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UBS and consumption: From me to we

Universal Basic Services can pave the way for a future where everyone's essentials are covered, influencing consumption patterns and carbon emissions.

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Quantumrun Foresight
June 28, 2024

Insight summary

Universal Basic Services (UBS) represents a shift towards ensuring everyone has access to essential services like healthcare and transportation, aiming to create a more sustainable and equitable society. UBS seeks to lower carbon emissions and foster community-oriented values by encouraging shared resources and reducing reliance on private consumption. This approach may challenge businesses to adapt and innovate while potentially reshaping government policies and social norms toward greater inclusivity and environmental responsibility.

UBS and consumption context

Universal Basic Services involve a comprehensive suite of collective measures, including services, investments, and regulations aimed at meeting universal human needs effectively and sustainably. A collaboration between the UK nonprofit The New Economics Foundation and the Berlin-based Hot or Cool Institute created a framework that can reduce emissions and conserve natural resources by focusing on collective action and essential services. These services include healthcare, education, housing, utilities, transport, and digital access.

Moreover, UBS advocates for a shift from individual market purchases towards a model of universal sufficiency—where resources are pooled and risks shared to meet everyone's needs. This approach not only fosters a sense of mutual dependence and collective responsibility but also directly addresses the need to limit consumption and curb excesses in various sectors. This shift in focus is supported by findings from the Intergovernmental Panel on Climate Change, which indicate that targeting basic needs and well-being for all is significantly less carbon-intensive than growth focused on Gross Domestic Product.

By adopting 'social licensing,' state and non-state service providers are held to public interest obligations that encompass fair compensation for workers, quality standards, and sustainable practices. For instance, a well-managed public transport system can significantly reduce greenhouse gas emissions compared to private vehicle usage. Furthermore, the concept of UBS underpins the foundation for a green transition by offering in-kind benefits, promoting job creation across skill levels, and ensuring that climate mitigation costs do not disproportionately impact the less affluent.

Disruptive impact

Access to essential services without direct payment could reduce financial stress and improve overall quality of life, particularly for those in lower income brackets. If basic needs are guaranteed, it might also lead to changes in individual behavior, such as reduced motivation for higher earnings and side hustles. Additionally, emphasizing collective consumption over personal ownership could shift societal values towards more community-oriented and sustainable lifestyles.

Companies might find the UBS trend leading to a reevaluation of their business models, especially those in healthcare, education, and public transportation. The trend could open new opportunities for partnerships with governments to provide these services, requiring a shift towards more sustainable and socially responsible operations. On the downside, businesses that rely heavily on private consumption might face challenges adapting to decreased demand for luxury or non-essential goods.

Meanwhile, successful UBS implementation could enhance social cohesion and reduce inequality, strengthening the social contract between the state and its citizens. However, the financial burden of providing universal services may require significant changes in taxation or public spending priorities, potentially leading to political resistance. Nonetheless, adopting UBS policies could position a country as a leader in social welfare innovation, influencing global policy discussions on economic equality and sustainability.

Implications of UBS and consumption

Wider implications of UBS and consumption may include:

Increased access to high-quality public services, reducing income inequality and improving quality of life for lower-income families.

A shift in consumer behavior towards shared resources, diminishing the demand for private vehicle ownership and reducing traffic congestion.

Enhanced public investment in renewable energy and efficient public transport systems, contributing to significant reductions in carbon emissions.

Businesses adapting to a service-oriented model, focusing on the provision of shared goods and services rather than individual ownership.

Governments enacting policies to ensure equitable access to digital infrastructure, closing the digital divide and fostering greater societal inclusion.

A rise in public sector employment opportunities, as the expansion of universal services necessitates a larger workforce for administration and delivery.

The potential for increased taxation to fund universal services, leading to debates about fiscal responsibility and economic growth.

The development of new technologies aimed at communal usage, such as advancements in shared transportation and public utility management systems.

A decrease in traditional consumer-driven retail markets, as communal consumption reduces individual purchases of goods.

Political shifts towards more community-focused governance, with policies prioritizing long-term sustainability and collective well-being over individual gain.