The October 2020 Economic Reconstruction and Recovery Plan (ERRP) aims at dealing with immediate actions towards economic recovery amid COVID-19; and rebuilding and growing the economy to ensure sustainability, resilience, and inclusion. South Africa has extremely high unemployment rates. The Western Cape has the lowest black population out of all the provinces at 32 percent. South Africa is a country renowned for its stark contrast in social, ethnic and economic (income) inequality. Battery storage capacity, currently under procurement, will assist in improving utilization of energy generated from variable renewable energy sources under the Renewable Energy Independent Power Producer program. Staff Writer 7 June 2021. Incidence of growth 56 G. Inequality slows down poverty reduction 58 CHAPTER 4: DRIVERS OF POVERTY AND INEQUALITY … Despite a rising GDP, indices for poverty, unemployment, income inequality, life expectancy, land ownership, have declined due to the increase in population; with the end of the apartheid system in South Africa leaving the country socio-economically stratified by race. Shock grant data shows why government is pushing for a new ‘basic income’ for South Africa. As of last year, white South Africans still bring in an average income that is five times greater than that of black South Africans. Labor market—South Africa. As our Chart of the Week shows, the country’s wealth is concentrated in the upper levels of society. The overall unemployment rate was 26% in 2004, Redistribution aims to transfer White-owned commercial farms to Black South Africans. While income and wealth inequality across all populations is the primary focus, the contributions to this book pay special attention to the middle class, a segment often not addressed in inequality literature. Found insideA growing body of empirical evidence suggests that inequality—income or gender related—can impede economic growth. South Africa suffers among the highest levels of inequality in the world when measured by the commonly used Gini index. The World Bank successfully completed the Partnership for Market Readiness (PMR) project in December 2020, which supported the design of South Africa’s Carbon Tax policy as well as helped build and capacitate several tools to support the tax through a $3.8 million grant. By 1998, over 250,000 Black South Africans received land as a result of the Land Redistribution Programme. With IDA’s help, hundreds of millions of people have escaped poverty—through the creation of jobs, access to clean water, schools, roads, nutrition, electricity, and more. The first of these was the establishment of minibus taxis, a cheaper form of public transportation from rural areas into cities. But although discriminatory policies stopped being imposed by the government, that unfortunately does not mean that racism vanished from the country. Income inequality in Africa, 1990-2017 Lucas Chancel Denis Cogneau Amory Gethin Alix Myczkowski Overview This issue brief makes a rst attempt to estimate the evolution of income in-equality in Africa from 1990 to 2017 by combining surveys, tax data and na-tional accounts in a systematic manner. " Income Inequality Trends in sub-Saharan Africa: Divergence, Determinants, and Consequences is a groundbreaking United Nations Development Programme (UNDP) study that provides policy guidance to reduce income inequality in sub-Saharan ... Found insideThe volume concludes with Riaan Rheeder’s Christian bioethical perspective on inequality in the health sector of sub-Sahara Africa. This book contains original research. No part was plagiarised or published elsewhere. This site uses cookies to optimize functionality and give you the best possible experience. Income Inequality Figure 4 shows the Gini coefficient for income inequality for the African continent. “The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them.” Open access, high quality wealth and income inequality data developed by an international academic consortium. Decile Dispersion Ratio: A simple and popular measure of inequality is the decile dispersion ratio, which presents the ratio of the average income or consumption of the richest 10 percent (for instance, the 90th percentile) by that of the poorest 10 percent (the 10th percentile). Black and low-income students face geographic barriers to good schools, which are usually located in affluent neighbourhoods. Inequality in wealth is even higher and intergenerational mobility is low meaning inequalities are passed down from generation to generation with little change over time. The World Bank recently released a 147-page report extensively detailing the root causes of economic struggle in South Africa. Income inequality. The World Bank South Africa Digital Economy Diagnostic, examined the strengths, weaknesses and opportunities for digital economy development in South Africa. New tax and survey data suggest that 10% of the population own at least 90–95% of all assets, in contrast to their earning ‘only’ about 55–60% percent of all income. Inequality in Rwanda and South Africa IV.1. Another measure taken to promote racial inequality in South Africa during apartheid was the passage of the Group Areas Act of 1950. DfID – Inequality in Middle Income Countries: South Africa Case 3 in Woolard, 2002). Found insideThis report examines how the two global mega-trends of population ageing and rising inequalities have been developing and interacting, both within and across generations. The top 20 percent of the population holds over 68 percent of income, while the poorest 40 percent possess only 7 percent of income. While it’s assessed as more unequal than India, South Africa rates much higher than India in its commitment to reducing inequality. "Following the international literature, income inequality decompositions on data from contemporary South Africa show that the labour market is the key driver of overall household inequality. Found insideIn this book, international anti-inequality campaigner Ben Phillips shows why winning the debate is not enough: we have to win the fight. Partners include specialized agencies of the United Nations system, the African Development Bank (AfDB), the New Development Bank, the International Monetary Fund (IMF), Department for International Development (DfID) and the State Secretariat for Economic Affairs of Switzerland (SECO). . Found insideThis report examines the links between inequality and other major global trends (or megatrends), with a focus on technological change, climate change, urbanization and international migration. South Africa entered the pandemic after several years of low growth. South Africa’s political transition is known as one of the most remarkable political feats of the past century. Governance, gender and the digital economy will be cross-cutting themes. South Africa Partnership for Market Readiness. The crisis has opened-up areas for reforms, which have been pending for years, as well as for addressing weaknesses undermining effective government. About the publication This book addresses poverty, one of the important issues confronting Africa, from a multi-disciplinary approach. White people were able to live in the most developed areas, while non-whites were usually placed in barren rural townships. Another measure taken to promote racial inequality in South Africa during apartheid was the passage of the Group Areas Act of 1950. The ruling African National Congress (ANC) has driven the policy agenda since 1994 until August 2016, when the country held the most competitive local government election since 1994, in which the ANC-lost majority support in four of the metropolitan cities. World. Open access, high quality wealth and income inequality data developed by an international academic consortium. Restitution involves giving compensation to land lost to Whites due to apartheid, racism, and discrimination. The overall unemployment rate was 26% in 2004,[6] Redistribution aims to transfer White-owned commercial farms to Black South Africans. Income distribution—South Africa. Africa’s poorest countries saw little to no progress on average in improving the quality of their policy and institutional frameworks in 2018. In the US, despite a 60 percent decline since 1993, it still has a higher rate of rape cases when compared to other developed countries. Social classes—South Africa. [7] Restitution involves giving compensation to land lost to Whites due to apartheid, racism, and discrimination. ISBN - - - (hard cover : alk. Found insideThis volume brings together an exciting range of new studies of top incomes in a wide range of countries from around the world. poverty rates than many other countries with comparable av erage incom e levels. Understanding wealth inequality has unique significance in South Africa. Found insideThe World Inequality Report: 2018 is the most authoritative and up-to-date account of global trends in inequality. The World Bank Group works in every major area of development. South Africa GINI index was 57.7 % in 2018, up by 0.00% from the previous year. The same report lists the biggest obstacle to doing business as an "Inadequately educated workforce". Gender-intimate Partner Violence This Behavioural Insight Study on Gender-Based Violence is a joint product of UNDP South Africa and Georgia and … Several laws have been enacted to facilitate redistribution, restitution, and land tenure reform. Structural challenges and weak growth have undermined progress in reducing poverty, which have been heightened by the COVID-19 pandemic. As of last year, white South Africans still bring in an average income that is, Another measure taken to promote racial inequality in South Africa during apartheid was the passage of the. In fact, South Africa remains the most racially unequal country in the entire world. Even if non-whites happened to live in decent areas, their neighborhoods could be demolished to make room for white residences if the land appealed to them. This is part of a four-year Reimbursable Advisory Services (RAS) agreement (2018-2022) for ‘Infrastructure Investment and Integrated Urban Planning’ in support of the second phase of the Treasury’s Cities Support Program (CSP). As of last year, white South Africans still bring in an average income that is five times greater than that of black South Africans. Digital Economy Country Diagnostic Report for South Africa. 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. A key finding of the report is that the labor market in South Africa is central to reducing inequality. INEQUALITY AND INCOME: Income inequality in OECD countries is at its highest level for the past half century. Which prompts the question: How bad is inequality in South Asia? And why would that matter? This book takes a comprehensive look at the extent, nature, and drivers of inequality in this very dynamic region of the world. South Africa has made progress in reducing poverty over the past two decades, but high inequality acts as a brake on poverty reduction, and poverty rates remain high. This act made it illegal for employers to discriminate against their workers based on race and requires employers to promote diversity in the workplace through affirmative action programs. Apartheid—Economic aspects— South Africa. The overarching goal of South Africa’s National Development Plan (NDP) is to eliminate poverty, reduce inequality, lower unemployment and increase the labour participation.This book contributes to academic and policy efforts to achieve ... This book focuses on income inequality, output-inflation trade-off and economic policy uncertainty in South Africa. [7] Global data and statistics, research and publications, and topics in poverty and development, *Amounts include IBRD and IDA commitments, For project-related issues and complaints, World Bank Support for Country Access to COVID-19 Vaccines, Environmental and Social Policies for Projects, Carbon Offset Administration System (COAS), South Africa Greenhouse Gas Emissions Reporting System (SAGERS), Promoting Faster Growth and Poverty Alleviation through Competition. . An additional 100MW from the Sere Wind Farm went into commercial operation in May 2015 and is operating well. Income inequality levels are among the highest in the world. Open access, high quality wealth and income inequality data developed by an international academic consortium. Aligned with South Africa’s National Development Plan and Integrated Urban Development Framework and supported by Switzerland’s State Secretariat for Economic Affairs, this program has contributed to the strengthening of economic incentives, improving speed at which individuals can start businesses, reforming infrastructure finance and fiscal management and promoting inclusive urban development with a focus on informal settlements. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. South Africans, of course, know something about income inequality. Apartheid—Economic aspects— South Africa. Poverty is a major concern but fortunately, there has been an improvement in poverty levels, which is attributed to expanding government social expenditure programmes (read section 8.1 in CSS). Includes bibliographical references and index. D. Wealth inequality is very high, even higher than income inequality 51 E. Low intergenerational mobility is an obstacle to inequality reduction 53 F. South Africa lags its peers on inclusiveness of consumption growth 56 i. Home The source for global inequality data. Income inequality in South Africa has deepened. Found insideThis book highlights the key areas where inequalities are created and where new policies are required, including the consequences of current consolidation policies, structural labour market changes with rising non-standard work and job ... Furthermore, from 1991-1996, the white middle class in the country grew by 15% whilst the blacks’ grew by 78%. 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