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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Main Author: World Bank Group
Format: Report
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
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
id okr-10986-29614
recordtype oai_dc
spelling okr-10986-296142021-05-25T09:13:18Z Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities World Bank Group POVERTY REDUCTION POVERTY ASSESSMENT INEQUALITY POVERTY MEASUREMENT ACCESS TO SERVICES HOUSING FOOD SECURITY UPWARD MOBILITY CHRONIC POVERTY WAGE INEQUALITY INCLUSIVE GROWTH LABOR MARKET UNSKILLED LABOR EMPLOYMENT 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. 2018-04-03T19:54:23Z 2018-04-03T19:54:23Z 2018-03 Report 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 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Poverty Assessment Economic & Sector Work Africa South Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POVERTY REDUCTION
POVERTY ASSESSMENT
INEQUALITY
POVERTY MEASUREMENT
ACCESS TO SERVICES
HOUSING
FOOD SECURITY
UPWARD MOBILITY
CHRONIC POVERTY
WAGE INEQUALITY
INCLUSIVE GROWTH
LABOR MARKET
UNSKILLED LABOR
EMPLOYMENT
spellingShingle POVERTY REDUCTION
POVERTY ASSESSMENT
INEQUALITY
POVERTY MEASUREMENT
ACCESS TO SERVICES
HOUSING
FOOD SECURITY
UPWARD MOBILITY
CHRONIC POVERTY
WAGE INEQUALITY
INCLUSIVE GROWTH
LABOR MARKET
UNSKILLED LABOR
EMPLOYMENT
World Bank Group
Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
geographic_facet Africa
South Africa
description 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.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
title_short Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
title_full Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
title_fullStr Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
title_full_unstemmed Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities
title_sort overcoming poverty and inequality in south africa : an assessment of drivers, constraints and opportunities
publisher World Bank, Washington, DC
publishDate 2018
url 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
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