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those at the bottom. What this confirms is that income growth has not necessarily resulted in
a decline in South Africa’s historically high levels of inequality. 85 A comparison of aggregate
Gini coefficients (the most widely used measure of inequality) shows that, in fact, levels of
inequality have widened, thus making South Africa one of the most unequal societies in the
world. This suggests a deep problem of structural inequalities with a long history in the
foundation of the modern South African economy.
One of the variables that contribute to high levels of poverty is unemployment, in particular
among the youth. “The level of unemployment in South Africa officially decreased in the
fourth quarter of 2012 by 0.1%, down from 25% to 24.9% (2012 Fourth Quarter Labour
Survey). Sadly though, while any reduction in the unemployment rate is good news, in truth
this marginal change reflects more an increase in the number of discouraged work seekers
(youths who are no longer looking for work), than an actual increase in employment”86. Even
those who are employed are not fully immune from poverty, particularly for the one-worker
households in the lower-income categories owing in large measure to low levels of school
education as the supply of low-skilled workers far outstrips the demand.
Therefore, government has introduced a wide array of interventions aimed at addressing the
challenge of poverty in a comprehensive manner. These constitute a policy package used to
ensure poverty decline. These include measures designed to stimulate job creation including
assistance to entrepreneurs involved in job-creating ventures and assistance to the
unemployed who are battling poverty.
The single most important driver of the decline in poverty is government’s social security
assistance programme.87 From 2, 5 million beneficiaries in 1999 to just over 12 million in
2007, the social grant system is the largest form of government support for the poor. The
largest by far is in the form of the Child Support Grant (CSG), which reached 7,8 million
beneficiaries in 2007 compared to 34 000 in 1999. The table below shows the increase in
the number of beneficiaries between 1997 and 2009. This trend has continued up to the
present.
The rapid expansion of the social security system lies at the heart of growth in expenditure
levels of the poor.
Table: Numbers of beneficiaries of social grants in 1997 and 2009
1997
2009
Old-age grant
1737 682
2 414 183
Disability grant
737 322
1 281 556
Child-support grant
362 631
8 825 824
Total
2 b37 635
12 521 568
85
Arden Finn, Murray Leibrandt & Eva Wegner, ‘Policies for reducing income inequality and poverty in South Africa’ at
http://transformationaudit.org/blog/wp-content/uploads/2012/02/Chapter-4.pdf
86
Catherine
Wijnberg,
‘Tackling
youth
unemployment
in
South
Africa’.
March
20,
2013.
At
http://www.ujuh.co.za/opinions/tackling-youth-unemployment-in-south-africa/
87
Statistical data provided under social security, except where indicated otherwise, is obtained from the research commissioned
by the Department of Public Service and Administration on poverty and inequality, as part of the APRM process.
105