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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.