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Added by Jopie, at 01 January 2020
Description
Namibia is rich in economic and social potential but a large portion of the population is poor. Namibia is also a country with one of the highest levels of income inequality in the world. The huge socioeconomic disparities are largely a reflection of colonialism and apartheid, but also of the class stratification that has taken place in post-independent Namibia.
For several decades, the conventional wisdom was that economic growth would result in lower levels of poverty. It was also believed that addressing poverty by simple means such as giving people money would be a waste and ineffectual and that it was better to wait for growth to “trickle down” and eventually lift the poor out of poverty. However, 21 years after independence this has not happened in
Namibia and therefore we need to look at new ways of addressing poverty.
WHAT IS THE BASIC INCOME GRANT (BIG) ?
A Basic Income Grant (BIG) is a monthly cash grant (e.g. N$ 100) that would be paid by the state to every Namibian citizen regardless of age or income. The money, which is paid to the people not in need, is recuperated through the tax system. The main benefit of the grant is its ability to improve everyone's life by eradicating destitution, reducing poverty, inequality and unemployment rate.
WHERE DOES THE IDEA COME FROM ?
The Namibian Tax Consortium (NAMTAX) made the proposal for a Basic Income Grant for Namibia in the year 2002. The consortium was asked to review the current tax system in Namibia.The proposal for a Basic Income Grant is part of their recommendations to redistribute income in Namibia. The Consortium recommended that every Namibian should have a citizenship right to a Basic Income Grant until she or he becomes eligible for the government pension at 60 Years. The Level of the BIG should not be less than N$100 per person per month. The BIG is a cash transfer, whereby the recipient can choose how to spend the money. It is an act of empowerment, of giving enhanced freedom and personal responsibility. It is not an act of charity but it provides people with a right to a decent life.
HOW WOULD BIG WORK ?
Every Namibian would receive such a grant until s/he becomes eligible for a state pension at 60 years. In the case of children aged 17 or younger, the care-giver would receive the grant on behalf of the child. In practice this means that if there are 6 people living in a household and the level of the grant is set at N$ 100, this household in total would receive N$ 600 per month from the state.
WHY DO WE NEED A BIG?
Poverty is still rife in Namibia. Namibia has an official unemployment rate of more than 51% (Ministry of Labour 2010). Nearly every third child (30%) aged 5 years or below shows clear signs of malnutrition (UNICEF 2008). About 20% of all Namibians are infected with HIV. Furthermore, Namibia has the most unequal distribution of income in the whole world (National Planning Commission, 2009). The reduction of inequality - one of the greatest legacies of Colonialism and Apartheid - is not only a justice issue, but also has been identified as a prerequisite for economic growth and investment in developing countries.
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