Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
This report documents the progress South Africa has made in reducing poverty and inequality since the end of apartheid in 1994, with a focus on the period between 2006 and 2015. The main conclusions are as follows: First, by any measure, South Afri...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/530481521735906534/Overcoming-Poverty-and-Inequality-in-South-Africa-An-Assessment-of-Drivers-Constraints-and-Opportunities http://hdl.handle.net/10986/29614 |
| Summary: | This report documents the progress South
Africa has made in reducing poverty and inequality since the
end of apartheid in 1994, with a focus on the period between
2006 and 2015. The main conclusions are as follows: First,
by any measure, South Africa is one of the most unequal
countries in the world. Inequality is high, persistent, and
has increased since 1994. Second, although South Africa has
made progress in reducing poverty since 1994, the trajectory
of poverty reduction was reversed between 2011 and 2015,
threatening to erode some of the gains made since 1994. High
levels of inequality and low intergenerational mobility act
as a brake on poverty reduction and as a result poverty is
high for an upper middle-income country. Poverty is
consistently highest among black South Africans, the less
educated, the unemployed, female-headed households, large
families, and children. Further, poverty has a strong
spatial dimension in South Africa, a demonstration of the
enduring legacy of apartheid. Poverty remains concentrated
in previously disadvantaged areas, such as the former
homelands – areas that were set aside for black South
Africans along ethnic lines during apartheid. Third, high
levels of income polarization are manifested in very high
levels of chronic poverty, a few high-income earners and a
relatively small middle class. Fourth, the role of skills
and labor market factors have grown in importance in
explaining poverty and inequality while the role of gender
and race, though still important, has declined, presenting
an opportunity for policy to influence poverty and
inequality outcomes. Social protection remains important in
reducing extreme poverty, but the fiscal space for further
expansion is limited. Low growth perspectives in the coming
years suggest poor prospects of eliminating poverty by 2030
as envisaged in the National Development Plan. Looking
ahead, accelerating poverty and inequality reduction will
require a combination of policies that seek to unlock the
full potential of labor markets and promote inclusive growth
through skilled job creation. |
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