South Africa remains a dual economy with one of the highest inequality rates in the world, with a consumption expenditure Gini coefficient of 0.63 in 2015. South Africa has alarmingly high levels of both poverty and inequality. Fiscal policy has been used effectively to reduce inequality. A recently released report by Statistics South Africa, in partnership with Agence Francaise de Développement (AFD), Southern Africa Labour and Development Research Unit   read more », The General Household Survey (GHS) 2018 released by Statistics South Africa (Stats SA) found that substantial progress has been made in service delivery over the years. This brings the total number of persons employed in the formal non-agricultural sector in South Africa to 9,5 million. Two key mechanisms dominate debates over the relationship between inequality and growth. Women and men have different needs, access and control over resources in society. Mortality rates were particularly high in districts with a large share of black and coloured residents. While progress has been uneven across the country, a quick glance at service delivery statistics suggests that household access to these services have stabilised over the last few years. The apartheid history is deeply embedded in the national consciousness, and the residual tensions are felt in daily interactions between different groups. Table 2 presents development statistics for South Africa relatin g t o the Millennium Devel opment G oals for various years in the early 1990s and early 2000s, t he year indicated by t he superscript. Women Disrupting the South African Workplace. The Quarterly Employment Survey (QES) reported that formal sector jobs rose by 18 000 in   read more », South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. It is important to bring about change and equality to women particularly young women.” World. South Africa suffers among the highest levels of inequality in the world 1 In South Africa, the population groups are defined at the national level by Statistics South Africa. Reliable gender statistics highlights different conditions for women and men, girls and boys. This is according to the Inequality Trends in South Africa report released by Stats SA. Literature review 4.3. Racial Inequality of South Africa • Baaskap – The rule of black Africans by the Afrikaners SA's POPULATION: CENSUS 2011 Population group Number % of total African 41 000 938 79.2% White 4 586 838 8.9% Coloured 4 615 401 8.9% Indian/Asian 1 286 930 2.5% Other 280 454 0.5% TOTAL 51 770 560 100% Source: Statistics South Africa () Statistics South Africa (Stats SA) estimates that in 2019 the mid-year population is at 58.78 million with approximately 51 per cent (30 million) of the population being female. to the persistence of inequality. South Africa has three poverty lines, which represent different degrees of poverty. In South Africa, Bhorat et al. "South Africa is really facing the triple challenge of poverty, unemployment and inequality," says the former head of the African Union, Nkosazana Dlamini-Zuma, about the … Policy, strategy and programme analysis 4.5. The series show no sign of decreasing wealth inequality since apartheid. According to a new report released by Statistics South Africa, Child poverty in South Africa: A Multiple Overlapping Deprivation Analysis, more than 6 out of 10 (62,1%) children aged 0–17 years   read more », New employment figures released by Statistics South Africa (Stats SA) showed that South Africa’s formal non-agricultural sector added 16 000 jobs in the fourth quarter of 2019, bringing the total number of persons employed in the formal non-agricultural sector to 10,2 million. Latest Posts. Limitations of the study 5. Home; Indicators . 1 Despite women making up … (2009), using the Income and Expenditure Surveys (IESs) of 1995, 2000 and 2005, found wage inequality to be the main contributor to the increasing income inequality in South Africa. Possible causes of post-apartheid inequality Unemployment. South Africa has most inequality out of 149 countries However, the research is a rather heavy read. Social exclusion in South Africa 2.5. Links to previous and existing work 6 5. Gardeners tending the lawn at the seat of government in the capital Pretoria. The South African government has used different tools to tackle the Botswana, Namibia and Zambia are also among the top 19. regional disparities. The South African education system, characterized by crumbling infrastructure, overcrowded classrooms and relatively poor educational outcomes, is perpetuating inequality and as a result failing too many of its children, with the poor hardest hit according to a new report published by Amnesty International today. This is according to the Inequality Trends in South Africa report released by Stats SA. Using the same poverty line, the poverty gap3 was 13%. Previously disadvantaged South Africans hold fewer assets, have fewer skills, earn lower wages, and are still more likely to be unemployed, a 2018 … South Africa had the world's highest inequality in income distribution. entrepreneurship among the previously marginalized. The first Inequality in South Africa 2.4. Consumer price index (CPI), Producer price index (PPI), Government finance: national and provincial government, Supply and use tables, Satellite accounts, Regional GDP, Gross domestic product (GDP), expenditure, Structural industry statistics (large sample surveys of industries, Population Statistics (Census and Community Survey), Labour Statistics- Quarterly Labour Force Survey (QLFS), Tourism Statistics (Domestic Tourism Survey), Crime and Safety Statistics (Victims of Crime Survey), Service Delivery Statistics (General Household Survey), Transport Statistics (National Travel Survey), Archive by category "Poverty and Inequality". World Inequality Database on Education. South Africa remains a dual economy with one of the highest inequality rates in the world, with a consumption expenditure Gini coefficient of 0.63 in 2015. Low growth and rising unemployment have contributed South Africa is a land of hope, opportunity and most glaringly, a land of stark inequality. According to gender statistics produced by Statistics South Africa (SSA), African women's earnings average 89% of African men's; white women's average 60% of white men's; Indian women's average 74% of Indian men's; and Coloured women 's earnings average 82% of Coloured men's. According to a new study by the UN Development Programme (UNDP), South Africa has the highest recorded level of income inequality in the world. Leadership, organization, and history. © 2021 International Monetary Fund. This is according to the Inequality Trends in South Africa report released by Stats SA. Therefore, this paper analyzes the role of income from different sources in order to investigate which one(s) continue to drive those high levels of inequality. Who We Are. In particular, the debates around shifts in household poverty and inequality in South Africa have relied on the income and expenditure surveys of 1995 and 2000 – together with a range of unofficial or less than satisfactory datasets. Recommendation to better capture wealth inequality in South Africa. According to the latest figures from the World Inequality Database, the top 1% of South African earners take home almost 20% of all income in the country, while the top 10% take home 65%. South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. Data sources 7 6. “We are doing all we can to ensure that women are well represented in sectors of the company. Introduction and motivation 1 2. Historical and socio-economic context 2 3. be complemented with reforms that promote private investment, jobs, and This is according to the Inequality Trends in South Africa report released by Stats SA. Key socio-economic strategies 3. This brings the total number of persons employed in the formal non-agricultural sector in South Africa to 10,2 million. Inequality has been persistent, having increased from 0.61 in 1996. This is even more alarming as a recent report by Statistics South Africa (StatsSA) (2019), indicated that women make up the majority of the South African population (51,2%). Statistics shows that white males earn much higher than African or Black men, while white women earn higher than Black or African men and women. It is a fundamental tool for evidence-based decision making, planning, implementation, monitoring and evaluation. According to the Palma ratio, the top 10% of the population read more » Since 1993, inequality has remained broadly stable and has even slightly increased within top wealth groups. Outline of the report and its content 9 6.1. South African Poverty and Inequality Assessment Discussion Note (Draft for discussion only) Draft January 20161 Contents 1. Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. It’s the world’s most unequal country. stubborn levels of inequality that have plagued the country, including The poverty lines were based on spending and consumption data from the 2000 Income and Expenditure Survey. South Africa The source for global inequality data. Select an indicator on access and completion. Read it now: Your daily Love Horoscope for … HOW UNEQUAL IS SOUTH AFRICA? South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. Key Words: Crime, inequality, South Africa JEL Classification Numbers: D63, D74, R12 World Bank Policy Research Working Paper 2925, November 2002 The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. The focus needs to be on creating a business environment more conducive to private investment and job creation. Wage inequality, deeply rooted in South Africa‟s history, plays a central role, and patterns of human capital development are fundamental to the future growth path and thereby to poverty and inequality. According to the report, formal sector jobs rose   read more », In 2015, the South African population was estimated at 55 million people, of which 19,7 million were children aged less than 18 years (0–17). But through collective action and shared ownership, change is possible. 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. To commemorate World Toilet Day, which is celebrated on 19 November, the focus will be on improving access   read more ». Aims and objectives 4. The report kicks off with this shocking statistic that is a clear indication of the country’s economic disparities. All rights reserved. Eliminating these historically grounded emotions is going to take a lot of work for South Africans. The remaining 90% of South African earners get only 35% of total income. Gender equality and women’s empowerment is a prime focus in the South African workforce, yet the gender gap is still immense. The authors stress the need to improve statistical capacities to measure wealth. This is according to a new report by the World Bank that listed 149 countries. 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. Inequality manifests itself Let’s take a look at   read more », According to the World Health Organization (WHO) and the United Nations Children’s Fund (UNICEF), around 60% of the global population, or 4,5 billion people, either have no toilet at home or one that doesn’t safely manage excreta. DfID – Inequality in Middle Income Countries: South Africa Case 3 in Woolard, 2002). Afghanistan Albania Algeria Angola Argentina Australia Austria Bahrain Bangladesh Belgium Benin Bosnia and Herzegovina Botswana Bulgaria Burkina Faso Burundi Cabo … From governance woes to inequality, South Africa struggled through the pandemic year The State of Disaster declared a year ago failed to solve many of South Africa’s problems. They also need to access additional dividends tax data, … Share this: Tweet; WhatsApp; More ‘Do not let … Despite 25 years of democracy, South Africa remains the most economically unequal country in the world, according to the World Bank. Tags: gender equality South Africa Work, Jobs and Careers. affirmative action to diversify wealth ownership and promote The expansion of social grants has had a strong equalizing effect in the country, but this effect has been offset by the much bigger role that earnings inequality plays. Globally, South Africa has progressed and is now ranked 17 th out of 136 countries in terms of gender equality (World Economic Forum, 2018). (Infographic by Ryan Honeyball) Toggle navigation. 1. Recommendation to better capture wealth inequality in South Africa through progressive fiscal redistribution. Credit: UN Photo . South Africa 79; Africa Top10 News 75; Nigeria 59; Kenya 52; SUBSCRIBE. This requires improved governance, reducing the cost of doing business, making goods and services markets more open to competition, allowing firms to compensate workers in line with their skills and productivity, and making state-owned service providers more efficient. The classification is used to track post-apartheid progress on racial equality and is based on the population groups which were historically segregated under the apartheid system. The report takes a data-driven approach and relies heavily on rich household survey data for the period 1993 to 2008. Efforts to reduce inequality The average white, male CEO earns the same as 461 Black women in the bottom 10% of earners. Pre-primary education attendance; Never been to school ; Over-age primary school attendance; Out-of-school children; Primary completion rate; Transition rate to lower secondary school; Out-of-school adolescents; Lower secondary completion rate; Transition rate to upper secondary … The unemployment rate is even higher among youths, at around 55.2%. The high level of overall income inequality has further accentuated: the country's Gini coefficient increased by four ... the majority of the population at 79.2% while white South Africans make up only 8.9% of the population according to the Statistics South Africa census released in 2011. According to the Palma ratio, the top 10% of the population read more » UN SG Mr. António Guterres-“women’s rights are being, reduced, restricted and reversed”. Wage inequality, deeply rooted in South Africa‟s history, plays a central role, and patterns of human capital development are fundamental to the future growth path and thereby to poverty and inequality. Brazil France India South Africa USA. Open access, high quality wealth and income inequality data developed by an international academic consortium. Inequality has been persistent, having increased from 0.61 in 1996. Twenty-five years since the end of apartheid, South Africa is still dogged by inequality and unemployment. 2014; Statistics South Africa, 2014; Frame et al., 2016; Sartorius & Sartorius, 2016), spatial analysis of poverty and inequality in South Africa is limited to national, province, and rural/urban levels. Furthermore, the first eight countries on the ranking are located in Sub-Saharan Africa, with an index over 50 points. when measured by the commonly used Gini index. South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. Income inequality in South Africa has deepened. South Africa is the most unequal country in the world. Restitution involves giving compensation to land lost to Whites due to apartheid, racism, and discrimination. Information from this survey was used to compile the report Men, Women and Children: Findings of the Living Conditions Survey 2014/15. Here are a few of the eye-opening facts that the report uses to illustrate South Africa’s inequality. The study documents major inconsistencies in available data sources, in particular regarding the measurement of dividends, corporate assets and wealth held through trusts. 1 In South Africa, the population groups are defined at the national level by Statistics South Africa. They were first published by Statistics South Africa (Stats SA) in 2012. 2014; Statistics South Africa, 2014; Frame et al., 2016; Sartorius & Sartorius, 2016), spatial analysis of poverty and inequality in South Africa is limited to national, province, and rural/urban levels. Part 1: The nature of the poverty in South Africa 10 A. National statistics that does not reflect these differences is insufficient and potentially misleading. The apartheid history is deeply embedded in the national consciousness, and the residual tensions are felt in daily interactions between different groups. According to the report, formal sector jobs decreased   read more », The South African economy shed 2,2 million jobs in the second quarter of 2020, according to the latest Quarterly Labour Force Survey Quarter 2: 2020 results, released by Statistics South Africa on 29 September 2020. South Africa’s Gini coefficient for household income per capita was only reduced from 0.68 to 0.66 between 1993–2014. However, 20 years after the democratization of South Africa, levels of inequality remain stubbornly high. The average income of top 1% earners is for instance systematically underestimated by more than 50%, a regularity which we use to estimate “corrected” inequality estimates for other African countries. Stats SA is in the process of updating its database of all users. This report on inequality trends in South Africa is a joint publication produced by Statistics South Africa (Stats SA) in partnership with the Southern Africa Labour and Development Research Unit (SALDRU) based in the School of Economics at the University of Cape Town and the Agence Francaise de Développement (AFD) with partial funding support from the European Union (EU). This is according to the Inequality Trends in South Africa report released by Stats SA. Leafy suburbs like Sandton boast world-class institutions with top-of-art facilities, whilst neighbouring Alexandra township schools are often victims of violence, poor infrastructure and a lack of resources. You can also access the full set of data on wealth inequality in South Africa. This inequality could not be more prevalent than in our education system. mpu1. Overcoming Poverty and Inequality in South Africa : An Assessment of Drivers, Constraints and Opportunities. If anything, the "Rainbow Nation" is … Kindly participate in this short survey and provide your details. They maintain that it is primarily income differences between race groups, rather than those within a particular race group, that drives South Africa’s growing inequality levels. By country. Stats SA’s first poverty trends report was released in 2014. According to the Quarterly employment statistics (QES) survey released by Statistics South Africa (Stats SA), the formal non-agricultural sector shed 648 000 jobs in the second quarter of 2020. All details will be kept confidential and is for the use of Stats SA only. and South Africa, the two countries for which we have access to administrative data sources, shows that top incomes are signi cantly underestimated. Methodology 4.1. The overall unemployment rate was 26% in 2004, Redistribution aims to transfer White-owned commercial farms to Black South Africans. As the following statistics show, there are huge differences in the types of inequality faced by women in different parts of the world - from cultural representation, to domestic burdens and child marriage. According to the Palma ratio, the top 10% of the population   read more », Like many countries around the world, South Africa has faced many socio-economic challenges over the years. In South Africa the former President of the African National Congress Youth League (ANCYL), for example, was able to promise university students that all education in South Africa would be free if the mines were nationalised 7, even though the arithmetic shows that this clearly would not be possible. Currently, a slightly … Land tenure reform strives to provide … The IMF Press Center is a password-protected site for working journalists. According to the Palma ratio, the top 10% of the population read more » In South Africa, by contrast, income inequality has hardly changed despite the introduction of social transfers that now reach 16 million poor South Africans. In 2017, Statistics South Africa released their poverty trends report which found that by 2015 over half (55.5 %) of the South African population (30.4 million people, majority of whom are Black women) were living in poverty. 1 year ago 4 min read. Using a novel South Africa, the continent’s most developed economy, is also the world’s most unequal. The results indicate that the number of employed persons decreased by 2,2 million to 14,1 million in the 2nd quarter   read more », According to the Quarterly employment statistics (QES) survey released by Statistics South Africa (Stats SA) the formal non-agricultural sector shed 3 000 jobs in the first quarter of 2020. For example, South Africa has a Gini coefficient of 63 (highest), the United States is at 41.5 and Ukraine stands with a score of 25 (lowest). Research design 4.2. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the … In addition to the statistics and facts, the racial inequality that exists today is felt in everyday life in South Africa. Headline GDP growth rate will no longer be annualised, GDP: Quantifying SA’s economic performance in 2020, The National Household Travel Survey in South Africa (NHTS): South Africans take 45 million trips, mostly by foot. According to the latest figures from the World Inequality Database, the top 1% of South African earners take home almost 20% of all income in … These measures need to South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. Its South Africa’s CEO Videsha Proothveerajh says companies must do their bit to empower women. Assessment criteria development 4.4. The authors would like to thank Statistics South Africa and Dr. Anne Letsebe from the Office of the President with help in the generation of our data set. Inequality remains high partly because the number of jobs created over the past 20 years barely kept pace with growth in the labour force. have focused on higher social spending, targeted government transfers, and Feature Gender Inequality is Stunting Economic Progress.
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