- Public Services (Universal Basic Services - UBS):
- Focus on eliminating “capability deprivation” (health, education, infrastructure).
- Services like water, sanitation, housing, health, education are central to capabilities.
- Cannot always be purchased in the market, so income support alone is insufficient.
- Essential for people to lead productive and dignified lives.
- Aims for permanent exit from poverty.
- Direct Income Support (Universal Basic Income - UBI):
- Transfers cash directly to individuals.
- Allows recipients to decide how to spend money.
- Does not distort the market.
- Can reduce negative impacts on the poor in short run.
- Critics argue it may reduce work incentive or promote vice.
- May not be sustainable for already stretched budgets in poor countries.
- The debate is whether to focus on providing basic capabilities or direct cash.