The crisis of waged work and the option of a universal basic income grant for South Africa

Abstract

Waged work is widely seen as a sufficient basis for meeting basic needs, achieving social inclusion and realizing essential social rights. Yet waged work that provides a livable income on reasonably secure terms is rare in ‘developing’ economies and increasingly scarce in ‘developed’ economies. This trend is likely to persist and worsen as the disruptive impacts of economic volatility and climate change intensify and labour market restructuring continues. Aggravating the impact is the diminishing access to livelihood options outside the wage economy. South Africa is an extreme example of this trend, with a very large proportion of the working age population superfluous to the formal economy, high levels of poverty and severe inequality. This paper describes this crisis at the global level and then specifically in South Africa, before considering the option of a universal basic income grant (UBIG). It examines the critiques and the potential merits and risks of such an intervention. To realize its transformative potential, a UBIG would have to be deployed as part of a broad transformation strategy that is led by an active state and driven by a mobilized civil society.