On Youth Day we chatted to Shaeera Kalla about the Basic Income Grant – the conversation generated such a big buzz in our DMs and we decided to delve deeper in the topic, in a conversation with Awande Buthelezi.
Awande is a researcher and organiser at the Cooperative and Policy Alternative Centre. He is also an activist with the South African Food Sovereignty Campaign (SAFSC) and the Climate Justice Charter Movement.
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Awande started off by defining the grant. ‘The Basic Income Grant is a cash transfer, which means that the State puts money in your hand, it’s a guaranteed income. Globally known as the Universal Basic Income (UBI), it is an effective measure to alleviate poverty and inequality’.
READ MORE: The calls for Basic Income Grant, explained
In terms of the amount to be paid out, there are three amounts proposed around three national poverty lines, defined by Stats SA
- Food Poverty Line at R561
- Lower-bound poverty line, at R810
- Upper-bound poverty line at R1227
These amounts are adjusted annually at around 5%.
It has been studied that the R1331 amount can lead to 100% reduction of poverty.
Why should we be giving money to people?
Awande reflects that the grant is forcing us to think about what society we want to live in, in the context of climate change, the impact of COVID-19 and increased automation, which is pushing unskilled labourers out of their jobs. He reminds the audience that the Special Relief grant ended in April, while the lockdown measures are still in place.
When we talk about funding the grants, often we hear that the grant is not financially sustainable. “The research we conducted with Applied Research Solutions, with macroeconomic models of the South African economy – we understood that there are creative tax constructs that we can use to pay out the grants, such as a redistribution measure”, shared Awande. He adds that what really is unsustainable is South Africa’s inequality, ‘for a country like ours, continuing business as usual is a ticking time-bomb’.
By freeing people from the worries around not not being able to meet their basic needs, we can support individuals who can be productive, healthy and happier. “Worldwide studies on UBIG indicate that most people are productive when they have a guaranteed income.”
“The more there is money between hands, the more our economy can thrive, so it’s a win-win” commented Youth Capital Influencer Muchelene. Co-host and The Daily Vox reporter Ling Shepherd also made a consideration on the mental health impact of such grant ‘Imagine waking up in the morning, knowing that you have food and that your electricity is covered; you don’t have this dread waking up in the morning and you can concentrate on self-actualisation’.
What is the way forward to make a change?
There are so many reasons why the Basic Income Grant should be in place already, as an important intervention to level the playing field. Awande emphasised the need for young people to amplify the message and keep on raising awareness of the importance of this grant. ‘We need to debunk some of the myths around this grant and show that it’s possible, it’s not out there’
Awande also mentioned existing movements that you can follow:
#PayTheGrants
Open Dialogue is running a brief survey to find out how you feel about the challenges young people face and the support they need to bring about change (here).
Make sure to keep an eye out on our social media for the announcement of our next speakers. It’s going to be an exciting one.
The #BeTheDrivingForce series includes a WhatsApp group, where young people can pose questions that will be answered in Instagram Lives, every Wednesday from 6 to 7pm for the duration of the series. Join the Whatsapp group here: #BeTheDrivingForce whatsapp group There will also be a special pop-up newsletter for the duration of the campaign. Sign up for the newsletter here.
