Imisebenzi Xa Ithelekiswa Nenkxaso-Mali
Summary
The document challenges the notion that social grants create a 'cycle of dependency' or hinder economic growth in South Africa. It argues that basic income supports job seekers by reducing poverty-related barriers, stimulates local economies through increased spending, and provides a safety net that empowers workers to negotiate better wages and conditions. The text emphasizes that employment and social support are complementary rather than contradictory, particularly for unpaid caregivers and those in structural poverty.
Key insights
- Evidence contradicts the claim that social grants discourage people from seeking employment; instead, they can increase the motivation to find meaningful work and help people access job opportunities by reducing financial barriers.
- In South Africa, the cost of searching for work was R938 per month in 2019, which is above the poverty line, meaning basic income enables people to actually apply for jobs. Specifically, the SRD grant increased the ability to look for work by an estimated 25 percentage points, with 27% of youth using the grant to support themselves while job hunting.
- Basic income stimulates local economic growth and human development. In Zambia, it led to a 50% increase in production value through expanded cultivation and non-farm businesses. In Kenya, property ownership with production increased by 51 percentage points, and in Lesotho, there was an 8% increase in the use of agricultural inputs.
- Research from UNICEF and the World Bank indicates that cash transfers do not increase spending on 'temptation goods' like alcohol and tobacco. In South Africa, 93.3% of SRD grant recipients spent the majority of the R350 grant on food, followed by electricity at 31.8%.
- A universal basic income provides workers with an 'exit option,' allowing them to refuse exploitative work and negotiate for better wages and conditions, provided it is paired with labor protections and minimum wages.
Cite the original document
- APA
- Institute for Economic Justice (2023). Imisebenzi Xa Ithelekiswa Nenkxaso-Mali. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiXhosa.pdf
- Chicago
- Institute for Economic Justice. Imisebenzi Xa Ithelekiswa Nenkxaso-Mali. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiXhosa.pdf.
- Wikipedia
- {{cite report |author=Institute for Economic Justice |title=Imisebenzi Xa Ithelekiswa Nenkxaso-Mali |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiXhosa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{instituteforeconomicjustice2023imisebenzi, author = {{Institute for Economic Justice}}, title = {{Imisebenzi Xa Ithelekiswa Nenkxaso-Mali}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiXhosa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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