Schlagwort-Archive: Soziale Sicherheit

Aufruf zur Menschlichkeit. Über F. Hengsbachs ‚Das Reformspektakel‘

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Besprochen von Camilo Jiménez

Das 2005 neu aufgelegte Buch des Jesuitenpaters Friedhelm Hengsbach, Das Reformspektakel. Warum der menschliche Faktor mehr Respekt verdient, formuliert die seit dem Ende des industrialisierten Zeitalters immer wieder ausgesprochene Klage darüber, dass der Mensch nicht mehr im Mittelpunkt des gesellschaftlichen Fortschritts steht und sich dadurch eine immer inhumanere Gesellschaft bildet. Das Buch will aber zugleich Hoffnung machen. Für Hengsbach liegt die Rettung der Menschen in ihren eigenen Händen.

Der 190-seitige Band behandelt die vom damaligen Bundeskanzler Gerhard Schröder initiierte „Agenda 2010“. Für den 68-jährigen Professor für Christliche Gesellschaftsethik steht zweierlei fest: Zum einen, dass die Reformen in Deutschland, so wie sie bisher durchgeführt werden, nur schief laufen können. Und zweitens, dass die einzige Möglichkeit eines positiven Ausgangs dieses deutschen „Reformspektakels“ eine Rückbesinnung auf die Priorität des Menschen ist. „Die am Markt orientierten Reformversuche sind bedrohlich für den sozialen Zusammenhalt“, lautet die grundlegende Argumentation des Buches.

Während die „Agenda 2010“ die Verbesserung der Lebenssituation der Menschen in Deutschland versprach, zeigt die Entwicklung der Lebensumstände in Deutschland im ersten Jahr nach Verabschiedung des Reformpakets genau das Gegenteil. Für die Bürger, den Markt und für den Sozialstaat ging es gleichermaßen bergab. Das liegt für Hengsbach nicht allein an den Reformplänen von Rot-Grün, sondern an der Sozialpolitik der letzten dreißig Jahre – sowohl in Deutschland als auch in allen anderen Arbeitsgesellschaften weltweit.

Zentral bei der Kritik der Agenda 2010 ist eine generelle In-Frage-Stellung davon, was man heute unter „Reform“ zu verstehen hat: „Reform bedeutet immer Veränderung. Aber sollten sich die Verhältnisse nur verändern, nicht verbessern?“ Von vornherein setze das Reformstreben in Deutschland, so Hengsbach, eine grundlegende Entwurzelung der Menschen im Land voraus: „Die Agenda rechnet mit gesellschaftlich entkoppelten Menschen“, also mit einer Gesamtheit von Staatsbürgern, die genau alle Voraussetzungen erfüllen, deren voller oder partieller Mangel aber die Reformen motiviert hat. „Der Mensch, den die Agenda 2010 im Blick hat, gleicht einem Zerrbild real existierender Menschen. Die Adressaten der Agenda sollen sich wie souveräne Wirtschaftssubjekte verhalten.“ Seit dem Amtsamtritt Helmut Kohls im Jahr 1982 suche man nicht mehr nach dem sozialen Zusammenhalt Deutschlands. Dem Sozialstaat würden seine lebenswichtigsten Teile abgeschnitten und diese zu marktliberalen Reformprojekten umgewandelt.

Friedhelm Hengsbach entzündet die Diskussion über die ethischen Verpflichtungen der gesellschaftlichen Institutionen gegenüber den Menschen. Ist der Staat für die Menschen da oder der Mensch für den Staat? Hengsbachs Buch vertritt eine feste Position in diesem Bezug. Für ihn ist es Aufgabe der sozialen Institutionen, allen Notwendigkeiten des Menschen zur Verfügung zu stehen. Also, der Staat für die Menschen.

Die Verteidigung einer solchen Stellung gegenüber Phänomenen, wie z.B. der Marktwirtschaft oder der sozialen Ungleichheit — die die Verfolgung eines solchen menschen-solidarischen Prinzips in Frage stellen —, wird stets im erbitterten Kampf gegen Widersacher aller Art stehen. Hengsbach tritt in diesem Sinne als Konservativer auf. Seine Ansprache für die Solidarität zwischen Institutionen und Menschen versucht die Veränderung der Gesellschaft durch ein Prinzip zu blockieren: dass der Mensch der Mittelpunkt jeglicher Gesellschaft ist.

Jeder Mensch muss „Zivile Verantwortung“ übernehmen

Letztlich ist Das Reformspektakel ein Aufruf zu einer Bewegung des Volkes für sein Recht auf Gerechtigkeit und Menschenwürde. Für Hengsbach bildet die Zivilgesellschaft das Modell einer „demokratischen Selbstorganisation“. Mit einem Bewusstsein für die Mängel der während der 80er und 90er Jahre prominenten Zivilgesellschaft, sieht Hengsbach, dass der Weg aus einem Entmenschlichungsprozess in der Gesellschaft jedoch in den Prinzipien einer zivilgerichteten Sozialordnung zu finden ist. Begriffe wie „Corporate Citizenship“ und „Zivile Verantwortung“ werden erwogen; Tatsachen, wie die massenhaften Demonstrationen gegen die Hartz IV-Reform, das Zusammenschließen der zahlreichen Verlierer der Reformen in Unionen und Korporationen (und heute wohl in einer populären Linkspartei) werden berücksichtigt. Aufgrund dieser Beobachtungen sieht Hengsbach reale Möglichkeiten für einen gesellschaftlichen Ausgleich in Deutschland.

Friedhelm Hengsbach ist kein Pessimist. Die noch bestehende Chance, eine normative Gesellschaft zu bilden, die den Menschen — so wie sie sind — dient, ist eine Möglichkeit, die aber allmählich hinter den Kulissen des deutschen „Reformspektakels“ zu verschwinden droht. Das Werk eines Moralisten kann nur ein Schlusswort haben: „Aktion!“.

Bestellen!

Tomlinson, John/ Schooneveldt, Simon/ Harrington, Penny: Australian Workers and Unions Should Support Basic Income, 18.11.05

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The journey to a full universal Basic Income is essentially the search for the answer to just one question: „How do we best meet the income support needs of all who find they are without the capacity to provide for themselves?“ This paper will try to answer that question.

Introduction

 

Australia has a federal system where the Commonwealth Government has responsibility for social security. Nationally social security started with age and disability pension legis­lation in 1908. Since then, with the exception of blind pensions and child endowment, social security payments have been means – or asset – (sometimes both) tested. Thus the system is categorical and selective rather than universal. The categories reflect the positive light in which the needs of chosen beneficiaries are held by the powerful. For example, widows with children have been paid since the mid-1940s but most unwed mothers were not paid social security until 1973. Since 1977 the Government has assisted all lone parents who meet the specified requirements.

Australians have been subject to increasing inequalities in income and wealth distri­bution during the last two decades due in large part to a general acceptance of economic fundamentalist ideas and government enthusiasm for deregulation and globalism. Michael Costello[1], former Secretary of the Department of Industrial Relations, suc­cinctly summed up the changes occurring in Australia when he wrote: „If you were hard up, you used to get a hand-up from government. Now you get the back of its hand.“

Under the previous Labor Government, low paid workers were compensated for decli­ning real income from employment by increases in the social wage. The current conserva­tive Howard Liberal Coalition Government recently elected for a fourth term and now with ‚control‘ of both houses of the parliament has assaulted the social wage. The universality of Medicare (health insurance) has been weakened, the dental service for low-income earners abolished, and the social security safety-net has been under­mined. The 2005/6 Budget outlined the Government’s determination to get single parents back into the workforce once their youngest child is at school. Likewise, it has reinvigorated attempts to move people off disability pensions onto unemployment benefits with onerous ‚mutual obligation‘ activity requirements[2]. Since coming to office in 1996, this Government has undermined the dignity and rights of Indigenous Australians and asylum seekers.

Job insecurity has increased; the Government is determined to weaken the fair dis­missal legislation. The officially recognised unemployment level has dropped below 6% but if people who are underemployed, discouraged unemployed and disguised unemployed are taken into account the real level of unemployment is in the order of 12 to 18% of people of working age.  Unemployment and the weakening of the social secu­rity safety net are real issues for low-income wage earners because people in the bottom 30% of income distribution are the ones most likely to experience periodic unemploy­ment interspersed with short stints in casualised, part-time and precarious employment.

Captains of industry are gaining disproportionate rewards – the ratio between Chief Executive Officers‘ salaries and those of workers has risen from 3 times workers‘ salaries in the 1970s to 74 times workers‘ salaries[3]. Increasingly arduous work ‚flexi­bility‘ arrange­ments are being imposed. The industrial arbitration commission and the union movement are constantly challenged by Government attempts to impose a dra­conian industrial relations regime.

Australia over the last two decades has been converted from a reasonably caring, mixed economy with a frugal but comprehensive social security safety net into a country where private provision, „individualisation of risk“[4] and a „do it yourself wel­fare state“[5] is the order of the day. The Government has intensified the rhetoric about the evils of „welfare dependency“ as a way to decrease the legitimacy of claims for government assis­tance. In doing so it has foisted the obligation to support those in financial need back onto families.

This portrait of Australia may make it appear unlikely that a Basic Income paid to each permanent resident, as an individual, irrespective of their personal or social circumstances will be introduced in the near future: yet as will be seen there are grounds for optimism. A Basic Income system would be more just than the existing Australian system of income support. Low income-earners would be net beneficiaries of a Basic Income whereas rich Australians would not be economically advantaged by it because they would pay more in tax than they gain in benefits.

Income Support Schemes

Before we can examine Basic Income further, it is useful to outline other existing and proposed systems of income support.

Private superannuation and other privatised solutions

In Australia, private superannuation is the only form of superannuation available to non-government workers. The amount paid is proportional to contributions from workers‘ salaries (paid by workers and by their employers) or private investments made during the workers‘ employment. The inequalities experienced during working lives are extended into the post-working phase of people’s lives. All private superannuation funds are at some degree of risk. The Australian Government Superannuation watchdog recently warned that at least 10% of funds are insecure[6]. Some workers, particularly those who in recent years have been forced by their ‚employer‘ to become contractors, have private unemployment, sickness and accident insurance. It is not an affordable option for the majority of workers.

The Job Guarantee

A job guarantee can only exist when a government is prepared to commit itself to becoming an employer of last resort. In the last thirty years there have been two forms of limited job guarantee provided by Australian governments. The first in the 1970s, under the Whitlam Labor Government, was the Regional Employment Development Scheme, and the second was the job offer, after 18 months unemployment, under the Keating Labor’s Working Nation package in the mid 1990s. The Centre for Full Employment and Equity at the University of Newcastle is promoting the most detailed current Australian proposal for a job guarantee. Under a job guarantee, those who are available and capable of doing the work on offer will be assisted. But those who cannot find suitable child care, or have a disability will be unable to take up a job under the job guarantee unless child care is provided and the obstacles to obtaining and keeping employment are overcome for people with a disability.

Social Security

The greater the universality in any system of social security the nearer it comes to being an income guarantee. For instance, in Australia, all long-term residents who exceed specified age limits are entitled to apply for the age pension. The age limit for women is gradually being phased in to equal that of men. If their income and assets are below a specified amount they will receive payment. This is a Guaranteed Minimum Income for older Aus­tralian residents. Current age limits are 65 years for men and 62.5 years for women. Yet it needs to be remembered that the average age of death for Indigenous Australians is 56 years for men and 62 years for women. This compares with rates in the non-Indigenous population of 76 years men and 83 years for women. In Queensland, South Australia, Wes­tern Australia and the Northern Territory three-quarters of Indigenous male deaths and two-thirds of Indigenous female deaths occurred before the age of 65 years compared with one-quarter of male and one-sixth of female total deaths in Australia (ABS/AIHW (2003), p. 183.).

Social security benefits are targeted to those whom the government has decided should be paid. Complexity, stigma, system failure and recipients‘ lack of sophisticated knowledge about bureaucracies results in many eligible people not receiving their proper entitlements. The Brotherhood of St Laurence and St Vincent de Paul 2003 report entitled „Much Obliged“asserts that people who become long term unemployed have so much of their time taken up just meeting the obligations imposed on them by the Government that they don’t have time to find work: the report concludes the mutual obligation regime „is failing the most disadvantaged job seekers. Overall the system operates (…) not as ‚welfare to work‘ but ‚welfare as work'“[7].

Guaranteed Minimum Income, Negative Income Tax and Tax Credits

The first fully elaborated book length Basic Income proposal, in the English language, was written by Dennis Milner in 1920. A Guaranteed Minimum Income, if it is available to all permanent residents, is very much like a Basic Income except for the requirement to establish that an individual’s income and or assets are below the amount that is allowed. In 1943, Lady Juliet Rhys-Williams was the first English writer to provide a book length outline of the idea of a guaranteed minimum income. The purpose of such an income guarantee was in Rhys-Williams‘ words „to provide a ‚floor‘ below which he (or she) cannot fall, but ought not to have a ceiling beyond which he (or she) can rise“[8]. In 1970, Ian Braybrook wrote the first academic paper on negative income tax in Australia. The earliest Australian proposal to introduce a negative income tax was that of the Priorities Review Staff of the year 1975.

A Tax Credit is a form of negative income tax paid through the tax system. The aim of a guaranteed minimum income, negative income tax and tax credits is essentially to provide a minimum income guarantee to those whose incomes fall below a specified amount. All these generalised forms of income support differ, in theory, from categorical payments in at least one important regard. They make no presumption about social eligibility. Yet when income guarantee policies are formulated residues from categorical social security policies are frequently present. When Professor Ronald Henderson, Head of the Poverty Inquiry, proposed his guaranteed minimum income[9] he wanted a two-tiered structure, using the family as the unit of income, which distinguished between those in receipt of benefits or pensions and those who did not then qualify. Other Australian guaranteed minimum in­come proposals have used the household as the unit for payment[10]. Such proposals ignored the inequities present in intra-family and intra-household transfers.

Participation Income

Participation Income ideas are widespread in the present Australian system of income sup­port. Participation income is a euphemism for the chance to impose an obligation on people who receive government or government-subsidised payments coupled with the paternalistic belief that this will assist the recipient to improve their life. Many resear­chers have described the philosophical underpinnings of Participation Income as unethical[11] because the only choice offered to welfare recipients is comply or starve. The practical outcomes for those who are breached are socially disastrous[12]. Evidence is emerging from the United States which suggests that a reduction in or removal of social security payments leads to increased health difficulties for children.

There is little recognition that workfare jobs entrench low paid employment by displacing full-time, above poverty-line jobs[13].  „Work for the dole“ and Community Deve­lopment Employment Program (CDEP) jobs in Australia have a similar effect of entrenching poverty[14].  The CDEP is a „work for the dole“ program operating in Indige­nous communities since 1977. The bulk of Indigenous „jobs“ on Indigenous com­munities are CDEP „jobs“ – paid at about the rate of unemployment benefits and only the most misguided would claim that such „jobs“ have abolished poverty in Indigenous Australia.

Advocates of participation income seem oblivious to the life experiences of low paid workers‘ revealed in 2003 in the Australian Liquor Hospitality and Miscellaneous Workers Union’s (LHMU) submission to the Senate Inquiry into Poverty. There is very little recog­nition of the demoralisation that follows in the wake of working full-time yet still being in poverty, or only being able to gain casualised, poorly renumerated, preca­rious employment.

The impact of enforcing obligations upon unemployed people, insufficiently employed people, lone parents and people with disabilities is the same whether it is expressed in the considered tones of Patrick McClure’s Report of 2000, or, one year before this, Minister Abbott’s suggestion that unemployed people are „job snobs“. The hysterical denunciation of „welfare dependency“ and particularly intergenerational „welfare dependency“ is based on a myth. There have been no intergenerational panel studies of long-term social security recipients in Australia. Recent overseas long-term panel studies refute such assertions[15]. Cook, Dodd and Mitchell[16] report that since 1975 in Australia there have been around eleven job seekers for each job vacancy.

Some researchers[17] have argued that if a Basic Income was put in place that workers would stay away from work in droves; whereas other researchers have argued the exact opposite[18]. The only study conducted in Australia into the impact on work willingness (where low-income families were provided with a guaranteed minimum income), showed these families experienced no decline in work willingness[19]. Van Parijs[20] claims that because a Basic Income is paid, irrespective of all other sources of income, it can be used by those who desire work as a wage subsidy; yet, because it provides sufficient income on which to live, it does not compel any potential worker to work under conditions which that worker finds unacceptable.

Effective Marginal Tax Rates

The rate of tax people pay is very confusing because of the progressive tax rates in the Australian income tax system, the presence of family allowances paid through the tax system and because the social security system and the tax systems intersect; as a result many families do not get much benefit from extra income they obtain by working.  Many low-income earners pay a greater proportion of their income in direct and indirect tax than do more affluent citizens. It is a long-acknowledged problem which governments over the years have failed to address adequately. The Government took a small step to reduce withdrawal rates from 70% to 60% in its 2005/6 Budget.

Tax

Australian taxpayers are, for most taxation purposes, assessed as individuals. But eligibility for most social security benefits is calculated in terms of total family income. A person applying for social security benefit can be refused payment if they have a partner who is earning more than a specified income. If an employed person is supporting a partner who is without income, that person cannot lower their tax by counting the income as spread between two people. A government, interested in assis­ting families to stay together, would not persevere with the existing social security arrangements which discriminate against people pooling their resources. With a Basic Income, unlike all the other forms of public assistance discussed, neither the employ­ment income nor the amount of Basic Income is directly affected by the other source of income. The withdrawal rate is the income tax rate on earned income. Importantly this removes poverty traps and work disincentives simultaneously.

In the current climate of individual work contracts and increasingly precarious employment, rather than relying upon individual employers to pay a wage sufficient to lift workers out of poverty, organised labour needs to consider whether there is not considerable merit in the collective provision of a Basic Income.

 

Why Australia needs a Universal Basic Income.

The income support issues with which Australia is grappling at the start of the 21st century are remarkably similar to those which many other countries are confronting. Anyone who reads the papers in the Basic Income Earth Network’s 2002 and 2004 Conference Proceedings, which detail the work of researchers from every continent, could not fail to be struck by the similarities in the debates. It needs to be remembered that in the decade prior to the 1980s there were many social welfare improvements and a great hope for even more. The Henderson Poverty Inquiry’s First Main Report of 1975 endorsed the idea of introducing a guaranteed minimum income and the Whitlam Labor Government seemed accepting of the idea.

 

Social protection

The prime reason for supporting a universal Basic Income is that it is the most socially just way of ensuring social protection[21]. In an ideal world everyone would have their needs fully met and all would contribute their utmost to ensure that everyone’s needs were met. This was essentially what the welfare state was meant to do in the post-Second World War period. The current Australian social welfare system, due largely to under-funding resulting from economic fundamentalists‘ constant attacks, is less capable of ensuring social pro­tection for the most vulnerable than the Australian welfare state of the late 1970s and early 1980s. Many of the family support structures which were the first port of call for help in earlier times have been eroded; full-time work above the poverty-line is harder to find.

Intergenerational distribution young / old

Whereas social insurance payments are largely paid for by the contributions of workers, social security in Australia is paid from general taxation. In the 1960s and early 1970s age pensioners were often confined to poverty level incomes. The Henderson Poverty Inquiry of 1975 exposed this sorry state of affairs and now the Australian social security system treats age pensioners far more generously than unemployed people and younger unem­ployed people in particular. In Europe similar age-delineated inequities have led to inter­generational envy. Older Australians need to realise that their taxes went to pay the pensions of their parents‘ generation. There is nothing left to pay theirs and if they don’t treat younger people better the young might refuse to contribute to older people’s support. A Basic Income, because it is paid equally to all, abolishes such inter­generational envy.

Affordability

In any social policy process the first and last question asked is „Is it affordable?“ No space has been devoted to this question so far and it must be addressed. The Henderson Poverty Inquiry of 1975 showed that its guaranteed minimum income scheme was affordable. Keith Rankin has written extensively on the economic affordability of Basic Income in New Zealand. George has specifically addressed this question in relation to the United States. The Irish Government has declared it is affordable there[22].

In Australia, Saunders[23] worried that a full universal Basic Income might require a 50% income tax rate which he considered politically unpalatable. This calculation was made prior to the GST which, now implemented, would lower the tax rate required to something more in line with what the Irish Government has recently declared would be necessary (that is 43 percent) to pay for an above-poverty-line Basic Income.  This would mean that the required tax rate to pay for a Basic Income would be at or slightly above the current tax rate imposed on incomes exceeding $63,000 (probably in the order of 45 percent).

Perhaps the last word on affordability should be left to José Iglesias Fernández[24] who proposed a full universal Basic Income scheme for Catalonia paid at 50% of the average European Union wage. Considering whether his proposal was affordable, Iglesias Fernández wrote that since the Basic Income was only half of the per capita income that therefore the money needed to pay for it already existed and that it was simply a matter of redistribution.

Efficiency

While Australia has 12 to 18 % of its working age labour force unemployed, underem­ployed, disguised unemployed or discouraged unemployed, it is clearly not making an efficient use of available labour in this country. The Commonwealth Government’s Committee on Employment Opportunities commented: „The loss of production through unemployment is the single greatest source of inefficiency in our economy. Unemployment is also the most important cause of inequality and alienation for individuals, families and communities“[25].

Governments in Australia are certainly capable of determining the cost of delivering specific categorical benefits to those who are paid. They can and do calculate how much they ’save‘ by cutting people off income support when they do not meet the eligibility requirements for any specific benefit. This is accounting or target efficiency. Govern­ments seem uninterested in what social costs are incurred in the wake of decisions to remove income support from such citizens. Target efficiency processes give no measure of how efficient the system of social security is as a whole.

Some of the system-wide questions, which would need to be answered if the efficiency of the system as a whole was being calculated, would be:

–      Are any of the people excluded from the social security system poor?

–      How many people who have an entitlement miss out?

–      How satisfied are the people who are confined to low levels of income support?

–      Does the social security system advance social justice for all permanent residents?

–      Are the human rights of all residents protected (or even enhanced)?

–    Does the system remove all obstacles to inclusion of people with a disability?

–      Are all genders, ages and ethnic groups treated equally or equitably?

–     Is there equitable treatment provided to people from the city and the country,

–     and does the system of income support provide sufficient security to recipients so as to allow them to contribute to society in ways with which they are comfortable?

Attempting to ascertain the degree of impairment experienced by an individual applicant and then paying those applicants who can establish they have met some predeter­mined ‚level of incapacity to work‘ is costly and an extraordinarily inefficient way of providing income support to those with a disability. People with equivalent levels of im­pairment often have widely different employment histories. It would be more efficient to provide a universal income guarantee if the desire is to encourage productivity/contri­bution/inclusion by those who have a disability. Australian govern­ments have recognised this in relation to Blind Pensioners[26] but continue to subject others who have severe dis­abilities to stigmatised, selective, targeted, categorical payments.

There are broader aspects of efficiency that can and should be mounted in support of an unconditional Basic Income:

–     A Basic Income requires the least interference in the lives of citizens.

–     It supplies all permanent residents with equal assistance.

–     It is the most inclusive form of income support payment and the most secure, thus enhancing citizenship.

–     It provides sufficient income to allow people to explore their creative capacity.

–     It removes many of the obstacles to a reinvigoration of industrial, technical and computing infrastructure.

–     It allows the State a fuller understanding of the impact of its other social wage policies.

Conclusion

A universal Basic Income is not a utopian idea. It is an efficient affordable way to ensure no Australian permanent resident remains in poverty. However, a Basic Income is just that – an unconditional universal income guarantee. It delivers an income floor without impeding productivity. It is a vast improvement on categorical selective social services. It is an advance on all social insurance and private provision schemes which invariably result in the „individualisation of risk“ and as a result create a „do it yourself welfare state“.

References

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  • Standing, G.: Beyond the New Paternalism: Basic Security as Equality. London: Verso 2002.
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  • Van Parijs: Real Freedom for All – What (if Anything) Can Justify Capitalism?Oxford: Oxford University Press 1997.
  • Van Parijs, P.: „The Second Marriage of Justice and Efficiency“, in: Arguing For Basic Income (ed. by Philippe Van Parijs), London: Verso 1992.
  • Widerquist, K.: „A Failure to Communicate“, in: Promoting Income security as a Right(ed. by Standing, G.), London: Anthem 2004.
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Endnoten    (↵ returns to text)

  1. Costello (2003).↵
  2. Galvin (2004) and Ziguras/Dufty/Considine (2003).↵
  3. Shields/O’Donnell/O’Brien (2003).↵
  4. Lerner/Clark/Needham (1999), p. 11.↵
  5. Klein/Millar, cited according to Page (1998), p. 307.↵
  6. Hayes (2002), p. 1.↵
  7. Ziguras/Dufty/Considine (2003), p. 43.↵
  8. Rhys-Williams (1965), p. 163.↵
  9. Henderson (1975).↵
  10. Edwards (1984).↵
  11. Kinnear (2000), Goodin (2001).↵
  12. Schooneveldt (2004), Ziguras/Dufty/Considine (2003).↵
  13. Briggs/Buchanan (2000).↵
  14. Tomlinson (2003), Ch. 4 and 6.↵
  15. Goodin/Headey/Muffels/Dirven (1999), pp. 260-261.↵
  16. Cook/Dodd/Mitchell (2001), p. 24.↵
  17. Whiteford (1981).↵
  18. Widerquist (2004), Van Parijs (1997) and Tomlinson (2003).↵
  19. Liffman (1978).↵
  20. Van Parijs (1992), p. 229.↵
  21. Standing (2002), Van Parijs (1997) and (1992).↵
  22. Healy/Reynolds (2002).↵
  23. Saunders (1995).↵
  24. Fernández (2002).↵
  25. Commonwealth Government’s Committee on Employment Opportunities (1993), p. 1.↵
  26. Jordan (1984).↵

Nattrass, Nicoli: AIDS, Disability and the Case for a Basic Income Grant in South Africa, 18.11.05

Veröffentlicht am von

AIDS gehört zu den heimtückischsten bekannten Krankheiten. Besonders in afrikanischen Ländern prägt sie stark das Gesellschaftsbild. In Ländern wie Südafrika, die AIDS-Erkrankten finanzielle Unterstützung gewähren, ist immer wieder zu beobachten, dass besonders arme Menschen sich über eine AIDS-Erkrankung in der Familie freuen. AIDS wird dann zu einem Argument für die Einführung eines bedingungslosen Grundeinkommens, um bewusst herbei geführte Erkrankungen zu verhindern.
Nicoli Natrass untersuchte die Bedingungen für die Einführung eines bedingungslosen Grundeinkommens in Südafrika.

Introduction

AIDS is a very serious problem in South Africa. According to the demographic model of the Actuarial Society of South Africa (ASSA2002) for the year 2004, 19% of the adults between the ages of 20 and 64 (and 11% of all South Africans) were HIV-positive. This situation amounts to the deep socio-economic crisis experienced nowadays in the country. The AIDS-emergency in South Africa weakens the economic safeguard of households by reducing the productivity of – and eventually killing – mainly prime-age adults while simul­taneously deflecting scarce domestic resources towards the health-care of AIDS-affected family members. Especially vulnerable to these shocks are in fact the poorest households in South Africa.

It is particularly appalling that the engrossment of the AIDS epidemic in South Africa coincides with the fact that over a third of the nation’s labour force remains unemployed and lacks thereby of social security[1]. South Africa’s welfare system beholds a full employ­ment programme: means-tested grants exist for over-aged (old age pension) and under-aged (child grant), as well as for disabled citizens (disability grant). Not the less, jobless labour forces do not dispose of such contributions. This ‚gap‘ amidst the social security network of the country may be a good reason for explaining the frequent correlation between unemployment and poverty[2].

In fact, only the disability grant is available for people of working age. This reality leads not only to social problems within the nation, but – as explained below – to complications with the recently begun Highly Active Antiretroviral Therapy (HAART), South Africa’s ‚rollout‘ on HIV prevention[3].

Welfare, AIDS and Disability in South Africa

Disability grants are accessible for all those ‚physically and mentally severely disabled‘, whose ages lie between 18 and 65. The whole system works according to a ‚medical model‘. The latter instructs medical officers recommending patients for disability grants to judge the patient’s capacity to labour independently of whether work is available or not[4]. People who have fallen into the fourth stage of AIDS, i.e. AIDS-sick, as long as they have passed a fairly generous means-test, become eligible for the disability grant. Yet these grants are to be renewed by officers periodically – every six months or up to every five years depending on the kind of contribution the patient is receiving. A dramatic consequence of this is that a patient on antiretroviral treatment who, during the treatment, turns up well enough to work should expect to lose his or her disability grant[5].

Disability grants (which pay up to R740 [approx. US$115] per month) seem to be an important source of income for AIDS-affected households in South Africa[6]. Survey evi­dence from Khayelitsha, Cape Town, reveals that for households receiving the disability grant, the contribution comprises between 41 and 49% of the total household income[7]. The profit obtained from the disability grants can be illustrated by the answer of a woman queried in another study, where she said: „I love this HIV“, a statement she explained as follows:

„Yes, I like this HIV/AIDS because we have grants to support us… Before I was living with my mother, my father and my sister; they didn’t work. Maybe I was passing three to four days without eating. People discriminated me and no one came in the house. The only thing helping was my grandmother’s pension. We survived through that money.  But after the illness, our lives have changed completely.“[8]

The notion of someone loving HIV seems at first shocking. But it is understandable – albeit in a terrible way – when considering the desperate circumstances to which households can be driven to when they lack of an income-earner. The advent of a disability grant, as was clearly the case for the respondent quoted above, can ensure a longer life-line for an entire family. Thus, the threat of its elimination, resulting of antiretroviral treatment, is utterly serious. If the data from Khayelitsha does constitute a reliable source, it may then suggest that average household income could fall by a third if a disability grant is lost through restored health.

This is evidently bad news for the prospects of the HAART-rollout. Firstly, there will be a great number of HAART-patients to which the access to certain food-products will be bounded once their disability grants are cancelled. People undergoing the treatment need to eat regular, nutritious meals in order to enjoy optimal health benefits. The loss of the disability grant could consequently threat a patient’s health status – thereby shortening his or her life – and could additionally increase viral loads in the patient, increasing by this means his or her infectiousness. Such consequences could undermine the benefits of the HAART-rollout both in terms of preventing from new HIV infections and of extending the lifetime of those infected[9]. Furthermore, a small, but significant percentage of the AIDS-affected may opt for discontinuing HAART so as to become AIDS-sick again and thus once more qualify to the disability grant; once it is reinstated, the patients take up again the treatment. In cases where the disability grant is cancelled as a result of restored health, some patients go for repeating the cycle. Besides the negative impact on the indivi­dual’s health, such behaviour can dramatically increase the development of drug resistant strains of the HIV virus, thereby diminishing the effectiveness of the entire HAART-rollout. These reasons reinforce the necessity of carrying out a strong case in favour of the introduction of a basic income grant in South Africa’s social security system.

Towards a Basic Income Grant

One way out of the potential trade-off between disability grants and the antiretroviral treatment may consist in removing the grant altogether for HIV-positive people. Such measure would at least facilitate the disappearance of appalling incidents as described above. The result of this, however, could be socially distorting, since its discriminative core is liable of being censured: people disabled by AIDS can’t be categorically disentitled from government support. Moreover, the elimination of the disability grant for all citizens who are HIV-positive would certainly cut down an essential source of income in poor AIDS-affected households. Likewise, the resolution may have unfavourable effects on the nutritional state of people using antiretrovirals. By this means the efficacy of the treatment rollout would be reduced, allowing the following two conclusions: firstly, that in South Africa the decline of a private household income can in fact lead directly to lower food-expenditure. And secondly – taken the fact that AIDS is most common within poor social spheres -: that the ensuing growth of poverty could exacerbate the development of the AIDS epidemic.

An alternative response is to allow HIV-positive people to maintain their disability grants even after their health has been restored. There are, however, two problems with this strategy. The first is that perverse incentives, as described above, can’t be eliminated in this way. Allowing access to the disability grant for patients whose health has been restored may result in some people desiring to become HIV-positive. Although this may sound far-fetched, there is anecdotal evidence from the Western Cape, the Eastern Cape and KwaZulu-Natal indicating that various persons become annoyed when having negative re­sults on their tests – arguing that they were hoping consequently to get the grant. In the Eastern Cape there is the saying that someone has ‚won the lotto‘ if the HIV-test draws positive. Such news is actually seen as a ticket to the disability grant. If antiretroviral treat­ment is regarded – indeed incorrectly – as a ‚cure‘ for HIV, then it is possible that some people may desire to become HIV-positive under the mistaken notion that they will be able to get access to the disability grant, and then be healed through antiretroviral treatment.

The second problem with allowing HIV-positive people to keep their disability grants, even when their health has been restored through antiretroviral treatment, is one of moral character. Why should HIV-positive individuals be privileged over others possibly equally needy, but HIV-negative? Put in this way, the question after the introduction of a Basic Income Grant (BIG) for all disabled nationals immediately arises. Nonetheless the esta­blishment of a BIG would need to be effected at a much lower level (probably in the range of R100 to R200 instead of the current maximum grant of R750). Households having lost the disability grant as a consequence of antiretroviral treatment would obtain in some degree a financial cushioning resultant of the fact that they, and each household member, would have received a BIG. This measure could help prevent people on anti­retroviral treatment from the temptation of quitting their obligations to the treatment’s regimens in order to restore a disability grant.

Suppose that a BIG is introduced for all people, say at R100 per month: what would then be the appropriate level of payment for the disability grant? If the payment to disabled people is to remain at its current level, then a disability grant on the top of the BIG could fall by R100 to R650. This means, for example, that if a person loses a disability grant for entering to antiretroviral treatment, his or her loss in income will consequently sum up R550 rather than R740 – and yet the patient will have a BIG aiding his or her subsistence needs. It is however possible that for some very poor individuals on antiretroviral treat­ment the gap between the disability grant and the BIG may still be large enough to encourage them to stop taking antiretroviral treatment in order to restore the grant. If so, then there is actually a case for reducing the value of the disability grant and/or raising the value of the BIG.

There is a range of arguments, both moral and economic, in favour of a generalized BIG[10], particularly in the case of South Africa[11]. This is not the place to review these arguments, nor the arguments against the introduction of a BIG. The point at present is simply to show that given the factual circumstances of the widespread of AIDS in South Africa and, as mentioned above, the perverse incentives associated with the removal of the disability grant, arguments have amounted in favour of the introduction of a BIG.

Previous research and financial simulations have shown that even a modest BIG of R100 per month for all South Africans could indeed contribute to reduce poverty and in­equality in South Africa[12]. This is the reason why the latest report of the Taylor Committee on „a comprehensive welfare policy reform“ argued in favour of a BIG[13]. According to Le Roux[14], financial means for a BIG could be gained through a 7.3% point increase in value-added tax (VAT) and a 50% boost on excise and fuel taxes. This scheme is broad-based and redistributive: those who spend more than R1,000 a month would end up paying more in consumption taxes than they benefit from the R100 BIG.

In earlier work, I estimated that the implementation of a full-scale AIDS prevention and of a treatment intervention that could provide HAART to all those in the need of it (i.e. with a rapid rollout and no share in antiretroviral treatment), would require an increase in resources equivalent to raising VAT by between 3 and 7% points according to the level of care provided to those suffering from any AIDS-related illness[15]. Given the subsequent, remarkable decrease in the price of antiretrovirals (between November 2003 and June 2004 the first line triple therapy treatment regimen dropped by 72%) the revenue expected to be raised would now probably require only an increase of between 1.9 and 5.7% points on VAT. If we take the mid-point estimate and sum it to Le Roux’s valuation of a necessary tax increase, then it seems that South Africa would have to raise tax revenues by an equi­valent of a 12% point increase in VAT so as to finance a BIG and implement a national AIDS prevention and treatment intervention for all who need it.

This, of course, implies a significant increase in taxation. The viability of this can’t be exactly estimated, as different societies tolerate different levels of taxation, and at different times. Welfare expenditure as a proportion of GDP has risen economic development, and in times of crisis, such as war, citizens have accepted large increases in taxation as legitimate[16]. The notion of what is and is not ‚affordable‘ thus varies according to social and economic circumstances. Given the high degree of unemployment and the progress of the AIDS epidemic, it is possible that a part of South Africa’s population does agree with an increase in taxation, and may be able to deal with it. Whether one appeals to Rawlsian logic to protect the lives and livelihoods of the poor, or to more radical left libertarian ideas of providing each citizen with a social dividend as a basic right, the issue in the end boils down to whether people can tolerate living in a society that forces AIDS-affected individuals to choose between income and health.

Finally, it is important to note that even if a BIG and a suitable AIDS prevention and treatment intervention were to be introduced, there is yet much more to be done regarding the problem of unemployment and poverty in South Africa. A BIG of R100 a month is ac­tually very small: it amounts only to one tenth of the average African per capita income, and to one twentieth of the average per capita income in South Africa. Addressing poverty through other means – most notably by encouraging labour-intensive growth – must therefore have an essential role in any future solution.

References

  • Bhorat, H.: „A universal income grant scheme for South Africa: An empirical assessment“, Paper presented at the 9th International Congress of the Basic Income European Network, Geneva 2002.
  • Coetzee, C./N. Nattrass: „Living on AIDS Treatment: A Socio-Economic Profile of Africans Receiving Antiretroviral Treatment in Khayelitsha“, Centre for Social Science Research, Working Paper No. 71. Cape Town 2004. Available on www.cssr.uct.ac.za.
  • Leibbrandt, M./Woolard, I./Bhorat, H.: „Understanding Contemporary Household Inequality in South Africa“, in: Studies in Economics and Econometrics, vol. 24, no.3: 31-51. 2000.
  • Le Roux, P.:  „Financing a Universal Income Grant in South Africa“, in: Social Dynamics, vol.28, no.2: 98-121. 2003.
  • Nattrass, N.: „Unemployment and AIDS: The Social-Democratic Challenge for South Africa“, in: Development Southern Africa, vol.21, no.1, March: 87-108. 2004a.
  • Nattrass, N.:  The Moral Economy of AIDS in South Africa. Cambridge: Cambridge University Press 2004b.
  • Seekings, J.: „Visions of Society: Peasants, Workers and the Unemployed in a Changing South Africa“, in: Studies in Economics and Econometrics, vol.24, no.3. 2000.
  • Seekings, J.: „Providing for the Poor:  Welfare and Redistribution in South Africa“, Inaugural Lecture, University of Cape Town, 23 April. 2003.
  • Seekings, J./Nattrass, N. From Race to Class: The Changing Nature of Inequality in South Africa. Yale University Press, New Haven (forthcoming).
  • Simchowitz, B.: „Social Security and HIV/AIDS: Assessing ‚Disability‘ in the Context of ARV Treatment“, Draft paper presented at the Centre for Social Science Research, University of Cape Town, July 29, 2004.
  • Standing, G./Samson, M. (eds): The Basic Income Grant in South Africa. Cape Town: University of Cape Town Press 2003.
  • Taylor Committee: „Transforming the Present:  Protecting the Future“, Report of the Committee of Inquiry into a Comprehensive System of Social Security for South Africa, RP/53/2002, Pretoria, Government Printer. 2002.
  • Van der Berg, S./ Bredenkamp, C.: „Devising Social Security Interventions for Maximum Poverty Impact“, in: Social Dynamics, vol.28, no.2: 39-68. 2003.
  • Van Parijs, P.: What is Wrong with a Free Lunch? Boston: Beacon Press 2001.
Endnoten    (↵ returns to text)

  1. Nattrass (2004a).↵
  2. Leibbrandt et al (2000); Seekings (2000); Seekings and Nattrass (forthcoming).↵
  3. Nattrass (2004c).↵
  4. Simchowitz (2004).↵
  5. Nattrass (2004c).↵
  6. Coetzee and Nattrass (2004).↵
  7. Ibid.↵
  8. Nattrass (2004b), p. 95.↵
  9. Nattrass (2004c).↵
  10. Cf., e.g. Van Parijs (2001).↵
  11. Cf., e.g. Standing and Samson (2003).↵
  12. Bhorat (2002).↵
  13. Taylor Committee (2002).↵
  14. Le Roux (2002).↵
  15. Nattrass (2004b).↵
  16. Seekings (2003).↵