BIG a big success at Omitara

A REPORT on the effects of the Basic Income Grant (BIG) at Omitara since the grant’s introduction at the village six months ago is full of praise, leaving those at the forefront of the initiative steadfast in their defence of it as a viable way to tackle poverty in the rest of the country.

The BIG Assessment Report for September 2008 was launched in Windhoek yesterday, following on an initial report done before the grant’s implementation at the village in January. Both studies were carried out by the Labour Resource and Research Institute (LaRRI), and the Evangelical Lutheran Church in the Republic of Namibia (ELRN) Desk for Social Development.The latest report claims a drop in malnutrition rates from 42 to 17 per cent for children below the age five, a reduced school dropout rate of five per cent compared to 30 to 40 per cent in the past, and cases of poverty-related crime dropping by 20 per cent, all in the last six months.The report further suggests that Omitara residents are accessing the local clinic much more frequently since the introduction of the grant, apparently raising the clinic’s income five-fold.Omitara is situated about 100 km east of Windhoek in the Omaheke Region and is home about 1 200 people.Most of these are unemployed and largely dependent on the pensions of about 100 senior citizens who live there.The BIG Coalition, established in 2004, suggested the implementation of a N$100 minimum monthly grant to every Namibian citizen below retirement age in an effort to tackle poverty.In January this year, after failing to convince Government of the viability of the idea, and subsequently securing the funds from private donors, the Coalition decided to use Omitara as a pilot project to prove that the BIG idea could work.Criticisms of the project included fears that it would create dependency and idleness, that it would induce people to waste money on alcohol instead of necessities, that it would increase risky sexual behaviour and prostitution and increase indebtedness.The assessment report maintains that in most instances, the experience at Omitara has proven exactly the opposite.”One specific claim was made by the bottle store / general dealer in Omitara.He claimed that his domestic worker had left her job because she had received the BIG and then chose not to work any longer.”The domestic worker’s story was rather different.She claimed that she was abused and was able to reject an unacceptable situation, with a low salary and bad treatment…One can see that a BIG can give people an improved capacity to say ‘no!’ to situations that they find unacceptable,” the study reads.The study also argues that no evidence could be found of an increase in alcoholism as a result of the BIG.Based on interviews with villagers, 43 per cent reported that no alcohol was consumed in their household, while the rest said at least one person in their household consumed alcohol.”Half of those who consumed alcohol did so several times a week, while the others said they consumed it only once a month.Sixteen per cent indicated that they drank alcohol only on special occasions,” the report reads.The study further notes that Omitara has seen an inflow of migrants since November 2007.When the Coalition first registered villagers in November, 90 per cent of the people under the age of 60 were registered.By July this year, this had dropped to 80 per cent.”One could speculate that new residents have moved to Otjivero-Omitara due to their desperate economic situation and the availability of cash to help with their subsistence,” the study reads.On the plus side, access to energy appears to have increased in households – from 48 per cent previously to 72 per cent in July.The Coalition says that, with the villagers purchasing more durable goods like electric stoves, the importance of firewood for cooking may decline, and with it the associated conflict they have with Police and farmers in the area.Several new economic activities have also arisen and are being linked to the BIG.”Most notable were several new small business activities that emerged, including retailing, brick making and the manufacture of clothing,” the study states.The Omitara project continues to be evaluated as it goes into its second and final lap next year, with assessment reports being released every six months.The Basic Income Grant Coalition is made up of a group of organisations falling under the Council of Churches in Namibia (CCN), the National Union of Namibian Workers (NUNW) the Namibian NGO Forum (Nangof) and the Namibian Network of AIDS Service Organisations (Nanaso).Both studies were carried out by the Labour Resource and Research Institute (LaRRI), and the Evangelical Lutheran Church in the Republic of Namibia (ELRN) Desk for Social Development.The latest report claims a drop in malnutrition rates from 42 to 17 per cent for children below the age five, a reduced school dropout rate of five per cent compared to 30 to 40 per cent in the past, and cases of poverty-related crime dropping by 20 per cent, all in the last six months.The report further suggests that Omitara residents are accessing the local clinic much more frequently since the introduction of the grant, apparently raising the clinic’s income five-fold.Omitara is situated about 100 km east of Windhoek in the Omaheke Region and is home about 1 200 people.Most of these are unemployed and largely dependent on the pensions of about 100 senior citizens who live there.The BIG Coalition, established in 2004, suggested the implementation of a N$100 minimum monthly grant to every Namibian citizen below retirement age in an effort to tackle poverty.In January this year, after failing to convince Government of the viability of the idea, and subsequently securing the funds from private donors, the Coalition decided to use Omitara as a pilot project to prove that the BIG idea could work.Criticisms of the project included fears that it would create dependency and idleness, that it would induce people to waste money on alcohol instead of necessities, that it would increase risky sexual behaviour and prostitution and increase indebtedness.The assessment report maintains that in most instances, the experience at Omitara has proven exactly the opposite.”One specific claim was made by the bottle store / general dealer in Omitara.He claimed that his domestic worker had left her job because she had received the BIG and then chose not to work any longer.”The domestic worker’s story was rather different.She claimed that she was abused and was able to reject an unacceptable situation, with a low salary and bad treatment…One can see that a BIG can give people an improved capacity to say ‘no!’ to situations that they find unacceptable,” the study reads.The study also argues that no evidence could be found of an increase in alcoholism as a result of the BIG.Based on interviews with villagers, 43 per cent reported that no alcohol was consumed in their household, while the rest said at least one person in their household consumed alcohol.”Half of those who consumed alcohol did so several times a week, while the others said they consumed it only once a month.Sixteen per cent indicated that they drank alcohol only on special occasions,” the report reads.The study further notes that Omitara has seen an inflow of migrants since November 2007.When the Coalition first registered villagers in November, 90 per cent of the people under the age of 60 were registered.By July this year, this had dropped to 80 per cent.”One could speculate that new residents have moved to Otjivero-Omitara due to their desperate economic situation and the availability of cash to help with their subsistence,” the study reads.On the plus side, access to energy appears to have increased in households – from 48 per cent previously to 72 per cent in July.The Coalition says that, with the villagers purchasing more durable goods like electric stoves, the importance of firewood for cooking may decline, and with it the associated conflict they have with Police and farmers in the area.Several new economic activities have also arisen and are being linked to the BIG.”Most notable were several new small business activities that emerged, including retailing, brick making and the manufacture of clothing,” the study states.The Omitara project continues to be evaluated as it goes into its second and final lap next year, with assessment reports being released every six months.The Basic Income Grant Coalition is made up of a group of organisations falling under the Council of Churches in Namibia (CCN), the National Union of Namibian Workers (NUNW) the Namibian NGO Forum (Nangof) and the Namibian Network of AIDS Service Organisations (Nanaso).