How to design a basic income grant for South Africa

SOURCE: HSRC Review
OUTPUT TYPE: Journal Article
PUBLICATION YEAR: 2022
TITLE AUTHOR(S): A.Ntunta, P.Jacobs
KEYWORDS: INCOME GRANT, SOCIAL COHESION, UNIVERSAL BASIC INCOME GUARANTEE (UBIG)
DEPARTMENT: Inclusive Economic Development (IED)
Web link: http://www.hsrc.ac.za/en/review/hsrc-review-march-2022/how-to-design-a-basic-income-grant-for-sa
Print: HSRC Library: shelf number 9812347
HANDLE: 20.500.11910/19357
URI: http://hdl.handle.net/20.500.11910/19357

Download this report

If you would like to obtain a copy of this Research Output, please contact Hanlie Baudin at researchoutputs@hsrc.ac.za.

Abstract

When it comes to the design of a basic income grant, authorities must decide, first and foremost, whether it should be universal or targeted. A universal basic income guarantee (UBIG) is a relatively simple instrument through which everyone in the population receives a grant of the same value. International evidence shows that universal grant programmes are effective in reaching the poor and the middle-income population, as it eliminates the exclusion errors associated with targeted or means-tested programmes. It might be more expensive but, if its design is right, it will produce much better results in terms of reducing poverty and inequality in the short term, and is also more favourable for the economy as well as social cohesion.