The case for a universal basic income in South Africa: A conceptual approach

Abstract

This conceptual study investigates a model for addressing both poverty and income inequality, which is theoretically distinct from the traditional tax and transfer systems adopted by most jurisdictions. It does so against a backdrop of global uncertainty and ongoing challenges to the current economic landscape. The model investigated is known as universal basic income (UBI) which provides a minimum payment to all citizens of a jurisdiction. In doing so it decouples income from labour and removes any means or employment tests from the receipt of assistance. To adequately address this model, a theoretical rationale for such an approach is first discussed followed by an analysis of the advantages and disadvantages. Current and previous experiments of UBI in Alaska, Switzerland, Canada, Finland, Kenya and Namibia are outlined and analysed. This is followed by a case study for the introduction of UBI in South Africa, with the conclusion that such a model is not outside the realm of political will or practicality.