Poverty and Inequality in South Africa

Abstract

Since the advent of the new democratic dispensation, the South African government has developed policies which have focused on poverty alleviation. The social security system has been expanded over the past few years, particularly to children and the disability sectors. However, the social security system may become unsustainable in the future. Van der Berg, Burger, Burger, Louw & Yu (2005) suggest that social assistance is nearing the boundaries of its ability to alleviate poverty. Given all the gains that have been made, South Africa still remains one of the highest in the world in terms of income inequality (World Bank Report, 2006). Inequality is also demonstrated through lack of access to natural resources; a two-tiered educational system; a dual health system; and other socio-economic dimensions. This increasing inequality is an issue of concern to policy makers and social scientists. The purpose of this paper is to analyze the nature and dimensions of poverty and inequality, focusing on the gains that have been made, but identifying the gaps that remain. In addition, policy options, consequences and recommendations will be entertained.