Kim Dong-yeon's Opportunity Income Highly Praised by Global Scholars... "An Excellent Model"

Gyeonggi Province Governor Kim Dong-yeon (right) is talking with H. Luke Shaefer, Distinguished Professor at the Ford School, University of Michigan, USA, at the Gyeonggi Provincial Government Office on the 8th.

Opportunity Income of Gyeonggi Province Governor Kim Dong-yeon Received High Praise from World-renowned Scholar

Gyeonggi Province announced on the 9th that H. Luke Shaefer, a distinguished professor at the Ford School of Public Policy at the University of Michigan and a leading global expert in poverty and social welfare policy, visited Gyeonggi Province on the 8th and, during a meeting with Governor Kim Dong-yeon, praised Gyeonggi’s Opportunity Income program as "a globally excellent model program."

Professor Shaefer is a leading scholar in the field of poverty and social welfare policy, leading the University of Michigan’s president-initiated ‘Poverty Solutions’ project. He focuses on developing effective policies for poverty prevention and alleviation based on cooperation between local communities and the public sector.

In his co-authored book, $2.00 a Day: Living on Almost Nothing in America (2015), Professor Shaefer introduced the living conditions of America’s extreme poor and pointed out systemic social issues as the root causes of poverty. He is also recognized for his expertise in child income policies and Negative Income Tax, advising the Michigan state government and being invited to international forums.

On this day, Governor Kim Dong-yeon provided Professor Shaefer with a detailed explanation of ‘Vision 2030,’ which he led as Deputy Prime Minister during the Participatory Government, and Gyeonggi Province’s Opportunity Income program.

Governor Kim explained, "Opportunity Income in Gyeonggi Province is a system where the public compensates for social value created but not rewarded in the market. Since the beneficiaries are mainly lower-income groups such as working-class and low-income households with a high marginal propensity to consume, it has the effect of stimulating domestic demand. It is not a simple welfare program but an investment in society and the economy."

He added, "Along with Opportunity Income, we also provide 360-degree care. The important thing is to prioritize people over money in the economy. An economy that prioritizes money is not sustainable. This is what Gyeonggi Province pursues as ‘Humarnomics.’ As part of Humarnomics, unlike the central government, Gyeonggi actively promotes responses to climate change, social economy, and animal welfare."

Professor Shaefer commented, "I think it is a very interesting and innovative program and can serve as an excellent model worldwide. Compared to universal basic income, it has less potential for misuse, and delivering the same amount of money with social meaning is a highly innovative policy."

He also expressed agreement, saying, "In one of my previous studies, it was found that when giving $1, it is better to give it to those who will spend rather than those who will save, because the consumption of $1 triggers a circular economy and helps macroscopically."

The meeting between the two was arranged by Celeste Watkins-Hayes, Dean of the Ford School at the University of Michigan, Governor Kim Dong-yeon’s alma mater.

The Ford School, named after the 38th President of the United States Gerald Ford, is a public policy school affiliated with the University of Michigan and has produced many prominent politicians and government officials, including Governor Kim Dong-yeon.