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Namibia's successful basic income experiment
May 10, 2010 No Comment	Michel Bauwens read
From Herbert Jauch:
(thanks to Dante Monson for the reference)
"Namibia, a vast country inhabited by two million people, is one of the smaller economies in Southern Africa. It adopted a market-based economic system after achieving independence from apartheid- era South Africa in 1990. Despite creating favourable investment conditions and its high levels of political stability, Namibia, with its ample mineral and marine resources, could not break the vicious cycle of mass unemployment, inequality, and poverty.
In 2002, the Namibian government appointed the Namibia Tax Consortium to review Namibia's tax system and to explore ways of addressing poverty and inequality. The subsequent report found "that by far the best method of addressing poverty and inequality would be a universal income grant." The commission further suggested that the BIG should be set at a level of at least N$ 100 (USD$ 12) per person per month.
A BIG would cover all Namibians from birth until they reach the age of 60, at which time the national old age pension scheme (currently N$ 470 per month) would kick in. The consortium pointed out that the net costs of the Basic Income Grant would amount to about 3% of Namibia's GDP and could be recovered through changes in the tax system, whose collection rate is currently below 25%, thus making a BIG affordable.
The Namibian government was divided over the question of a BIG. Some regarded it as an unaffordable welfare measure, while the International Monetary Fund did its utmost to discourage Namibia's policy makers from implementing it. Undeterred, in 2004 a coalition of churches, trade unions, NGOs, and AIDS Service organisations formed the Basic Income Grant Coalition to advocate for the introduction of a BIG in Namibia.
After three years of debating and lobbying, no breakthrough was achieved ; government ministers and parliamentarians were still divided over the merits of a BIG. Finally, the Coalition decided to implement a basic income grant in a single village.
The chosen location was the settlement of Otjivero in the Omitara district of Eastern Namibia. About 1,000 people reside there. Most of them are retrenched former farm workers and their families, all of whom have nowhere else to go. Poverty and desperation were widespread and the Coalition believed that if the BIG could make a difference in the lives of the residents of Ojtivero, it would certainly be able to make a difference in the rest of the country.
The pilot project started in January 2008. All residents below the age of 60 years received a Basic Income Grant of N$100 per person per month— no strings attached. A local and international research team has accompanied the introduction of the BIG ; their task is to closely monitor its impact over a two-year period.
The community itself responded to the introduction of the BIG by establishing their own eighteen-member committee to mobilize the community and advise residents on how they could improve their lives with the money. This suggests that the introduction of a BIG can effectively assist with community mobilisation and empowerment.
The first to benefit have been the children. In just six months child malnutrition plummeted from 42% to 17%, while the number of parents paying for school fees doubled to 90%. More children are now attending school and the stronger financial situation has enabled the school to improve teaching materials for the pupils. The school principal reported that dropout rates at her school were 30-40% before the introduction of the BIG. By July 2008, these rates were reduced to a mere 5% and by November 2008, they were almost nil.
Another striking fact is that income has risen by more than the amount of the grants. People are now able to engage in more productive activities, which has fostered local economic growth and development ; several small industries have sprouted up in Otjivero, such as dressmaking, baking, and brick making. Indeed, since the introduction of the BIG, the majority of people have been able to increase their work and their income dramatically. Average monthly household incomes increased substantially over and above the value of the BIG payments : household incomes from wages increased by 19%, income from farming increased by 36%, and income from self- employment increased by 301% during the first year. These findings contradict critics' claims that the BIG would lead to laziness and dependency.
Worries that the grants would lead to more alcoholism proved likewise unfounded. On the contrary, the introduction of the BIG has induced the community to set up a committee that is trying to curb alcoholism. An agreement has also been reached with local shebeen owners not to sell alcohol on the day of the payout of the grants.
Meanwhile, economic and poverty- related crime (illegal hunting, theft and trespassing) has fallen by over 50%. The Basic Income Grant has also helped young women to take charge of their own lives. Several cases document that young women have been freed from having to engage in transactional sex.
A further boon is that the BIG has supported and strengthened government efforts to provide antiretroviral treatment to people suffering from HIV/AIDS by improving access to government services and enabling people to afford nutrition. The settlement's health clinic was visited much more frequently ; residents were able to pay the N$ 4 and it has seen its income increase fivefold.
The initial results of this pilot project are encouraging and have, thus far, exceeded the expectations of the BIG Coalition. The local community has embraced the pilot project and is determined to make it a success. The BIG Coalition now hopes to convince the Namibian government to introduce a countrywide BIG in the near future.
All these positives aside, there is no doubt that the BIG is a limited measure and cannot be a panacea for Namibia's considerable socio-economic challenges. The initiative has to be accompanied by other measures of resource redistribution, job creation and structural change. However, the BIG represents a promising starting point that can make an immediate dent in the debilitating and violent poverty that undermines the lives of so many Namibians."
For further information on the BIG, visit www.bignam.org
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text:
When sociologists apply the sociological perspective and begin to ask questions, no topic is off limits. Every aspect of human behavior is a source of possible investigation. Sociologists question the world that humans have created and live in. They notice patterns of behavior as people move through that world. Using sociological methods and systematic research within the framework of the scientific method and a scholarly interpretive perspective, sociologists have discovered workplace patterns that have transformed industries, family patterns that have enlightened parents, and education patterns that have aided structural changes in classrooms.
The students at that college cafeteria discussion put forth a few loosely stated opinions. If the human behaviors around those claims were tested systematically, a student could write a report and offer the findings to fellow sociologists and the world in general. The new perspective could help people understand themselves and their neighbors and help people make better decisions about their lives. It might seem strange to use scientific practices to study social trends, but, as we shall see, it's extremely helpful to rely on systematic approaches that research methods provide.
Sociologists often begin the research process by asking a question about how or why things happen in this world. It might be a unique question about a new trend or an old question about a common aspect of life. Once a question is formed, a sociologist proceeds through an in-depth process to answer it. In deciding how to design that process, the researcher may adopt a scientific approach or an interpretive framework. The following sections describe these approaches to knowledge.
Sociologists make use of tried and true methods of research, such as experiments, surveys, and field research. But humans and their social interactions are so diverse that they can seem impossible to chart or explain. It might seem that science is about discoveries and chemical reactions or about proving ideas right or wrong rather than about exploring the nuances of human behavior.
However, this is exactly why scientific models work for studying human behavior. A scientific process of research establishes parameters that help make sure results are objective and accurate. Scientific methods provide limitations and boundaries that focus a study and organize its results.
The scientific method involves developing and testing theories about the world based on empirical evidence. It is defined by its commitment to systematic observation of the empirical world and strives to be objective, critical, skeptical, and logical. It involves a series of prescribed steps that have been established over centuries of scholarship.
The scientific method is an essential tool in research.
But just because sociological studies use scientific methods does not make the results less human. Sociological topics are not reduced to right or wrong facts. In this field, results of studies tend to provide people with access to knowledge they did not have before—knowledge of other cultures, knowledge of rituals and beliefs, knowledge of trends and attitudes. No matter what research approach is used, researchers want to maximize the study's reliability (how likely research results are to be replicated if the study is reproduced). Reliability increases the likelihood that what happens to one person will happen to all people in a group. Researchers also strive for validity, which refers to how well the study measures what it was designed to measure. Returning to the Disney World topic, reliability of a study would reflect how well the resulting experience represents the average experience of theme park-goers. Validity would ensure that the study's design accurately examined what it was designed to study, so an exploration of adults' interactions with costumed mascots should address that issue and not veer into other age groups' interactions with them or into adult interactions with staff or other guests.
In general, sociologists tackle questions about the role of social characteristics in outcomes. For example, how do different communities fare in terms of psychological well-being, community cohesiveness, range of vocation, wealth, crime rates, and so on? Are communities functioning smoothly? Sociologists look between the cracks to discover obstacles to meeting basic human needs. They might study environmental influences and patterns of behavior that lead to crime, substance abuse, divorce, poverty, unplanned pregnancies, or illness. And, because sociological studies are not all focused on negative behaviors or challenging situations, researchers might study vacation trends, healthy eating habits, neighborhood organizations, higher education patterns, games, parks, and exercise habits.
Sociologists can use the scientific method not only to collect but to interpret and analyze the data. They deliberately apply scientific logic and objectivity. They are interested in but not attached to the results. They work outside of their own political or social agenda. This doesn't mean researchers do not have their own personalities, complete with preferences and opinions. But sociologists deliberately use the scientific method to maintain as much objectivity, focus, and consistency as possible in a particular study.
With its systematic approach, the scientific method has proven useful in shaping sociological studies. The scientific method provides a systematic, organized series of steps that help ensure objectivity and consistency in exploring a social problem. They provide the means for accuracy, reliability, and validity. In the end, the scientific method provides a shared basis for discussion and analysis (Merton 1963).
Typically, the scientific method starts with these steps—1) ask a question, 2) research existing sources, 3) formulate a hypothesis—described below.
The first step of the scientific method is to ask a question, describe a problem, and identify the specific area of interest. The topic should be narrow enough to study within a geography and timeframe. "Are societies capable of sustained happiness?" would be too vague. The question should also be broad enough to have universal merit. "What do personal hygiene habits reveal about the values of students at XYZ High School?" would be too narrow. That said, happiness and hygiene are worthy topics to study. Sociologists do not rule out any topic, but would strive to frame these questions in better research terms.
That is why sociologists are careful to define their terms. In a hygiene study, for instance, hygiene could be defined as "personal habits to maintain physical appearance (as opposed to health)," and a researcher might ask, "How do differing personal hygiene habits reflect the cultural value placed on appearance?" When forming these basic research questions, sociologists develop an operational definition, that is, they define the concept in terms of the physical or concrete steps it takes to objectively measure it. The operational definition identifies an observable condition of the concept. By operationalizing a variable of the concept, all researchers can collect data in a systematic or replicable manner.
The operational definition must be valid, appropriate, and meaningful. And it must be reliable, meaning that results will be close to uniform when tested on more than one person. For example, "good drivers" might be defined in many ways: those who use their turn signals, those who don't speed, or those who courteously allow others to merge. But these driving behaviors could be interpreted differently by different researchers and could be difficult to measure. Alternatively, "a driver who has never received a traffic violation" is a specific description that will lead researchers to obtain the same information, so it is an effective operational definition.
Research Existing Sources
The next step researchers undertake is to conduct background research through a literature review, which is a review of any existing similar or related studies. A visit to the library and a thorough online search will uncover existing research about the topic of study. This step helps researchers gain a broad understanding of work previously conducted on the topic at hand and enables them to position their own research to build on prior knowledge. Researchers—including student researchers—are responsible for correctly citing existing sources they use in a study or that inform their work. While it is fine to borrow previously published material (as long as it enhances a unique viewpoint), it must be referenced properly and never plagiarized.
To study hygiene and its value in a particular society, a researcher might sort through existing research and unearth studies about child-rearing, vanity, obsessive-compulsive behaviors, and cultural attitudes toward beauty. It's important to sift through this information and determine what is relevant. Using existing sources educates a researcher and helps refine and improve a study's design.
Formulate a Hypothesis
A hypothesis is an assumption about how two or more variables are related; it makes a conjectural statement about the relationship between those variables. In sociology, the hypothesis will often predict how one form of human behavior influences another. In research, independent variables are the cause of the change. The dependent variable is the effect, or thing that is changed.
For example, in a basic study, the researcher would establish one form of human behavior as the independent variable and observe the influence it has on a dependent variable. How does gender (the independent variable) affect rate of income (the dependent variable)? How does one's religion (the independent variable) affect family size (the dependent variable)? How is social class (the dependent variable) affected by level of education (the independent variable)?
Examples of Dependent and Independent VariablesTypically, the independent variable causes the dependent variable to change in some way.
Hypothesis Independent Variable Dependent Variable
The greater the availability of affordable housing, the lower the homeless rate. Affordable Housing Homeless Rate
The greater the availability of math tutoring, the higher the math grades. Math Tutoring Math Grades
The greater the police patrol presence, the safer the neighborhood. Police Patrol Presence Safer Neighborhood
The greater the factory lighting, the higher the productivity. Factory Lighting Productivity
The greater the amount of observation, the higher the public awareness. Observation Public Awareness
At this point, a researcher's operational definitions help measure the variables. In a study asking how tutoring improves grades, for instance, one researcher might define "good" grades as a C or better, while another uses a B+ as a starting point for "good." Another operational definition might describe "tutoring" as "one-on-one assistance by an expert in the field, hired by an educational institution." Those definitions set limits and establish cut-off points, ensuring consistency and replicability in a study.
As the chart shows, an independent variable is the one that causes a dependent variable to change. For example, a researcher might hypothesize that teaching children proper hygiene (the independent variable) will boost their sense of self-esteem (the dependent variable). Or rephrased, a child's sense of self-esteem depends, in part, on the quality and availability of hygienic resources.
Of course, this hypothesis can also work the other way around. Perhaps a sociologist believes that increasing a child's sense of self-esteem (the independent variable) will automatically increase or improve habits of hygiene (now the dependent variable). Identifying the independent and dependent variables is very important. As the hygiene example shows, simply identifying two topics, or variables, is not enough: Their prospective relationship must be part of the hypothesis.
Just because a sociologist forms an educated prediction of a study's outcome doesn't mean data contradicting the hypothesis aren't welcome. Sociologists analyze general patterns in response to a study, but they are equally interested in exceptions to patterns. In a study of education, a researcher might predict that high school dropouts have a hard time finding a rewarding career. While it has become at least a cultural assumption that the higher the education, the higher the salary and degree of career happiness, there are certainly exceptions. People with little education have had stunning careers, and people with advanced degrees have had trouble finding work. A sociologist prepares a hypothesis knowing that results will vary.
Once the preliminary work is done, it's time for the next research steps: designing and conducting a study, and drawing conclusions. These research methods are discussed below.
Interpretive Framework
While many sociologists rely on the scientific method as a research approach, others operate from an interpretive framework. While systematic, this approach doesn't follow the hypothesis-testing model that seeks to find generalizable results. Instead, an interpretive framework, sometimes referred to as an interpretive perspective, seeks to understand social worlds from the point of view of participants, leading to in-depth knowledge.
Interpretive research is generally more descriptive or narrative in its findings. Rather than formulating a hypothesis and method for testing it, an interpretive researcher will develop approaches to explore the topic at hand that may involve lots of direct observation or interaction with subjects. This type of researcher also learns as he or she proceeds, sometimes adjusting the research methods or processes midway to optimize findings as they evolve.
Using the scientific method, a researcher conducts a study in five phases: asking a question, researching existing sources, formulating a hypothesis, conducting a study, and drawing conclusions. The scientific method is useful in that it provides a clear method of organizing a study. Some sociologists conduct research through an interpretive framework rather than employing the scientific method.
Scientific sociological studies often observe relationships between variables. Researchers study how one variable changes another. Prior to conducting a study, researchers are careful to apply operational definitions to their terms and to establish dependent and independent variables.
A measurement is considered ______ if it actually measures what it is intended to measure, according to the topic of the study.
Sociological studies test relationships in which change in one ______ causes change in another.
operational definition
In a study, a group of 10-year-old boys are fed doughnuts every morning for a week and then weighed to see how much weight they gained. Which factor is the dependent variable?
The doughnuts
The duration of a week
The weight gained
Which statement provides the best operational definition of "childhood obesity"?
Children who eat unhealthy foods and spend too much time watching television and playing video games
A distressing trend that can lead to health issues including type 2 diabetes and heart disease
Body weight at least 20% higher than a healthy weight for a child of that height
The tendency of children today to weigh more than children of earlier generations
Write down the first three steps of the scientific method. Think of a broad topic that you are interested in and which would make a good sociological study—for example, ethnic diversity in a college, homecoming rituals, athletic scholarships, or teen driving. Now, take that topic through the first steps of the process. For each step, write a few sentences or a paragraph: 1) Ask a question about the topic. 2) Do some research and write down the titles of some articles or books you'd want to read about the topic. 3) Formulate a hypothesis.
For a historical perspective on the scientific method in sociology, read "The Elements of Scientific Method in Sociology" by F. Stuart Chapin (1914) in the American Journal of Sociology: http://www.jstor.org/stable/2763363
Berger, Peter L. 1963. Invitation to Sociology: A Humanistic Perspective. New York: Anchor Books.
Merton, Robert. 1968 [1949]. Social Theory and Social Structure. New York: Free Press.
"Scientific Method Lab," the University of Utah, http://aspire.cosmic-ray.org/labs/scientific_method/sci_method_main.html

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