The African National Congress (ANC), a big political party in South Africa, has a new plan. They want to convert the money given to people during the COVID-19 pandemic into a regular income for everyone. They told everyone about this plan just before the elections. If they win the election and form the government, they promise to make this plan happen within two years.
Contents
- SASSA Considers Universal Basic Income Grant
- ANC’s Promise for Regular Money for Everyone
- Help for People in South Africa Now
- Basic Income: A Discussion All Over the World
- How Basic Income Can Help the Economy
- Examples from Other Countries
- Changes in Policy After the Pandemic
- South Africa’s Different Approach
SASSA Considers Universal Basic Income Grant
At present, South Africa is experiencing a significant political transformation. This marks the most substantial shift since the abolition of apartheid. This shift was triggered by the African National Congress (ANC) failing to secure the majority of votes during the general elections held on May 29, 2024. As a result, the ANC and various other political parties are collaboratively engaging in discussions to establish a new governing body.
Read Below
ANC’s Promise for Regular Money for Everyone
The African National Congress (ANC) has pledged to convert the emergency relief funds distributed during the COVID-19 pandemic into a universal basic income for all citizens. This promise was made in anticipation of the upcoming elections.
Should the ANC secure victory and assume governance, they aim to implement this program within two years. If this proposal materializes, South Africa will become the first nation to provide regular financial support to all individuals between 18 and 59, irrespective of their employment status.
Help for People in South Africa Now
In South Africa, a monthly Social Relief of Distress (SRD) grant is provided to individuals earning below the food poverty line. The African National Congress (ANC) intends to extend this assistance to all adults by gradually raising the income threshold.
Basic Income: A Discussion All Over the World
The concept of providing a universal basic income is not a recent one. Advocates from various parts of the world have discussed its potential for many years, viewing it as a strategy for addressing economic inequality. Influential figures such as Elon Musk have suggested that implementing a universal basic income could mitigate the impact of job displacement resulting from automation and technological advancements, where machines increasingly fulfill tasks that were traditionally carried out by humans.
How Basic Income Can Help the Economy
Research indicates that providing direct financial assistance to the most impoverished households can significantly contribute to the economy. According to Kelle Howson, a senior researcher at the Institute for Economic Justice (IEJ) in Johannesburg, these payments stimulate economic activity as low-income households increase their spending.
The IEJ’s findings revealed that approximately 93% of individuals receiving the SRD payment primarily utilize the funds to purchase food, underscoring the vital role of these payments in their daily sustenance.
Examples from Other Countries
Several instances from other nations demonstrate the potential advantages of Universal Basic Income (UBI). In Kenya, a substantial UBI experiment carried out by GiveDirectly revealed that beneficiaries utilized the funds to enhance their quality of life, save for major expenses, improve their diet, and initiate small enterprises. Similar positive outcomes have been observed in other trials globally.
For instance, amidst the pandemic, Spain implemented a poverty alleviation program that provided €1,015 per month to 850,000 households. The Coronavirus Aid, Relief, and Economic Security (CARES) Act distributed $1,200 payments to adults earning under $99,000 annually in the United States.
The United Kingdom introduced the furlough scheme and self-employment support measures, allocating £100 billion to assist those impacted by the pandemic and temporarily increasing universal credit payments.
Changes in Policy After the Pandemic
After the pandemic subsided, the political scenario underwent significant changes. Due to the substantial borrowing that took place during the crisis, numerous governments implemented austerity measures to address their heightened levels of debt.
South Africa’s Different Approach
In contrast to many other nations, South Africa has chosen to maintain its COVID-19 grants, despite facing pressure to implement stricter financial policies. These grants were temporarily halted in April 2021, sparking widespread riots nationwide. Consequently, the government reinstated the grants by August of the same year. Despite this, there are several issues with the current system.
The Social Relief of Distress (SRD) payments are insufficient, covering only half of the amount required to meet the food poverty line. As a result, the funds provided are inadequate to fulfill basic food needs. Additionally, many eligible individuals do not receive the grant each month.
This is due to challenges in the application and distribution process, making it difficult for many people to access the financial assistance they require.
Click the link to know more.
Gaurav, an exam specialist with a passion for education, writes comprehensive articles on exam results and admit cards. His expertise ensures students receive reliable information and useful tips to excel in their exams.