What is a Basic Income Grant (BIG)? and what happened in Namibia?

A Basic Income Grant (BIG) is a form of social security in which all citizens or residents of a country regularly receive an unconditional sum of money from the government, regardless of their income, resources or employment status. The main goals of a BIG are to provide a basic standard of living for all citizens and to alleviate poverty and income inequality[1][2].

Pros of a Basic Income Grant

Alleviating poverty and income inequality

A BIG would provide a steady income to all citizens, which would significantly reduce poverty and income inequality. The regular payments would help ensure that everyone can meet their basic needs[1][2].

Improving health and wellbeing

By reducing poverty and providing financial security, a BIG would have positive impacts on physical and mental health. It would reduce stress and allow people to better afford healthcare, food, housing and other necessities[2][4].

Reducing administrative costs

Compared to traditional welfare programs, a BIG would be simpler and cheaper to administer since there would be no means-testing or eligibility requirements to verify[2][3].

Providing a safety net for the vulnerable

A BIG would provide a reliable source of income for those in vulnerable situations, such as victims of domestic violence, people with disabilities, and those unable to work[4].

Encouraging entrepreneurship

By providing a basic income, a BIG would give people more freedom to take risks, start businesses, pursue education, or engage in unpaid care work without fear of falling into poverty[4][5].

Cons of a Basic Income Grant

High cost

Providing a meaningful basic income to an entire population would be extremely expensive for governments. The costs could potentially be prohibitive, especially for developing countries[1][2].

Potential disincentive to work

Some argue that a BIG could reduce the motivation to work, although studies have shown only modest reductions in employment, if any[2][4].

Fairness concerns

Providing the same payment to everyone regardless of need raises questions of fairness. Some argue the money could be better targeted to those most in need[3][4].

Inflation risk

If a BIG is not implemented carefully, it could potentially lead to inflation as people have more money to spend[4].

Sustainability

Ensuring a BIG program remains fiscally sustainable over the long-term would be challenging, especially if it is not funded through reliable revenue sources[3].

Conclusion of what is BIG

In conclusion, a Basic Income Grant is a bold policy proposal with the potential to significantly reduce poverty and improve wellbeing, but it also faces major challenges around cost, implementation, and potential unintended consequences. More evidence from ongoing pilots will help shed light on its feasibility and impacts.

Measuring the Impact of Namibia's Basic Income Grant (BIG) Pilot

Namibia conducted a two-year pilot of a Basic Income Grant (BIG) from 2007-2009 in the Otjivero-Omitara region. The pilot provided a monthly unconditional cash transfer of NAD100 (about $13) to all residents under 60 years old. Researchers conducted a thorough evaluation of the pilot's impacts using several methods:

Baseline and Panel Surveys

- A baseline survey was conducted in November 2007 before the BIG started. 

- Panel surveys were conducted in July and November 2008 to track changes over time.

Key Informant Interviews

- Researchers gathered information from key informants in the Otjivero-Omitara area.

Case Studies  

- Detailed case studies were done on individuals living in Otjivero-Omitara.

The evaluation found very positive results from the BIG pilot:

• Household poverty rates fell from 76% before the BIG to 37% after one year. For households not affected by in-migration, the poverty rate dropped to just 16%[3].
• Child malnutrition rates declined from 42% in November 2007 to 17% in June 2008 and 10% in November 2008[3].
• School attendance increased by 90% as more parents could afford to send their children to school. Dropout rates fell from 40% in 2007 to 5% in 2009[3].
• Crime rates fell by 42% overall, with stock theft down 43% and other theft down nearly 20%[3].

The thorough evaluation approach, combining baseline data, panel surveys, key informant interviews, and case studies, provided robust evidence of the BIG's significant positive impacts in reducing poverty, malnutrition, school dropouts, and crime in the pilot region. However, the pilot did not lead to a nationwide rollout of the BIG in Namibia.

Citations:

[1] https://www.investopedia.com/terms/b/basic-income.asp

[2] https://www.employment-studies.co.uk/news/universal-basic-income-pros-cons-and-evidence

[3] https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/56/56018376-a730-4fc6-920d-0d3c3116cce6.pdf

[4] https://www.procon.org/headlines/universal-basic-income-top-3-pros-and-cons/

[5] https://www.penguin.co.uk/articles/2021/02/universal-basic-income-pros-cons

[6] https://irr.org.za/media/basic-income-grant-weighing-up-the-pros-and-cons-biznews

[7] https://college.unc.edu/2021/03/universal-basic-income/

[8] http://base.socioeco.org/docs/big_resource_book.pdf

Milton Louw's Political Manifesto for a Prosperous and Just Namibia

Vision for Namibia

My vision is to establish Namibia as a prosperous, equitable, and sustainable nation where every citizen enjoys economic empowerment, social justice, and access to critical services and opportunities. This vision is grounded in the principles of cooperative economics, digital inclusivity, and participatory governance, all aimed at fostering national development and social cohesion.

Purpose

This manifesto outlines the work programme for myself, as Executive President, and my team (Executive Cabinet) of ministers, ten chosen with practical business experience, and a further five chosen from elected parliamentarians.

Core Values

The Executive Cabinet of Namibia shall prioritise government employees by motivating them to excel at their tasks, empowering them with financial and political support, monitoring implementation and providing continuous feedback to Namibia's citizens.

Economic Empowerment through Cooperative Models

The foundation of my economic policy will be the promotion and establishment of cooperatives across various sectors. Cooperatives offer a robust model for economic empowerment, allowing individuals to pool resources, share profits equitably, and collectively manage businesses that serve their communities.

Key initiatives include:

• Expansion of Savings and Credit Cooperatives: Building on the framework laid out in the establishment of the Namibian Savings and Credit Cooperative, we will expand access to affordable financial services. This will enable Namibians to save, invest, and borrow at fair rates, reducing reliance on high-interest lenders and promoting financial independence​​.
• Support for Agricultural and Worker Cooperatives: We will promote agricultural cooperatives to enhance food security and ensure that farmers receive fair prices for their products. Additionally, worker cooperatives will be supported in industries such as manufacturing and services, providing employment and ownership opportunities to Namibians.
• Development of Housing Cooperatives: Housing cooperatives will be encouraged to address the shortage of affordable housing. These cooperatives will allow members to collectively own and manage housing, ensuring secure and affordable living conditions.

Digital Inclusivity and Innovation

In the modern world, digital access is crucial for economic development, education, and social inclusion. We will strive to make Namibia a leader in digital innovation in Africa, ensuring that all Namibians, regardless of location or income level, have access to the internet and digital tools.

Key initiatives include:

• Expansion of ICT Infrastructure: We will accelerate the expansion of ICT infrastructure, particularly in rural areas, to ensure every Namibian has access to high-speed internet. This will include the establishment of Community Information Resource Centers (CIRCs) in partnership with libraries, schools, and community centers​.
• Promotion of ICT Literacy: To bridge the digital divide, we will implement nationwide ICT literacy programs, equipping Namibians with the skills needed to thrive in a digital economy. These programs will target all age groups, from school children to adults seeking to upskill.
• Support for E-Government and Digital Services: We will expand e-government services to improve access to public services and increase government transparency. This will include the digitization of government records and the creation of online portals for accessing services.

Social Justice and Equality

Social justice is at the heart of our vision for Namibia. Every Namibian deserves to live with dignity, free from discrimination and with equal access to opportunities.

Key initiatives include:

• Gender Equality: We will enforce and enhance policies that promote gender equality in all spheres of life, including political representation, economic participation, and access to education. This includes ensuring that women are represented in all decision-making bodies and cooperatives​.
• Youth Empowerment: The youth are the future of Namibia. We will invest in education, vocational training, and entrepreneurship programs tailored for young people, ensuring they have the tools and opportunities to build successful futures.
• Health and Well-being: We will strengthen Namibia's healthcare system to ensure that all citizens have access to quality healthcare. This will involve increasing healthcare funding, expanding healthcare infrastructure, and training more healthcare professionals.

Environmental Sustainability

Sustainable development is essential to ensure that future generations inherit a healthy environment. We will prioritize environmental protection and the sustainable use of natural resources.

Key initiatives include:

• Renewable Energy: We will invest in renewable energy sources such as solar and wind to reduce Namibia's carbon footprint and provide affordable energy to all citizens.
• Sustainable Agriculture: We will promote sustainable farming practices that conserve water, protect soil health, and enhance biodiversity. This will ensure food security and protect the environment for future generations.
• Conservation Efforts: We will continue to support the conservation of Namibia's unique wildlife and natural landscapes, recognizing their value to both the environment and the economy.

Participatory Governance and Transparency

A strong, democratic Namibia requires active citizen participation and a transparent government. We will ensure that the government remains accountable to the people and that citizens have a voice in decision-making processes.

Key initiatives include:

• Decentralization of Power: We will further decentralize government functions to empower local governments, enabling them to better serve their communities. This will also encourage local participation in governance.
• Anti-Corruption Measures: We will strengthen anti-corruption laws and ensure that they are enforced without fear or favor. Transparency in government procurement and financial management will be prioritized.
• Civic Engagement: We will foster a culture of civic engagement by promoting voter education, encouraging public consultations on major policies, and ensuring that all Namibians understand their rights and responsibilities as citizens.

Conclusion

This manifesto outlines a bold vision for Namibia’s future—one where economic empowerment, digital inclusivity, social justice, environmental sustainability, and participatory governance are the pillars of our nation’s development. Together, we can build a Namibia that is prosperous, just, and inclusive for all its people.

Let us work together to make this vision a reality.

Working at Investment Promotion Service (IPS) in Paris 1993-1995

 In 1994, I was offered the job as the Namibian Delegate to the United Nations Industrial Development Organisation’s Investment Promotion Service in Paris, France. The Delegate of each country represented is responsible for: 

• investment promotion campaigns;
• project development;
• preparation of feasibility studies;
• management of programme budgets; and
• joint-venture project development.

During this period, I had an opportunity to study and learn about the investment strategies of amongst others, Mauritius, China, India, Russia, Brazil, Argentina, Mexico, Algeria, Madagascar, Vietnam and Chile. Most of my colleagues were highly educated economists and were attached by their governments from planning or trade and industry ministries. Their experience and willingness to share were invaluable to me coming from a newly liberated country, and me personally having no qualifications in this field! They encouraged me to study Namibia's history and specifically the business strategies of the previous administrations. It was during this period, that I had an opportunity to meet many of the business leaders from the Namibian fishing, agriculture and mining sectors and benefit from their knowledge and experience.

The most important lesson I learnt was that Namibia is competing in the international arena and we would not be given special treatment for very long.

Meeting Michael Jackson

 I bought my first M-net decoder in 1992 when my first born Mikaila was about a year old. The live broadcast was a Michael Jackson show from Romania.

The aerial was not quite right so we would lose the signal and her mother would say, "Michael, Michael" while snapping her fingers until the picture would focus.

Mikaila started copying her and whenever she wanted to watch tv (naturally a Michael Jackson movie) she would try and snap her fingers and say something that sounded like ""Michael, Michael".

As Daddy's do - I promised to take her to meet Michael Jacskon.

A few years later I was the MD for Hazy Investments and part of the World Economic Forum held in Windhoek. As the first Secretary of the EPZ Committee and knowing Barden International, I was part of the inviting committee - for Michael Jackson.

The best part was that he would not attend unless he got the Presidential Suite - and guess who had booked that for his own guest - ME.

So I convinced my boss to change rooms and we had unparalleled access to the Michael Jackson entourage.

When asked where they can have dinner - I suggested our family favourite, 'Oportuga" owned by family friends. 

Daddy kept his promise.

First Posted: May 1998

Privacy Laws: Who Really Benefits?

Privacy laws are supposed to protect our personal information, but in reality, they often end up helping the rich more than the poor. This is especially true in countries like Namibia, where these laws can unintentionally create barriers that make it harder for poorer people to access opportunities for growth and development.

Privacy in Namibia

In Namibia, the Constitution protects your physical privacy, but protecting your personal data, like your name or address, needs specific laws. These include the Data Protection Act, Privacy and Electronic Communications Regulations, and the Freedom of Access to Information Act. While these laws are important, they mostly benefit people who already have access to the internet and digital services. For those who are less fortunate, these laws can actually make life harder.

Information Access and Development

Being able to access information is key to development. Public places like libraries and telecentres provide access to information and technology for communities that don’t have it. But strict privacy laws can limit these centres’ ability to collect data that could help them improve their services. For example, if these centres could gather more detailed information about the people who use them, they could tailor their services to better meet community needs. However, privacy regulations often prevent this, making it harder to improve these services.

The Rich vs. The Poor

For wealthy people, privacy laws act as a shield, keeping their personal and business information safe. They have the money to protect their privacy, often using legal methods that the poor can’t afford. This creates an imbalance where the rich can live in a secure environment, while the poor remain vulnerable and are often excluded from services that require personal information.

The Costs of Privacy Laws

Setting up and enforcing privacy laws requires a lot of resources, which can be tough for developing countries like Namibia. For the poor, who might not even have basic access to technology, these laws don’t offer much benefit. Instead, they often add extra costs and complications that make it even harder for disadvantaged people to access services and opportunities.

Financial Barriers

Access to financial services is crucial for lifting people out of poverty. Credit bureaux, which collect and share credit information, are essential for helping people get loans. However, privacy laws can make it harder to set up these systems. In Namibia, many people who have never used banking services aren’t recorded in credit databases. This makes it difficult for banks to assess risk, leading to higher fees and interest rates for the poor, which keeps them stuck in poverty.

Finding a Balance

To make sure privacy laws don’t hurt development, it’s important to find a balance. Laws should protect people’s rights without blocking the benefits that come from using data. Namibia could create flexible privacy laws that allow responsible use of data in public services and financial systems, ensuring that everyone, not just the wealthy, can benefit from these protections.

Conclusion

Privacy laws are important for protecting personal information, but they must be designed in a way that doesn’t limit development opportunities for the poor. In Namibia, striking this balance is crucial. By making sure privacy laws are inclusive and don’t create additional barriers for the disadvantaged, the country can create an environment where both development and privacy are prioritized, benefiting everyone.