Unemployment: the cause of inequality? A qualitative and quantitative case study analysis of income inequality in Namibia

Gaining its independence in 1990, Namibia quickly became one of the leading countries with regards to its GDP growth rates. The economy has been growing at such a sustained level, that Namibia came to be categorized as a middle-income country – a status, which only a few other countries in the region can claim. Although economically strong, the country has been suffering from one of the highest income inequality levels worldwide (World Bank 2013: vi). One of the main factors contributing to the persistence of inequality as claimed by the government and its various partners is high unemployment rate. In its Fourth National Development Plan, one that took place between 2012-2017, the government formulated its wish to bridge the income gap through creation of employment. The Fifth National Development Plan has been less direct in formulating concrete steps towards income equality. Apart from trying to tackle the issue with drafting and implementation of policies and national development plans, the Namibian government has initiated various bilateral development programmes aimed at reduction of income inequality. The causes of the current levels of inequality are primarily attributed to the country’s colonial past with expropriation of lands of the local population to the benefit of the German colonizers, and instalment of unequal socio-economic structures. At the same time, hardly any concrete non-economic instruments to combat the inequality have been introduced in neither national policies nor development project since Namibia independence gained 28 years ago. As of now, the inequality levels are persisting and despite continuous economic growth, the situation is not improving. Although commonly known as one of the major problems of Namibia, little research and academic papers have been devoted to the study of income inequality in the case of Namibia. The present paper conducts a case study research - an in-depth analysis of the problem through policy analysis and quantitative examination to discuss policy effectiveness and possible causes of income inequality in the given context.