Universal cash distribution is adopted by lazy politicians

Some writers in China criticize the distribution of cash to everyone, e.g., in Sanya. They say those politicians are too lazy to do great works with the money and have taken the lazy path of returning money to the people.

Well, in that case, the world needs more lazy politicians.

Should Sanya city obey directives and stop its unconditional basic income?

Sanya is a beautiful city on Hainan Island, in Hainan Province, in China.

Without much fanfare, Sanya has been distributing a small unconditional basic income to its residents. The Chinese calls this "all citizen dividend". The amount is about 60 rmb per month per resident. It has been doing this for 5 years. This unconditional payment is small, but to the poor, it is still a meaningful amount. The payment is about twice a year (every six months). Since 2011, this has been a regular payment and part of the operating budget. 

In 2014, the payments covering 6 months reach 620,000 people and total 223.2 million rmb (that is 360 rmb per person). Over 5 years, Sanya city has distributed 1.29 billion rmb. Early in 2014, Sanya distributed an additional 200 rmb per person. According to one estimate, the amount is about 1000 rmb per resident annually. According to China Labour Bulletin, the minimum wage in Hainan is about 1000 to 1150 rmb. So the unconditional "all citizen dividend" is about 1 month of minimum wage. As a percentage of salary, this Sanya payment looks comparable to or even better than the Alaska Permanent Fund Dividend  (US$900 in 2014).

Many people admire this Sanya city system and suggest that this could be done in other cities all over China. They highlight that this is really people equally sharing in the city's progress. Others say that returning wealth to the people is the right and just way to go. An analyst suggests that Xiamen city has a strong budget and can easily afford a similar "all citizen dividend" for its residents.

According to this online survey, 22695 (83%) support this unconditional cash distribution while 4396 (17%) are against it. If this survey is representative of people around the world, there is great hope for an unconditional basic income in many countries.

However, Sanya's unconditional basic income is under threat. 

A writer proposed that the payments should be legislated so that future payments will be according to the law instead of depending on the politicians' "mood and sense of generosity." Shortly after, in July 2014, Sanya announced that the payments will be modified and will no longer be unconditional. It will become a traditional targeted welfare payment. This is attributed to a directive from the Hainan Provincial government. As a result, only about one third of the residents will get paid, with a drastic drop in the total payment. 

Some see the Provincial directive as a defensive response to the popularity of Sanya's unconditional basic income. The central governments are afraid of more demands for other cities, provinces, or even at the national level. Some see the Provincial directive as a regression in the country's progress.

In comparison, Macau's unconditional cash payment has not be curtailed by the central government since Macau is a semi-autonomous "Special Administrative Region".

At this moment, it remains to be seen how the Sanya system will evolve eventually, and whether other cities will want to do the same.

References (in Chinese)