The People’s
Budget and Basic Income Grant (BIG) Campaign in South Africa
For the past three years, South African
trade unions, churches and NGOs have collaborated to develop
an alternative budget framework called The People’s
Budget. The initiative analyses the poverty trap in which
half of South Africa’s population lives and proposes
an alternative macroeconomic framework based on developmental
intervention by the government. The People’s Budget
recommends a review of fiscal policy towards developmental
objectives, including the provision of national health insurance
and a basic income grant to address the crisis of unemployment
facing South Africa.
The People’s Budget was preceded
by national poverty hearings conducted by the national NGO
coalition, in which communities throughout the country were
called upon to provide input on the conditions of poverty
and underdevelopment in their communities. It also included
follow-up People’s Budget hearings where CSOs, especially
community-based organisations, were asked to give input
on what they believed the national budget should prioritise.
A similar model of popular budget hearings was later adopted
by the Gauteng provincial government.
The Basic Income Grant (BIG) campaign
grew out of the People’s Budget process. The BIG campaign
proposes that a 100 Rand universal grant be provided to
all those living in South Africa as a development grant
to break the cycle of poverty in which the poor are caught.
BIG researchers estimate that the provision of a basic income
grant would reduce South Africa’s poverty gap by 74%,
lifting 6.3 million people above the poverty line. They
also demonstrate that the provision of BIG is affordable.
The BIG campaign falls entirely in the
MDG framework. However, there has been no reference to the
MDGs in any BIG research or campaigning activities. This
is largely due to the low levels of awareness about the
MDGs among CSOs in Southern Africa. Another contributing
factor is the gap that exists between CSOs operating at
the national level and multilateral institutions such as
UNDP, at least in South Africa.
Increased communication about the MDGs
with the CSOs active in the BIG campaign can result in the
integration of the MDG framework and the BIG campaign. This
can provide a boost to the MDG Campaign, especially to its
advocacy efforts with government and the public awareness
drive on the MDGs.
(N Gabriel, the MDGs: Towards
a civil society perspective on reframing poverty reduction
strategies in Southern Africa, Southern African
MDG forum, July 2003)