Akukho Mntu Ushiywa Ngasemva: Imali yenkxaso esisiseko ingcono kunokufumana inkxaso-mail ejoliswe kubantu abathile
Summary
This fact sheet by the Institute for Economic Justice argues that a Universal Basic Income Guarantee (UBIG) is superior to targeted social grants in South Africa. It contends that targeting mechanisms often exclude the most needy due to administrative failures and complex application processes, whereas a universal system ensures basic needs are met for all adults, reduces government administrative burdens, and promotes social cohesion.
Key insights
- Targeted social assistance programs often fail to reach the intended beneficiaries due to unreliable government data, complex application processes (such as online forms), and the volatility of employment in South Africa. Research indicates that among 25 targeted support programs, 12 had exclusion errors exceeding 70%, and 5 had exclusion errors exceeding 90%.
- The most successful targeted program mentioned is Brazil's Bolsa Familia, which still had an exclusion error rate of 44%, meaning no targeted program in the cited research had an exclusion rate below 40%.
- A Universal Basic Income Guarantee (UBIG) is presented as a more efficient alternative because it removes the need for costly and time-consuming means-testing. While the wealthy would technically receive the benefit, the document suggests that appropriate tax measures could recover these funds, ensuring the poor benefit while the wealthy contribute to the system.
- UBIG is argued to be more effective at reducing poverty than high-level targeted grants because it allows multiple adults within a single household to combine their incomes. In the case of the Social Relief of Distress (SRD) grant, 88% of recipients reported combining their funds with others in the household.
- Targeting can lead to social fragmentation and stigma, whereas a universal system is described as promoting social solidarity and the right to basic needs. The document asserts there is no evidence that universal grants create dependency or discourage job seeking; conversely, targeted grants may discourage employment if recipients fear losing their eligibility.
Cite the original document
- APA
- Institute for Economic Justice (2023). Akukho Mntu Ushiywa Ngasemva: Imali yenkxaso esisiseko ingcono kunokufumana inkxaso-mail ejoliswe kubantu abathile. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-2-factsheet-isiXhosa.pdf
- Chicago
- Institute for Economic Justice. Akukho Mntu Ushiywa Ngasemva: Imali yenkxaso esisiseko ingcono kunokufumana inkxaso-mail ejoliswe kubantu abathile. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-2-factsheet-isiXhosa.pdf.
- Wikipedia
- {{cite report |author=Institute for Economic Justice |title=Akukho Mntu Ushiywa Ngasemva: Imali yenkxaso esisiseko ingcono kunokufumana inkxaso-mail ejoliswe kubantu abathile |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-2-factsheet-isiXhosa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{instituteforeconomicjustice2023akukho, author = {{Institute for Economic Justice}}, title = {{Akukho Mntu Ushiywa Ngasemva: Imali yenkxaso esisiseko ingcono kunokufumana inkxaso-mail ejoliswe kubantu abathile}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-2-factsheet-isiXhosa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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