Iran has become the first country in the world to provide a de facto basic income to all its citizens. This article reviews the development of the main component of Irans economic reform plan the replacement of fuel and food subsidies with direct cash transfers to the population and shows how a system of universal, regular and unconditional cash transfers emerged almost by default as a by-product of an attempt to transform an inefficient and unfair system of price subsidies. The main features of the cash subsidy system are compared with those of a basic income; then some lessons from this experience are drawn that may enhance the prospects of basic income as a realistic proposition.
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