Poverty And Inequality In South Africa Pdf

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18.04.2021 at 04:30
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This paper uses a recent household survey and the CEQ framework to revisit and extend previous research on the impact of fiscal policy on income redistribution, and poverty in South Africa.

G20 Germany.

Poverty is defined by the World Bank Haughton and Khandker, , p. It can be defined narrowly or more broadly, depending on how well-being is understood. Narrow definitions of well-being are typically linked to commodities, i.

Defining poverty, extreme poverty and inequality

Jump to navigation. In this article, Keeton discusses inequality, its possible causes and factors that contribute to increasing inequality worldwide.

South Africa is one of the most unequal countries in the world. It is often said to be the most unequal, but that is incorrect. A number of countries, for example Namibia and Seychelles, have higher gini coefficients the measure most often used to measure income distribution than does South Africa 1.

There are a number of other countries that are clearly very unequal - some major oil producers for example - but, for obvious reasons, choose not to measure the extent of their inequality. It should be noted that published gini coefficients measure distribution of income not distribution of wealth. This is because household wealth is notoriously difficult to measure. Other than the value of property, and possibly share ownership on the stock market, it is hard to know how wealthy individuals are.

Even property and shares may be held in trusts that are not easily linked to individuals. Prices of assets, including shares, may fluctuate considerably and the values of, say, paintings or jewellery cannot be determined until they are sold. Wealth is also not the same as income.

There are many examples of wealthy individuals living in homes that have over time appreciated hugely in value, but whose incomes are dramatically lower than their wealth suggests. Many individuals with high incomes consume all they earn and may even borrow heavily to support lavish lifestyles.

Their wealth may actually be very low. Despite these problems, many commentators switch between talking about income and wealth inequality as if the two terms are synonymous. The importance of distinguishing between the two will become obvious later. For decades following the work of Kuznets 2 many economists argued that inequality was an inevitable part of economic development.

Kuznets argued that in developing countries economic growth initially leads to increasing levels of inequality. Rich people save more than poor, so inequality aids the process of capital accumulation in poor countries. But as economies develop, larger portions of their populations move from agriculture into other sectors of the economy and their skills bases expand. Therefore a point is reached where inequality falls. Rich countries, according to Kuznets, should be more equal than poor countries.

In the s and s this observation was supported by the empirical evidence. But more recently inequality has clearly been increasing in developed countries. A number of developing countries, such as Brazil and indeed most of Latin America, have substantially reduced their levels of inequality. Processes other than those identified by Kuznets have clearly been at work. There are also clear moral and political reasons why inequality is bad.

A World Bank report on South Africa 4 traced the differences in life opportunities for South African children and unsurprisingly found large differences based on race, gender, location and household income.

This is at the core of the equality of opportunity principle, which provides a powerful platform for the formulation of social and economic policy - one of the rare policy goals on which a political consensus is easier to achieve.

Such differences of opportunity are morally reprehensible. A further reason why inequality is bad, especially when the inequality is easily identifiable along racial lines as in South Africa, is that it enables politicians to dodge difficult economic questions and promote seemingly simple solutions to what are very complex problems.

Poverty, lack of job creation, lack of public service delivery can all be blamed on inequality rather than policy or political failure. If inequality is the cause of all problems, then the solution to all problems must be to take from the rich and give to the poor. It can then be argued that it is the selfish unwillingness of the rich to share what they have gained at the expense of the poor that holds back economic salvation.

Chang et al 6 have shown that nationalisation of mines occurs most often in economies that are unequal. In South Africa the former President of the African National Congress Youth League ANCYL , for example, was able to promise university students that all education in South Africa would be free if the mines were nationalised 7 , even though the arithmetic shows that this clearly would not be possible.

So high levels of inequality mean that necessary, but difficult, policy decisions are avoided. Economic performance and welfare suffer as a consequence. Exposure of the enormous bonuses and salaries earned by the financiers whose excessive risk taking had plunged the developed world into crisis provoked public outrage. This was compounded when the costs of rescuing the financial system from implosion were absorbed by taxpayers, but the risk takers who had caused the problem almost immediately started earning large bonuses again.

In a complete reversal of the arguments of Kuznets, Piketty argues that inequality is the inevitable outcome of capitalism. He argues that periods of falling inequality - as in Western Europe in the s and s - are aberrations caused by particularly aggressive policy steeply progressive income tax and the welfare state. Falling inequality over this period, he argues, was also caused by the massive destruction of the inherited property of the wealthy during World Wars 1 and 2.

Thus the earnings of the owners of capital the rich always grow faster than the earnings of labour the poor. The rich save enough of their earnings to ensure that their stock of capital always grows at least as fast as the economy and so inequality widens. To combat widening inequality Piketty calls for much higher marginal income tax rates for the wealthy and for a global wealth tax. Without taxing wealth, inequality cannot be reduced because of the ability of the wealthy to hide their true income.

The tax must be global because wealth is highly mobile and the wealthy will move it to more favourable tax regimes should individual countries seek to tackle the sources of inequality on their own. This country will benefit from inflows of wealth and of the wealthy who are typically high mobile, but at the expense of those countries seeking to reduce their inequalities of wealth.

He notes, for example, that the Forbes list of the wealthiest Americans in and found that less than one tenth of those on the list in were still there in Technology and globalisation have made it possible for innovators to operate on a global stage, generating previously unthinkable returns as a result.

Globalisation has moved low-skilled jobs to developing countries such as China where wages are much lower. He warns that technology and automation are likely to work increasingly against those performing relatively low-skilled repetitive tasks such as in manufacturing. While inequality remains very high it has narrowed virtually across Latin America over the past decade.

Social transfers and higher minimum wages have helped increase the income of the poorest. Probably the most important cause of reduced inequality in Latin America was rising employment.

In South Africa, by contrast, income inequality has hardly changed despite the introduction of social transfers that now reach 16 million poor South Africans. Inequality remains high partly because the number of jobs created over the past 20 years barely kept pace with growth in the labour force. As a result, unemployment remains between 25 percent and 35 percent depending on whether one counts as being unemployed discouraged workers who have given up looking for a job.

Our transfers system provides only for children from poor households, the elderly and the disabled. No provision is made for the unemployed. As a result, inequality in South Africa is so high both because of high wage inequalities within the workplace as well as the wide gap between those who are employed and those who are unemployed. What if social transfers were raised to improve income distribution and taxes on the rich were raised for this purpose? Tax collection statistics 15 show that in only 2.

These taxpayers earned Their average rate of tax paid was To estimate the impact of raising this rate of tax, two sets of calculations were made in which this average rate is raised by raising tax rates across the highest income brackets. If the average rate of tax for those earning more than R in rises to 41 percent this brings in only an additional R8.

A more dramatic rise in tax rates so the average tax rate for those earning above R rises to 46 percent raises an additional R If social grants cannot be extended to the unemployed by taxing the rich, the answer to inequality in South Africa then appears to be to generate millions of jobs, no matter how low paying they might be, so that the eight million people currently unemployed can start earning at least some income.

Such a strategy would reduce poverty, but work by van der Berg 16 shows that its impact on income inequality would actually be quite modest. This is because of the high degree of income inequality within the workplace. The largest cause of income inequality in South Africa lies within the workplace. Therefore, even if all those currently unemployed earn the current incomes of low-skilled workers, overall income inequality in South Africa will fall only modestly and will still be very high by global standards.

The unemployed need to move also into higher wage jobs for the impact on reducing inequality to be substantial. This need is borne out also by the current realities of the South African labour market.

A recent study by Statistics South Africa 17 shows that 76 percent of the 6. South Africa needs to grow faster and generate many more jobs, but without significant structural changes in the economy a high proportion of these will be skilled and semi-skilled jobs.

To fill these positions the unemployed and new entrants into the labour force require the necessary skills. The unemployed will gain access to semi-skilled and skilled jobs only if they are better educated.

At the same time, an increased pool of educated workers will reduce the premia paid to the educated who are currently in short supply. Both poverty and inequality will fall as a result. The weak endowments of those currently unemployed would not assure them of high labour market earning. Thus even if they were employed, it would probably be at low wages, thus leaving wage and hence aggregate inequality high and little affected.

Thus the labour market is at the heart of inequality, and central to labour market inequality is the quality of education. To reduce income inequality substantially requires a different wage pattern based on better human capital for the bulk of the population. Forty two percent of South African workers with less than a matric qualification are unemployed, but unemployment remains as high as 34 percent for those with a matric.

For those with a matric and some tertiary qualification unemployment is 14 percent. Unemployment of university graduates is just 5. More matric and tertiary qualifications are needed, but the quality of these passes must improve substantially to provide access to better paid jobs. Without substantive improvements in the human capital of the poor, income inequality will remain unacceptably wide. Fixing the education system lies beyond the scope of this article or the competencies of this author.

Much is made of the fact that South Africa already allocates a high share of resources to education relative to other developing countries. Given the backlogs and wide disparities in our society inherited from apartheid possibly even greater resources are needed. But even increased resources will help only if they are well used.

This will happen only with far greater political will and focus than is currently apparent. View the discussion thread. You are here Home Inequality in South Africa.


Jump to navigation. In this article, Keeton discusses inequality, its possible causes and factors that contribute to increasing inequality worldwide. South Africa is one of the most unequal countries in the world. It is often said to be the most unequal, but that is incorrect. A number of countries, for example Namibia and Seychelles, have higher gini coefficients the measure most often used to measure income distribution than does South Africa 1.

The South African education system, characterised by crumbling infrastructure, overcrowded classrooms and relatively poor educational outcomes, is perpetuating inequality and as a result failing too many of its children, with the poor hardest hit according to a new report published by Amnesty International today. Broken and Unequal: The State of Education in South Africa calls on the government to urgently address a number of endemic failings in the system in order to guarantee the right to a decent education for every child in South Africa. The report particularly highlights poor infrastructure in public schools including sanitation which has tragically resulted in the death of two children in pit latrines in recent years. The report details how the education system continues to be dogged by stark inequalities and chronic underperformance that have deep roots in the legacy of apartheid, but which are also not being effectively tackled by the current government. For example, it brings to the fore that many schools and the communities they serve continue to live with the consequences of the political and economic decisions made during the apartheid era where people were segregated according to their skin colour, with schools serving white communities properly resourced.

Using the South African population census, we provide income and multidimensional poverty and inequality estimates at the municipal level. We go on to estimate a spatial econometric model to identify the correlates of poverty across municipalities in South Africa. Our results show that both income and multidimensional estimates of poverty and inequality vary significantly across municipalities in South Africa. In general, areas that are historically characterized by low economic and welfare outcomes still experience significantly higher poverty and deprivation levels. Using both global and local spatial autocorrelation measures we find significant and positive spatial dependence and clustering of regional development indicators.

PDF | On Jan 1, , Ingrid Woolard published An overview of poverty and inequality in South Africa | Find, read and cite all the research you need on.

Inequality in South Africa

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country.

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 - Я думал, что вы в Южной Америке. Лиланд Фонтейн окинул своего помощника убийственным взглядом. - Я был. Но сейчас я .

 Канадец. - Да. Он вызвал скорую. Мы решили уйти.

Очевидно, директор что-то скрывает, но Бринкерхоффу платили за то, чтобы он помогал, а не задавал вопросы. Фонтейн давно всем доказал, что близко к сердцу принимает интересы сотрудников. Если, помогая ему, нужно закрыть на что-то глаза, то так тому и .

Мелькнул лучик надежды. Но уже через минуту парень скривился в гримасе. Он с силой стукнул бутылкой по столу и вцепился в рубашку Беккера. - Она девушка Эдуардо, болван.

Росио улыбнулась: - Todo bajo el sol. Чего только нет под солнцем. - Это был девиз туристского бюро Севильи. - Она назвала вам свое имя.

 - На этих таблицах есть числа. Количество протонов.

ГЛАВА 52 Клуб Колдун располагался на окраине города, в конце автобусного маршрута 27. Похожий скорее на крепость, чем на танцевальное заведение, он со всех сторон был окружен высокими оштукатуренными стенами с вделанными в них битыми пивными бутылками - своего рода примитивной системой безопасности, не дающей возможности проникнуть в клуб незаконно, не оставив на стене изрядной части собственного тела. Еще в автобусе Беккер смирился с мыслью, что его миссия провалилась. Пора звонить Стратмору и выкладывать плохую новость: поиски зашли в тупик.

Думаю, англичанка. И с какими-то дикими волосами - красно-бело-синими. Беккер усмехнулся, представив это зрелище.

Бринкерхофф растерянно заморгал. - Да, сэр, - сказала Мидж. - Потому что Стратмор обошел систему Сквозь строй? - Фонтейн опустил глаза на компьютерную распечатку. - Да, - сказала.  - Кроме того, ТРАНСТЕКСТ уже больше двадцати часов не может справиться с каким-то файлом.

За свою долгую историю оно стало свидетелем переворотов, пожаров и публичных казней, однако большинство туристов приходили сюда по совершенно иной причине: туристические проспекты рекламировали его как английский военный штаб в фильме Лоуренс Аравийский. Коламбия пикчерз было гораздо дешевле снять эту картину в Испании, нежели в Египте, а мавританское влияние на севильскую архитектуру с легкостью убедило кинозрителей в том, что перед их глазами Каир. Беккер перевел свои Сейко на местное время - 9. 10 вечера, по местным понятиям еще день: порядочный испанец никогда не обедает до заката, а ленивое андалузское солнце редко покидает небо раньше десяти. Несмотря на то что вечер только начинался, было очень жарко, однако Беккер поймал себя на том, что идет через парк стремительным шагом.

Открыв меню последних программ, она обнаружила, что это был сервер электронной почты. Сьюзан обшарила весь жесткий диск и в конце концов нашла папку электронной почты, тщательно запрятанную среди других директорий. Открыв ее, она увидела несколько дополнительных папок; создавалось впечатление, что у Хейла было множество почтовых адресов.


24.04.2021 at 16:44 - Reply

Since the advent of the new democratic dispensation, the South African government has developed policies which have focused on poverty alleviation.

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