South Africa could be the first country ever to provide a universal basic income without ties

Cape Town, South Africa

Cape Town, South Africa.UCG

  • Universal basic income has widespread support in South Africa.

  • South Africa’s largest political party recently pledged to make it a reality.

  • The country ranks as one of the worst countries in terms of income inequality.

South Africa has some of the worst income inequality in the world. Its unemployment rate, meanwhile, is over 30%.

But some South African politicians think they have a solution: universal basic income.

The idea has widespread support and the country’s largest political party, the African National Congress, recently said it is committed to implementing universal basic income within two years.

Once confined to the imaginations of ideological dreamers, universal basic income — regular cash payments to a wirelessly connected population — has grown in legitimacy recently, especially after the success of the COVID-era stimulus checks. Technology visionaries racing to develop ever more advanced artificial intelligence have also recommended the implementation of a universal basic income. They say it could help mitigate the effects of job losses from AI.

Some countries have experimented with versions of universal basic income. Kenya, for example, offers unconditional payments to about 20,000 people in 200 cities.

In the US, some cities and states are experimenting with guaranteed basic incomes that provide untethered payments to select groups of people in need. Although studies have found these programs to be successful, they have faced considerable political opposition.

But in South Africa, most political parties support universal basic income. They just need to work out the details.

“The ANC is committed to finalizing a comprehensive policy on the Basic Income Support Grant within two years of the new ANC administration, ensuring broad consultation and expedited action,” the ANC said in a statement.

The statement came a week before the May 29 general election, which saw the ANC lose its majority in parliament. The ANC is now working to form a unity government and its commitment to implementing a universal basic income will almost certainly come up in the negotiations.

The party said a study by the University of Johannesburg found that the majority of South African citizens “fully support the introduction of a basic income support grant”.

While South Africa provides payments to certain groups living below the poverty line through its Social Assistance e The concern grant program, the ANC plan will open eligibility to all South African adults, The Guardian reported.

The ANC said it is “exploring” options such as new tax measures and a new social security levy to fund the programme. The party also says it wants the program to complement, not replace, existing social security programs.

If approved, the ANC plan would make South Africa the first country in the world to provide universal basic income.

Read the original article on Business Insider

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