Social inequality in south africa

Messenger After two decades of democracy, economic inequality in South Africa remains very high. Survey comparability issues make analysing trends tricky, but it is clear that overall income inequality has not fallen; the country has long been one of the highest ranked by Gini coefficienta widely used measure of income inequality. Its peak of about 0.

Social inequality in south africa

The Gini coefficient is the measure of income inequality, ranging from 0 to 1, with 0 representing a perfectly equal society and 1 representing a perfectly unequal society. Advertisement Releasing the report in Johannesburg, country director Paul Noumba Um stressed that inequality would have been even worse had it not been for government interventions, sinceto increase the social wage through investments in education, health, transport and housing, as well as by providing social grants to million South Africans.

Nevertheless, fundamental policy action was required to tackle inequality, as well as to stimulate more inclusive growth.

Social inequality in south africa

Advertisement In the absence of any intervention, however, the World Bank expects South Africa to continue on its low-growth path. The economy would also continue to diverge from the growth outlooks in other emerging markets and developing countries, where expansion of 4.

By contrast, the bank expects South Africa will expand by only 1. The National Treasury expects the South Africa economy to grow by 1. It was also highly unlikely, given current constraints to growth, that South Africa would expand in line with the 5.

In addition, high levels of inequality combined with high levels of political rights, as is the case in South Africa, would result in a high demand for fiscal redistribution and larger government expenditure. However, there was fresh potential to stimulate growth and reduce inequality in light of the fact that labour status had become the most important factor driving income inequality in South Africa.

While there was little demand for unskilled labour the demand for skilled labour was driving wage inequality. The change, though, would be slow and inequality levels would only recover to levels by However, inequality could be reduced further by accelerating labour-supply interventions, including the offer of financial support to poor tertiary students to raise the number of poor students earning a degree to 4.

However, the effectiveness of labour-supply interventions alone would be limited unless accompanied by growth programmes that stimulated both labour demand and provided the financing required for the supply-side programmes. The growth-supportive reforms envisaged included an increase in product-market competition, a reduction in policy uncertainty and a relaxation of migration rules to help fill the gap between the current demand for skilled labour and supply.

For every two skilled migrants allowed to enter South Africa, the bank estimated one semi-skilled or unskilled job would be created. Bank simulations show that such policy reforms could reduce the number of poor people in South Africa to 4.Data and research on social and welfare issues including families and children, gender equality, GINI coefficient, well-being, poverty reduction, human capital and inequality., Inequality is a multi-dimensional challenge, it goes beyond income and it affects the well-being of our people.

Evidence now tells us that the levels of inequality are becoming an impediment for progress, and that. threats associated with high levels of inequality including crime, corruption and social exclusion.

Viewed broadly, South Africa may be the most consistently unequal country in the world. South Africa is an upper-middle income country, but is a country of stark contrasts.

South Africa will remain a hugely unequal society for a long time

The extreme inequality evident in South Africa means that one sees destitution, hunger and. Overcoming Poverty and Inequality in South Africa: An Assessment of Drivers, Constraints and Opportunities (English) Abstract. This report documents the progress South Africa has made in reducing poverty and inequality since the end of apartheid in , with .

According to the Gini coefficient, as well as other inequality measurements, South Africa ranks as one of the most unequal countries in the world. Of course, measuring inequality is multidimensional, which particularly applies to South discussions of South Africa, severe economic disparities are often of the country’s inequality stems from apartheid’s effect on.

The report shows that the poorest in South Africa benefit from social spending programs. About 70% of outlays on social grants and 54% of spending on education and health go to the poorest half of the population in South Africa.

Inequality in post-apartheid South Africa - Wikipedia