Press Release: Critical research on universal Basic Income Grant (BIG)

Posted: 12th October 2021/Under: BIG, Media, SPII in the Media/By: Nikayla Naidu

Press Release

For immediate release

Tuesday 12 October 2021

Studies in Poverty and Inequality Institute launches critical research on universal Basic Income Grant (BIG) with partners 13 October 2021.

As decision makers map out the feasibility of a universal BIG in South Africa's response to its alarming poverty rates, a local think-tank, together with critical thought leaders, have compiled a series of BIG research papers to be launched weekly in webinars starting Wednesday, the 13 October 2021.

Studies in Poverty and Inequality Institute (SPII) with a wide ranged collective of partners is launching three research papers on a universal BIG in three successive webinars starting on Wednesday, 13 October 2021. These partners are committed to promoting critical understanding of the BIG and are the Friedrich Ebert Stiftung, the NEDLAC Community Constituency and Telkom.

The research shows how a universal BIG of R1335 per person per month will eradicate income poverty overnight. If increased over a three - year period from the Food Poverty Line to the Lower Bound Poverty Line to the Upper Bound Poverty Line, the research demonstrates how annualised economic growth of between 5% and 7% can be achieved, and 3,8 million jobs created.

The first paper was written by renowned economist Duma Gqubule and will be launched in a webinar tomorrow (13 October 2021) at 1 pm. The two respondents to the paper will be Professor Pieter le Roux, formerly part of the Taylor Committee of Enquiry into a Comprehensive Social Security System, and economist Seeraj Mohammed.

“The idea of a decent BIG is gaining traction as a policy that provides a societal and economic stabiliser that is so urgently needed as shown by the recent violent protests,” said Isobel Frye, executive Director of SPII. “We are able to see a better future where people are economically active and through their actions can regenerate the economy from below. Payments to individual people will mean that no-one is left behind.”

The research also identifies how the policy is affordable, and how a conservative estimate of a multiplier of 1,5 will lead to a positive crowding in of sustainable localised growth.

[ENDS]

For further information contact:

The Studies in Poverty and Inequality Institute

Isobel Frye (SPII Director) 084 508 1271

Nqobile Zulu (SPII Research manager) 067 292 9274Pieter le Roux (Professor) 082 411 4040

Nkululeko Majozi (Researcher) 072 628 7941

Duma Gqubule (Economist) 084 081 4105

Lindi-K Khumalo (Researcher) 079 451 8160

Notes to editors:

Please find the zoom links to the Basic Income Grant webinars below.

13th October, 13:00 – 15:00:

https://us02web.zoom.us/j/83713613313?pwd=U1VyaU5uQkNRR09yOGEzT1ZmQThZdz09