Wilfred Diergaardt, a long-time leader of the Basic Income movement in Namibia, died of Covid-19 earlier this month. One December 22, Claudia and Dirk Haarmann, sent the following announcement of Dieragaardt’s death:
It is with a very sad heart that we have to share with you that this morning Rev. Wilfred Diergaardt passed on.
He has been a dear brother and comrade in the struggle for social justice in the Namibian Basic Income Grant campaign and in the fight against HIV-AIDS. His passing on leaves a devastating gap for his family, friends and society at large, which is currently beyond comprehension.
He was hospitalized with COVID-19 on the 8th of Dezember and was treated the last days in the ICU. His wife Cynthia informed us this morning and asked us to convey this sad news to you as colleagues and friends. Please keep her and the family in your prayers!
From 2008 to 2009 Namibia hosted a globally significant Basic Income pilot project. The coalition behind the project relaunched today to ask for a Basic Income for Namibia.
Speakers at the event included Uhuru Dempers (Desk for Social Development of the Evangelical Lutheran Church (NAM)), Dr. Andre September (Council of Churches in Namibia), Rinaani Musutua (Economic and Social Justice Trust), and Julia Ndaponah Shikangalah, who received a BIG in 2008-09.
A South West African state with a troublesome colonial history, Namibia has a population of around 2,5 million people and is one of the least populated countries in Africa due to its extremely dry climate. The country is rich in natural resources like – diamonds (annual value of mined diamonds around 1 billion US dollars)1 , uranium (4th largest producer in the world), gold, zinc, copper 2. Other important industries are fishing, agriculture and tourism.
Unfortunately for the majority of the Namibian people the benefits from an abundant national wealth are not equally distributed. Namibia ranks as one of the most unequal places on the planet where 50% of the population live on less than 5.50 USD per day 3 and in 2017 27% 4were living below the poverty line. A place where people have not enough food to sustain their nutritional needs.
On top of poverty, hunger and the impact of climate change contributing to suffering, there are some additional challenges:
Unemployment rate 2018 – 33.4% where female joblessness is prevalent 5
Children are trafficked within Namibia for forced labor in agriculture, cattle herding, domestic work, and commercial sexual exploitation. San children are particularly vulnerable to forced labor on farms or in homes. 7
The list goes on.
2. The Universal Basic Income Pilot Project in Namibia9
In the context of the socio-economic situation described above The Basic Income Grant Coalition comprised of citizens’ organisations (the Council of Churches, the National Union of Namibian Workers, the National NGO Forum, the Namibian Network of AIDS Service Organisations, the Legal Assistance Centre, and The Labour, Resource and Research Institute) funded and ran a pilot project the purpose of which was to trial and study the application of Universal Basic Income in Namibia.
From January 2008 to December 2009 every resident of Otjivero – Omitara (about 1,000 people) received a monthly allowance of (N$80 = USD 4.5 ) which was paid regularly until March 2012.
The research had the following results:
social cohesion – the community established an 18-member committee to advise members on how to spend their allowance wisely
it attracted migrants who could benefit from the favourable environment. More sharing meant that the value of the monthly allowance dropped from N$89 (USD 5) per month in January 2008 to N$67 (USD 4) in November 2008
poverty dropped by 39% among residents who were sharing with migrants and 60% in cases where the allowance was spent only by the resident
income-generating activities like brick-making, baking of bread and dress-making jumped 15% and a local market was created as people had a bigger purchasing power
by November 2008 child malnutrition decreased 32%
people with HIV could afford better food and medication
school drop-out rate fell to almost 0%
healthcare became more accessible to residents as they could afford it
crime fell by 42%
the basic income grant empowered women and made them more secure as they did not have to engage in transactional sex services
In conclusion, the pilot project had a dramatic overall positive effect on the selected community. The Basic Income Grant Coalition calculated that the cost for nationwide implementation of unconditional universal basic income for all would be N$ 1.2 – 1.6 billion (USD 71 – 95 million) per year, equivalent to 2.2 – 3% of Namibia’s GDP (2019 – 12.37 USD Billion) 10
In short, UBI in Namibia was and is feasible. The missing component then and now remains the lack of political will to apply the project on a national level.
3. Government response regarding the pandemic crisis in Namibia
Following from the brief summary of state of affairs in Namibia and an example of a possible solution to the human suffering caused by institutional inadequacy and economic logic that produces inequality, I will now list the measures that the Namibian government has taken to tackle the health/economic crisis triggered by COVID-19.
1. Emergency Income Grant 11 – one off payment of N$750 (USD 45) for people experiencing financial difficulties caused by COVID. The government allowance should cover 749 000 people in need and will cost the government N$562 million (USD 34 million).
the sum is insufficient to sustain an ongoing lockdown and future economic inactivity
the grant is conditional – employed persons and people who already receive social benefits do not qualify being supported by this policy
to obtain the one off payment citizens must own a mobile phone and an ID number
The EIG is a self-nomination process. Therefore applicants are required to have, or make use of an active cell phone number, and a valid Namibian ID number.
Applicants must SMS their name and ‘EIG’ to 141222 to start the registration process, or dial *141*222#. After the approval of the application by the ministry, applicants will receive a token from the bank they have selected in the application process. 12
there is a considerable distrust among the population about potential problems with the distribution system and application process
the policy is not universal, it does not cover every single Namibian which means it fails to act as an emergency safety net for all
3.1. Subsidy for employers in the construction, tourism and aviation sectors. Workers will receive 17% of their wage for 3 months.
3.2. Employers who are benefiting from measures should not be firing any of their workers or reducing their salaries with more than 50%
3.3. The programme will benefit 7,900 employers employing 65,420 employees. The budget amounts to N$150 million (USD 8 million) which is approximately 25% of the total wage bill.
3.4. Grants for workers affected by COVID-19. These are conditional application based stimulus that has the potential to help 56,000 to 117,000 applicants.
3.5. Government and business owners will be allowed to negotiate a temporary 20% drop in salaries.
How these measures can be interpreted:
insufficient funding of affected workers
conditions and administrative obstacles for receiving help
potential to undermine workers income for a long period of time
the policy does not cover all workers in Namibia
4. The Economic stimulus measures which will be administered by banks consist in:15
4.1. Tax-back loan scheme for businesses and individuals
4.2. Agricultural and non-agricultural and small business loan programmes
Here the government enables the banks to make businesses dependent on loans which creates more instability by increasing debt in society. Hardly an adequate solution for the needs of business owners, workers and their families.
5. Water subsidy equal to N$10 million. This will enable water points to be kept open without people needing to use water cards.
Probably the bare minimum a state can do to prevent riots and social breakdown.
There is a general concern about administration and distribution of emergency funds based on past and present experiences. In a report called COVID-19 Emergency Procurement16 by Frederico Links the author outlines issues with transparency on spending by government institutions which raises doubts about how much of the already unsatisfactory help will reach people at the bottom of the income chain.
Another report Analysis – Namibia’s National Budget 2020/2117 comments on potential problems with the financial stability of Namibia and its economic future which has direct implications on the wellbeing of the Namibian people.
In conclusion, based on the information above:
Emergency spending to alleviate poverty and tackle social and economic inequalities was and is needed regardless of COVID-19.
The ongoing crisis requires working solutions based on unconditional, regular distribution of wealth for all Namibian people in order to sustain their individual sovereignty, dignity and human rights permanently.
The measures announced by the government are inadequate, insufficient and cruel as they don’t meet the needs of the population.
Basic Unconditional Income, proven by the BIG pilot project, is feasible and has the potential to create social cohesion, improve the local economy and bring back trust in existing institutions and political leadership.
To achieve the above the citizens of Namibia have the opportunity to unite and stand behind a clear demand for the implementation of Basic Unconditional Income for all.
All people have the right to determine their present and future. An unconditional basic income is what will enable them to fulfil their fundamental human rights.
Ten years after the Basic Income Grant pilot project in Otjivero, we are glad to announce that a new book has just been published by the Namibian Economic & Social Trust in Windhoek tonight:
You can download the book in pdf or as epub (eReaders) through the following links:
Together with Engelhard Unaeb and Herbert Jauch we have conducted this series of interviews with residents of Otjivero in the beginning of 2019. This publication aims to give a voice to the people at the centre of the BIG pilot project who experienced what changed and what remained after the BIG ended and how their lives look like ten years later. The publication highlights the political developments since the pilot project. Most importantly it provides a long term analysis of the effects of a Basic Income on household and community level from the perspective of the people concerned. This publications wants to ensure that the people’s voices and opinions are heard.
It is our hope and prayer that this book will help to refocus the debate on the urgency for an immediate implementation of a basic income for all!
This essay was originally published in the USBIG NewsFlash in October 2008.
In January 2008, a Basic Income Grant (BIG) pilot project began in the Otjivero-Omitara area in Namibia. All residents below the age of 60 years receive a Basic Income Grant of 100 Namibian dollars per person per month, without any conditions attached. According to BIEN, the grant is being given to every person registered as living there in July 2007, whatever their social and economic status. This BIG pilot project is designed and implemented by the Namibian Basic Income Grant Coalition (established in 2004) and is the first universal cash-transfer pilot project in the world. The BIG Coalition has just published its first assessment report on the project, which compares the results of a baseline study and a panel survey after the first six months of implementation.
1. The community itself responded to the introduction of the BIG by establishing its own 18-member committee to mobilize the community and advise residents on how they could improve their lives with the money. This suggests that the introduction of a BIG can effectively assist with community mobilisation and empowerment.
2. Since the introduction of the BIG child malnutrition in the settlement has dropped remarkably. Using a WHO measurement technique, the data shows that children’s weight-for-age has improved significantly in just six months from 42% of underweight children to only 17%.
3. Since the introduction of the BIG, the majority of people have been able to increase their work both for pay, profit or family gain as well as self-employment. This finding is contrary to critics’ claims that the BIG would lead to laziness and dependency.
4. Income has risen in the community since the introduction of the BIG by more than the amount of the grants. There is strong evidence that more people are now able to engage in more productive activities and that the BIG fosters local economic growth and development. Several small enterprises started in Otjivero, making use of the BIG money being spent in the community.
5. More than double the number of parents paid school fees and the parents prioritized the buying of school uniforms. More children are now attending school and the stronger financial situation has enabled the school to improve teaching material for the pupils (eg. buying paper and toner). The school principal reported that drop-out rates at her school were 30-40% before the introduction of the BIG. By July 2008, these rates were reduced to a mere 5%.
6. The BIG supports and strengthens Government’s efforts to provide ARV treatment to people suffering from HIV/AIDS by enabling them to access governments services and afford nutrition.
7. The residents have been using the settlement’s health clinic much more since the introduction of the BIG. Residents now pay the N$4 payment for each visit and the income of the clinic has increased fivefold.
8. The criticism that the grants are apparently leading to more alcoholism is not supported by evidence from the community. On the contrary, the introduction of the BIG has induced the community to set up a committee that is trying to curb alcoholism and that has worked with local shebeen [unlicensed tavern] owners not to sell alcohol on the day of the pay-out of the grants.
9. The introduction of the Basic Income Grant has helped young women recipients to take charge of their economic affairs. Several cases document that young women have been freed from having to engage in transactional sex.
10. Economic and poverty-related crime (illegal hunting, theft and trespassing) has fallen by over 20%.
11. The BIG has helped to achieve progress towards all eight Millenium Development Goals.
In brief, according to the report the initial results of this pilot project are very encouraging and by far exceed the expectations of the BIG Coalition. The local community has embraced the pilot project and is engaged in efforts to make it work well. According to BIEN, as commented by one of the community’s residents: “Generally, the BIG has brought life to our place. Everyone can afford food and one does not see any more people coming to beg for food as in the past. What I can say is that people have gained their human dignity and have become responsible.” (Jonas Damaseb, June 2008) Bishop Dr. Z. Kameeta, speaking at the report launch on October 2nd, said: “We, as a Nation, cannot wait to address poverty head on. We cannot wait to implement a universal Basic Income Grant nation wide. This is a challenge for the whole country.”
-Karl Widerquist, Oxford UK, October 2008
Further information about the project is available on www.bignam.org.
Including a video of the presentation of the report at https://www.bignam.org/page4.html.
An article on the report published by “The Namibian” (October 3, 2008) in online at https://allafrica.com/stories/200810030605.html
