LELOKELELO LA LETLAKALA LA TSHEDIMOŠO YA UNIVERSAL BASIC INCOME GUARANTEE (TOKELO YA LETSENO LA MOTHEO LA BATHO BOHLE) MEŠOMO KGAHLANONG LE TŠHELETE YA MPHIWAFELA: Na pholisi ya mošomo le ya letseno la motheo ke mokgwa wa tša thekišano?
Summary
The document challenges the notion that social grants discourage work, asserting instead that a basic income guarantee supports labor market participation by reducing poverty and providing a safety net. It provides evidence from South Africa and other Low- and Middle-Income Countries (LMICs) to show that cash transfers can stimulate local economies, improve educational outcomes, and empower workers to seek better employment conditions. The text emphasizes that UBIG is particularly essential for women, who perform significant unpaid care work, and for the millions of South Africans living in poverty due to systemic economic structures.
Key insights
- There is a common belief in South Africa that social grants create a "cycle of dependency" and discourage people from seeking work, but evidence suggests that income support actually increases the motivation to pursue meaningful employment.
- Cash transfers do not lead to a decrease in labor market participation; in some cases, they increase it. In Namibia, a basic income grant pilot saw the unemployment rate drop from 60% to 45% in a specific area, and in Iran, monthly transfers increased women's participation in the labor market.
- In South Africa, poverty acts as a barrier to finding work. In 2019, the average monthly cost of searching for a job was R938, which exceeds the food poverty line. The SRD grant increased the likelihood of job searching by 25%, with 27% of youth using the grant specifically to fund their job search.
- Cash transfers stimulate economic growth through a multiplier effect, where spending by recipients benefits local businesses. In Zambia, there was a 50% increase in the value of productive investment, and in Kenya, productive asset owners increased by 51%.
- Research refutes the claim that grant recipients spend money on "temptation goods" like alcohol and tobacco. A 2021 study found that 93.3% of SRD R350 grant recipients in South Africa used the majority of the funds for food, and 31.8% used them for electricity.
- A UBIG provides workers with a "exit option," allowing them to refuse exploitative or harmful work and negotiate for better wages and conditions, provided it is set above the poverty line and supported by strong labor protections.
- Relying solely on job creation to solve poverty ignores the essential but unpaid care work performed primarily by women, such as childcare and eldercare, which leaves women more vulnerable to poverty.
Cite the original document
- APA
- Institute for Economic Justice (2023). LELOKELELO LA LETLAKALA LA TSHEDIMOŠO YA UNIVERSAL BASIC INCOME GUARANTEE (TOKELO YA LETSENO LA MOTHEO LA BATHO BOHLE) MEŠOMO KGAHLANONG LE TŠHELETE YA MPHIWAFELA: Na pholisi ya mošomo le ya letseno la motheo ke mokgwa wa tša thekišano? https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-Sepedi.pdf
- Chicago
- Institute for Economic Justice. LELOKELELO LA LETLAKALA LA TSHEDIMOŠO YA UNIVERSAL BASIC INCOME GUARANTEE (TOKELO YA LETSENO LA MOTHEO LA BATHO BOHLE) MEŠOMO KGAHLANONG LE TŠHELETE YA MPHIWAFELA: Na pholisi ya mošomo le ya letseno la motheo ke mokgwa wa tša thekišano? 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-Sepedi.pdf.
- Wikipedia
- {{cite report |author=Institute for Economic Justice |title=LELOKELELO LA LETLAKALA LA TSHEDIMOŠO YA UNIVERSAL BASIC INCOME GUARANTEE (TOKELO YA LETSENO LA MOTHEO LA BATHO BOHLE) MEŠOMO KGAHLANONG LE TŠHELETE YA MPHIWAFELA: Na pholisi ya mošomo le ya letseno la motheo ke mokgwa wa tša thekišano? |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-Sepedi.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{instituteforeconomicjustice2023lelokelelo, author = {{Institute for Economic Justice}}, title = {{LELOKELELO LA LETLAKALA LA TSHEDIMOŠO YA UNIVERSAL BASIC INCOME GUARANTEE (TOKELO YA LETSENO LA MOTHEO LA BATHO BOHLE) MEŠOMO KGAHLANONG LE TŠHELETE YA MPHIWAFELA: Na pholisi ya mošomo le ya letseno la motheo ke mokgwa wa tša thekišano?}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-Sepedi.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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