Basic Income Grant Pilot Project in Namibiasentation_at_stockholm_seminar_-11th_sept_2012
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Basic Income Grant Pilot Project in Namibiasentation_at_stockholm_seminar_-11th_sept_2012



On the 11th September 2012, SIANI, FAO Norden, Sida and Svenska kyrkan held a seminar called "Cash Transfers, resilience and agriculture development". The role of cash transfers in the context of ...

On the 11th September 2012, SIANI, FAO Norden, Sida and Svenska kyrkan held a seminar called "Cash Transfers, resilience and agriculture development". The role of cash transfers in the context of social protection in stimulating local production and increasing resilience’s of rural communities was discussed as well as a great many other related issues.The seminar was held in Stockholm and also broadcast over the internet.



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Basic Income Grant Pilot Project in Namibiasentation_at_stockholm_seminar_-11th_sept_2012 Basic Income Grant Pilot Project in Namibiasentation_at_stockholm_seminar_-11th_sept_2012 Presentation Transcript

  • Basic Income Grant PilotProject in Namibia:By Uhuru DempersEvangelical Lutheran Church in the Republic of NamibiaC/o - Basic Income Grant Coalition of NamibiaSeminar on Cash Transfers, resilienceand agricultural development - Stockholm,Sweden11th September2012(Svenskakyrkan, SIDA and SIANI)
  • Facts about Namibia:development challenges Country with the highest levels of income inequalityin the world (70.7 GINI coefficient. UN and WorldBank). Unemployment rate jumped from 37% in 2004 to51.2 % in 2008 up to 70% for youth and rural areas.Major loss of jobs agriculture. Two-thirds of ruraldwellers rely on subsistence agriculture (2008 est.) High rates of infant mortality one in 14 children diebefore age five. (6000 died in 2010 alone) nationalaverage is 30%! HIV prevalence rate is about 20%
  • Facts about Namibia: continue... Urbanisation resulting in 500 000 peopleliving in informal settlements in cities - inshacks without any basic services and goods 25% Namibians – severe hunger (FAO) Land reform slow - 4000 white males stillowns 60% of productive agricultural land No comprehensive agricultural supportprograms especially for small scale farmers –threats of economic partnership agreements
  • Facts about Namibia: continue... Crude international poverty line of less thanU$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 onAfrican continent endowed with naturalresources – 4th largest producer of uraniumand leading producer of quality diamonds Only population of 2,165,828 (July 2012 est.)
  • Existing forms of social securityin Namibia Universal, unconditional old age pension(N$500pm) for citizens +60years – almost80% to 90% coverage and minimaladministration cost. Conditional Disability Grant (N$500pm) forsevere disabilities – low coverage Conditional grants for orphans andvulnerable children(various amounts) War Veterans Grants (N$2000pm)
  • Existing contributory schemes• Various contributory conditional grants foronly the employed managed by SocialSecurity Commission Including (funeralbenefit N$3000), Maternity percentage ofsalary and Workmen’s compensation forworkplace accidents• Various private pension/medical aid schemesfor formal high income employees.• Low income workers excluded by mostprivate sector schemes
  • Major challenges with existingforms of social grants Existing social grants have been a relieve forthe poor and supports a “household”(average 6 people) and not only theindividual beneficiary Social grants currently covers only a smallpercentage of the poorest and unemployed BIG Question: What about those notcovered by existing social grants? Does thestate not have duty to assist them with basicneeds, what about those that will sleephungry means of survival?
  • Effectiveness of social grants inaddressing socio-economicchallenges Grants addresses multiple needs and giveschoices and rights to recipient to priorities Social Grants address both socio-economicand cultural rights and empowers for politicalrights (education, health, economicempowerment) Easy to administer and monitor especiallywhen universal Equalises society by taking from rich andempowering the poor
  • History & Background of BIG NAMTAX Commission 2002 (Government!)Policy Proposal: Monthly cash grant (e.g. N$100) paid toevery Namibian citizen (rights-basedapproach) Every Namibian would receive such agrant up until pension age – a House Holdof 6 would receive N$600 per month The money of people not in need or inpoverty is recuperated through the taxsystem
  • Civil Society advocacycampaign for policy proposal Establishment of Basic Income GrantCoalition of 2005 Membership: National Union of NamibianWorkers, Council of Churches of Namibia,Namibia NGO’s Forum, Network of AIDSOrganisations, National Youth Council,Alliance of organizations dealing withorphans and vulnerable children January 2008 – December 2009: Otjivero -Pilot Project on Policy Proposal
  • BIG Pilot Project Two year period, January 2008 - December2009 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, youthetc.) Key informants (police, nurse, teachers, shebeen owners etc.) Clinic data, Police statistics (crime statistics) School statistics (Payments and pass-rates), Photodocumentation (2,000 pictures - before BIG till end of pilot) External international reference group
  • 12Overall Impact of the BIG:• Within 12 months of the introduction ofthe BIG:- the number of “severely poor”households dropped from 86% to 43%- the number of households below thefood poverty line fell from 76% to 16%.- unemployment dropped from 60% to45%.-migration into the village from nearbyvillages and bigger cities
  • BIG ensuring education for all• Enrollmentsincreased• Better academicperformance• School funds paid• School has enoughfunds to createenablingenvironment• Access to education
  • Health and the Clinic Since theintroduction of theBIG income of theclinic has risen fivefold, from about N$250 to N$ 1,300 The BIGstrengthens andcomplementsGovernmentsefforts to provideARVs to all, whoneed them.
  • BIG ensures access to healthand nutrition• Child malnutritionalmost eradicated• Food to complimentARV and othermedication programs• Backyard gardeningto grow vegetables• Grant funds enablefamilies access tohealthy intake
  • BIG created jobs and ignitedentrepreneurship• Self employmentopportunities created• New jobs created• Residents use grantto find employmentelsewhere• New productscreated and sold• Use grants to createmore opportunities
  • Self employment & smallbusinesses after BIGSince we get the BIG Ibought materialsand I am making 3dresses that I willsell. When I finishwith this one (showsan almost completeddress), I will startwith new ones. I sella dress for N$ 150.I also paid a deposit fornew zinc sheets formy house. Whenyou come again, youwill see the changes.I have a lot of plans.(Emilia Garises)
  • Self employment & smallbusinesses after BIGAfter the introduction of the BIG Istarted my business. I baketraditional bread every day. Ibake 100 rolls per day and selleach for N$1 (one dollar). I sellall the rolls in a day and a profitof about N$400 (four hundreddollars) per month. My businessis good and I believe that it willgrow. (...). I run it with the helpof my children.Because of my thankfulness andgood experience with the BIG Iexpressed my thank you inthose big letters as you can seeon my house. (FriedaNembwaya)
  • Crime The incidence of povertyrelated crimes has fallenby over 60% since theBIG was introduced.Five months before BIG Five months after BIG0510152025303540455028111515Economic /poverty relatedReckless driving,damage to prop-erty, violentcrimesReportedcrimes(Omitarapolicestation)
  • Livelihoods and EconomicActivity Unemploymentdroppedsignificantly, whileonly 36% wereworking in Nov 07,in July 08 this roseto 48% Out of theunemployed theproportion ofpeople activelylooking for workincreased.4717457020406080100percentNov 07 July 08Source: DfSD & LaRRi Survey Jul 2008BIG Pilot Project StudyHH with not more than two people moving in or outUnemploymentunemployed, not looking for workunemployed, looking for work
  • From pilot to national rollout - cost ofa national BIG in Namibia• BIG affordable andsustainable –poverty,unemployment andhungerunsustainable• Scope for minor taxadjustment• Infrastructure inplace for roll-out
  • 22From pilot to national rollout-advocacy and lobbying strategies• Dialogue with Government at all levels andlobbying other stakeholders in business andcivil society.• Public mobilization – awareness raising onthe model and testimonies from pilot site• Media advocacy – constant debate andexchanges in the mass media on BIG andrelated topics• Pilot Project results -most powerful advocacytool – put poverty, unemployment on nationalagenda
  • 23From pilot to national rollout-advocacy and lobbying strategies• Major focus now- Community and publicmobilization for mass action to demand forimplementation of BIG• Building support in the constituencies of theBIG – tensions with the trade unions• Strengthening BIG Coalition with the vision of asocial movement for socio-economic justice• Addressing the structural transformation ofsociety – land reform, economicempowerment, natural resources benefitingpopulation, education training etc...
  • 24Alliance building and internationalnetworking• BIG Campaign in Namibia inspired by Alaska andBrazil experiences and South Africa• Participating in regional and international socio-economic justice campaigns• African Civil Society Platform on SocialProtection, SADC Parliamentary Forum, BIGCampaigns elsewhere, BIEN etc...• Countering advise of IMF and World Bank toNamibian Government• Increased acceptance of BIG model inabsence of alternative !
  • “Towards a Basic Income Grantfor all!”