by Andre Coelho | Mar 17, 2016 | Opinion
Informal settlement in Soweto. Credit to: The Conversation
The hypothesis: basic income has not been deployed in South Africa in part because the powers that be do not let go of their interest and ability to explore people.
The following article attempts to demonstrate the validity of this hypothesis.
Let’s begin with some background. Basic Income (BI) is not a new idea in South Africa. In fact a thorough economic analysis for BI implementation has existed since 2004. The analysis was drawn from the work of recognized economists, specialists in the field, and the findings were summarized in what became known as the Taylor Committee. The Basic Income Coalition (composed of Black Sash, COSATU and SAAC), used these results to prove that BI is feasible, or at least should be tested, in South Africa.
More than 10 years have passed, and yet nothing resembling BI has been implemented or even tested in South Africa. Why not?
It is not due to lack of need: 54%1 of South Africans – over 29 million people – live under the country’s poverty line, and over 40% of the labor force is unemployed2. Moreover, according to the BIG Financing Reference Group report, it is also not due to a lack of funds:
“The Basic Income Grant is an affordable option for South Africa. Although the four economists [Economic Policy Research Institute (EPRI), Prof. Pieter le Roux, Prof. Charles Meth and Dr. Ingrid Woolard] posit slightly different net costs for the BIG, representing transfers to the poor of different amounts, there was consensus that the grant is affordable without necessitating increased deficit spending be government.”
In spite of this, the same report also states that government officials believe that BI cannot combat poverty. They have refused to consider a BI, despite knowing that current social assistance plans fail to reach over 50% of those living under the poverty line, or nearly 15 million people. These officials have continued to say that BI would not be effective despite demonstration by the Taylor Committee that basic income is the best way to diminish or even eradicate poverty in the shortest amount of time. They also ignore fiscal collection and social security savings when speaking of BI, which more than doubles its actual net cost of about 24 million ZAR/year (1.35 billion €/year), according to the calculations of the Taylor Committee. In short, most government officials completely ignore these very consistent and thought-out analyses from the Taylor Committee. Why is that?
Well, the answer may lie in the kind of structure of South African economy. The private sector accounts for around 80% of the country’s economy3. The median income is 3036 ZAR/month (171 €/month)4, which is low compared to European standards. Taking the United Kingdom as reference, the following table can be set up (Table 1).
Table 1 – Income relationships, South Africa / UK
The relationship between the median income and the average living income is considerably higher in the UK than it is in South Africa. Moreover, the ratio of median income to statutory minimum income is also much higher in the UK. Indeed, while the median income in the UK is above the minimum income (as it should be), this is not the case in South Africa: more than half of South Africans have wages below the statutory minimum income. Finally, as we can see on the graph below, the spread of incomes in South Africa is clearly skewed to the lower end on the income axis, while incomes in the UK are much more evenly distributed around the center (Figure 1 and Figure 2).
Figure 1 – Income spread in South Africa4
Figure 2 – Income spread in the UK5
These data show that the South African economy is impoverished compared to a country like the UK, and that most economic activity depends on a low-wage, low-skilled work force6. This situation is best maintained when a large number of poor, dependent people are craving for jobs in the economy. Given their subservient position, these millions of people will naturally accept low wages and substandard working conditions that they might not otherwise accept. They are also kept away from most schooling and higher education, which could provide them with extra skills and allow them to apply to other jobs or start their own businesses. This is convenient for large corporations, and these corporations lobby and finance politicians and governments to protect their interests by providing them with access to cheap labor and lax environmental laws. The Transatlantic Trade and Investment Partnership (TTIP) deals, for example, are just a formally imposed recognition of the attitudes of domination that large corporations foist upon governments and the people at large.
There is a link between corporate interests and government policy. Furthermore, the implementation of a basic income would basically be contrary to corporate interests: BI would lift millions of people out of poverty, empower them to refuse conditions of exploitation and start their own business, invest in education and bettering their lives – depriving the corporations of their pool of cheap labor. Government policymakers may also respond out of ideology or prejudice, but corporate political sponsoring response must not be ruled out, given the entrenchment and longevity of their denial (relative to progressive policies like basic income).
More information at:
A. BIG Financing Reference Group, 2004. ““Breaking the poverty trap”: Financing a basic income grant in South Africa.” Basic Income Grant (BIG) Financing Reference Group conference, Johannesburg, 24 November 2003. March, 2004.
Notes:
1 – World Development Indicators – Poverty headcount ratio at national poverty lines (% of population), 2010
2 – A more accurate, expanded definition of unemployment, including the so-called ‘discouraged jobseekers’, according to reference A.
3 – World Development Indicators – General government final consumption expenditure (% of GDP) = 20.3. Hence Non-government (private) final consumption expenditure (% of GDP) = 79.7
4 – From the spread of households within the income distribution in South Africa, 2008.
5 – From Measuring National Well-being – Personal Finance, 2012 (UK)
6 – Higher skilled professionals are usually paid on or above the median income, so a low income distribution as shown in Figure 1 must be related with a high proportion of low skilled workers.
by Josh Martin | Mar 14, 2016 | News
This article scathingly critiques the World Economic Forum’s apparent concern for global inequality, claiming that the elites present at the forum are more concerned with ensuring their own well-being and accepting global inequality as a consequence. These elites hide from society’s view but play major role in politics and in exacerbating inequality. The authors believe a universal basic income could help fight the billionaires and redistribute wealth back to those who need it.
Daniel Raventós and Julie Wark, “We Can’t Afford These Billionaires”, Counterpunch, 5 February 2016.
by Josh Martin | Mar 8, 2016 | News
Wohlforth provides a historical and current look at the Alaska Permanent Fund and all of the advantages it has brought to Alaska. Wohlforth talks through Governor Jay Hammond’s initial decision to enact the Permanent Fund Dividend and highlights how the dividend has helped Alaska achieve the lowest income inequality level in the United States. While some politicians have tried to repeal the dividend, Wohlforth references the massive political backlash that unfolded when such politicians tried to go after the sacred cow in Alaskan politics. Overall, Wohlforth’s article provides a thorough understanding of Alaska’s Permanent Fund Dividend that acts as a basic income.
Charles Wohlforth, “Alaska’s dividends help make us equal and protect our common wealth”
by Guest Contributor | Mar 8, 2016 | Opinion
By Liane Gale and Ann Withorn
for the Basic Income Woman Action Group (BIWAG)
Since 1909, International Women’s Day has been a day for recognizing women’s economic, political and social achievements. Yet over the past century, March 8 Women’s Day celebrations have revealed tensions between feminists, socialists and anarchists about the meaning of women’s roles in society. Feminists saw full equality through equal participation in the polity as the major way women would gain power. Socialists argued that full inclusion of women as workers within a self-aware proletariat was the way for women to achieve solidarity, and therefore power. Anarchists envisioned women’s liberation as based on learning new ways of living and loving, so that a new way organizing society would become possible.
Today, we view the Basic Income Guarantee (BIG) as a means to transcend such historic differences. BIG offers a way for women to achieve basic economic security outside of the labor market. It firmly denies that only certain activities done outside the home and community should be rewarded, much less be the chief source of one’s respect and social value in society. With a meaningful basic income as a secure base for living, women everywhere should be more able to live a life without fear, and of their own design.
If basic income could fundamentally change the lives and fates of women and girls, and with it the fate of humanity, then why is this not widely discussed in the community? One case in point is the appeal by Martha Beéry to the national media agency in Switzerland to invoke bias towards male views in a panel on basic income on national television in 2012 that only included men. The decision was in her favor, but the inclusion of women’s points of view in regards to basic income has been slow both in mainstream and social media. Despite this, recently we have seen a welcome surge of contributions about the economic and social realities of women, that often offer basic income as a solution to some of the disadvantages women face.
These analyses include calls to elevate the value of care work and other contributions to society (such as community work), which are underpaid or not paid at all, and as a result do not elicit much respect by a society which largely equates money-making abilities with importance and status. Organizations, such as the Care Revolution Netzwerk, that is active in German-speaking countries, Mothers at Home Matter from the UK, and initiators and supporters of the “Leap Manifesto: A Call For a Canada Based on Caring for the Earth and One Another” are all grassroots efforts to change the current narrative. With the Basic Income Woman Action Group (BIWAG), we strive to contribute to this international effort. To that end, we are facilitating national and international conference calls with interested members and maintain a BIWAG Facebook Group.
The program of the 15th Annual North American Basic Income Congress in Winnipeg, Canada (May 12-15) is especially attentive to women’s concerns and to enhancing women’s roles in the movement. More than half of the planning committee members are women. Dr. Felicia Kornbluh, professor of Gender Studies, writer, welfare rights advocate and member of the Vermont Commission on Women, will give a keynote on “Two, Three, Many Precariats: Basic Income and the Fight for Gender, Class and Disability Justice”. Two other keynotes will also be given by women. At least sixteen panel presentations and speakers will be directly addressing links between basic income and women. In addition, three BIWAG sponsored roundtables will allow serious time for discussion of “Women’s Roles within the Basic Income Movement”, “Basic Income and the Care-Centered Economy”, and “Basic Income’s Role in Ending Violence Against Women.” A panel on the Color of Poverty and speakers from the Aboriginal Council of Winnipeg will also bring much immediacy to the event.
The 2016 theme of International Women’s Day includes the goals of ending all forms of discrimination and violence against all women and girls everywhere, and we believe that a basic income would be a firm step into the direction of a more humane world for all.
To learn more about BIWAG or to get involved, please join our Facebook group or contact us at withorn.ann@gmail.com or liane.gale@gmail.com.
Recent contributions on women and basic income, and closely related issues and causes:
Nicole M. Aschoff, “Feminism Against Capitalism,” Jacobin, February 29, 2016.
Allissa Battistoni, “Why Women’s Work is Key to a Just and Sustainable Future,” Feministing, August 6, 2015.
Alyssa Battistoni, “Why Establishing a Guaranteed Income for All Can Help Prevent Environmental Catastrophe,”, Alternet (reprinted from Jacobin), February 19, 2014.
Madeleine Bunting, “Who Will Care for Us in the Future? Watch Out for the Rise of the Robots,” The Guardian, March 6, 2016.
Petra Buskins, “‘Flexibility’ Won’t Stop Women Retiring In Poverty,” New Matilda, October 30, 2015.
Liane Gale and Ann Withorn, “Basic Income Women Action Group”, Google Hangout, hosted by Marlen Vargas Del Razo, Living Income Guaranteed, Streamed Live, August 23, 2013.
Claire Cain Miller, “How Society Pays When Women’s Work is Unpaid,” New York Times, February 22, 2016.
Helen Ninnies, “As Rental Prices Rise, Women Stay in Bad Relationships to Survive,” Broadly, February 20, 2016.
Vanessa Olorenshaw, “Mothers at Home Matter and the Politics of Mothering – When Maternal Care is Taboo and Politicians Have No Clue,” Huffington Post U.K., March 17, 2015.
Meera Lee Patel: “Idea: All Work Deserves Pay,” Fast Company, January 20, 2016.
Ina Praetorius: “The Care-Centered Economy: Rediscovering What Has Been Taken for Granted,” e-book published by Heinrich Böll Stiftung, April 7, 2015.
Judith Shulevitz: “It’s Payback Time for Women,” New York Times, January 8, 2016.
by Josh Martin | Feb 29, 2016 | News
The European Network for Social Policy Analysis (ESPANET) will host a conference September 1st through the 3rd in Rotterdam titled: Re-inventing the welfare state? Pathways to sustainability, equality and inclusion in European welfare states. The conference has submitted a call for abstracts with a deadline of 18 March.
For more information, click here.
