Neil Coleman & Dr Kelle Howson
Presentation – University of Bath Lecture Series
19 October 2023
Introduction: A Global Call for Human Rights
The struggle for basic income is not merely an economic debate; it’s a fight for human rights and dignity. As we embark on this discourse, we cannot overlook the gross human rights violations witnessed in Gaza. This series is timely, with a global focus on basic income. The challenge now is to transition from evidence-gathering to large-scale implementation. South Africa, with its unique context, could emerge as a global leader in the basic income movement.
South Africa: A Potential Global Leader
Will South Africa lead the world in Universal Basic Income (UBI)? The urgent need arises from rampant hunger, poverty, and unemployment. The existing COVID-19 SRD grant indicates a move beyond evidence gathering. With widespread support from civil society, trade unions, and the government, UBI in South Africa targets working-age adults, addressing deep structural issues perpetuated by historical injustices and inappropriate macroeconomic policies.
The Deep Crisis: A Call for Urgent Action
South Africa faces a multifaceted crisis – hunger, poverty, unemployment, and extreme inequality. The numbers are staggering: over a quarter of the population lives below the food poverty line, more than half in poverty, and 42% unemployed. A historical legacy of apartheid planning exacerbates these challenges. The call for a UBI is not just an economic necessity but a moral imperative to address the structural inequalities.
Political Economy of UBI: Addressing Structural Factors
The political economy of UBI in South Africa hinges on addressing deep-rooted structural issues, such as landlessness, a small informal economy, financialization, and historical marginalization. In this complex landscape, a basic income rollout could circumvent the crisis of state capacity, providing direct relief to those in need. The stimulus impact of income injection into poor communities becomes a platform for economic renewal.
UBI: A Global Relevance
Internationally, UBI is relevant in addressing economic hysteresis, climate crises, labor displacement, rising inequality, and growing hunger. It serves as a countermeasure to economic distress, particularly in the Global South. South Africa, with its pervasive poverty and inequality, stands as a crucial battleground in the global fight for a basic income.
UBI: A Radical Yet Controversial Demand
The demand for UBI is not revolutionary, but it holds radical potential. While controversial due to concerns about replacing public services and undermining workers, it aligns with global movements for economic transformation. Addressing concerns raised by the ILO paper is crucial to ensure its success. A UBIG, if meeting certain conditions, can be a progressive force for the working class, providing economic stability and empowerment.
UBI: A Boost for Progressive Movements
In a period of demoralization and fragmentation of progressive forces, UBI could offer hope and confidence to people facing deep crises. Progressive movements find an anchor in UBI, fostering resilience against economic fluctuations. The debate between UBIG and a jobs guarantee should not be seen as a binary choice; both can coexist to address multifaceted challenges.
Fierce Contestation: Challenges and Opportunities
The road to UBI is fiercely contested globally and in South Africa. Capital and conservative bureaucracies resist the idea, seeking to undermine its potential impact. Attempts to dilute UBI demand may include tokenistic implementation, means-testing, reduction of public services, coercive workfare, and regressive taxation. Achieving UBIG in South Africa requires navigating a complex political landscape, but the social crisis, mobilization, and political engagement create a possibility for progressive outcomes.
The South African Context: Political Resistance and Significant Support
The South African context reveals a nuanced picture. Extensive civil society campaigns have made the SRD grant politically irreversible, yet Treasury and regressive forces aim to roll it back. The ANC, despite internal divisions, endorsed UBIG in policy conferences, supporting a wealth tax to finance it. The struggle for a basic income in South Africa faces resistance from powerful forces, but the real possibility of progress exists, driven by a combination of social crisis, mobilization, and political engagement.
The SRD Grant and Transition to Basic Income
The SRD grant, introduced during the COVID-19 crisis, has become a crucial focal point. Despite administrative injustices and contestation, it has had positive impacts on poverty alleviation, employment, and economic stimulus. As South Africa contemplates a transition to basic income, the contestation around the SRD grant intensifies. Litigation, political dynamics, and the financial context shape the path forward.
Financing a Basic Income Grant: Navigating Fiscal Challenges
The question of affordability looms large in the debate over basic income support. Fiscal challenges, including stagnant growth, declining tax revenue, and high debt costs, present hurdles. Austerity measures and proposed VAT increases threaten to undermine the poverty-alleviation impact of a basic income grant. Navigating these challenges requires a shift from austerity to inclusive economic growth and exploring progressive financing options.
Macroeconomic Impacts of Basic Income: Beyond Expense to Development Policy
A basic income grant is not just an expense; it’s a development policy with far-reaching impacts. International evidence shows that it boosts economic activity, job creation, and social well-being. The macroeconomic benefits, including increased consumption, investment, and improved collective bargaining power for workers, create a positive feedback loop. A well-designed basic income grant becomes a catalyst for sustainable economic growth and a way out of the fiscal crisis.
Designing a Basic Income Grant for South Africa: Building a Progressive Framework
The positive impacts of a basic income grant depend on its design. Recent proposals from civil society and government emphasize building on the SRD grant, progressive realization of universality, non-regressive financing mechanisms, and addressing inequities in application and payment infrastructures. A well-designed basic income grant should complement existing public services, maintain parity with the child support grant, and foster social cohesion.
Conclusion: A Bright Light in a Dark Terrain?
The struggle for a basic income in South Africa reflects not just economic challenges but a broader quest for human rights and dignity. While fiercely contested, the potential for progress exists, driven by a combination of social crisis, mobilization, and political engagement. As South Africa navigates the complexities of financing, macroeconomic impacts, and design, the prospect of becoming a world leader in basic income support stands as a beacon of hope in an otherwise challenging terrain. The journey ahead will require resilience, strategic engagement, and a commitment to transforming the economic landscape for the benefit of all.
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University. 
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society). 
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.