-
A universal basic income has broad support in South Africa.
-
And the South African government has just pledged to make universal basic income a reality.
-
South Africa is ranked as one of the worst countries for income inequality.
South Africa suffers from severe income inequality – one of the worst in the world. The unemployment rate, meanwhile, is over 30%.
But the government thinks it has a solution: a universal basic income.
The idea has broad political support and the country’s largest political party, the African National Congress, recently said it is committed to introducing a universal basic income within two years.
Once the figment of ideological dreamers, a universal basic income — regular direct cash payments to a population without strings attached — has grown in legitimacy, especially after the success of COVID-era stimulus checks. Tech visionaries racing to develop increasingly sophisticated artificial intelligence have also proposed introducing a universal basic income. They say it would help ease job losses due to AI.
Several other countries have experimented with versions of a universal basic income. Kenya, for example, offers unconditional payments to about 20,000 people in 200 different cities.
In the United States, numerous cities and some states are experimenting on a small scale with guaranteed basic incomes, which offer no-obligation payments but only to select groups of people in need. While research has shown these U.S. programs to be successful, they also face significant political opposition.
But in South Africa, most political parties are completely in favor of it. They just need to work out the details.
“The ANC is committed to finalizing a comprehensive basic income support policy within two years of the new ANC government, ensuring broad consultation and accelerated action,” South Africa’s ruling party said in a statement.
That statement came a week before the hotly contested general election on May 29, which saw the ANC lose its majority in parliament. The ANC is now working to form a unity government and a commitment to implementing a universal basic income will almost certainly come up during the negotiations.
According to the party, a survey at the University of Johannesburg shows that a majority of South African citizens “fully support the introduction of a basic income subsidy”.
While South Africa provides payments to certain groups living below the poverty line through its Social Relief Distress grant program, the ANC plan would ensure that all South African adults are eligible, the Guardian said.
The ANC said it is “exploring options”, such as new tax measures and a new social security tax, to finance the program. The party also says the purpose of the program is not to replace existing social security programs, but to supplement them.
If the plan goes ahead, South Africa would be the first country to provide a universal basic income.
Read the original article on Business Insider
