United We Stand

Originally published in the Informanté newspaper on Thursday, 12 November, 2015.


Namibia, as a nation, has several defining characteristics. The most important amongst these were articulated in the preamble to the Namibian Constitution, and inter alia, it mentions the following: “… Whereas we the people of Namibia desire to promote amongst all of us the dignity of the individual and the unity and integrity of the Namibian nation [...] Now therefore, we the people of Namibia accept and adopt this Constitution as the fundamental law of our Sovereign and Independent Republic.”

It was thus no surprise that Finance Minister Calle Schlettwein announced a solidarity tax last week, to be ring-fenced and utilized for poverty eradication in Namibia. This solidarity tax would be applicable only to those earning more than the average GDP per capita, and is in line with the principles upon which our nation and its constitution were founded.

And yet some Namibians are unhappy that they’ll be assisting the poorest and most vulnerable of our citizens. Some have even started a petition against this tax, giving several suggestions that, while some are valid, does not seem to take into account that many of these poverty eradication suggestions could in fact be funded by the very same tax they are so vehemently against.

Namibia has a very unequal distribution of income, and Minister Schlettwein’s proposed threshold of N$ 79 000 per annum would not even tax the top 10% of earners. Taking a look at the statistics reveal that if you earn N$ 5000 per month, 9 out of every 10 people you pass on the street are worse off than you! If you earn more than N$ 20 000 per month, then 99 out of every 100 people you pass are worse off than you. Is it too much to ask one so privileged to assist his fellow citizens to achieve the same success this country has granted them?

 
Other citizens like to point to instances of government corruption and ask why they have to sacrifice some of their riches when the government hasn’t. This after President Geingob pledged 20% of his salary to start a scholarship fund for the impoverished. The Namibian government has also spearheaded anti-corruption initiatives since President Pohamba’s presidency. Let us not forget that over the quarter century since independence the government has overseen a rise in GDP per capita from US$ 2000 in 1990 to US$ 5700 currently. In doing so, Namibia’s Gini Coefficient (the measure of income inequality) has dropped from 70.1 in 1990, the highest in the world, to 59.7 currently, which places us seventh, and ahead of South Africa. I’d argue the government has a proven track record of poverty eradication. 

There are those who would like to claim that you cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. This conflates wealth and prosperity, which are not analogous concepts. Prosperity can be defined as ‘financial well-being’ and it has been said ‘money is like manure – it’s no good to anyone until you spread it around.’ When wealth is hoarded, it stops being spread around and hurts everyone’s prosperity. Thus you can create prosperity by breaking up hoarded wealth. It even helps the prosperity of the wealthy.

Namibia has its own local example of this. Over the past 14 years since listing, Trustco’s owner, Dr Quinton van Rooyen, has redistributed much of his wealth via shares in the company to employees. First via performance bonuses, and with his 50th birthday in April this year, to all staff, now and future, who have 1 years’ service with the company. This has not only lifted hundreds of employees into prosperity, and created 13 millionaires, but also allowed several employees to found their own businesses, and help bring prosperity to even more employees. President Geingob is now campaigning for other companies to follow this model as well.

Namibia is a very religious nation, and perhaps it is here that the resistance lies – in the entrenched ‘Protestant Work Ethic’ of John Calvin, which claims that hard work and frugality are indications of your salvation and that you are pre-selected to go to heaven. Giving to the poor is thus considered immoral because their position is reflective of what was pre-ordained by God.

To the religious, then, please bear in mind the following scripture of the Torah, Deuteronomy 19:28-29 – “At the end of three years you shall bring forth all the tithe of your produce in that year, and shall lay it up inside your gates...and the stranger, and the orphan, and the widow, who are inside your gates, shall come, and shall eat and be satisfied,” and the New Testament, Matthew 19:21 – Jesus answered, “If you want to be perfect, go, sell your possessions and give to the poor, and you will have treasure in heaven,”” and the Quran, Surat Al-Baqarah 2:177 – “Righteousness is [in] one who […] gives wealth, in spite of love for it, to relatives, orphans, the needy, the traveler, those who ask [for help], and for freeing slaves; [and who] establishes prayer and gives zakah; [those who] fulfill their promise when they promise; and [those who] are patient in poverty.”

Atheists and Humanists should know that they should care about poverty, not because a god or holy text tells you, but because we are all the same species, living together on our small planet, and treating others fairly is the right thing to do.

Namibia is one nation. Strength comes when we unite as one – not when we split into different groups that want to exist independently. That only weakens us as a nation. No one got where they are without the help of others over the years – they got there with privileges and opportunities, some never earned, some by birth. Namibia was founded on the idea that the fortunate among us will help, and contribute, to ease the suffering of the least fortunate. Our strength comes from showing solidarity as a nation.

16 comments:

  1. Nice Article but you failed to address the following questions of: Does the Government need Solidarity Tax to alleviate poverty? If so, why is the government planning to build a multi-million dollar parliament house instead of using that money for poverty eradication? Another thing, is this poverty eradication or is it the government trying to beef up its money reserve which are deleted (true,signs of budget being cut)? How can we trust the government with our money, when they failed to tell us, where of GIPF money, when it keep wasting money in TransNamib and Air Namibia? Questions without answers. Former Finance Minister once proposed in a cabinet to abolish repayment of VAT to tourist, high tax for companies exporting unprocessed raw materials, it was veto against? why? Solidarity Tax is not good idea to young graduate who cannot afford houses and in debt because of study loans. We want to help poor people which of course we do within our family but our government has failed to meet us half way. I propose that our government,First cut the size of cabinet, heavy tax on imported products and exported raw products, less spending in luxury cars, write off NSFAF loans. Then Solidarity tax can come into play if money is still not enough.

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    1. Your argument seems to be "the government isn't perfect, so we shouldn't do what they say." Yes, there are many problems with GRN, but that doesn't mean Sol Tax is a bad thing. You also mention that they should write off NSFAF loans. You do realise the money for those loans had to come from somewhere, right? There is no free lunch.

      We still have great income inequality and we agree that's a terrible thing, and if you're reading this and worrying that the government will come and take your hard-earned cash, maybe you just don't want to admit how good you have it.

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  2. Interesting article. And i fully agree with Erasmus!

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  3. The gov must privatize or get rid of the no fruits transnamib, airnam and al the useles parastatals tht bring no profit bt deficit. Simple.

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  4. Totally agree with Erasmus, and if u say you are only implying the solidarity tax on people living above the GDP capita did u consider that high cost on housing, medical need, and other basic need. I don't think it's fair on us. And on top of that we take care of our extend family too, how are we going to afford all this. We earn above GDP but we can't afford a house

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    1. You say you can't afford to buy a house. This tax is designed to help people who can't even afford to pay rent. And you're complaining?

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  5. In a perfect world, this argument is valid, however, our government is very flawed as we all know this.
    The solidarity tax would not be such a difficult pill to swallow if we as Namibians did not know for sure that at least half (if not most) of the money will be disappearing somewhere in the admin process to line the pockets of our politicians.

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    1. The plan is to make this completely transparent. Also, here's a little secret: EVERY government is very flawed.

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  6. This is a good article but still doesnt give us a valid reason as to why the nation was not approached to give their opinions on this. Most people work so hard and on top of that have families to support in this same manner they are eradicating poverty in their families. For example with the little 5000 i get 9 out of 10 people i come accross are poor or living of worse then i am? Now with more tax how will i support my family, where do i live since i wont be able to afford a place to rent. Do i move from having a comfortable life just so my fellow 9 out of 10 people can live comfortable. This is a poor approach indeed. What do we get out of this? Cheaper accommodation or groceries to feed our families? We cannot even afford to buy houses. With inflation the middle people will move in the category of people living in porverty. Which means you will be creating more problems while trying to eradicate it. It is indeed unfair, me question is even why work if i can get something without lifting a finger? That question is running in a lot of peoples minds...

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    2. "Do I move from having a comfortable life just so my fellow 9 out of 10 people can live comfortably?"

      YES. Your comfort is 9 times less important than the comfort of 9 other people. You SHOULD live less comfortably. It's not about what YOU get out of it, it's about what your less fortunate fellow Namibians can. Hence the word "solidarity."


      "Why work when I can get something without lifting a finger?"

      Have you ever been so broke that you couldn't afford to get to work? I have. This is the situation MOST people are in today in Namibia. You know how you need some start-up capital to own a business? Getting a job is the same thing on a smaller scale. You can't show up at a job interview naked and say you'll clothe yourself on your first paycheck. When you're in poverty, you have all manner of problems that can arise. Your personal life affects your job performance, and if you're worried that e.g. your child is starving at home you won't perform very well at your job. Your job security will be low and soon you'll be on the streets again, and the cycle continues. You'll keep asking to "borrow" money from your cousins and they'll get frustrated that you can never seem to get your life together despite the help they're giving you. And you'll feel worse and worse, until you accept that you will never get out of this mess, and forever be a burden on those who (no longer) love you. Your kids will grow up to be the same way.

      Solidarity tax is a way to break this cycle. It's a meagre but steady income for those who need it most. It's a hope to climb out of the pit of debt and living day-to-day, to be an actual contributing member of society. And it works. It's worked everywhere. European countries implement it, and their wealthier citizens are happy to do so, because they realise that the good you do for the community will ultimately come back to you.

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  7. This is a good article but still doesnt give us a valid reason as to why the nation was not approached to give their opinions on this. Most people work so hard and on top of that have families to support in this same manner they are eradicating poverty in their families. For example with the little 5000 i get 9 out of 10 people i come accross are poor or living of worse then i am? Now with more tax how will i support my family, where do i live since i wont be able to afford a place to rent. Do i move from having a comfortable life just so my fellow 9 out of 10 people can live comfortable. This is a poor approach indeed. What do we get out of this? Cheaper accommodation or groceries to feed our families? We cannot even afford to buy houses. With inflation the middle people will move in the category of people living in porverty. Which means you will be creating more problems while trying to eradicate it. It is indeed unfair, me question is even why work if i can get something without lifting a finger? That question is running in a lot of peoples minds...

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  8. our country is a rich country with diamond and many other mineral mine in our land yet we dont enjoy the benefit of them, how many times are we going to be taxed now normal, value added tax now solidarity tax again. why bother increasing the salary with 6% than take solidarity tax for 12% at the end of the day we are left with nothing. are you eradicating poverty or increasing poverty because now the government is taking food from the mouth of our family. why bother giving the money if you are not sure you want to give that money. they get all kind of allowances, food allowance, car allowance, clothing allowance, entertaining allowance and the list goes on and on do they ever for a second think about people who vote them that they may need those allowance more they want jus to take care of their starving family members.

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  9. Min of Finance and the President need to go back to the drawing board and look at other measures they can use to eradicate poverty before implementing this so called solidity tax, how about they cut government spending, starting buy cutting their plans to build a new Parliament building? they need to show us that the people we elected to rule us are people that can think outside the box by helping the nation and not making them poorer by taking the little these people earn. The Namibian government is just creating nation of lazy people with this Solidarity tax and not a nation of hard working people. This Solidarity tax is just an excuse for government to take from us people who do not even earn enough to afford a house now I must feed people who are actually able to get up and work? no this is so wrong.... we voted the wrong people in this new government

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  10. I agree with my fellow nationists this is redeculess and they know it, they are trying to get back money they spend on wants and not needs as simple as that...

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