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South Africa


South Africa s social and economic challenges in the post-apartheid era Institute of Social and Economic Research, Summer School, September 2011 – PowerPoint PPT presentation

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Title: South Africa

South Africas social and economic challenges in
the post-apartheid era
  • Institute of Social and Economic Research, Summer
  • September 2011

An outline of key social and economic challenges
  • Poverty
  • Unemployment
  • Income distribution
  • The race and geography of multi-dimensional
    poverty in SA
  • The South African Constitution
  • Social policy and economic policy

Poverty in post-apartheid SA
Poverty in post-apartheid SA
  • Poverty in its many manifestations
    (multi-dimensional) as the challenge
  • What do we mean by poverty in post-apartheid
    South Africa?
  • How do we define and measure poverty in South
  • What assumptions inform our understanding and
    therefore the definition and measurement of
    poverty in SA?

Poverty levels in SA (1995) R301/mth
Poverty levels in SA (2004) R354/mth
National Poverty Line National Poverty Line International Poverty Line International Poverty Line International Poverty Line International Poverty Line
Population below the Poverty Line Population below the Poverty Line Population below 2 a day () Population below 2 a day () Population below 1 a day () Population below 1 a day ()
2002 1995 2002 1995 2002 1995
National 48.5 51.1 23.8 24.2 10.5 9.4
Male 45.9 48.9 22.6 22.5 9.9 8.7
Female 50.9 53.4 24.9 25.8 11.1 10.1
African 56.3 62.0 28.7 30.4 12.8 12.0
Coloured 36.1 38.5 11.2 10.1 3.6 2.8
White 6.9 1.5 1.4 0.3 0.4 0.2
Indian 14.7 8.3 6.1 1.2 3.1 0.7
Poverty levels in SA (2010) using different
income poverty lines
Poverty measures 1993 - 2008 Poverty measures 1993 - 2008 Poverty measures 1993 - 2008 Poverty measures 1993 - 2008
Year Population Poverty line R949 Poverty Line R515
1993 40 147 932 72 56
2000 42 357 140 71 54
2008 48 687 000 70 54
Unemployment in SA
Unemployment in SA (1)
JUL-SEPT 2010 25.3
Unemployment in SA (2)
Why higher no of females?
Unemployment in SA (3)
Unemployment in South Africa (narrow definition)
by gender and population group March 2001 to
March 2007 (Stats SA 2009)
Sex and population group Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Male Male Male Male Male Male Male Male
Black African 29.4 31.4 32.8 29.4 26.7 25.8 25.0
Coloured 19.9 21.4 20.3 16.2 18.6 18.3 16.9
Indian/Asian 14.4 17.5 18.2 14.0 15.4 11.8 11.3
White 6.0 5.0 5.6 3.9 4.4 3.6 4.1
Average 24.6 26.1 27.2 23.9 22.4 21.6 21.1
Female Female Female Female Female Female Female Female
Black African 33.0 39.5 42.6 39.9 37.6 36.2 36.4
Coloured 22.8 27.2 24.7 20.2 21.2 19.6 22.9
Indian/Asian 20.5 24.0 28.7 21.0 22.6 10.2 17.9
White 8.2 8.6 7.7 6.3 5.9 6.2 4.6
Average 28.6 33.9 35.9 32.9 31.4 30.3 30.8
Unemployment rate (narrow definition) by age,
percentage (2002 2010) very high rate of
youth unemployment in SA
Youth unemployment the key issues
  • In SA unemployment is mostly experienced by
  • About two thirds of all unemployed are below the
    age of 35
  • NEETS (Not in Education, Employment and Training)
  • Disaggregation of youth unemployment by race
  • Highest among African and Coloured youth
  • Highest among young black women living outside of
    urban areas
  • The phenomenon of adults with no work experience
    and without any income source
  • Contribution to national revenue over the life
  • Young people are poorly prepared for further
    training and work.

Income distribution in SA
Income (including social grants) distribution in
SA (1)
Income (including social grants) distribution in
SA (2)
  • Above Figure indicates that
  • 10 of the population and the bottom 90 of the
    population each account for approximately 50 of
    household income reported in IES 2005/2006.
  • Decile 1 accounts for a mere 0,2 of total income
  • Decile 2 accounts for 1,2 of total income
  • Decile 3 accounts for 2,2 of total income
  • The poorest 40 of the population accounts for
    less than 7 of total household income
  • The poorest 20 of the population accounts for
    less than 1,5 of income.
  • 70 of South Africans command only 21 of
    national income
  • To Note! By August 2009 there were 13,5 million
    South Africans on the social assistance programme
    receiving different social grants. Of these 9,1
    million are children. This translates into 27 of
    South Africas population based on population of
    49,32 million in mid-2009

Income (including social grants) distribution in
SA (3)
Income (including social grants) distribution in
SA (4)
Social grants in SA
  • January 2011
  • Total of 14.62 beneficiaries
  • 8.04 (2.63 million) are Old Age Pensions
  • 69.5 (10.16 million) are Child Support Grants
  • allocated budget of R89.368 billion in 2011/12
    financial year

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The Human Development Index
Calculating the HDI
The Human Development Index and policy lessons
from other countries
South Africas current position on the Human
Development Index
The race and geography of multi-dimensional
poverty in SA the legacy of the homeland system
The former homelands
Former homelands multiple deprivation (income
and material, employment, health, education and
living environment deprivations)
Former homelands and multiple deprivation
KwaZulu Natal
Eastern Cape
North West
Dimensions of poverty in post-apartheid SA 1996
and 2001 ... (1)
  • Bhorat, Poswell and Naidoo
  • Dwelling types
  • Water
  • Sanitation
  • Energy types
  • Refuse removal
  • Private goods

Dimensions of poverty in post-apartheid SA ...
  • To be poor is to be hungry, to lack shelter and
    clothing, to be sick and not cared for, to be
    illiterate and not schooled. But for poor people,
    living in poverty is more than this. Poor people
    are particularly vulnerable to adverse events
    outside their control. They are often treated
    badly by the institutions of state and society
    and excluded from voice and power in those
  • Living in poverty and powerlessness.

Many other challenges Example in education
  • Education - according to PIRLS (in 2006) and
    TIMSS (in 2003) South Africa ranked last overall
    for Grade 4 reading achievement from a set of 40
    countries including Morocco, Indonesia and Iran.
    TIMSS ranked South Africa last for Grade 8
    mathematics achievement from a set of 46
    countries including African peers Ghana, Botswana
    and Morocco.

The South African Constitution foundational
values, socio-economic rights and implications
for social policy
The SA Constitution Preamble
  • Heal the divisions of the past and establish a
    society based on democratic values, social
    justice and fundamental human rights
  • Lay the foundations for a democratic and open
    society in which government is based on the will
    of the people and every citizen is equally
    protected by law
  • Improve the quality of life of all citizens and
    free the potential of each person and
  • Build a united and democratic South Africa able
    to take its rightful place as a sovereign state
    in the family of nations.

Bill of Rights
  • Bill of Rights is a cornerstone of democracy in
    South Africa. It enshrines the rights of all
    people in our country and affirms the democratic
    values of human dignity, equality and freedom.
    The state must respect, protect, promote and
    fulfil the rights in the Bill of Rights and the
    Bill of Rights applies to all law, and binds the
    legislature, the executive, the judiciary and all
    organs of state

Socio-economic rights (1)
  • On housing (section 26)
  • everyone has the right to have access to
    adequate housing. The state must take reasonable
    legislative and other measures, within its
    available resources, to achieve the progressive
    realisation of this right
  • On health care, food, water and social security
    (Section 27)
  • everyone has the right to have access to health
    care services, including reproductive health
    care, sufficient food and water, and social
    security, including, if they are unable to
    support themselves and their dependants,
    appropriate social assistance.

Socio-economic rights (2)
  • On children (Section 28)
  • every child has the right to basic nutrition,
    shelter, basic health care services and social
  • On education (Section 29)
  • everyone has the right to a basic education,
    including adult basic education, and to further

Policy responses from the state an overview
  • Macro-level policy responses From RDP to GEAR to
    ASGISA to Polokwane 2007
  • Sector level and Department level policies
    human settlements, free education, social grants,
    EPWP, learnerships, IPAP, youth wage subsidy,
    SMMEs, primary health care, free basic services,
  • Creating joined up government cluster system
    now delivery forums and outcomes cluster
  • Job creation and tackling unemployment (decent
    jobs) vs addressing poverty through quality ECD,
    education, health and skills

Social policy and economic policy
Social policy and economic policy ... (1)
  • There is a link and connection between the
    social and the economic
  • There exists a dynamic interplay between how a
    countrys economy develops and grows, and how
    planning and investment in human capital through
    policies and programmes in areas such as
    education, health and social protection is
    carried out
  • Simply put, the wealth of a nation is its people.

Social policy and economic policy ... (2)
  • In South Africa the structure of the economy, the
    distribution of income, levels of unemployment,
    the concentration of poverty in some social
    groups and geographic areas, the high numbers of
    African women who are beneficiaries of the
    countrys social assistance programme, are all
    outcomes of and reflect the legacy of past
    economic and social policies
  • The nature of social problems is such that
    policies and developments in the economic sphere
    (high levels of long term unemployment,
    irregular, low wage casual labour without work
    related benefits) will have consequences in the
    social sphere (chronic poverty, food insecurity,
    child malnutrition, poor health, etc).

Social policy and economic policy ... (3)
  • At the centre of integrated human and social
    development is a socio-economic system that
    concerns itself with quality early childhood
    development outcomes as a foundation for
    successful life-long development, quality
    education at all stages and levels, quality
    health care, successful school-to-work transition
    as youth enters the world of work and the
    economy, as educated, skilled and healthy
    workforce and entrepreneurs, the provision of
    benefits throughout working life such as
    maternity leave, sick leave, training on the job,
    provision for retirement and other aspects.
    Crucially, part of investment in people and
    bringing about integrated human, social and
    economic development requires the provision of
    comprehensive social security to cater for
    instances when individuals or families are unable
    to support themselves because of failures in the
    labour market.

Social policy and economic policy ... (4)
  • Economic policies which shape the management of
    resources, the organisation of work and
    production, and the exchange and distribution of
    goods and services, are not a separate policy
    domain, but an integral aspect of social
    policies. Economic policies are, however,
    frequently separated conceptually from social
    policies. Such a separation leads to a view of
    economic activities as disassociated from human
    needs, social values, and social purpose.
    Moreover, the separation inhibits development of
    effective social power and social relations.
    Finally the separation reduces social policies
    conceptually to a residual function, focused
    mainly on victims of economic policy. Many social
    scientists and journalists tend to accept this
    conceptual separation, although it lacks a sound
    theoretical rationale