Poverty
Making the difference! The BIG in Namibia
Hope restored through the first universal cash transfer pilot project
Authors:
C. Haarmann; D. Haarmann; H. Jauch
Publisher:
Friedrich Ebert Stiftung, 2009
This paper reports the socio-economic results after the implementation of the Basic Income Grant (BIG) Pilot Project in Otjivero settlement and the Omitara 'town' in the Omitara District in Nambia for one year. Otjivero-Omitara was selected for its manageable size, accessibility, and extreme poverty. The project is designed to address destitution, hunger and malnutrition, and is meant to provide a foundation for economic empowerment.
The key findings of the paper are:
- the introduction of BIG ignited hope, and the community responded by establishing its own 18-member committee to advise residents on how to spend BIG money wisely
- there was a significant migration towards BIG region, which points to the need to introduce BIG as a universal national grant
- since the introduction of BIG, household poverty has dropped significantly
- the introduction of BIG has led to an increase in economic activity, and the grant enabled recipients to increase their earned productive income
- households' increased buying power contributed to the creation of a local market
- BIG resulted in a huge reduction of child malnutrition
- BIG enabled HIV positive residents to gain access to required medication
- after introducing BIG, schools’ non-attendance rates due to financial reasons dropped by 42 percent
- BIG contributed to the reduction of household debt, and ownership of livestock increased
- BIG has contributed to a significant reduction of crime
- the introduction of a “Basic Income Grant” has reduced the dependency of women on men, giving them a measure of control over their own sexuality
- the criticism that BIG is leading to increasing alcoholism is not supported by empirical evidence
- it is understood that BIG is affordable in Namibia, and there are various options to finance such a national grant.
In sum, BIG as a national policy would greatly assist Namibia in achieving the Millenium Development Goals to which the country has committed itself.



