Social Policy and Po..

Report
South Africa’s
social and economic challenges
in the post-apartheid era
Institute of Social and
Economic Research,
Summer School,
September 2011
An outline of key social and
economic challenges
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Poverty
Unemployment
Income distribution
The race and geography of multidimensional poverty in SA
The South African Constitution
Social policy and economic policy
Poverty in post-apartheid SA
Poverty in post-apartheid SA
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Poverty in its many manifestations (multidimensional) as ‘the’ challenge
What do we mean by poverty in postapartheid South Africa?
How do we define and measure poverty in
South Africa?
What assumptions inform our understanding
and therefore the definition and
measurement of poverty in SA?
Poverty levels in SA (1995) R301/mth
100
92
88
90
83
80
73
69
70
61
60
50
40
30
20
10
0
67
58
48
64
Poverty levels in SA (2004) R354/mth
National Poverty Line
Population below the
Poverty Line %
International Poverty Line
Population below
$2 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
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
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
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
Male
Female
Unemployment rate (narrow definition) by age,
percentage (2002 – 2010)
[very high rate of youth unemployment in SA]
Youth unemployment: the key
issues
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In SA unemployment is mostly experienced by youth.
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 span
Young people are poorly prepared for further training and work.
Income distribution in SA
Income (including social grants)
distribution in SA … (1)
Figure 1. Distribution of income across deciles
60
51
Share of Income (%)
50
40
30
17.8
20
10.3
0.2
2.2
2.9
4.7
1.2
3.5
6.4
1
2
3
4
5
6
7
10
0
Per Capita Income Deciles
8
9
10
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
Africa’s 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
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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
The Human Development Index
Calculating the HDI
The Human Development Index and policy lessons
from other countries
South Africa’s 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 postapartheid SA [1996 and 2001] ... (1)
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Bhorat, Poswell and Naidoo
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Dwelling types
Water
Sanitation
Energy types
Refuse removal
Private goods
Dimensions of poverty in postapartheid SA ... (2)
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‘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 institutions’.
Living in poverty and powerlessness.
Many other challenges … Example in
education
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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, socioeconomic rights and implications
for social policy
The SA Constitution – Preamble
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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
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‘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)
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On housing (section 26)
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‘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)
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‘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)
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On children (Section 28)
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‘every child has the right to basic nutrition, shelter,
basic health care services and social services’.
On education (Section 29)
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‘everyone has the right to a basic education,
including adult basic education, and to further
education’.
Policy responses from the state … an
overview
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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, etc
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)
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There is a link and connection between the ‘social’
and the ‘economic’
There exists a dynamic interplay between how a
country’s 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)
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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 country’s 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)
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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)
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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

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