Basic Income Grant Pilot Project in Namibia:

By Uhuru Dempers

Evangelical Lutheran Church in the Republic of Namibia

C/o - Basic Income Grant Coalition of Namibia

Seminar on Cash Transfers, resilience and agricultural development - Stockholm,

Sweden 11th September2012

(Svenskakyrkan, SIDA and SIANI)

Facts about Namibia: development challenges

Country with the highest levels of income inequality in the world (70.7 GINI coefficient. UN and World Bank).

Unemployment rate jumped from 37% in 2004 to 51.2 % in 2008 up to 70% for youth and rural areas. Major loss of jobs agriculture. Two-thirds of rural dwellers rely on subsistence agriculture (2008 est.)

High rates of infant mortality one in 14 children die before age five. (6000 died in 2010 alone) national average is 30%!

HIV prevalence rate is about 20%

Facts about Namibia: continue...

Urbanisation resulting in 500 000 people living in informal settlements in cities - in shacks without any basic services and goods

25% Namibians – severe hunger (FAO)

Land reform slow - 4000 white males still owns 60% of productive agricultural land

No comprehensive agricultural support programs especially for small scale farmers – threats of economic partnership agreements

Facts about Namibia: continue...

Crude international poverty line of less than U$1 per day will include 62% of Namibians

Access to quality health, education, housing, sanitation services a challenge for majority

Per capita – one of the riches countries on African continent endowed with natural resources – 4th largest producer of uranium and leading producer of quality diamonds

Only population of 2,165,828 (July 2012 est.)

Existing forms of social security in Namibia

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$2000pm)

Existing contributory schemes

• Various contributory conditional grants for only the employed managed by Social Security Commission Including (funeral benefit N$3000), 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

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?

Effectiveness of social grants in addressing socio-economic

challenges Grants addresses multiple needs and gives

choices and rights to recipient to priorities

Social Grants address both socio-economic and cultural rights and empowers for political rights (education, health, economic empowerment)

Easy to administer and monitor especially when universal

Equalises society by taking from rich and empowering the poor

History & Background of BIG

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 House Hold of 6 would receive N$600 per month

The money of people not in need or in poverty is recuperated through the tax system

Civil Society advocacy campaign for policy proposal

Establishment of Basic Income Grant Coalition of 2005

Membership: National Union of Namibian Workers, Council of Churches of Namibia, Namibia NGO’s Forum, Network of AIDS Organisations, National Youth Council, Alliance of organizations dealing with orphans and vulnerable children

January 2008 – December 2009: Otjivero - Pilot Project on Policy Proposal

BIG Pilot Project

Two year period, January 2008 - December 2009 in Otjivero-Omitara

Comprehensive Research:

Baseline Study in November 2007

Time series in June and November 2008

Case studies (people with HIV, single mothers, guy, youth etc.)

Key informants (police, nurse, teachers, shebeen owners etc.)

Clinic data, Police statistics (crime statistics)

School statistics (Payments and pass-rates), Photo documentation (2,000 pictures - before BIG till end of pilot)

External international reference group

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Overall Impact of the BIG:

• Within 12 months of the introduction of

the BIG: - the number of “severely poor”

households dropped from 86% to 43% - the number of households below the

food poverty line fell from 76% to 16%. - unemployment dropped from 60% to

45%. -migration into the village from nearby

villages and bigger cities

BIG ensuring education for all

• Enrollments increased

• Better academic performance

• School funds paid • School has enough

funds to create enabling environment

• Access to education

Health and the Clinic

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.

BIG ensures access to health and nutrition

• Child malnutrition almost eradicated

• Food to compliment ARV and other medication programs

• Backyard gardening to grow vegetables

• Grant funds enable families access to healthy intake

BIG created jobs and ignited entrepreneurship

• Self employment opportunities created

• New jobs created • Residents use grant

to find employment elsewhere

• New products created and sold

• Use grants to create more opportunities

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

The incidence of poverty related crimes has fallen by over 60% since the BIG was introduced.

Five months before BIG Five months af ter BIG

0

5

10

15

20

25

30

35

40

45

50

28

11

15

15

Economic / poverty related

Reckless driving, damage to prop-erty, violent crimes

Report

ed c

rim

es (

Om

itara

polic

e s

tation)

Livelihoods and Economic Activity

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.

47

17

45

7

02

04

06

08

01

00

perc

ent

Nov 07 July 08

Source: DfSD & LaRRi Survey Jul 2008

BIG Pilot Project Study

HH with not more than two people moving in or out

Unemployment

unemployed, not looking for work

unemployed, looking for work

From pilot to national rollout - cost of a national BIG in Namibia

• BIG affordable and sustainable – poverty, unemployment and hunger unsustainable

• Scope for minor tax adjustment

• Infrastructure in place for roll-out

22

From pilot to national rollout-advocacy and lobbying strategies

• Dialogue with Government at all levels and

lobbying other stakeholders in business and civil society.

• Public mobilization – awareness raising on the model and testimonies from pilot site

• Media advocacy – constant debate and exchanges in the mass media on BIG and related topics

• Pilot Project results -most powerful advocacy tool – put poverty, unemployment on national agenda

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From pilot to national rollout-advocacy and lobbying strategies

• Major focus now- Community and public

mobilization for mass action to demand for implementation of BIG

• Building support in the constituencies of the BIG – tensions with the trade unions

• Strengthening BIG Coalition with the vision of a social movement for socio-economic justice

• Addressing the structural transformation of society – land reform, economic empowerment, natural resources benefiting population, education training etc...

24

Alliance building and international networking

• BIG Campaign in Namibia inspired by Alaska and Brazil experiences and South Africa

• Participating in regional and international socio-economic justice campaigns

• African Civil Society Platform on Social Protection, SADC Parliamentary Forum, BIG Campaigns elsewhere, BIEN etc...

• Countering advise of IMF and World Bank to Namibian Government

• Increased acceptance of BIG model in absence of alternative !

“Towards a Basic Income Grant for all!”