Future of Basic Income Grant
Project : World Social Forum,
Dakar 2011
By Uhuru Dempers
Basic Income Grant Coalition of Namibia - Secretariat
Facts about Namibia:
development challenges
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Country with the highest levels of income
inequality in the world (UN and World Bank).
Unemployment rate jumped from 37% in
2004 to 51.2 % in 2008 up to 70% for youth.
Morethan 30% of all children below 5 years
show clear signs of malnutrition and high
levels of infant mortality rates (UNICEF 2008)
HIV prevalence rate is about 20%
25% Namibians – severe hunger (FAO)
Facts about Namibia: continue...
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Measurement of poverty a matter of debate
and therefore various indicators used.
Crude international poverty line of less than
U$1 per day will include 62% of Namibians
4000 white males still owns 60% of
productive agricultural land and reform very
slow
No framework of policy for black economic
empowerment resulting in corrupt deals
Existing forms of social security
in Namibia
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Universal, unconditional old age pension
(N$500pm) for citizens +60years – almost
80% to 90% coverage and minimal
administration cost.
Conditional Disability Grant (N$500pm) for
severe disabilities – low coverage
Conditional grants for orphans and
vulnerable children(various amounts)
War Veterans Grants (N$2500pm)
Existing contributory schemes
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Various contributory conditional grants for
only the employed managed by Social
Security Commission Including (funeral
benefit N$5000), Maternity percentage of
salary and Workmen’s compensation for
workplace accidents
Various private pension/medical aid schemes
for formal high income employees.
Low income workers excluded by most
private sector schemes
Major challenges with existing
forms of social grants
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Existing social grants have been a relieve for
the poor and supports a “household”
(average 6 people) and not only the
individual beneficiary
Social grants currently covers only a small
percentage of the poorest and unemployed
BIG Question: What about those not
covered by existing social grants? Does the
state not have duty to assist them with basic
needs, what about those that will sleep
hungry tonight...no means of survival?
History & Background of BIG
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NAMTAX Commission 2002 (Government!)
Policy Proposal:
 Monthly cash grant (e.g. N$100) paid to
every Namibian citizen (rights-based
approach)
 Every Namibian would receive such a
grant up until pension age – a HH of 6
would receive N$600 per month
 The money of people not in need or in
poverty is recuperated through the tax
system
History & Background of BIG
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NAMTAX Commission 2002
ELCRN synod resolution 2003
International Conference on income security
2004
Mobilization of civil society stakeholders and
public discussions, awareness raising
BIG Model – considered a radical departure
from conventional empowerment projects
Civil Society advocacy
campaign for policy proposal
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Establishment of Basic Income Grant Coalition of
2005
Membership: National Union of Namibian
Workers(NUNW), Council of Churches of
Namibia(CCN), Namibia NGO’s Forum(NANGOF),
Network of AIDS Organisations(NANASO), National
Youth Council(NYC), Church Alliance for orphans
and vulnerable children (CAFO) –resource
organizations -LAC and LARRI
Disability movement and farmers union joining
soon - Largest civil society network in Namibia
BIG Pilot Project
Two year period, January 2008 - December
2009 in Otjivero-Omitara
930 recipients
Comprehensive Research:
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Baseline Study in November 2007
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Timeseries in June and November 2008
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Case studies (people with HIV, single mothers, guy, youth
etc.)
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Key informants (police, nurse, teachers, shebeen owners etc.)
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Clinic data
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Police statistics (crime statistics)
Voices of Otjivero-Omitara
before the BIG
Some days we
don’t have
anything (to
eat) and we just
have to go and
sleep and get
up again
without eating.
We are really
hungry. (Emilia
Garises)
Voices of Otjivero-Omitara
before the BIG
When I started getting sick my boss
asked me to go on unpaid sick
leave till I got better. When I was
put on ARV treatment I started
getting better and I went back to
my boss but he told me that he
no longer wanted me to work for
him…I and my child need to eat
nutritional food because of our
HIV status. (...) Some months we
skip our monthly ARV treatment
because we don’t have the
transport money to travel to
Gobabis.
(Tuhafeni Veshiyele)
Voices of Otjivero-Omitara
before the BIG
My employer
chased me
away after I
went to
Windhoek with
his permission
to visit my sister
who was sick.
All my children
attended school
but could not
finished their
school career
because I could
not afford to
pay their school
Voices of Otjivero-Omitara
before the BIG
There is a problem of
unemployment and we
don’t have money to
travel to Gobabis and
Windhoek to look for
work. I and my three
children depend on my
unemployed parents for
food and
accommodation.
Sometimes I wish I was
dead because I cannot
stand this type of life
anymore. I am
supposed to provide
and protect my children
and parents but I am
failing to do that.
Voices of Otjivero-Omitara
with the BIG - Hunger
In our house there is many
people, we are 28 and at
pay out we all contribute
money for food. We give
the money to granddad
and grandmother and we
sitting together and draw
up a list of the things to
buy and one of us have
to travel with the train
either to Windhoek or
Gobabis to go buy the
food in bulk. (Hermanus
Coetzee)
Voices of Otjivero-Omitara
with the BIG - Education
Before the Basic
Income Grant
things were really
bad and it was
difficult to teach
the children, now
they concentrate
more and they pay
more attention in
class. They are
generally happy,
because they
have enough to
eat at home now
(Principal Primary
School in Otjivero
Health and the Clinic
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Since the
introduction of the
BIG income of the
clinic has risen five
fold, from about N$
250 to N$ 1,300
The BIG
strengthens and
complements
Government's
efforts to provide
ARV's to all, who
need them.
Impact of the BIG: Poverty
• Child malnutrition affected 42% of all children before the
BIG. This figure dropped to 10% within 12 months of
the BIG
“Generally the BIG has brought life to our place.
Everyone can afford food and one does not see
anymore people coming to beg for food as in the
past”
• Average household debt decreased from N$ 1215 to N$
772
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Self employment & small
businesses after BIG
Since we get the BIG I
bought materials
and I am making 3
dresses that I will
sell. When I finish
with this one (shows
an almost completed
dress), I will start
with new ones. I sell
a dress for N$ 150.
I also paid a deposit for
new zinc sheets for
my house. When
you come again, you
will see the changes.
I have a lot of plans.
(Emilia Garises)
Self employment & small
businesses after BIG
After the introduction of the BIG I
started my business. I bake
traditional bread every day. I
bake 100 rolls per day and sell
each for N$1 (one dollar). I sell
all the rolls in a day and a profit
of about N$400 (four hundred
dollars) per month. My business
is good and I believe that it will
grow. (...). I run it with the help
of my children.
Because of my thankfulness and
good experience with the BIG I
expressed my thank you in
those big letters as you can see
on my house. (Frieda
Nembwaya)
Crime
Economic /
poverty related
Reckless driving,
damage to property, violent
crimes
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50
Reported crimes (Omitara police station)
45
40
35
15
30
25
20
15
15
28
10
11
5
0
Five months bef ore BIG
Five months af ter BIG
The incidence of poverty
related crimes has fallen
by over 60% since the
BIG was introduced.
Unemployment
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60
80
100
HH with not more than two people moving in or out
17
40
7
47
45
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0
20
percent
Livelihoods and Economic
Activity
Nov 07
unemployed, not looking for work
unemployed, looking for work
Source: DfSD & LaRRi Survey Jul 2008
BIG Pilot Project Study
July 08
Unemployment
dropped
significantly, while
only 36% were
working in Nov 07,
in July 08 this rose
to 48%
Out of the
unemployed the
proportion of
people actively
looking for work
increased.
Challenges and opportunities
• Pilot Project results -most powerful advocacy
tool – both national and internationally
• BIG Project –put poverty, hunger and
unemployment on national agenda –pressure
to deliver as there no immediate alternative
• 2year Pilot concluded but community assisted
with N$80 bridging allowance
• Major focus now- Community and public
mobilization for mass action to demand for
implementation of BIG
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Challenges and Opportunites
• Cracks in BIG Coalition – NUNW withdrawal and
comeback – political pressures
• Critics –dependency, cost, sustainability and
universiality v/s targeting.
• Media Campaign successful
• Linkages of BIG Concept to other structural causes
of poverty and inequality
• Alaska and Brazil experiences useful
• Linkages with national,regional and international
socio-economic justice campaigns critical
• Role of IMF and World Bank and local elites
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“Towards a Basic Income Grant
for all!”