstheysell.TransactiveGridisablockchainsystem
designedtorapidlysetuppeer-to-peerutilitygrids,makingexchangesofsolaror
otherrenewableenergyeasytotradebetweenneighborsformicropayments.John
Clippinger,inoutliningtheinfrastructureforadecentralizeddemocracyintheopen
sector,describesverifiedpersonaldatatokensasatradableassetclassthatpeople
cantradeforreciprocalvaluewithoutcompromisingtheirprivacy.AndCircles,an
Ethereum-basedproposalfromConsensys,envisionsaneconomywherepeoplecan
minttheirownpersonalcurrencies,developparitywithotherCirclescurrencies,
andultimatelytradetheirpersonalcurrenciesforasharedcommunitycurrency—
onewaytoarriveatauniversalbasicincomewhilealsobuildingopenorpublic
communityassets.Astheinfrastructureforblockchainandrelatedopenassets
evolves,wehaveabigopportunitytore-definetheeconomicgame.
Meanwhile,innon-digitaldomains,wefindexamplesofopenandfreesystemsfor
valuecreationinphysicalcommunitiessuchasBurningManorFreespace,whereno
moneyisallowed.Peoplechoosetocometogetherfreelyandexchangeorgifteach
otheranythingfromphysicalgoodstoknowledgeandservices.Thismodelis
probablytheformofexistencemostfamiliartousasahumanspeciesasthisishow
manyofourhumanancestorslivedbeforeweinventedmoneyandmarket
capitalism.Infact,wedon’thavetoparticipateintheopen-sourcesoftware
movementorgotoBurningMantoexperiencenon-monetary,non-profit-based
economies—weparticipateinthemonadailybasisinmanyways.Wedon’tpayfor
love,fordinnersatourparents’homes,forourchild’saffection,forartandmusic
andothercreativeoutputsthathavebecomeinvisiblywovenintotheinfrastructure
ofourdailylives(ifwearelucky).Aswetransitiontonewformsofvaluecreation
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
7of9
wehaveopportunitiestoenlargeourpoolofopenassetsandreconsiderhowand
whatweassignvalueto.
WhereWeBegin
Thestartingplacetochangetheeconomicgame,tocreateaneweconomic
operatingsystemthatpromisesmoreeconomicandsocialequalityormobility,isto
developframeworksforthinkingaboutunversalbasicassets,todesignspecific
solutionsthatemergefromtheseframeworks,andthentoputthemtothetestwith
real-worldprototypes.InstitutefortheFutureisproposingtojump-startthese
effortsinthreeways:
1. Catalyzeacommunityofthinkersanddoersthroughregularconveningsto
exchangeideas,proposeframeworks,andadvancesolutions.Itiscrucialthat
webringthebestandmostinnovativethoughtleadersfromadiversityof
disciplinesandcommunitiestobuildastrongfoundationfordesigninganew
economicoperatingsystembuiltonuniversalbasicassets.
2. Conductresearchonvariousapproachestouniversalbasicassets,
particularlynewtypesofopendigitalassetsaswellasinteractionsamong
differenttypesofassets.Someofthisresearchwillbetechnical,someofit
willexplorebusinesscases,andmuchofitwilldrawonpoliticalintent.Itis
thereforeimportanttoengagenotjusttechnicalandbusinessexpertsinthe
research,butalsopolicymakersandpoliticaladvocates.
3. Prototypeandseedtoolsandinitiativesthatapplythebestthinkingin
UBAtorealworldenvironments.Weurgentlyneedtolaunchthe
experimentsthatwillbecometheseedsofrapiditerationandinnovationin
thedeploymentofuniversalbasicassets.Weneedtodesignprototypeswith
differentintentsanddocumenthowtheseprototypesimpactthelivesof
diverseparticipantsintheeconomy.Weneedtolinktheseprototypesto
communitybuildingeffortsandmeasuretheirsuccessagainstcommunity
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
8of9
criteriaandvalues.Weneedtozoomouttoseehowtheyinteractwithone
anotherandultimatelytoforecastthekindofsocietytheywillcreate.
Thecreationofaneweconomicoperatingsystemisanurgentfuture.It’snota
speculativeexerciseorapotentiallylucrativecommercialventure.It’sessentialto
humansurvivalinthedecadesahead,anduniversalbasicassetsmaybethemost
promisingpathtogetthere.
ãCopyright2017InstitutefortheFuture.Allrightsreserved.
www.iftf.org|[email protected]
9of9