Staying poor in South Africa

Since the end of apartheid in 1994, the South African Government has achieved political stability, improved social services and brought about steady national economic growth. At the same time, poverty and economic inequality along racial lines have increased. Why is it that today, more than a quarter of all households remain trapped in long-term poverty?

The Programme for Land and Agrarian Studies (PLAAS) at the University of the Western Cape, South Africa, in partnership with the Chronic Poverty Research Centre, is researching chronic poverty after the country's change to democracy. In South Africa, access to paid employment is the most important factor in the poverty status of households. This is partly because colonial land-grabbing and apartheid destroyed productive rural economies in order to create a cheap labour force.

Over the past decade, however, employers have chosen capital- rather than labour-intensive routes to competitiveness through increased mechanisation. Up to a million formal-sector jobs were lost. Unemployment has doubled in 10 years to over 30%. Incomes in black households fell by 19% between 1995 and 2000, while white incomes rose by 15%. Meanwhile, the poorest third of black households are falling into long-term destitution - even in the urban centres.

Urban poverty

In black townships around Cape Town, PLAAS found that:

• 76% of households lived below the poverty line, which is placed at ZAR352 (US$42) per adult per month - an increase of 15% since 1996.
• Almost a third of households reported that the main breadwinner had lost a job in the previous year.
• 70% of households did not have enough food during the previous year.
• 52% of households had no income from wages.
• 67% of wage earners remained below the poverty line.
• Level of education did not greatly influence a person's ability to find paid work.
• The main causes of death were avoidable effects of poverty: communicable diseases (HIV/AIDS and tuberculosis - 39%) and trauma (assaults - 29%).

The most important obstacle to escaping from poverty was the lack of access to basic economic resources like land. In addition, prices for staples such as maize are now set on world markets, so that poor households are directly affected by international currency changes and global trade liberalisation. Households have to pay for basic social goods, including transport. This increases their vulnerability and the risk of becoming trapped in debt.

Pro-poor policies

On their own, neither income generation nor social grants can make a definite impact on poverty levels. Some poor people will be helped by job creation and pro-poor economic growth. Chronically poor households, however, also need measures that make them less vulnerable to risk, shocks and exploitation, such as:

• increased direct access to the resources for basic household food production
• sustainable strategies for making social services appropriate and affordable
• development of the density and depth of civil society through community-based organisations and ensuring safety from violence
• strategies that address the long-term impact of the HIV/AIDS pandemic
• measures to ensure the social security system works more effectively.

Cobus de Swardt and Andries du Toit
School of Government
Programme for Land and Agrarian Studies
University of Western Cape
Private Bag X17
Bellville, 7535
South Africa

T +27 (0)21 959 3735 (Cobus) or 959 3755 (Andries)
F +27 (0)21 959 3732
cdeswardt@uwc.ac.za or presence@iafrica.com

See also
'Chronic poverty in South Africa: incidence, causes and policies', World Development 31(3), by M. Aliber, 2003

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