South Africa stands at an historic juncture. As a nation, we have a unique opportunity to eradicate extreme poverty in a single generation. We have the means and the capacity to put a better life within the grasp of every South African - a life of dignity, free from hunger and destitution.

Eager to seize this moment, we have come together as the leaders of church, labour and other civil society organizations concerned for the interests of the poor and the most vulnerable groups in our society: children, youth, the aged, people living with HIV/AIDS and people living with disabilities.

We applaud the government's vigorous efforts to address apartheid's enduring legacies of poverty and inequality. We commend the progress that has been made since 1994: the extension of free basic services, the construction of affordable housing, the introduction of public works programmes, the provision of the Child Support Grant, and improved access to credit in poor communities.

Yet the task ahead of us remains enormous. We share the government's view that more can - and must - be done. More than half of our population continues to live in poverty. Unemployment remains unacceptably high. Low-paid and insecure employment in the informal sector has been an inferior substitute for the large number of formal sector jobs lost over the past five years. Roughly two-thirds of our children grow up in poor households, with as many as one in four stunted by poor nutrition. Diseases, particularly HIV/AIDS, take a heavy toll on our communities. Lack of income often prevents the poorest households from accessing the services and opportunities the government has extended.

In this context, the government's commitment to providing comprehensive social security to all South Africans assumes great significance. We commend the government for appointing a committee of experts, chaired by Prof. Viviene Taylor, to consider how best the state can meet its constitutional obligations in this regard. We welcome and endorse the Taylor Committee's findings, and, in particular, its call for the introduction of a multi-faceted and comprehensive social protection package to combat the social exclusion of marginalised people.

We are encouraged by the African National Congress' prioritisation of social transformation in its preparations for the 51^st National Conference, scheduled to take place 16-20 December in Stellenbosch. We concur with the fundamental principles underlying the government's approach to social protection and poverty alleviation:

• Transformation should be a people-centred, developmental process in which the state's role is to ensure that all South Africans have access to the resources necessary to enable them to exercise their creative capacity to improve their own circumstances;
• The state must take reasonable measures to provide support to those who are unable to support themselves and must pay particular attention to the needs of vulnerable groups in our society;
• The state has a key role to play in addressing apartheid-era inequalities through the redistribution of wealth;
• The state must adopt a comprehensive, balanced and integrated approach to social security provision and poverty eradication using a blend of complementary initiatives to expand social pensions, improve government services to the poor, increase productive assets and stimulate sustainable job creation;
• Whilst large-scale public works programmes can be a useful component of an integrated poverty eradication initiative in the short-term, longer term solutions depend on stimulating domestic demand and equitable, job-creating economic growth.

These same principles also underpin our shared commitment to the introduction of a universal Basic Income Grant (BIG). We believe that a BIG would:

• Enable people to improve their circumstances - A BIG would reduce the dependence of the very poor on the working poor. The grant would not be large enough to discourage people from seeking other sources of income, but it would give the poorest households sufficient economic security to allow them to invest in finding employment, educating children, etc. Furthermore, unlike the DA's fundamentally flawed "dole" proposal, it would not penalise people for earning additional income.
• Be developmental - By stimulating domestic demand for domestically-produced, labour-intensive goods, a BIG would support the government's strategy for economic growth and job creation.
• Enhance the impact and efficiency of public spending - A BIG would ensure that all South Africans have the means to access public services, thereby increasing the impact of measures to address asset and capabilities poverty. Furthermore, by contributing to improved levels of general nutrition and health across the society, it would enhance the effect of each rand invested in public health and education. It would also allow targeted grants (e.g., the Child Support Grant, the State Old Age Pension, the Disability Grant, etc.) to better achieve their objectives by reducing the pressure to stretch these grants to meet general household needs.
• Combat poverty - The BIG would wipe out extreme poverty, ensuring that no one is left with nothing. Although the BIG is not a panacea, research has also demonstrated that a BIG would close the "poverty gap" more effectively - and cost-efficiently - than other options.
• Be fiscally responsible - The net cost of a BIG is estimated at R24 billion a year. This is just slightly more than the R23, 3 billion a year revenue lost to tax cuts during 2001/02 and 2002/03 alone. Given the BIG's potential to stimulate economic expansion and contribute to overall income growth, this limited fiscal burden is likely to diminish further over time.

The Basic Income Grant is wholly consistent with the approach to poverty eradication, social security and development articulated in a succession of government and ANC policy documents, including the Reconstruction and Development Programme, the White Paper on Social Welfare and the resolutions of the Presidential Job Summit. It relies upon and reinforces existing government initiatives such as the introduction of the Home Affairs National Identity System, the extension of the existing system of social grants, and the provision of basic services. It gives priority to the poorest and most vulnerable households, which are frequently unable to satisfy the documentation requirements associated with means-tested grants. Although the implementation of the grant will not be without challenges, the call for a BIG should be seen as an attempt to extend government's developmental thrust.

We therefore welcome the ANC's call for the formation of a partnership between government and civil society to advance social transformation. We believe that such cooperation must occur on many levels and in many different forums. This needs to include not only interaction with government, but also business and other stakeholders. With respect specifically to the roll out of a comprehensive social protection package, we believe that the formation of such a partnership should involve:

1. An urgent meeting between the Basic Income Grant coalition and the President and national office bearers of the ANC, before the National Conference to discuss the expansion of the existing social security framework; and
2. The initiation of a formal consultative process, to permit detailed interaction between civil society and appropriate government departments on the practical considerations raised by the Taylor Committee report.
3. Specifically, discussion of key elements of the Taylor Committee recommendations, including the rapid implementation of a universal, non- means tested Child Support Grant for all children up to the age of 18; and, as a second phase the implementation of a universal Basic Income Grant from 2005/6.

Finally, the members of the BIG Coalition assure government of our readiness to deploy our resources and experience to help to realise our shared commitment to creating a better life for all South Africans in a manner consistent with the principles outlined above.

Issued by the BIG Coalition Leaders Summit

Representing the following organizations and sectors:
Age in Action
Black Sash
COSATU
Disabled People of SA
SA Council of Churches
Catholic Bishops Conference
SA NGO Coalition

ADOPTED
Braamfontein
30 November 2002

For further information contact:
Doug Tilton, SACC Parliamentary Office (021 423 4261)