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  Letter from Doug Tilton in South Africa  
             
 

August 2001

Dear Friends,

A few months ago, in the wee hours of the morning, Myrtle Witbooi and a few of her colleagues chained themselves to the gates of Parliament. Myrtle is the General Secretary of the South African Domestic Services and Allied Workers Union (SADSAWU), the main body representing an estimated 800,000 domestic workers across the country. Their protest was timed to coincide with the consideration of a major overhaul of the Unemployment Insurance Fund. Although the South African government had promised to extend unemployment benefits to domestic workers, it had submitted legislation that perpetuated their exclusion, offering only the possibility of inclusion at some indefinite future date.

Faced with imminent arrest, Myrtle and her colleagues ended their protest—only to appear before Parliament’s Committee on Labour a few hours later. The South African Council of Churches (SACC) was also there to remind the government of its commitment to protect this particularly vulnerable segment of the workforce, which is almost entirely black and female. At the close of two days of testimony, the chair of the Committee issued clear instructions to the Department of Labour officials who had drafted the legislation. They were to revise the bill to ensure the inclusion of domestic workers within a definite and reasonable period and they were to work directly with the organizations present to accommodate the concerns they had raised.

It is not often that the SACC is part of a coalition that can claim such a clear-cut victory. Over the past months, the SACC, the Catholic Bishops’ Conference, SADSAWU, and a range of other groups have been meeting with Department of Labour officials. The negotiations have produced revised legislation that requires the appointment of a special task team to develop mechanisms that would bring domestic workers into the Unemployment Insurance Fund within one year after the new law is enacted.

The SACC’s support for domestic workers is just one of the ways churches are working to change national spending priorities to address the needs of people systematically impoverished by centuries of racially discriminatory policy. Although South Africa is considered to be a "middle income" country, it has the dubious distinction of being one of the most inequitable in the world. More than 22 million South Africans, well over half the population, live in poverty. Nearly all are black. A disproportionate number are women. On average, they survive on R144, less than $20, per person per month.

In February, the SACC joined the country’s main labour federation, COSATU, and the coordinating body of nongovernmental organizations, SANGOCO, to launch a "People’s Budget." The People’s Budget is intended to challenge the economic assumptions underlying the national budget and to identify ways to make more money available for spending on poverty alleviation, job creation, and social investment. It also proposes a handful of key programs that could have an immediate impact on the living standards of poor people.

One of its recommendations is the introduction of a Basic Income Grant, a simple idea that has been adopted in Brazil and has generated growing interest across Europe. It consists of a monthly state grant of R100 (about $13) that would be paid to every person in South Africa regardless of age, gender, or income.

In a nation where one-fifth of the population spends, on average, less than R50 a month on food, an extra R100 per month would significantly improve people’s ability to survive with dignity. Larger households, which also tend to be poorer, would stand to benefit most from the grant, since everyone in the household would be eligible to receive it. The grant would likely stimulate a widespread increase in consumer spending, most of which would go towards food, clothing, and improvements to shelter—mostly local products. This would in turn act as a stimulus to local economies, creating new employment opportunities. Unlike means-tested welfare payments, a universal Basic Income Grant would not discourage recipients from looking for work or initiating their own enterprises to improve their incomes.

The South African government already offers some social assistance grants, including pensions of about $70 per month for elderly people and a child support grant of about $15 a month for children under seven. However, about two-thirds of those in South Africa living below the poverty line do not have access to any of the existing grants.

The primary drawback of the grant is, of course, the expense. If all South Africans—even the wealthy—took advantage of the grant, it is likely to cost as much as R50 billion a year, just over 20% of the current national budget and slightly more than the country currently spends each year on servicing its debts. However, most proposals for the grant envision that about half of the cost would be recovered through additional taxation. This would mean that the grant would also become an important tool for redistributing wealth within the country. As the Truth and Reconciliation Commission noted in it report, such a broad-based and visible contribution to economic justice is vital to the stability of South Africa’s democracy and the achievement of genuine national reconciliation.

South Africa’s new constitution guarantees all South Africans a right to basic social security and imposes an obligation on the state to make continual progress toward the realization of that right. Last year, the government appointed a special commission to consider how best to fulfil its obligation. The commission received a number of submissions from church organizations, human rights groups, and economists making practical proposals for the introduction of a basic income grant. As the commission prepares to present its recommendations to the government, the question will be: Can this emerging coalition of civil society organizations generate the political will to take such a bold step in the interests of South Africa’s poorest households?

Sincerely,

Doug Tilton

The 2001 Mission Yearbook for Prayer & Study, p. 47

 
             
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