Case study P: Political economy of the basic income grant in South Africa

Abstract

Despite the recent hype around basic income grant (BIG), Iran provides the only example of a nationally scaled-up BIG. Following on the adapted political settlement framework, this case study analysed the political economy dynamics that influenced the policy non-take-up of the BIG in South Africa. The analysis focused on how and why the BIG was proposed and opposed by the political settlement (policy coalitions), while also highlighting the broader paradigmatic ideas and the distribution regime that were central concerning the development of social security in South Africa. A shift towards a BIG would require larger support from the influential African National Congress (ANC) constituencies and individuals. The persisting levels of poverty, inequality and unemployment will continue raise pertinent questions for the political settlement, especially regarding the extension (permanent) of the means-tested and pro-poor social assistance programme to those aged between 18-59, who are not covered by any social protection schemes.