The Basic Income Grant in Namibia – A Model for Development in Africa

Universal Basic Income: when (if at all) is there parasitic exploitation?

“…When people opt out of the workforce, a reduction in labour supply would lead to an increase in wages to those willing to work (Widerquist, 1999: 395). Other mechanisms include a reduction in crime and delinquent behaviours, reduction in drug problems, and an increase in social cohesion and self-determination that have resulted from experiments of UBI (Haarmann and Haarmann, 2019;Costello et al, 2010). Similarly, experiments of UBI suggest a possible savings in hospital costs and public services, since UBI led to a reduction in hospitalization rates for accidents and mental health issues and also has effects in reducing some types of psychiatric disorders (Forget, 2011;and Costello et al 2003).…”

The case for a universal basic income in South Africa: A conceptual approach

“…A UBI scheme was implemented in the settlement of Otjivero and the town of Omitara in Namibia between 2008 and 2010. The program, known as the Basic Income Grant (BIG), was introduced in an attempt to address the high rates of income inequality and severe poverty (Haarmann, et al, 2009;Harman, 2006;Ilcan & Lacey, 2015;Kaufman, 2010). The pilot provided a grant of N$100 to all resident adults and children who were in the qualifying area with results indicating improved child nutrition, school attendance and performance, increased economic activities and reduced crime rates (Lacey, 2017;Sasman, 2012).…”

“…Reported results from the roll out of the BIG project are as follows (Haarmann, et al, 2009): in the first year household poverty dropped from 76% to 37% (using food poverty line as yardstick); a huge reduction in child malnutrition (the data shows that children's weight-forage improved significantly in just six months from 42% of underweight children in November 2007 to 17% in June 2008, and10% in November 2008); an increase in school attendance rates as parents were now able to afford school fees more easily (non-attendance due to financial issues dropped by 42%); a reduction in household debt during the 2007-2008 period (savings increased as evidenced by increased ownership of livestock); and a reduction in dependency of women on men for their survival (BIG was seen as a form of social protection).…”