KEY NOTE ADDRESS BY HIS EXCELLENCY HAGE G GEINGOB, PRESIDENT OF THE REPUBLIC OF NAMIBIA NATIONAL CONFERENCE ON WEALTH REDISTRIBUTION AND POVERTY ERADICATION 26 OCTOBER 2015 SAFARI HOTEL CONFERENCE CENTRE WINDHOEK Honorable Bishop Zephania Kameeta, Minister of Poverty Eradication and Social Welfare, Honorable Ministers and Deputy Ministers here present, Honorable Members of Parliament, Madam Anita Kiki Gbeho, UN Resident Coordinator, Honorable Laura McLoud-Katjirua, Governor of the Khomas Region and other Regional Governors, His Worship the Mayor of the City of Windhoek, and other Mayors here present Members of the Diplomatic Corps, Members of Traditional Authorities; Religious Leaders; Members of the Media, Ladies and Gentlemen, I am honored to deliver the keynote address at the opening of the National Conference on Wealth Redistribution and Poverty Eradication. This conference is yet another mile stone closer to realization of the Vision of our Namibian House namely: a prosperous House; a House free of poverty; a House where all members, irrespective of race, color or creed, live together in harmony; and a House where no one shall be deprived of basic amenities and the required capabilities to help themselves. 2 I would like to state again that I have heard the outcry of the poor in Namibia. That is why at the onset of my Presidency I declared full-scale war on poverty in Namibia. In addition, I have outlined in my maiden State of Nation Address in detail the main tenets of my philosophy on the war against poverty. You are encourage to read from time to time my State of Nation address for a better understanding of the overarching principle policy stances that I have articulated on the war against poverty. In the remainder of my statement, I will from time to time refer to specific points from the State of Nation Address to buttress salient aspects with respect to the war against poverty. Poverty is the flip side of wealth. Therefore, poverty and wealth creation and the distribution thereof are interwoven. It is for this reason that I indicated in my State of Nation address that I will task the Minister of Poverty Eradication and Social Welfare to organize National Conference of Wealth Distribution and Poverty Eradication. This conference is now taking place here today. The expected outcome of this conference, as noted in my State of Nation Address should be the production of blue print on how to reduce and eventually eradicate poverty from the map of Namibia. Director of Ceremonies 3 During the past seven months, since my inauguration as President, I have used every opportunity to unpack my Dream or Vision for Namibia. You will recall that in my maiden State of Nation Address I unveiled the notion of the Namibian House. In short my Vision for Namibia is to build on the legacy of my predecessors, founding President Comrade Sam Nujoma and second President Comrade Hifikipunye Pohamba. These two distinguished sons of the Namibian soil have done a great job to ensure reconciliation, peace, security and stability in our Republic. However, it was also acknowledged that while these are critical pre-conditions for development, our people do not eat good democracy, our people do not eat good governance and our people do not eat stability. I am aware of the social deficits that the majority of the members of the Namibian House have to deal with every day. My task, therefore, is to bring prosperity to all Namibians. I intend to do so, by building on the strong foundation of our Namibian House, by rallying all members of House Namibia, in the spirit of Harambee, to address wealth distribution and eradication of poverty. It will be teamwork and not a one-person show. I, therefore, call upon all of us to hold hand and pull together in the same direction. Director of Ceremonies, 4 The Vision of the Namibian House has reverberated across the length and breadth of our Republic. During town hall meetings and at other occasions, one sense that Namibians from all walks of life have bought into the Vision of our Namibian House. Where-ever one goes, people of Namibia preach the “gospel” of poverty reduction, inclusivity, Harambee and one Namibia one Nation. We, therefore, have a strong-shared Vision, which is the most important ingredient to win this newly defined war. Our founding President during one of the bitter moments of our liberation struggle noted, “a United People fighting together for a common cause, shall never be defeated”. Following the establishment of a shared Vision in the fight against poverty we, therefore, have every reason to believe that we shall defeat this enemy. Director of Ceremonies As we are getting ready to go to the battleground to fight the scourge of poverty there are a number of important things that we should be aware of. Firstly, we have to understand the enemy we are dealing with. Never underestimate your enemy. In my maiden speech at the United Nations, I borrowed from Nobel price 5 winning economist Amartya Sen who said, “poverty is not just about income”. Indeed if it were the case, the war on poverty would have been easy, because all one had to do would be to give some form of monetary income to each member of the Namibian House. In a simplistic sense this is what proponents of the Basic Income Grant are arguing for. Give N$100 to each Namibia, and poverty in Namibia will be eradicated. If only it was that simple. Amartya Sen goes a step further defining poverty as follows “poverty is about the deprivation of basic capabilities of human beings”. He further postulates that deprivation of these basic capabilities will manifest themselves in poor outcomes with respect to education, health and other developmental indicators. Director of Ceremonies From the poverty definition of Amartya Sen, that I subscribe to, it becomes clear that poverty eradication is a complex matter. It, therefore, needs a holistic approach to overcome. That is why I have always argued that war against poverty and the quest for emancipation must be multifaceted war, which we will fight on many fronts, using a myriad of methods at our disposal. The first step in the fight against poverty is the recognition that all Namibians deserve a dignified life. A dignified life 6 includes decent employment, shelter, water, sanitation, education and access to health care. This will require the input of Government, as well as employers. Government is close to finalizing the legal framework to reduce the income gap. What is also required is a mental framework where Namibian employers empathize with and remunerate their employees appropriately. What is required is that all Namibians treat each other with dignity and respect and that all Namibians play their role in uplifting fellow Namibians. This sharing mindset in individuals will go along way in making sure that no Namibian is left out. We need to use all weapons in the arsenal in the fight against poverty. Some of these weapons we already use and include an array of social grants. However, to comprehensively defeat poverty, we need to create economic opportunities for our people, by growing the economy in an inclusive manner and enhancing the capabilities of all Namibians to fully participate in the economy and in society. With respect to social grants, research by our own National Statistics Agency has shown how effective our current social grants are in reducing poverty. While all grants tested have shown positive impact on poverty reduction, the old age pension grant in particular showed stellar results. That is why we have immediately increased the old 7 age pension grant by some 66 percent in this financial year alone, with further increases up to N$1,200 factored into the current Medium Term Expenditure Framework. It is not only our social grants that are effective in reducing poverty. Research by the World Bank has shown that the Namibian budget is indeed pro poor. This is in part because of the generous social grants, but also because of our tax system that is generally progressive in nature. In other words, the more one earns, the more tax one pays, while those who earn less then N$50,000 per year are exempted from paying income tax. It is also because of the zero rating of VAT on certain items consumed by the poorest of the poor. Going forward, Government will introduce a solidarity tax in the next budget that will call on each income making Namibian above a certain threshold to make a contribution towards a fund that will be earmarked for poverty eradication activities. Another form of solidarity tax under consideration would be to entice owners of companies to dilute shareholding to include workers, thereby redistributing more of company income downward instead of upward as is the case when shareholding is concentrated in the hands of a few. Secondly, after having understood the complexity of the enemy that we face, and the need to approach it holistically and in a multifaceted manner, it is important to understand 8 that poverty cannot be eradicated overnight. Wars are never over in one day. Our immediate aim, therefore, will be to significantly reduce poverty over the medium term. Within the next few months we will quantify exactly by how many percentage points we aim to reduce poverty. In the longer term, say within the next ten years we should be able to eradicate poverty. The global goal is to eradicate poverty by 2030. In Namibia we say, 2030 is too far. We would like to beat the global deadline by a few years. I believe that if we all pull together, we should be able to beat the global deadline by 5 years, therefore, achieving our goal by 2025. One immediate measure that we will deploy in the fight against poverty will be the establishment of food banks in all parts of Namibia. The idea here is to bring as soon as possible a halt to hunger poverty in Namibia, especially in urban areas, where there is no access to productive land. In the Namibian House no child should go hungry. In this connection, our Cuban friends, who fought with us during the liberation struggle will soon be in Namibia to assist with the modalities of setting up of the Namibian food bank. At a high level the food bank will operate along the following lines: It will be organized along street committees or clusters of streets, where young unemployed youth will be engaged to play a critical role in the 9 distribution of food to qualifying families. In turn young unemployed youth will get a minimal income for the work done, and by so doing the notion of free money will be dispelled. The Food Bank will not be solely Government driven, but we expect high private sector contribution and a culture of voluntarism by all Namibians. In this connection, I have challenged commercial farmers to donate on a yearly basis at least two head of cattle to the food bank. The responses I received to date have been overwhelming indicating that Namibians understand that we will only eradicate poverty of we work together. Cattle donated by commercial farmers and others will be used to establish centralized abattoirs from where fresh meat will the made available, either free of charge or at a minimal fee to the most vulnerable. The Fisheries Ministries will also play a key role through allocation of fish quotas to the Food Bank. I believe that the Food Bank with the assistance of our Cuban friends and with the contribution of all Namibians is something we could get off the ground quickly and stem one element of poverty, which is hunger. In addition to deploying unemployed youth in the food banks, I have also requested that between 30,000 and 50,000 hectares in the Mangetti area be availed for agricultural related youth enterprise activities. About N$50 million will be made available this year alone to get this activity of the ground. 10 I would like to underscore that the Food Bank will not, as some people may think, substitute work and create a culture of dependency. Instead it is aimed at assisting the highly vulnerable citizens whose food security is under imminent threat. The Government will implement measures to ensure that within the communities, only the most vulnerable are assisted. This assistance will also be accompanied with initiatives to make such vulnerable members more independent and able to provide for themselves. Director of Ceremonies The War on Poverty can and should never be a Government issue. It is a war that the entire Namibian Nation will have to participate in. In this regard, the role and contribution of each and every Namibia, no matter how small or how large cannot be overemphasized. There is the saying that says, “Love only grows by sharing. You can only have more for yourself by giving it away to others” It is in this spirit that I have decided to set aside 20 percent of my salary towards the war on poverty. I know that many salary drawers already contribute immensely to the poverty reduction in their own extended households. Be it by providing food, accommodation or paying schools fees. It is something I also do as a father and uncle. However, the idea of pledging 11 on top of that to someone outside the family, a third nonrelated person, is something that I would like to promote. It is really not about how much one can give, but it is about the principle, and one can always give in non-monetary form. We must allow the spirit of Harambee to manifest itself for the good of all Namibians. We must succeed as One Namibia, One Nation. Director of Ceremonies It is true that Namibia is a rich country by many measures. However, it is not entirely true that Namibia is as rich as portrayed by some. To put in perspective, even if there was no skewed income distribution, Namibia’s per capita income in US dollars would only be about 15 percent of the per capita income of the United States of America. Nevertheless, it remains true that we have a distribution issue in Namibia, and a small middle class. However, the Namibian middle class is not extremely rich by international comparisons. Even some of the so-called “fat cats” as we refer to them in Namibia do not compare favorably in the world and even on the continent. There are many individuals, or industrialists on the continent that make more money than their Government. That type of situation does not exist in Namibia. As well as this, the Namibian Government is also not rich, and has limited resources. At the same time there are many social deficit that are 12 competing for these limited resources. In fact many of the competing needs are poverty related. Be it requests for more hospitals, clinics, health centers, access to proper education or marketable skills, they are all crucial in the fight against poverty. We will, therefore tackle poverty from all fronts, through safety nets, access to quality education, and by creating jobs and growing the economy. I have stated it before, and I believe it with everything in me, that the Namibian people are not lazy. The Namibian people want to work. Our people excel when given the opportunity. A crucial aspect of the war on poverty will, therefore, be to create economic and social mobility opportunities for our people. In this connection, I continue to be convinced that education remains the greatest equalizer. We removed school fees at primary level in 2012, and this year we are going to introduce free secondary school education. At the moment, large subsidies to our local tertiary education institutions translate into the State covering up to 80 percent of university costs. University students also benefit from scholarships through the Namibia Student Financial Assistance Fund. Going forward, we should move away from a scholarship system, where students have to pay back loans to a grant system that will enable students to, after graduation, immediately build up wealth portfolios instead of graduating into indebtedness. 13 Director of Ceremonies Land and Housing are two important topics in the fight against poverty. It is something that I hope will be adequately debated at this conference. I would like to reaffirm my personal commitment to addressing land reform and provision of affordable housing to all Namibians. That is why I have met with leaders of the Affirmative Repositioning Group. That is why Government has embarked upon a massive urban land clearing exercise, which ultimately should lead to more affordable houses for more people especially at the lower income end of the market. In this regard, Government has taken a principal decision to subsidize qualifying local authorities to address the housing backlog in Namibia. The Ministry of Land Reform had been tasked to fast track land reform. Director of Ceremonies We must be aware that as we are getting ready to go to the battleground the global economic landscape has taken a turn for the worse. In its latest economic outlook the IMF projects that all regions in the world will experience slower growth this year and next year. At home, we are aware of the many looming challenges, such as energy deficit, drought and water scarcity, climate change, and youth unemployment that will put a strain on the fiscus. This will 14 complicate our war against poverty, but should not detract us from the set goal. Director of Ceremonies I would like to conclude by saying a few words on the way forward. Firstly, as I tried to elucidate, the fight against poverty will not be easy. The enemy is formidable. We need a consistent and coherent approach and if we are not careful we might end up running around like headless chickens in this important war. It will be important that we use all weapons to our disposal and it will be important that our plans talk to each other. It is for this reason, that in consultation with Bishop Kameeta, it was decided that, henceforth, the Ministry of Poverty Eradication and Social Welfare will resort under the Presidency. This will enable the Ministry to fully play its coordinating function in the war against poverty. It will also enable the Ministry to leverage to the fullest extent on other ministries, and receive the required backstop from the highest level. Secondly, I would like to announce that we have started the process of developing a detailed plan in the war against 15 poverty. This plan, which will incorporate findings of this conference, will have clear goals, critical success factors, targets, actions, timelines and responsibilities. The plan, which will come into effect 1 April 2016, will be aligned to the next MTEF to ensure that it is adequately resourced. I wish to end with a quotation from Jim Wallis a social activist who said that “… the best test of a nation’s righteousness is how it treats the poorest and most vulnerable in its midst.” Let us, therefore, rise to this challenge, and treat our fellow brothers and sisters with mutual respect and care, irrespective of standing in society. Let us all join hands to ensure we win the fight against poverty. 16
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