Reconstructing the Social Contract Theory: Inculcating Ubi as the Antidote to Socio-Economic Inequality Among States

The social contract theory, as articulated by Hobbes, Locke, and Rousseau, establishes a foundational agreement between citizens and their government, wherein the state assumes responsibility for ensuring safety, equity, and welfare in exchange for collective compliance. However, contemporary socio-economic inequalities exacerbated by globalization, technological disruption, and systemic disparities—reveal significant gaps in this theoretical framework. This study employs a qualitative comparative methodology, utilizing the Most Different Systems Design (MDSD) to analyze UBI implementations across diverse political and economic contexts, including Finland, Kenya, and Alaska. Findings from these case studies demonstrate that UBI serves as a transformative policy tool, effectively reducing poverty, improving mental health, and fostering economic participation. Empirical evidence reveals that unconditional cash transfers enhance well-being and social stability without discouraging employment. The research further highlights the critical role of global governance institutions, such as the United Nations and the World Bank, in facilitating UBI’s alignment with the Sustainable Development Goals (SDGs). Despite political and logistical challenges, integrating UBI into governance systems presents a viable pathway to modernize the social contract and address 21st-century inequalities. This study underscores UBI’s potential as a catalyst for systemic change, advocating for innovative, collaborative policy approaches to achieve equitable socio-economic outcomes.