economic inequality in south africa

Unemployment, poor education programs and a collapsing public health system all play a … But the story of inequality in Africa is more complex than that of a widening gulf between the very rich and the very poor. Inequality manifests itself In South Africa, the divide between rich and poor is visible from the sky. But while democracy has delivered freedom for all South Africans, not enough has changed for those living in the country's vast townships. Economic Inequality in South Africa Earnings Dispersion Overall Income Inequality Poverty Top Income Shares Earnings at top decile as % median 320 400 450 520 A. https://www.cnn.com/2019/05/07/africa/south-africa-elections-inequality-intl Access to basic services such as electricity, water, education and health care has improved considerably since the ANC came into power, according to the World Bank report. through a skewed income distribution, unequal access to opportunities, and In South Africa, the white population makes up the majority of the elite — or top 5% — explained Murray Leibbrandt, economics professor at the University of Cape Town. Previously disadvantaged South Africans hold fewer assets, have fewer skills, earn lower wages, and are still more likely to be unemployed, a. According to the Gini coefficient, as well as other inequality measurements, South Africa ranks as one of the most unequal countries in the world. South Africa is one of the most unequal countries in the world. A number of countries, for example Namibia and Seychelles, have higher gini coefficients (the measure most often used to measure income distribution) than does South Africa 1. FOUR FACTS ABOUT INEQUALITY IN SOUTH AFRICA 1. Sources: Overall inequality: Gini coefficient of per capita income from Statistics South Africa, 2014, Table 5, linked at 2005/2006 to series from 1993 from Leibbrandt et al (2010a, Table 5.17), linked at 1991/1993 to estimates for 1975, 1991 and 1996 of Whiteford and van Seventer (2000). The focus needs to be on creating a business environment more conducive to private investment and job creation. urban-rural), gaps in access to education, and barriers to employment and career progression for women." In fact, despite 25 years of democracy, South Africa remains the most economically unequal country in the world. It is often said to be the most unequal, but that is incorrect. IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves. © 2020 International Monetary Fund. Bhorat (2003a) estimates that in 1999, 32% of households in South Africa were below a poverty line of US$251 per month per household (1995 prices), equivalent to US$81 per month per individual. to the persistence of inequality. In 2005, the Gini coefficient was even higher, at 0.650. Poverty levels are highest among the black population, followed by South Africa's "coloured" population -- the accepted term for mixed-race people in the country. By Leibbrandt's estimates, South Africa's middle class is small and sluggish, and comprises approximately one in five South Africans. Economic inequality remains a large issue in South Africa and contributes to extreme poverty. Health inequality in South Africa Even though it has been 20 years that south Africa has underwent the change from apartheid to a constitutional democratic south Africa, when looking at the healthcare in South Africa one will see the fact that the is an unequal access to resources by South Africans. A 2011 OECD study investigated economic inequality in Argentina, Brazil, China, India, Indonesia, Russia and South Africa. A more developed social security system would help reduce inequality and relieve the pressure on poorer families to provide for older generations. South Africa is one of the world's most unequal countries, with a Gini coefficient of 0.625. 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This is because our usual tools are well suited to measuring income and consumption, but not very good at measuring wealth. In South Africa, the richest 10% hold 71% of the wealth, while the poorest 60% hold just 7% of the wealth. ", Why South Africa's 'Born Free' generation isn't voting, After arrest, Jimmy Lai denies colluding with foreign forces (August, 2020), Former Covid-19 success story is now one of hardest-hit countries in region, Inside a Tehran hospital facing Iran's biggest Covid-19 surge, Hear Merkel's plea to Germans amid record Covid-19 death toll, 'It didn't hurt at all': 91-year-old Briton on receiving Covid-19 vaccine, Here's why tens of thousands of Indian farmers are protesting, Saudi Arabia is changing. Indeed, according to the HDI, every country in Africa is today less equal than it was in 2010; for the African masses, in other words, the trickle-down benefits of economic growth have been relatively small. The white population makes up 12% of the population, Asian/Indians take up 3%, the mixed race category takes up 11%, and the black population stands at nearly 75%. Gardeners tending the lawn at the seat of government in the capital Pretoria. It's not just income inequality that is cause for concern, he adds, but also unequal access to opportunities and essential public services. Can polar bears survive the climate crisis? Income inequality in South Africa has deepened. DfID – Inequality in Middle Income Countries: South Africa Case 3 in Woolard, 2002). The source of the inequality that plagues South Africa is multifaceted. Efforts to reduce inequality Wage inequality, deeply rooted in South Africa’s history, plays a central role in overall income distribution, and patterns of human capital development are fundamental to the future growth path and therefore to poverty and income distribution. We know that South Africa’s wealth distribution is highly unequal. 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