04 Mar 2011
WINDHOEK – An unconditional basic income grant has been recommended by a recent study on inequalities in Southern Africa as an immediate intervention that would free millions from poverty and its debilitating effects.
Other recommendations made in the study for countries to reduce inequalities include alternative approaches to development and a need for developmental states in the region.
Experiences with social grants in some countries in the Southern African region, namely, Namibia, Malawi and South Africa, demonstrate that “unconditional rights-based grants not only reduce poverty significantly, but also pave the way for sustainable economic activities and or meaningful grassroots empowerment,” according to the publication “Tearing Us Apart: Inequalities in Southern Africa” edited by Herbert Jauch and Deprose Muchena.
The book documents five countries, namely, Malawi, Angola, Namibia, South Africa and Zimbabwe and their prevailing levels of poverty and inequalities in the region, with the aim to identify areas of intervention to reduce poverty and inequality and also to provide pro-poor alternatives needed to provide lasting solutions to the problem.
Southern Africa is rich in mineral resources yet poor in human development and remains one of the poorest regions in the world. Although most countries have registered considerable economic growth over the years and are said to be among the world’s fastest growing economies, statistics of poverty and inequalities do not correspond to these positive developments.
According to statistics, about 45 percent of the SADC population lives on N$7 a day, 40 percent of the labour force is unemployed or underemployed, the distribution of resources is skewed and most countries have a high Gini Co-efficient of more than 0.5 because of the income inequalities.
As a short-term measure, the study says that states should use their national budgets to deploy resources to ‘liberate the majority from the shackles of poverty and inequality’ by implementing a Basic Income Grant.
Three years ago Namibia, through the Basic Income Grant Coalition, implemented an N$100 grant that was last year reduced to N$80 for about 930 residents of Otjivero village.
The project has not only resulted in a reduction in poverty and malnutrition, but has also resulted in various economic activities and a reduction in crime.
Malawi introduced a Social Cash Transfer Scheme, which started with 11 000 households, to improve school enrolment, reduce child labour and improve access to health services.
This intervention resulted in increased enrolment and a reduction in school absenteeism, improved nutrition and food security and a reduction in child illnesses.
Although concerns have been raised over affordability, viability and fears the grants would create dependency, the study says “given resources available in the region, such grants are not only promising but also viable and affordable”.
Sentiments supporting cash transfers were echoed at a public lecture in Windhoek last week on ‘Cash Transfers to fight poverty: Experiences from Brazil,’ where participants felt that issues of poverty were treated with a laissez faire attitude.
“If you discover that I am hungry today, give me food today and don’t go and discuss it in Parliament,” said Immanuel Kadhikwa, who attended the lecture while Meriam Mavulu said a grant, little as it might, gives people who do not have an income the hope to go on in life.
While Angola has huge oil and gas reserves, diamonds and other minerals, two thirds of the 16 million people live in abject poverty. It is the largest supplier of crude oil to China and the seventh largest oil supplier to the USA. Despite this and the fast economic growth in the country, 68 percent of the population is poor and 28 percent extremely poor.
Angola remains a country with low human development. It ranked 162 out of 177 countries in 2008.
Malawi, among the least developed countries, is ranked 164 on the Human Development Index (HDI) of 2007/8.
It is said to be one of the fastest growing economies in Africa yet more than half of the population are poor, while one fifth are extremely poor.
Namibia has continued its legacy of inequality, which it inherited at Independence.
Some 20 percent of the population has access to wealth and opportunities.
South Africa, which is the envy of many countries in Africa, still has 53 percent of its population living in poverty.
The list of examples of inequalities and poverty in the region is endless and according to the publication, “The results of post colonial governments’ attempts to address inequality have been mixed and at most a collection of failed experiments.”
Until now, unemployment in the region has continued to rise, and the gap between the rich and the poor is growing, thus increasing a sense of injustice and deprivation for many Southern Africans.
“While oil, copper, gold, diamonds, chrome, gas, bauxite, fisheries and platinum are in plentiful supply in the region, unemployment is increasing, poverty is deepening and inequality between and within countries is widening,” said Open Society Initiative in Southern Africa (OSISA) Deputy Director, Deprose Muchena, in a presentation, ‘Curse of the Three Cousins: The Triple Burden of poverty, inequality and unemployment and search for alternatives in Southern Africa’.
The presentation was made during a conference on “Social Justice and the Responsibility of the State – The triple burden of poverty, inequality and unemployment”, last week.
Muchena said Southern Africa inherited underdevelopment, which is presently perpetuated by external dependency, and distributive, technical and allocative inefficiencies.
In addition, natural resources extraction has fueled the problem by contributing to increasing inequality and poverty.
“As extractive industry (EI) gains prominence as a basis of economic development, so do the negative indicators of human development. EI takes place in the context of enclave development where the extractive zones become enclaves, and become the centre of government and private sector attention and not the basis of diversification,” he said.
Alternative approaches to development would include taking an active role in developing and implementing policies that redress the unacceptable levels of inequality in the region.
Although development is linked to economics, development must include human rights, community rights and the right to regional and self-determination as well as dealing with issues of equity and fairness in the distribution of resources at all levels.
The human rights approach to development also entails provision of social services such as water, health, energy and education, which cannot be guaranteed for all if left to market forces alone.
“Social services are not matters to be privatized as they are part of basic human rights requiring states to have the responsibility to secure them for all their people,” says the publication.
It adds that “development must lead to a better life for the majority and eradicate poverty”, which can only be achieved if development is based on promotion and protection of human rights, economic rights and blue rights (political and civil rights).
By becoming developmental states, Southern African countries can change their focus from “being a provider of favourable investment conditions for foreign investors, towards a regulator and an economic player that can effect redistribution and facilitate the achievement of sustainable equality”.
Other measures that Southern Africa states should consider in the fight against poverty and inequality include mainstreaming gender, and involvement of mass movements, whose participation in democracy would lead to greater accountability regarding the use of state funds allocated to the fight against poverty.
If the current levels of inequality in Southern Africa, which are the highest in the world, are left unattended, they would continue to tear apart communities and societies in the region.
http://www.newera.com.na/article.php?articleid=37445
Drawing water in Lusaka. Credit:Kelvin Kachingwe/IPS
