Govt urged to broaden social safety nets

As Namibia grapples with the global cost-of-living crisis, a researcher is demanding that the government redouble its efforts to support the nation’s most vulnerable.

Kitty Mcgirr, an Institute for Public Policy Researh (IPPR) associate, says despite recent expansions in Namibia’s already relatively comprehensive social assistance system, significant gaps in state protections persist – especially for the most vulnerable citizens.

“Of particular concern is the absence of universal social safety nets for children and the unemployed,” Mcgirr said at the launch of an IPPR report on Friday.

This deficiency was highlighted by the recent statistics for the Omaheke region, where 45 children succumbed to malnutrition between January and June 2023.

Mcgirr said this highlights the need to expand the reach of child protections through the passage of a universal child grant.

The introduction of a universal child grant could also take some of the pressure off of the elderly, she said.

“While the multiplier effects of the old-age pension are well documented, the demands on elderly recipients are often so large that pensions end up being spread too thinly, such that pensioners themselves may end up poor,” she said.

Mcgirr believes current social protection schemes provide little respite to the masses of Namibians impacted by the country’s extremely high unemployment rate.

She said introducing an unemployment grant for all unemployed Namibians between the ages of 18 and 59 could potentially provide individuals with a basic threshold of financial security from which to gain entry and long-term integration into the labour market.

“An unemployment grant is arguably particularly warranted given the high number of job losses that resulted from the Covid-19 lockdowns imposed by government on the grounds of public health and safety in 2020, but on which the public itself was not consulted,” Mcgirr said.

She said a universal basic income grant (BIG) may represent a better strategy to close the social protection gap.

Rinaani Musutua, representing the Namibian BIG Coalition and the Economic and Social Justice Trust, reiterated the need for the government to swiftly roll out a universal and unconditional BIG scheme of N$500 per month, covering individuals aged 0-59.

This move, Musutua explained, is essential to alleviate the suffering of Namibians who are struggling to afford basic food.

She said the existing N$600 per person per month Harambee cash grant, provided solely to former recipients of the Harambee foodbank and marginalised people’s feeding programme, which totals just 45 000 individuals (a mere 2% of the population), falls short of the required impact to effectively combat hunger.

“What the government needs to focus on is to help those who need it most without putting them through tiresome and cumbersome processes and penalties. Therefore, the Harambee cash grant must be converted into an unconditional BIG,” Musutua said.

WAGE BILL

The report further highlights the urgent need for comprehensive public sector reforms to rein in the country’s soaring wage bill, which threatens to derail Namibia’s economic stability.

The study points out that the wage bill for the 107 000-strong civil service is projected to consume nearly 40% of total government expenditure in the upcoming 2023/24 financial year.

This represents a 2,6% increase, compared to the previous year.

Mcgirr urges the government to reconsider its approach to cost cutting.

“Rather than implementing mass retrenchments and upholding real wage cuts for lower-ranking civil servants, more public funds could be saved by scrapping highly paid positions, such as those of deputy ministers and regional governors, which are largely ceremonial in nature, and a duplication of functions performed in other roles,” she said.

Mcgirr said a sustained reduction in the rate of new public sector hires could be supported through the introduction of policy mechanisms to allow easier staff transfers across agencies and departments.

The report, also advocates enhancing government expenditure efficiency and promoting labour-intensive agriculture for development.