AFRICA: “An African Identity We All Aspire To,” Nkateko Chauke

AFRICA: “An African Identity We All Aspire To,” Nkateko Chauke

The Southern African Development Community (SADC) is a region rich in minerals and energy resources. At the same time, though, it is plagued by high rates of poverty and extreme income inequality; indeed, its member states include the three nations of highest income inequality in the world (Namibia, South Africa, and Botswana).

It is also becoming a setting of basic income experimentation and activism. Namibia was the setting of a successful basic income pilot study in 2008-09, and other countries in the region have also experimented with cash transfer programs, to positive results.

Nkateko Chauke of the Studies in Poverty and Inequality Institute, an independent think tank based in South Africa, is the campaign coordinator for SADC BIG — which promotes a “SADC-wide universal cash transfer to be funded by a tax on extractive industries.”

In honor of Africa Day (May 25th), Chauke wrote an op-ed for the Daily Maverick arguing that “a universal cash transfer, predominantly funded through extractive industries, will be a remarkable stride towards poverty eradication, reduced inequalities among Africans, equal economic participation and overall African unity.”

Through the realisation of a common vision and a consolidation of national interests – with more robust social protection programmes that will ensure the redistribution of of the proceeds of extractive industries to break the crippling levels of poverty and inequality – a unified culture of people will support a long-term agenda for transformation in Africa for the achievement of sustainable development and integration.

Read the article here:

Nkateko Chauke, “An African identity we all aspire to,” Daily Maverick, May 25, 2016.

Image: Copper mine in Zambia; BlueSalo via Wikimedia Commons

Setback for Basic Income movement in Namibia

Setback for Basic Income movement in Namibia

 

When Namibia’s president Hage Geingob appointed Bishop Zephania Kameeta as minister of poverty eradication and social welfare last year, the Basic Income activists saw this as a step towards the introduction of a nationwide Basic Income Grant (BIG). President Geingob was considered to be amongst the supporters of a BIG within the ruling SWAPO party, while Bishop Kameeta was the chairperson of Namibia’s BIG Coalition and an initiator of the BIG pilot project in Otjivero. At the beginning of April 2016, the president presented his state of the nation address as well as the “Harambee Prosperity Plan”, which focused on combating poverty by the creation of jobs through economic growth. There was no mention of a systematic redistribution of the existing wealth, even though Namibia has among the greatest income inequality of all countries, with a Gini index of about 60. The only specific anti-poverty measures mentioned by Namibia’s president have been the establishment of a “food bank” to benefit of the urban poor and a promise to provide jobless youth with grants, provided that they contribute to the activities of the food bank, identify beneficiaries, help to keep the streets clean and assist with “community policing”.

 

The ministry of poverty eradication is expected to present its own specific measures in the next few weeks, but it is doubtful that the introduction of a national BIG will happen in the near future. This is a serious setback for the hopes that have risen since the appointment of Bishop Kameeta. This is particularly disappointing since Namibia’s pilot project in Otjivero had not only shown how effective a BIG could be but also inspired people in Kenya to launch another big BIG pilot project in their country. This should have encouraged the Namibian government to implement the BIG on a national scale.

 

More information at:

Language: German

Von Herbert Jauch, “Food bank statt Grundeinkommen [A food bank instead of basic income]”, Junge Welt, April 13th, 2016

On why basic income has not yet been deployed: now it’s Namibia

On why basic income has not yet been deployed: now it’s Namibia

So the basic income implementation process in Namibia was halted1. Is that surprising?

After an amazing effort by minister Zephania Kameeta to get a basic income implementation program for Namibia up to the (minister) council, it was just swept away and replaced by a program intended to alleviate poverty through economic growth. The progressive approach was replaced by the traditional economic orthodoxy of endless growth and continued inequality. This program, named “Harambee Prosperity Plan”, also includes the creation of a food bank and grants for young people conditional on participation in this food bank and a few other community activities.

Let’s not forget that Namibia was one the few places on Earth where a basic income experiment was actually carried out (at Otjivero), and with excellent results. Among the positive results were better nutrition, clothing, and transportation, more savings and a rise in entrepreneurship. You could now be thinking: Ok, so they tried basic income in a pilot project with excellent results, and they had a minister who was a champion of the basic income who could take it on to national-level implementation. So what’s stopping them now? The answer seems simple, but it is also hard to deal with.

The answer is this:  big corporate interests need poverty. And it so happens that Namibia has plenty of poor people2. In a recent essay, a tentative connection was established between poverty (in economic terms) and the refusal/denial of the South African government to test for basic income, let alone implement it at the national level. Basically, the argument entails that government officials deny the proven advantages of basic income, delaying its development, to protect corporate interests. These interests profit massively from the cheap labour that a mass of helpless poor people can provide.

The economic structure of Namibia, as related to income, is not much different from the South African, as can be seen in Figures 1 and 2. The similarity is striking, hence the same unwillingness of the Namibian political elite to try out the implementation of basic income, despite all the theoretical and proven practical advantages it provides for the people.

safricahouseholdspread

Figure 1 – The spread of households within the income distribution in South Africa, 2008

 

namibiahouseholdincome

Figure 2 – The spread of households within the income distribution in Namibia, 2015

 

A clear image starts to appear. In these countries, poverty is an asset for big industry, which has, to a great extent, bought political power. So what can be done about it? Well, two things can happen: poverty-dependent corporations automate up to a great extent3, and/or Namibians put pressure on their elected officials – through democratic processes – to get basic income implemented, despite the corporate grip on regime politicians. The first one is highly probable, and so we will be watching a fading interest of corporations in financing political power, since with mechanical machines and Artificial Intelligence they can get their way even without resorting to poor human labour. The second one, less likely but entirely possible, may grow from the first one, when political leaders get less engaged with corporate power – and although remaining eager to please them, no longer have the same financial incentive, thus becoming more susceptible to democratic pressures.

Anyway, automation may actually not be a deterrent but rather a spark for some sort of basic income implementation. We seem to be facing a win-win situation for basic income: automation and/or democratic pressures will guarantee that basic income becomes a reality in the next few years in Namibia, and elsewhere. At this point, only ruthless autocratic power can dismiss it and keep it away for much longer. The time for change has come.

 

More information at:

Claudia and Dirk Haarnann, 2015. “Relief through cash: impact assessment of the emergency cash grant in Namibia”, July 2015

Claudia and Dirk Haarnann, 2015. “Piloting basic income in Namibia – critical reflections on the process and possible lessons”, Paper delivered at the 14th Congress of the Basic Income Earth Network (BIEN) Munich – 14-16 th September 2012

André Coelho, “On why basic income has not yet been deployed”, Basic Income News, 17th March 2016

 

Notes:

1 – At the beginning of April 2016, the Namibian president presented his state of the nation address as well as the “Harambee Prosperity Plan”, which focuses on combating poverty by the creation of jobs through economic growth, plus the introduction of a food bank.

2 – According to the Republic of Namibia National Planning Commission “Poverty and deprivation in Namibia 2015”, the account for poverty is that 26,9 % of the population lives under the official poverty line.

3 – According the report “Technology at work v2.0”, it is estimated that in countries like Ethiopia the risk of job automation covers 85% of all jobs in the coming decades (other examples like China and India rate at 77% and 69% of automation risk, respectively).

NAMIBIA: Basic Income Grant request newest step toward poverty eradication

NAMIBIA: Basic Income Grant request newest step toward poverty eradication

Namibia’s Minister of Poverty Eradication and Social Welfare, Zephania Kameeta, announced last Thursday that a Basic Income Grant was being submitted for Cabinet approval and presented the blueprint to fellow Ministers.

The blueprint seeks to expand on an early Basic Income Guarantee, which was put in place in a limited area in 2008, ran steadily for two years, and intermittently after that. Noting that many households rely on the current basic as their primary source of income, Kameeta wants to continue to shift the government’s focus further toward poverty eradication — with the goal of eradicating poverty by 2025.

Among other recommendations, the blueprint lays out strategies for redistributing wealth and revising land distribution regulation in both rural and urban areas.

Read the full article here:

Nampa, “Basic Income Grant to be submitted for Cabinet Approval“, February 4, 2016

NAMIBIA: President unleashes new plan for Basic Income Grant

NAMIBIA: President unleashes new plan for Basic Income Grant

After months of meetings, studies and reports on Basic Income, Namibia takes another step forward towards adopting a basic income policy. President Hage Geingob has announced new plans that will aim to eradicate poverty by 2025. At the heart of this radical strategy is the introduction of basic income grants.

The “Harambe towards prosperity” Masterplan sets out a variety of new policy ideas to kick-start the Namibian economy. These ideas are aimed at building a stronger infrastructure, and introducing major economic and social developments. Alongside basic income grants the plan also commits to major infrastructure projects such as: improved commuter trains, housing for government employees, and improved energy and water provision.

The central goal of the plan is to eradicate poverty by 2025, and the government believes that basic income grants will be the primary mechanism by which this happens. The government hopes to introduce cash payments to each citizen regardless of age or income.

However, unlike a pure form of basic income, Namibia’s may come with some conditions. “The basic income grant will be revised and linked to the activities of the food bank. Other conditions may be attached to the BIG, thereby making it a conditional basic income grant,” stated President Geingob.

These ambitious plans don’t come without their challenges, however. Namibia has major problems with housing, water supply and very high levels of unemployment. These issues along with recently criticized infrastructure projects may prove to be major challenges to President Geingob’s plans and thereby the introduction of any basic income grants. Nonetheless, basic income has been on the political agenda in Namibia for some time and this is another step in introducing it into mainstream politics and decision-making.

For more information, see the following source:

Shinovene Immanuel, “Geingob makes more promises” , The Namibian, December 15, 2015