BIG more determined than ever that grants offer the way forward

AN unconditional grant of N$100 to every Namibian under retirement age would require only two per cent of the country’s gross domestic product and is quite affordable, the Basic Income Grant (BIG) Coalition maintains.

Furthermore, such a grant would only be needed until the country’s high income disparities, as determined by the Gini coefficient (which measures the gap between rich and poor), was addressed, says Council of Churches representative Reverend Phillip Strydom. The BIG Coalition held a three-day workshop in Windhoek last week to adopt a new strategy to promote BIG.The coalition took note of issues such as the commercialisation of water, land regulation policies and access to finance and quality education, which they say entrench poverty.At the same time, Namibia was faced with a high rate of HIV-AIDS, and struggled with the most unequal distribution of wealth in the world.Strydom told The Namibian this week that the possible negative effects of such a grant had been explored at the workshop as well.Drug and alcohol abuse, two other great concerns for Namibia, were noted, as well as the impact an extra N$100 per person could have on such activities.”People will need to be taught how not to misuse this money,” Strydom told The Namibian.”So the grant will have to go hand in hand with a training and educational programme.”A household of six, he said, would, for example, end up with an additional N$600 per month, which – if they are properly prepared – could be used to set up a small enterprise.”A small community like Tses (in the Karas Region) for example, would benefit tremendously from a basic grant.A hundred dollars for every person would result in perhaps N$100 000.It’s a tremendous boost for the economy of such a village,” he said.This would mean that more shops could be set up, which in turn would prevent monopolies from exploiting the community.”When you think that about 34 to 35 per cent of the population lives on less than one US dollar (about N$7,50) per day, that’s a dangerous situation,” Strydom said.Asked about the coalition’s findings that BIG would cost only two per cent of the country’s GDP, and the possibility of this rising, Strydom said that the grant was intended to be a temporary measure.”We hope that through this, job creation can be increased.So the grant will only be necessary for as long as there is this huge gap (between rich and poor),” he said.The BIG Coalition held a three-day workshop in Windhoek last week to adopt a new strategy to promote BIG.The coalition took note of issues such as the commercialisation of water, land regulation policies and access to finance and quality education, which they say entrench poverty.At the same time, Namibia was faced with a high rate of HIV-AIDS, and struggled with the most unequal distribution of wealth in the world.Strydom told The Namibian this week that the possible negative effects of such a grant had been explored at the workshop as well.Drug and alcohol abuse, two other great concerns for Namibia, were noted, as well as the impact an extra N$100 per person could have on such activities.”People will need to be taught how not to misuse this money,” Strydom told The Namibian.”So the grant will have to go hand in hand with a training and educational programme.”A household of six, he said, would, for example, end up with an additional N$600 per month, which – if they are properly prepared – could be used to set up a small enterprise.”A small community like Tses (in the Karas Region) for example, would benefit tremendously from a basic grant.A hundred dollars for every person would result in perhaps N$100 000.It’s a tremendous boost for the economy of such a village,” he said.This would mean that more shops could be set up, which in turn would prevent monopolies from exploiting the community.”When you think that about 34 to 35 per cent of the population lives on less than one US dollar (about N$7,50) per day, that’s a dangerous situation,” Strydom said.Asked about the coalition’s findings that BIG would cost only two per cent of the country’s GDP, and the possibility of this rising, Strydom said that the grant was intended to be a temporary measure.”We hope that through this, job creation can be increased.So the grant will only be necessary for as long as there is this huge gap (between rich and poor),” he said.