ECS3704
Assignment 3 Portfolio 2026
May June Portfolio 2026
Due date: 5 June 2026
THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME ON
POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL INTELLIGENCE-
DRIVEN UNEMPLOYMENT
INTRODUCTION
Artificial Intelligence is changing labour markets across the world. Many routine and
repetitive jobs are increasingly performed by machines and automated systems. This
creates concern that workers with lower skills may lose employment opportunities, which
can increase poverty and inequality (Frey and Osborne, 2017). Automation technologies and
robotics have already reduced demand for certain categories of labour in some sectors of
the economy (Acemoglu and Restrepo, 2020). Developing countries such as South Africa
are particularly vulnerable because of already high unemployment levels, widespread
poverty, and unequal income distribution (Calitz, Siebrits and Steenekamp, 2019).
A possible policy response is the introduction of income support programmes such as a
Basic Income Grant and a Universal Basic Income. These programmes aim to protect
, THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME
ON POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL
INTELLIGENCE-DRIVEN UNEMPLOYMENT
INTRODUCTION
Artificial Intelligence is changing labour markets across the world. Many routine and
repetitive jobs are increasingly performed by machines and automated systems. This
creates concern that workers with lower skills may lose employment opportunities,
which can increase poverty and inequality (Frey and Osborne, 2017). Automation
technologies and robotics have already reduced demand for certain categories of
labour in some sectors of the economy (Acemoglu and Restrepo, 2020). Developing
countries such as South Africa are particularly vulnerable because of already high
unemployment levels, widespread poverty, and unequal income distribution (Calitz,
Siebrits and Steenekamp, 2019).
A possible policy response is the introduction of income support programmes such
as a Basic Income Grant and a Universal Basic Income. These programmes aim to
protect vulnerable households against income loss and reduce inequality through
redistribution of income by government spending (Calitz, Siebrits and Steenekamp,
2019). Social spending increases disposable income and can reduce poverty gaps
when transfers are effectively designed and targeted (Calitz, Siebrits and
Steenekamp, 2019).
BASIC INCOME GRANT
A Basic Income Grant refers to a targeted cash transfer paid mainly to poor or
vulnerable individuals who fall below a certain income threshold (Calitz, Siebrits and
Steenekamp, 2019). The objective is to reduce poverty by directing limited
government resources toward households that need support the most.
Targeted grants are based on means testing. This means only individuals whose
income falls below a certain level qualify for assistance (Calitz, Siebrits and
Steenekamp, 2019). The advantage of this system is that government spending is
concentrated on poor households instead of the entire population. This strengthens
the poverty-reducing effect of social expenditure and limits benefit leakage to
wealthy individuals (Calitz, Siebrits and Steenekamp, 2019).
Assignment 3 Portfolio 2026
May June Portfolio 2026
Due date: 5 June 2026
THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME ON
POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL INTELLIGENCE-
DRIVEN UNEMPLOYMENT
INTRODUCTION
Artificial Intelligence is changing labour markets across the world. Many routine and
repetitive jobs are increasingly performed by machines and automated systems. This
creates concern that workers with lower skills may lose employment opportunities, which
can increase poverty and inequality (Frey and Osborne, 2017). Automation technologies and
robotics have already reduced demand for certain categories of labour in some sectors of
the economy (Acemoglu and Restrepo, 2020). Developing countries such as South Africa
are particularly vulnerable because of already high unemployment levels, widespread
poverty, and unequal income distribution (Calitz, Siebrits and Steenekamp, 2019).
A possible policy response is the introduction of income support programmes such as a
Basic Income Grant and a Universal Basic Income. These programmes aim to protect
, THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME
ON POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL
INTELLIGENCE-DRIVEN UNEMPLOYMENT
INTRODUCTION
Artificial Intelligence is changing labour markets across the world. Many routine and
repetitive jobs are increasingly performed by machines and automated systems. This
creates concern that workers with lower skills may lose employment opportunities,
which can increase poverty and inequality (Frey and Osborne, 2017). Automation
technologies and robotics have already reduced demand for certain categories of
labour in some sectors of the economy (Acemoglu and Restrepo, 2020). Developing
countries such as South Africa are particularly vulnerable because of already high
unemployment levels, widespread poverty, and unequal income distribution (Calitz,
Siebrits and Steenekamp, 2019).
A possible policy response is the introduction of income support programmes such
as a Basic Income Grant and a Universal Basic Income. These programmes aim to
protect vulnerable households against income loss and reduce inequality through
redistribution of income by government spending (Calitz, Siebrits and Steenekamp,
2019). Social spending increases disposable income and can reduce poverty gaps
when transfers are effectively designed and targeted (Calitz, Siebrits and
Steenekamp, 2019).
BASIC INCOME GRANT
A Basic Income Grant refers to a targeted cash transfer paid mainly to poor or
vulnerable individuals who fall below a certain income threshold (Calitz, Siebrits and
Steenekamp, 2019). The objective is to reduce poverty by directing limited
government resources toward households that need support the most.
Targeted grants are based on means testing. This means only individuals whose
income falls below a certain level qualify for assistance (Calitz, Siebrits and
Steenekamp, 2019). The advantage of this system is that government spending is
concentrated on poor households instead of the entire population. This strengthens
the poverty-reducing effect of social expenditure and limits benefit leakage to
wealthy individuals (Calitz, Siebrits and Steenekamp, 2019).
