A little money goes a long way

Back we go to last week’s proposal I made for a universal basic income in South Africa.

In 27 years of columns, I don’t think I’ve ever done a part II before, but here we are, because when you only have 400 words to broach a topic and it’s one this important, this groundbreaking – about which theses have been written by some of the smartest people in the world – perhaps it needs another look.

Simple idea with a long history

First, this is not my idea, but it is one that gives me genuine hope. The basic premise is simple: give people money.

Give it to everyone, make it a set amount and make it a regular payment.

The concept has been around for centuries, supported by economists, philosophers, researchers and, crucially, on-the-ground pilot projects, even right on our doorstep in Namibia 18 years ago.

The basic income grant (BIG) was trialled in the neighbouring villages of Otjivero and Omitara in a programme led by forward-thinking Lutheran churches.

It gave each person below pensionable age 100 Namibian dollars every month.

This was a region of extreme poverty and unemployment, where malnutrition and alcoholism were rife, where entire families relied on the state pension of one grandparent and where 76% of residents subsisted below the food poverty line.

What happened when people received the grant

They’ll only drink it all, predicted the naysayers. However, the community recognised that deprivation-related alcoholism was an issue, so they formed their own committee to advise residents financially and to ensure shebeens stayed closed on BIG day.

During the programme, child malnutrition fell to just 10%; school attendance reached 92% while the dropout rate all but vanished; attendance at the local clinic improved, meaning healthier people, while both school and clinic had more income to spend on supplies and upgrades; crime fell by 42%; micro enterprises started up, including bakeries, chicken-keeping and dressmaking; and people purchased livestock and seeds, creating their own food sources.

Those living below the food poverty line dipped to 37%, despite an influx of people enticed by the hope of the BIG.

Without these arrivals, it would’ve been 16%. After two years, the grant was reduced to N$80… until the funding dried up.

But it worked. It can work again. All it needs is the political will, and our own humanity and compassion.