Can Universal Basic Income Solve Global Poverty?

Universal Basic Income (UBI)—a regular, unconditional cash payment to all citizens—is touted as a cure for global poverty. But does it work? Pilot programs worldwide offer mixed insights. In Kenya, a GiveDirectly study (2020-2024) found that a $30 monthly UBI increased household spending by 20% and reduced hunger, but didn’t significantly boost employment. Finland’s 2017-2018 trial, per YLE, showed UBI reduced stress but had minimal impact on job creation. Meanwhile, Iran’s cash transfer program, replacing fuel subsidies since 2010, cut poverty but strained public finances, per a 2023 World Bank report.

Critics, like those in a 2025 Financial Times piece, argue UBI’s high costs—potentially 20-30% of GDP in some countries—make it unsustainable without massive tax hikes or spending cuts. Supporters, including UNDP, claim it simplifies welfare and empowers individuals, citing Alaska’s oil-funded UBI as a success. However, a 2024 ILO report notes that UBI’s effectiveness depends on local conditions, like existing welfare systems and economic stability. While UBI can alleviate poverty, it’s not a one-size-fits-all solution, requiring tailored designs and sustainable funding to succeed globally.