A Dynamic Analysis of Household Livelihoods and Asset Accumulation in Post-Apartheid South Africa: Evidence from KwaZulu-Natal (original) (raw)
Related papers
2010
The situation in South Africa presents unique challenges to achieving sustained poverty reduction. Although it is an upper-middle-income country with a per capita income similar to that of Botswana, Brazil or Malaysia, a significant proportion of South African households have remained poor despite a plethora of government policies that target the less resourced. While estimates vary, over 22.9 million South Africans are categorised as being poor, with almost 2.5 million people suffering from malnutrition. Most analysts now agree that while poverty increased during the 1990s, some progress has been made in reducing both the incidence and depth of poverty after 2000. This thesis argues that the economic and social dynamics set in motion by apartheid that produced this situation, may also have generated a low-level equilibrium trap from which some the poor in South Africa will find it difficult to escape. The thesis suggests that the explanation for this 'poverty trap' lies in what Sen has termed the exchange entitlement mapping that poor households face when attempting to use their assets/endowments. In other words, the processes that underpin the accumulation of assets, the opportunities to use these assets, and the returns obtained are structurally prejudiced against the poor. The implication is that the current experience of poverty leads to its reproduction and to a structurally persistent poverty. The central research question of this thesis is then: "Did the extent, distribution and experience of poverty of the apartheid era persist in the immediate post-apartheid South Africa despite the efforts of government to foster pro-poor reforms?" The central policy concern is that if asset accumulation failure underpins persistent poverty, policies for those who are structurally poor should be differentiated from that which is directed at those who are transitorily poor. As an example, the policies of the South African government concerning the redistribution of agrarian assets (principally land and finance) may not be sufficient to assist the poor in rural areas, and may only increase intra-rural inequality.
Chronic and structural poverty in South Africa: challenges for action and research
2005
Abstract: Ten years after liberation, the persistence of poverty is one of the most important and urgent questions facing South Africa. This paper reflects on some of the findings of research undertaken as part of the participation of the Programme on Land and Agrarian Studies (PLAAS) at the University of the Western Cape in the work of the Chronic Poverty Research Centre, situates it within the broader literature on poverty in South Africa, and considers some emergent challenges.
2009
South Africa has a long and infamous history of high inequality with an overbearing racial footprint to this inequality. Many have seen the emergence and persistence of this inequality to be the major unifying theme of the country's twentieth century economic history. Certainly, this is the key context to understanding why the issue of inequality has continued to dominate the post-apartheid landscape. There are two indicators of the post-apartheid political economy that have attracted special attention in this regard. The first is whether ...
January 1997 No . 408 POVERTY , LIVELIHOOD AND CLASS IN RURAL SOUTH AFRICA
1997
Using data from a national living standards survey undertaken in late 1993, this paper disaggregates and explores the economics of livelihood generation and class in rural South Africa in an effort to contribute to the ongoing and vociferous debate in South Africa about poverty and its alleviation. Pursuant to the suggestion of participants in a recent participatory poverty assessment, this paper analyzes what might be termed the class structure of poverty. After exploring the range of claiming systems and livelihood tactics available in rural South Africa, the paper offers a first look at who the poor are by disaggregating the rural population into discrete livelihood strategy classes. Non-parametric regression methods are used to then estimate and graphically explore the nature of the livelihood mapping between endowments and real incomes. In addition to identifying those endowment combinations which map to consumption levels below the poverty line (the asset basis of poverty), th...
The Determinants of Household Poverty in South Africa
Africa’s Public Service Delivery and Performance Review, 2016
South Africa was privileged to be part of the MDGs agenda which was adopted in 2000. One of the aims of MDGs was to reduce extreme poverty by half in 2015. For that reason, South Africa integrated policies and strategies to rid poverty by half to that of United Nations (UN). Through all the combined policy approaches, South Africa has successfully achieved the target of halving the population living below PPP$1.25c per person per day. Whichever threshold used, the results showed that the percentage share of people living below poverty line has now decreased from 11.3 per cent in 2000 to 4.0 per cent in 2011. However, these reports are not reflecting the exact poor’s experiences because at household level there is still an outright poverty. Therefore, if the national poverty report gives a good picture about South African poverty status whereas there is still prevalence of poverty at household level, there are high chances that wrong policies in regard to poverty reduction strategies...
Chronic and Transitory Poverty in Post-Apartheid South Africa
Journal of Poverty, 2001
This article examines the rationale for a dynamic perspective of poverty in South Africa and analyses the magnitude and characteristics of those in chronic versus transitory poverty using data from the KwaZulu-Natal Income Dynamics Study. The results show that the incidence and depth of poverty have increased steadily between 1993 and 1998, a trend that is pronounced in rural localities and for female-headed households. Though the majority of households (30.7%) were found to be experiencing transitory poverty, a significant proportion of households, in lieu of the expected small minority suggested by previous empirical research, were chronically poor (22.3%).
Development Southern Africa, 2012
Poverty in South Africa in general has not declined since 1994, and it is particularly severe in the former Bantustans. This paper discusses two important issues related to rural poverty in the Eastern Cape Province. It questions the applicability of the notion of legacy to explain recent trends in rural poverty and constructs an argument that explains these trends in relation to post-1994 segregationism. It argues that the notion of legacy is not useful in explaining why rural poverty remains entrenched, long after 1994. Rural poverty today cannot be explained as something left behind after the end of apartheid, because its causes and drivers are the same now in 2012 as they were in 1970. The continuity between the pre-and post-1994 periods is best described by exploring and understanding post-1994 policy decisions and power configurations as an expression of contemporary segregationism.