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HARD LIFE: Social grants made up 70% of the income of the poorest 20% of South Africans, says a World Bank report. PHOTO: ELIJAR MUSHIANA

 Job creation key 

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South Africa is one of the most unequal countries in the world, with a Gini coefficient of 0.7 in 2008, the bank noted in its "South Africa Economic Update: Focus on inequality of opportunity".

The Gini coefficient is an internationally used measure of income inequality.

The top 10% of the population accounted for 58% of South Africa's income.

The bottom 10% accounted for just 0.5% of income, and the bottom 50% less than 8%, said the bank.

"At the heart of high inequality lies the inability to create employment opportunities on a large enough scale," said the report.

Unemployment of 25.2% (or 33% if discouraged workers were included) was among the world's highest.

Social grants made up 70% of the income of the poorest 20% of South Africans.

If these grants were excluded, 40% of South Africans would have seen their income decline in the first decade after apartheid.

South Africa should thus focus on human capital development, particularly among children and youth.

Children should have the same opportunities regardless of family circumstances, race, gender or location.

Access to a basic set of goods and services during childhood could be an important predictor of future outcomes, including educational achievements and earnings.

These basic services included education, healthcare, essential infrastructure such as water, sanitation and electricity, and early childhood development programmes.

But access to other services was below 60%, including health insurance, a safe water supply, improved sanitation, adequate space without overcrowding, and finishing primary school.

Other opportunities, such as access to early childhood development programmes, safety in the neighbourhood and access to electricity, carried low to moderate inequality.

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Sun May 19 15:44:44 SAST 2013 ::

Jul 25, 2012

CheeseBoy

South Africa is one of the most unequal countries in the world.

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This is what people like myself have been saying all along that our govt had 18 years to make some tangible progress in improving the lives of previously disadvantaged masses.

They are not interested in changing the status-quo for one simple reason. an uneducated poor population will keep them in power so as to steal as much money from the middle class as possible.

The whole time poor people will always have hope when empty promises, few pieces of free chicken and cheap free t-shirts are thrown their way every election.
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Jul 25, 2012

cornelius

@ Cheeseboy, I have also often wondered whether the absolute mess we are seeing in education is perhaps calculated to keep the masses uneducated and ignorant for precisely the reason you mention.
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Jul 25, 2012

cornelius

To continue : I wonder whether people realise just how bad it is in education. Children come out of school hardly being able to read and write. We are very near the bottom of the pile of the countries in the world ( including our fellow African countries) when it comes to our standards of education. How is this possible, when we are the economic powerhouse of Africa ? The biggest problem is poor teachers, and the power of Sadtu. These people don't realise that teachin is a calling, not just a job. Teachers must go the extra mile, not for money, but for the love of the noble profession. As long as our teachers regard themeselves to be like factory workers, we will never get our educatiuon right, and the inequalities will remain.
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Jul 25, 2012

David-

Access to a basic set of goods and services during childhood could be an important predictor of future outcomes, including educational achievements and earnings.
These basic services included education, healthcare, essential infrastructure such as water, sanitation and electricity, and early childhood development programmes.
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I have one word for the failure to provide the above POLITICIANS


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Jul 25, 2012

CheeseBoy

@cornelius

We must not fool ourselves into believing that the crisis in education 'just happened by chance/incompetence'

it is happening by design. Why is it that the organs of govt that take money from the middle class e.g. SARS have witnessed several massive improvements and innovations (eFiling etc) in a short space of time. yet the service related institutions (education, health) have virtually been destroyed.

How many times have the few honest leaders cried out that education in Mzansi is now far worse than it was during apartheid. our leaders know that if they fix education they will ultimately loose power/money.
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Jul 25, 2012

Maratachelete

Our government's main priority is to ensure that all the comrades,who fought for freedom,are rich and well taken of,so they do not have time to fight inequality,but they make noise about apartheid and what it did to them,oh,poor them and how much time they spent in Robbin Ireland.It is actually sad that the very same government that claims to have fought for out rights,is the one taking them away through their autocratic style of governance and the rampant corruption that takes away bread from poor children's mouths.
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Jul 26, 2012

WakeUpSouthAfrica

CheeseBoy - The politicians who scream about education are from the DA.
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Jul 26, 2012

Danielrjvvuren

Interesting that it worked out that way, but economically we are a welfare state. Every person of the lower income level seeing grants as a better option than employment. I personally use the strict definition of unemployment and the EAP are hampered down by high taxes, high expenditure and now income increase to counter balance the problem with all the grants given. Education as I always indicated and debated is the key. We need educated people to employ. There is so many jobs but structural unemployment is a big problem in SA.
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Jul 26, 2012

Danielrjvvuren

sorry and NO income increase not now
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Jul 26, 2012

mesip

World Bank needs to be made aware of the following - according to the AG, R11 billion was lost due to unauthorized, irregular, fruitless & wasteful expenditure; NOTE that. Gauteng Toll roads construction costs amounted to R22 billion, NOTE that again. Conclusion - just by taking these two examples SA would today be moving towards a +ve direction if that wasted R11 billion was rather used to address half of the R22 billion debt. In closing, I agree 100% with you Danielrjvvuren.
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