Basic Income Grant can be a Tool for Social Transformation

A Basic Income Grant (BIG), or Universal Basic Income (UBI), has the potential to be a transformative policy instrument that addresses multiple social challenges while fostering economic stability and individual empowerment. By providing a guaranteed income to all qualifying adults, a BIG can simultaneously alleviate poverty, reduce inequality, and incentivize positive social behaviors. Below, we outline why such a program is essential and how it can be structured to maximise its benefits.

Addressing Poverty and Inequality
Poverty remains one of the most persistent and debilitating social ills worldwide. A BIG offers a straightforward solution by providing individuals with a financial safety net, ensuring that no one is left destitute. This regular income can help individuals meet their basic needs, such as food, shelter, and healthcare, thereby improving overall living standards. It can also reduces income inequality, as those at the bottom of the economic ladder receive meaningful support to improve their circumstances.

Encouraging Educational Attainment
Linking the BIG to educational milestones, such as completing matric (high school), provides a strong incentive for young people to stay in school. By conditioning eligibility for the grant on achieving this milestone, governments can combat high dropout rates and invest in the long-term potential of their citizens. Education opens doors to better job opportunities, fostering a more skilled and employable workforce that can contribute meaningfully to economic growth.

Reducing Crime Rates
By tying eligibility to a clean criminal record over the past five years, a BIG can encourage lawful behaviour. This condition serves as an incentive for individuals to avoid criminal activities, knowing that their eligibility for financial support depends on it. Moreover, reducing poverty and inequality—root causes of many crimes—further diminishes the likelihood of individuals resorting to illegal means to survive.

Combating Teenage Pregnancy
Teenage pregnancy is a significant barrier to education and economic empowerment, particularly for young women. To address this issue, the BIG can exclude individuals who have children before the age of 18 or before completing matric, while ensuring that the child receives a child support grant (limited to a maximum of two children). This policy strikes a balance between discouraging early pregnancies and supporting children’s welfare. It also underscores the importance of education and delayed
parenthood for long-term success.

Supporting Employment and Economic Participation
Unlike many welfare programs that exclude employed individuals, a BIG should also be available to those who work. This approach ensures that the grant acts as a supplement rather than a substitute for earned income, encouraging continued participation in the labour market. By providing financial stability, the grant can empower individuals to pursue entrepreneurial ventures, invest in skill development, or take on roles in sectors that may offer lower wages but have significant social value.

Addressing Broader Social Ills
A BIG has the potential to reduce social ills beyond those directly targeted by its conditions. For instance, financial security can alleviate stress and mental health challenges, leading to healthier and more productive communities. It can also reduce dependence on exploitative labor conditions, as individuals are no longer forced to accept any job out of sheer necessity. Furthermore, a BIG fosters social cohesion by demonstrating a government’s commitment to the well-being of all its citizens.

Summary
A Basic Income Grant is not merely a welfare measure; it is an investment in the social and economic fabric of society. By addressing poverty, incentivizing education, reducing crime, discouraging teenage pregnancy, and supporting employment, a well-designed BIG can tackle many interconnected social issues. When implemented thoughtfully, it becomes a powerful tool to empower individuals, foster equality, and create a more prosperous and harmonious society.

The funding for BIG would come from tax money (which is basically a budget reallocation from other departments such as housing, health, police services, etc. where budget requirements would be lower as a result of the potential benefits of BIG) and mostly from sin tax (particularly, sugar, alcohol and tobacco).

Mohau Ngoepe
Chairperson (Mohau Cares Social Welfare Trust)