The Basic Income Grant (BIG) Coalition in Namibia

In the years 2008/2009 the BIG Coalition (Basic Income Grant Coalition consisting of churches, trade unions, NGOs and other organisations) organized a basic income project in the poor Namibian village Otjivero. The approximately 1000 inhabitants (age pensioners excluded) were assigned 100 Namibian Dollar[1] monthly, which corresponds to approximately 10 euros. This amount secured a stable food supply, but however constitutes only about one third of the sum which corresponds to the poverty line. The project was accompanied by Namibian and international social researchers. Prior to the introduction of a basic income in January 2008, the social situation of the majority of the population was abject. Malnutrition, hunger, unemployment, alcoholism and hopelessness characterized life.

Already six months later the results (Haarmann, et al., 2009) were auspicious. The households had enough staple food and the children went back to school on a regular basis. Many were able, in case of illness to raise the fee for a clinic and to procure medicines. People began improving their homes and the infrastructure in place. Economic activity rose and the number of people in absolute poverty fell within a year from 76 to 37 percent. The child malnutrition fell from 42 to 10 percent, the crime rate dropped by almost 40 percent (Haarmann & Haarmann, 2014). Next, there was observed an emancipatory effect. Field workers were no longer completely dependent on the farmers and increasingly exercised their legal rights. Young women suddenly were no longer dependent on an income-generating man to secure their existence.

Despite favourable conditions for the expansion of the project and a positive public opinion a basic income was not given through the end of 2009. The responsible authorities exaggerated the cost of a national BIG in Namibia of about N$ 1,2 - 1,6 billion per year, equivalent to 2,2 - 3% of Namibia's GDP and they were afraid of idle citizens. After the conclusion of the pilot project a monthly bridging-allowance (N$ 80) to all who participated in the pilot was paid regularly until March 2012 (Haarmann & Haarmann, 2014). The situation of the inhabitants of Otjivero has since deteriorated again. However the final report of the project (Haarmann, et al., 2009) closes concluding: “As shown by the calculations in this report, Namibia has the capacity to mobilise the necessary resources without undermining financial stability. Its implementation is thus merely a question of political will.”

[1] The Namibia Dollar (symbol N$; ISO code NAD) has been the currency of Namibia since 1993.