Inequality
Basic Income Experiments Around the World
Basic Income Experiments Around the World
What if everyone received monthly payments to make life easier and encourage greater economic activity? That’s the exact premise behind Universal Basic Income (UBI).
The idea of UBI as a means to both combat poverty and improve economic prospects has been around for decades. With the COVID-19 pandemic wreaking havoc on economies worldwide, momentum behind the idea has seen a resurgence among certain groups.
Of course, the money to fund basic income programs has to come from somewhere. UBI relies heavily on government budgets or direct funding to cover the regular payments.
As policymakers examine this trade-off between government spending and the potential benefits, there is a growing pool of data to draw inferences from. In fact, basic income has been piloted and experimented on all around the world—but with a mixed bag of results.
What Makes Basic Income Universal?
UBI operates by giving people the means to meet basic necessities with a regular stipend. In theory, this leaves them free to spend their money and resources on economic goods, or searching for better employment options.
Before examining the programs, it’s important to make a distinction between basic income and universal basic income.
With these parameters in mind, and thanks to data from the Stanford Basic Income Lab, we’ve mapped 48 basic income programs that demonstrate multiple features of UBI and are regularly cited in basic income policy.
Some mapped programs are past experiments used to evaluate basic income. Others are ongoing or new pilots, including recently launched programs in Germany and Spain.
Recently, Canada joined the list as countries considering UBI as a top policy priority in a post-COVID world. But as past experiments show, ideas around basic income can be implemented in many different ways.
Basic Income Programs Took Many Forms
Basic income pilots have seen many iterations across the globe. Many paid out in U.S. dollars, while others chose to stick with local currencies (marked by an asterisk for estimated USD value).
Program | Location | Recipients | Payment Frequency | Amount ($US/yr) | Dates |
---|---|---|---|---|---|
Abundant Birth Project | San Francisco, U.S. | 100 | Monthly | $12,000-$18,000 | TBD |
Alaska Permanent Fund Dividend | Alaska, U.S. | 667,047 | Annually | $1,000-$2,000 | 1982-Present |
B-MINCOME | Barcelona, Spain | 1,000 | Monthly | $1,392-$23,324* | 2017-2019 |
Baby's First Years | New York, U.S. | 1,000 | Monthly | $240-$3,996 | 2017-2022 |
Baby's First Years | New Orleans, U.S. | 1,000 | Monthly | $240-$3,996 | 2017-2022 |
Baby's First Years | Omaha, U.S. | 1,000 | Monthly | $240-$3,996 | 2017-2022 |
Baby's First Years | Twin Cities, U.S. | 1,000 | Monthly | $240-$3,996 | 2017-2022 |
Basic Income for Farmers | Gyeonggi Province, South Korea | 430,000 | Annually | $509* | TBD |
Basic Income Grant (BIG) Pilot | Omitara, Namibia | 930 | Monthly | $163* | 2008-2009 |
Basic Income Project | Not Disclosed | 3,000 | Monthly | $600-$12,000 | 2019-Present |
Eastern Band of Cherokee Indians Casino Revenue Fund | Jackson County and area, NC, U.S. | 15,414 | Biannually | $7,000-$12,000 | 1996-Present |
Eight Pilot Project | Busibi, Uganda | 150 | Monthly | $110-$219* | 2017-2019 |
Evaluation of the Citizens' Basic Income Program | Maricá, Brazil | 42,000 | Monthly | $360* | 2019-Present |
Finland Basic Income Experiment | Finland | 2,000 | Monthly | $7,793* | 2017-2018 |
Gary Income Maintenance Experiments | Gary, U.S. | 1,782 | Monthly | $3,300-$4,300 | 1971-1974 |
Give Directly | Western Kenya | 20,847 | Monthly or Lump Sum | $274 | 2017-2030 |
Give Directly | Saiya County, Kenya | 10,500 | Lump Sum | $333 | 2014-2017 |
Give Directly | Rarieda District, Kenya | 503 | Monthly or Lump Sum | $405-$1,525 | 2011-2013 |
Human Development Fund | Mongolia | 2,700,000 | Monthly | $187 | 2010-2012 |
Ingreso Mínimo Vital | Spain | 850,000 | Monthly | $6,535-$14,358* | 2020-Present |
Iran Cash Transfer Programme | Iran | 75,000,000 | Monthly | $48 | 2010-Present |
Madhya Pradesh Unconditional Cash Transfers Project | Madhya Pradesh, India | 5,547 | Monthly | $26-$77* | 2011-2012 |
Magnolia Mother's Trust | Jackson, MS, U.S. | 80 | Monthly | $12,000 | 2019-Present |
Manitoba Basic Annual Income Experiment | Winnipeg, Canada | 1,677 | Monthly | $3,842-$5,864* | 1975-1978 |
Manitoba Basic Annual Income Experiment | Dauphin, Canada | 586 | Monthly | $3,842-$5,864* | 1975-1978 |
My Basic Income | Germany | 120 | Monthly | $17,160* | 2020-2023 |
New Jersey Income Maintenance Experiment | Jersey City, U.S. | 1,357 | Biweekly | Varied | 1968-1972 |
New Jersey Income Maintenance Experiment | Paterson, NJ, U.S. | 1,357 | Biweekly | Varied | 1968-1972 |
New Jersey Income Maintenance Experiment | Passaic, NJ, U.S. | 1,357 | Biweekly | Varied | 1968-1972 |
New Jersey Income Maintenance Experiment | Trenton, NJ, U.S. | 1,357 | Biweekly | Varied | 1968-1972 |
New Jersey Income Maintenance Experiment | Scranton, PA, U.S. | 1,357 | Biweekly | Varied | 1968-1972 |
Ontario Basic Income Pilot | Hamilton and area, Canada | 2,748 | Monthly | $13,112-$18,930* (-50% income) | 2017-2018 |
Ontario Basic Income Pilot | Thunder Bay and area, Canada | 1,908 | Monthly | $13,112-$18,930* (-50% income) | 2017-2018 |
Ontario Basic Income Pilot | Lindsay, Canada | 1,844 | Monthly | $13,112-$18,930* (-50% income) | 2017-2018 |
Preserving Our Diversity | Santa Monica, U.S. | 250 | Monthly | $7,836-$8,964 | 2017-Present |
Quatinga Velho | Quatinga, Mogi das Cruces, Brazil | 67 | Monthly | $197* | 2008-2014 |
Rural Income Maintenance Experiment | Duplin County, NC, U.S. | 810 | Monthly | Varied (NIT) | 1970-1972 |
Rural Income Maintenance Experiment | Iowa, U.S. | 810 | Monthly | Varied (NIT) | 1970-1972 |
Scheme $6,000 | Hong Kong, China | 4,000,000 | Annually | $771* | 2011-2012 |
Seattle-Denver Income Maintenance Experiment | Seattle, U.S. | 2,042 | Monthly | $3,800-$5,600 | 1971-1982 |
Seattle-Denver Income Maintenance Experiment | Denver, U.S. | 2,758 | Monthly | $3,800-$5,600 | 1971-1982 |
Stockton Economic Empowerment Demonstration | Stockton, U.S. | 125 | Monthly | $6,000 | 2019-Present |
TBD | Newark, U.S. | TBD | Monthly | TBD | TBD |
Transition-Age Youth Basic Income Pilot Program | Santa Clara, CA, U.S. | 72 | Monthly | $12,000 | 2020-2021 |
Wealth Partaking Scheme | Macau, China | 700,600 | Annually | $750-$1,150 | 2008-Present |
Youth Basic Income Program | Gyeonggi Province, South Korea | 125,000 | Quarterly | $848* | 2018-Present |
Citizen's Basic Income Pilot | Scotland | TBD | Monthly | TBD | TBD |
People's Prosperity Guaranteed Income Demonstration Pilot | St. Paul, U.S. | 150 | Monthly | $6,000 | 2020-2022 |
Many of the programs meet the classical requirements of UBI. Of the 48 basic income programs tallied above, 75% paid out monthly, and 60% were paid out to individuals.
However, for various reasons, not all of these programs follow UBI requirements. For example, 38% of the basic income programs were paid out to households instead of individuals, and many programs have paid out in lump sums or over varying time frames.
Interestingly, the need for better understanding of basic income has resulted in many divergences between programs. Some programs were only targeted at specific groups like South Korea’s Basic Income for Farmers program, while others like the Baby’s First Years program in the U.S. have been experimenting with different dollar amounts in order to evaluate efficiency.
Other experiments based payments made off of the total income of recipients. For example, in the U.S., the Rural Income and New Jersey Income Maintenance Experiments paid out using a negative income tax (return) on earnings, while recipients of Canada’s Ontario Basic Income Pilot received fixed amounts minus 50% of their earned income.
Varying Programs with Varied Results
So is basic income the real deal or a pipe dream? The results are still unclear.
Some, like the initial pilots for Uganda’s Eight program, were found to result in significant multipliers on economic activity and well-being. Other programs, however, returned mixed results that made further experimentation difficult. Finland’s highly-touted pilot program decreased stress levels of recipients across the board, but didn’t positively impact work activity.
The biggest difficulty has been in keeping programs going and securing funding. Ontario’s three-year projects were prematurely cancelled in 2018 before they could be completed and assessed, and the next stages of Finland’s program are in limbo.
Likewise in the U.S., start-up incubator Y Combinator has been planning a $60M basic income study program, but can’t proceed until funding is secured.
A Post-COVID Future for UBI?
In light of COVID-19, basic income has once again taken center stage.
Many countries have already implemented payment schemes or boosted unemployment benefits in reaction to the pandemic. Others like Spain have used that momentum to launch fully-fledged basic income pilots.
It’s still too early to tell if UBI will live up to expectations or if the idea will fizzle out, but as new experiments and policy programs take shape, a growing amount of data will become available for policymakers to evaluate.
Debt
Where People Borrow Money From, by Country Income Level
These graphics shed light on which people borrow money from financial institutions, and which rely on friends and family for monetary help.

When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?
On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.
In these graphics, Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.
Borrowing From Financial Institutions
To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.
In 2021, most individuals in high income economies borrowed money from formal financial institutions.
Country | Region | Borrowed from a financial institution |
---|---|---|
Canada | High income | 81.01% |
Israel | High income | 79.52% |
Iceland | High income | 73.36% |
Hong Kong SAR, China | High income | 70.01% |
Korea, Rep. | High income | 68.64% |
Norway | High income | 66.82% |
United States | High income | 66.21% |
Taiwan, China | High income | 61.95% |
Switzerland | High income | 61.40% |
Japan | High income | 61.19% |
New Zealand | High income | 60.38% |
Australia | High income | 57.29% |
Austria | High income | 56.52% |
Italy | High income | 55.01% |
United Kingdom | High income | 54.98% |
Germany | High income | 54.68% |
Ireland | High income | 54.11% |
Denmark | High income | 53.16% |
Finland | High income | 52.98% |
Spain | High income | 51.92% |
Sweden | High income | 48.69% |
Belgium | High income | 47.98% |
France | High income | 44.37% |
Singapore | High income | 42.82% |
Slovenia | High income | 42.36% |
Uruguay | High income | 42.01% |
Brazil | Latin America & Caribbean (excluding high income) | 40.75% |
China | East Asia & Pacific (excluding high income) | 39.19% |
Malta | High income | 38.95% |
Türkiye | Europe & Central Asia (excluding high income) | 37.84% |
Netherlands | High income | 34.45% |
Slovak Republic | High income | 34.41% |
Mongolia | East Asia & Pacific (excluding high income) | 34.39% |
Ukraine | Europe & Central Asia (excluding high income) | 34.13% |
Estonia | High income | 33.64% |
Croatia | High income | 33.03% |
Saudi Arabia | High income | 32.38% |
Poland | High income | 31.92% |
Czech Republic | High income | 31.33% |
Cyprus | High income | 31.25% |
Cambodia | East Asia & Pacific (excluding high income) | 30.89% |
Argentina | Latin America & Caribbean (excluding high income) | 30.81% |
Portugal | High income | 30.44% |
Kazakhstan | Europe & Central Asia (excluding high income) | 29.76% |
Russian Federation | Europe & Central Asia (excluding high income) | 29.75% |
Thailand | East Asia & Pacific (excluding high income) | 28.26% |
Bulgaria | Europe & Central Asia (excluding high income) | 26.36% |
Armenia | Europe & Central Asia (excluding high income) | 26.17% |
Iran, Islamic Rep. | Middle East & North Africa (excluding high income) | 25.11% |
Chile | High income | 24.20% |
Georgia | Europe & Central Asia (excluding high income) | 23.89% |
Ecuador | Latin America & Caribbean (excluding high income) | 23.23% |
Latvia | High income | 22.74% |
United Arab Emirates | High income | 22.46% |
Kenya | Sub-Saharan Africa (excluding high income) | 22.18% |
North Macedonia | Europe & Central Asia (excluding high income) | 22.10% |
Peru | Latin America & Caribbean (excluding high income) | 21.95% |
Dominican Republic | Latin America & Caribbean (excluding high income) | 21.65% |
Bosnia and Herzegovina | Europe & Central Asia (excluding high income) | 21.30% |
Sri Lanka | South Asia | 21.29% |
Namibia | Sub-Saharan Africa (excluding high income) | 20.97% |
Serbia | Europe & Central Asia (excluding high income) | 20.65% |
Greece | High income | 20.11% |
Mauritius | Sub-Saharan Africa (excluding high income) | 20.09% |
Bolivia | Latin America & Caribbean (excluding high income) | 19.30% |
Romania | Europe & Central Asia (excluding high income) | 19.14% |
Hungary | High income | 18.93% |
Uganda | Sub-Saharan Africa (excluding high income) | 18.62% |
South Africa | Sub-Saharan Africa (excluding high income) | 18.22% |
Colombia | Latin America & Caribbean (excluding high income) | 18.10% |
Kyrgyz Republic | Europe & Central Asia (excluding high income) | 17.73% |
Kosovo | Europe & Central Asia (excluding high income) | 17.61% |
Costa Rica | Latin America & Caribbean (excluding high income) | 17.46% |
Philippines | East Asia & Pacific (excluding high income) | 17.45% |
Liberia | Sub-Saharan Africa (excluding high income) | 15.42% |
Bangladesh | South Asia | 14.22% |
Nepal | South Asia | 14.11% |
Malaysia | East Asia & Pacific (excluding high income) | 13.48% |
Albania | Europe & Central Asia (excluding high income) | 13.39% |
Moldova | Europe & Central Asia (excluding high income) | 13.18% |
Indonesia | East Asia & Pacific (excluding high income) | 12.86% |
Tajikistan | Europe & Central Asia (excluding high income) | 12.43% |
Paraguay | Latin America & Caribbean (excluding high income) | 12.39% |
Nicaragua | Latin America & Caribbean (excluding high income) | 12.19% |
Jamaica | Latin America & Caribbean (excluding high income) | 12.04% |
Lithuania | High income | 11.95% |
India | South Asia | 11.79% |
Mali | Sub-Saharan Africa (excluding high income) | 10.99% |
El Salvador | Latin America & Caribbean (excluding high income) | 10.56% |
Panama | Latin America & Caribbean (excluding high income) | 10.39% |
Honduras | Latin America & Caribbean (excluding high income) | 10.32% |
Mozambique | Sub-Saharan Africa (excluding high income) | 10.27% |
Senegal | Sub-Saharan Africa (excluding high income) | 9.98% |
Tunisia | Middle East & North Africa (excluding high income) | 9.89% |
Jordan | Middle East & North Africa (excluding high income) | 9.86% |
Lao PDR | East Asia & Pacific (excluding high income) | 9.15% |
Venezuela, RB | Latin America & Caribbean (excluding high income) | 8.83% |
Benin | Sub-Saharan Africa (excluding high income) | 8.21% |
Malawi | Sub-Saharan Africa (excluding high income) | 7.99% |
Uzbekistan | Europe & Central Asia (excluding high income) | 7.50% |
Togo | Sub-Saharan Africa (excluding high income) | 7.42% |
Ghana | Sub-Saharan Africa (excluding high income) | 7.40% |
Egypt, Arab Rep. | Middle East & North Africa (excluding high income) | 7.30% |
Myanmar | East Asia & Pacific (excluding high income) | 7.06% |
Cameroon | Sub-Saharan Africa (excluding high income) | 6.99% |
Zambia | Sub-Saharan Africa (excluding high income) | 6.76% |
Burkina Faso | Sub-Saharan Africa (excluding high income) | 6.66% |
Nigeria | Sub-Saharan Africa (excluding high income) | 6.40% |
Congo, Rep. | Sub-Saharan Africa (excluding high income) | 6.19% |
Guinea | Sub-Saharan Africa (excluding high income) | 6.11% |
Gabon | Sub-Saharan Africa (excluding high income) | 5.48% |
Morocco | Middle East & North Africa (excluding high income) | 4.99% |
West Bank and Gaza | Middle East & North Africa (excluding high income) | 4.94% |
Tanzania | Sub-Saharan Africa (excluding high income) | 4.45% |
Sierra Leone | Sub-Saharan Africa (excluding high income) | 4.29% |
Cote d'Ivoire | Sub-Saharan Africa (excluding high income) | 4.10% |
Algeria | Middle East & North Africa (excluding high income) | 3.80% |
Iraq | Middle East & North Africa (excluding high income) | 3.64% |
Pakistan | South Asia | 3.51% |
Lebanon | Middle East & North Africa (excluding high income) | 3.31% |
Zimbabwe | Sub-Saharan Africa (excluding high income) | 2.89% |
South Sudan | Sub-Saharan Africa (excluding high income) | 2.48% |
Afghanistan | South Asia | 2.05% |
With 81% of respondents borrowing from financial institutions, Canada tops this list. Meanwhile, Israel (80%), Iceland (73%), Hong Kong (70%), and South Korea (69%) are not far behind.
This is not surprising for richer nations, as financial services in these countries are more available and accessible. This, coupled with higher financial literacy, including a general understanding of interest rates and credit-building opportunities, contribute to the popularity of financial institutions.
Also, it’s worth noting that some countries have cultural practices that factor in. For example, 61% of respondents in Japan used formal financial institutions, which are a more socially acceptable option than asking to borrow money from friends and family (just 6% of people in Japan).
Borrowing from Friends and Family
In contrast, more individuals in lower income economies approached family and friends in order to borrow money.
Afghanistan tops this list with 60% of respondents relying on friends and family, compared to only 2% borrowing money from formal financial institutions.
Country | Region | Borrowed from family or friends |
---|---|---|
Afghanistan | South Asia | 60.18% |
Uganda | Sub-Saharan Africa (excluding high income) | 57.45% |
Kenya | Sub-Saharan Africa (excluding high income) | 54.40% |
Namibia | Sub-Saharan Africa (excluding high income) | 50.25% |
Morocco | Middle East & North Africa (excluding high income) | 48.73% |
Nigeria | Sub-Saharan Africa (excluding high income) | 44.71% |
South Africa | Sub-Saharan Africa (excluding high income) | 44.54% |
Iraq | Middle East & North Africa (excluding high income) | 44.10% |
Cameroon | Sub-Saharan Africa (excluding high income) | 43.49% |
Zambia | Sub-Saharan Africa (excluding high income) | 43.08% |
Zimbabwe | Sub-Saharan Africa (excluding high income) | 42.34% |
Guinea | Sub-Saharan Africa (excluding high income) | 42.04% |
Nepal | South Asia | 41.79% |
Jordan | Middle East & North Africa (excluding high income) | 41.76% |
Gabon | Sub-Saharan Africa (excluding high income) | 41.41% |
Liberia | Sub-Saharan Africa (excluding high income) | 41.37% |
Tunisia | Middle East & North Africa (excluding high income) | 41.05% |
Philippines | East Asia & Pacific (excluding high income) | 40.82% |
Türkiye | Europe & Central Asia (excluding high income) | 40.80% |
Iran, Islamic Rep. | Middle East & North Africa (excluding high income) | 39.80% |
Sierra Leone | Sub-Saharan Africa (excluding high income) | 39.02% |
Ghana | Sub-Saharan Africa (excluding high income) | 38.58% |
Egypt, Arab Rep. | Middle East & North Africa (excluding high income) | 37.75% |
Saudi Arabia | High income | 35.76% |
Bangladesh | South Asia | 35.49% |
Mali | Sub-Saharan Africa (excluding high income) | 35.15% |
Burkina Faso | Sub-Saharan Africa (excluding high income) | 35.14% |
Cambodia | East Asia & Pacific (excluding high income) | 34.85% |
Venezuela, RB | Latin America & Caribbean (excluding high income) | 34.81% |
Togo | Sub-Saharan Africa (excluding high income) | 33.99% |
West Bank and Gaza | Middle East & North Africa (excluding high income) | 33.93% |
Thailand | East Asia & Pacific (excluding high income) | 32.83% |
Lao PDR | East Asia & Pacific (excluding high income) | 32.36% |
Moldova | Europe & Central Asia (excluding high income) | 32.18% |
Ukraine | Europe & Central Asia (excluding high income) | 32.17% |
Senegal | Sub-Saharan Africa (excluding high income) | 31.30% |
Armenia | Europe & Central Asia (excluding high income) | 31.29% |
India | South Asia | 31.02% |
Bolivia | Latin America & Caribbean (excluding high income) | 30.69% |
Algeria | Middle East & North Africa (excluding high income) | 30.52% |
Cote d'Ivoire | Sub-Saharan Africa (excluding high income) | 30.20% |
Albania | Europe & Central Asia (excluding high income) | 30.00% |
Bulgaria | Europe & Central Asia (excluding high income) | 29.99% |
Benin | Sub-Saharan Africa (excluding high income) | 29.33% |
Mozambique | Sub-Saharan Africa (excluding high income) | 29.33% |
Tanzania | Sub-Saharan Africa (excluding high income) | 29.24% |
Colombia | Latin America & Caribbean (excluding high income) | 29.08% |
Indonesia | East Asia & Pacific (excluding high income) | 28.85% |
South Sudan | Sub-Saharan Africa (excluding high income) | 28.84% |
Ecuador | Latin America & Caribbean (excluding high income) | 28.79% |
Serbia | Europe & Central Asia (excluding high income) | 28.49% |
Russian Federation | Europe & Central Asia (excluding high income) | 28.40% |
Mongolia | East Asia & Pacific (excluding high income) | 27.01% |
Kyrgyz Republic | Europe & Central Asia (excluding high income) | 27.01% |
China | East Asia & Pacific (excluding high income) | 26.43% |
Honduras | Latin America & Caribbean (excluding high income) | 26.07% |
Greece | High income | 25.94% |
Kosovo | Europe & Central Asia (excluding high income) | 25.86% |
Argentina | Latin America & Caribbean (excluding high income) | 25.72% |
Kazakhstan | Europe & Central Asia (excluding high income) | 25.64% |
Romania | Europe & Central Asia (excluding high income) | 25.58% |
Malawi | Sub-Saharan Africa (excluding high income) | 25.24% |
North Macedonia | Europe & Central Asia (excluding high income) | 25.14% |
Dominican Republic | Latin America & Caribbean (excluding high income) | 24.70% |
Brazil | Latin America & Caribbean (excluding high income) | 24.66% |
Congo, Rep. | Sub-Saharan Africa (excluding high income) | 24.40% |
Lebanon | Middle East & North Africa (excluding high income) | 24.26% |
Nicaragua | Latin America & Caribbean (excluding high income) | 23.75% |
Iceland | High income | 23.63% |
Peru | Latin America & Caribbean (excluding high income) | 23.34% |
United Arab Emirates | High income | 23.04% |
Myanmar | East Asia & Pacific (excluding high income) | 23.03% |
Sri Lanka | South Asia | 22.53% |
Paraguay | Latin America & Caribbean (excluding high income) | 22.20% |
Pakistan | South Asia | 21.87% |
Uzbekistan | Europe & Central Asia (excluding high income) | 21.53% |
Cyprus | High income | 20.95% |
Bosnia and Herzegovina | Europe & Central Asia (excluding high income) | 20.94% |
Chile | High income | 20.72% |
Georgia | Europe & Central Asia (excluding high income) | 20.61% |
Mauritius | Sub-Saharan Africa (excluding high income) | 20.48% |
Costa Rica | Latin America & Caribbean (excluding high income) | 20.29% |
Jamaica | Latin America & Caribbean (excluding high income) | 20.02% |
Tajikistan | Europe & Central Asia (excluding high income) | 19.86% |
Poland | High income | 19.34% |
Norway | High income | 19.29% |
United States | High income | 18.09% |
Uruguay | High income | 17.60% |
Panama | Latin America & Caribbean (excluding high income) | 17.54% |
Denmark | High income | 17.51% |
Croatia | High income | 17.09% |
El Salvador | Latin America & Caribbean (excluding high income) | 16.78% |
Slovenia | High income | 16.77% |
Latvia | High income | 16.57% |
Australia | High income | 16.44% |
Estonia | High income | 15.74% |
Malaysia | East Asia & Pacific (excluding high income) | 15.44% |
Israel | High income | 15.43% |
New Zealand | High income | 15.19% |
Slovak Republic | High income | 15.02% |
Germany | High income | 15.01% |
Austria | High income | 14.41% |
Canada | High income | 14.00% |
Finland | High income | 13.43% |
Czech Republic | High income | 13.41% |
Korea, Rep. | High income | 13.16% |
Malta | High income | 12.99% |
Belgium | High income | 12.13% |
Sweden | High income | 11.79% |
Hungary | High income | 11.15% |
Lithuania | High income | 10.65% |
Spain | High income | 10.44% |
France | High income | 10.42% |
Netherlands | High income | 10.24% |
Ireland | High income | 9.84% |
Taiwan, China | High income | 9.70% |
Portugal | High income | 8.22% |
Hong Kong SAR, China | High income | 7.59% |
Japan | High income | 6.43% |
Switzerland | High income | 6.10% |
United Kingdom | High income | 5.24% |
Italy | High income | 5.06% |
Singapore | High income | 1.89% |
Many individuals in African countries including Uganda (57%), Kenya (54%), Namibia (50%), and Morocco (49%) also are choosing to borrow money from friends and family over financial institutions.
These preferences can be attributed to various factors including a lack of trust in banking and financial institutions, lacking access to such services, or the lack of information about such services if they are available.
And in some societies, borrowing from friends and family can be seen as a cultural norm, especially in places where mutual support and solidarity play a strong role.
What’s Next?
As viewed by the World Bank, financial inclusion is an important foundation of any nation’s development, and it’s also one of the UN’s Sustainable Development Goals. Increasing levels of financial inclusion helps give people access to services like savings plans, credit avenues, and online payments and transactions.
And thanks to commitments from countries and financial systems, global ownership of banking accounts has increased significantly (and been further spurred by the COVID-19 pandemic). According to the Global Findex Database, bank account ownership has risen to 76% in 2021, up from just 51% a decade prior.
However, access to these services is still rife with gaps when it comes to low income nations, low income individuals, and unequal access based on gender. The future of borrowing now relies on how nations deal with these challenges.
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