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Despite a new democratic government, a slowly expanding economy, and state-backed efforts to foster economic equality, poverty continues to be a chronic problem for much of South Africa's population.
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At more than $9400 per person, South Africa's adjusted GDP per capita is the highest in all of Africa. But the gap between the nation's rich and poor is wide -- and growing. According to the 2003 World Development Report, South Africa's Gini coefficient, a measure of income inequality in its population, places South Africa among the most unequal societies in the world.
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While South Africa's poverty can be directly linked back to the unjust practices of apartheid and the destruction of rural economies, factors such as strong labor laws, a shrinking job market, and high inflation levels have made it difficult to raise the income levels of many South Africans.
South Africa's patterns of poverty are clearly delineated along racial lines. During the mid-1990s, whites earned 50 percent of South Africa's total income though they accounted for only 11 percent of the population. In 2001, according to the South African Institute of Race Relations, for the first time in history, blacks surpassed whites to earn 52 percent of South Africa's total income. Household incomes, however, show a very different picture: The disparity in wealth between South Africa's white and black populations has actually worsened in recent years. A study completed in May 2003 by development research body id21 shows that while income in black households fell by 19 percent between 1995 and 2000, white household incomes rose by 15 percent.
Poverty in South Africa is also reflected by the great inequalities found in the distribution of its economic resources. According to recent statistics, while 53 percent of South Africa's people live in "third world" conditions, sometimes lacking electricity and running water, only 13 percent of South Africans have achieved "first world" status. Similar to the trend found among its different racial groups, the gap dividing South Africa's rich and poor has also increased. From 1995 to 2000, the poorest 40 percent of South African households saw a 16 percent drop in their share of South Africa's total household income. Meanwhile, the richest 20 percent of South African households retained 65 percent of all household income. The socioeconomic chasm that divides South Africa has also become more pronounced within its black population. While poor black's share of income has decreased, the black elite's income has increased substantially: Among South Africa's wealthiest 20 percent, blacks' share of income rose from 13 percent in 1996 to 23 percent only four years later.
Though broad-based black empowerment strategies such as the Growth, Employment and Redistribution program have begun to bolster black ownership and wages, South Africa still faces many challenges in its fight against poverty. In order to decrease the widespread poverty found among its people, it will be important for the South African government to address issues of land ownership, spur the South African economy to grow and create new jobs, and continue to promote education and training for its historically disadvantaged populations.
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