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First African Country to Pay the Unemployed, its Repercussion to the Economy


Algeria has set history as being the first African Country to pay the unemployed young citizens. The government made a promise to fund close to 580,000 job seekers, each of them, about $91 every month.

Those who will benefit from Algeria’s government social welfare scheme are aged between 19 and 40 years.

The permanent unemployment-benefits initiative comes at a time when oil income in Oil Producing and Exporting Countries (OPEC) surges. The scheme is a move to tone down social unrest among the young population who seem to be the majority.

As Algeria hinges to cash crunch shoppers there were reported by BBC World News stating that, “buying oil is like buying drugs.” They are feeling the heat of dwindling food supply and prices upsurge. Algeria is reportedly one of the largest Africa’s exporters of natural gas.

During the era of Muammar Gaddafi, Libya also offered similar services to its citizens. Social protection funds have steadily thrived over the last few years, especially in response to the Covid-19 global pandemic.

Kenya is on the verge of succession politics, and opposition leader and top presidential contender Raila Odinga has made a promise of giving every unemployed youth a monthly stipend of about Kshs.6000 per month an equivalent of $60. 

Repercussions of funding the unproductive populace 

According to various Financial Publications, Kenya will be funding Kshs.1.3trillion as from 2022 yet the country’s recurrent expenditure stands at Kshs.900 billion.

There are many adverse economic shockwaves as a result of funding the unproductive people. This will lead to amplified inflation as the youth who contribute nothing to the economy will have disposable income to purchase goods and services.

There will be a sharp divide among the small and medium enterprise proprietors who need funding and the idle population who reap for zero work.  



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