SA income disparities widening, UN

SOUTH AFRICAN income disparities have widened in the face of HIV-AIDS, an inadequate social safety net and the economy’s inability to create jobs, the United Nations said.

The UN’s 2003 Human Development Report for South Africa said that according to the Gini coefficient-a widely used measurement of inequality-income disparities grew between 1995 and 2001. A decade after the end of white-minority rule, the report said South Africa remains one “of the most unequal societies in the world”.It also said the percentage of the population living on below US$1 per day increased to 10,5 per cent in 2002 from 9,4 per cent in 1995.Income distribution among whites, who comprise about 10 per cent of the country’s 45 million people, was more equal than it was among blacks and other ethnic groups.There has been much debate about inequality in South Africa.Some studies suggest it has been widening as the post-apartheid economy liberalises after decades of global isolation.Others suggest a more stagnant scenario.All agree that income cleavages remain sharp and that most black South Africans live in poverty.South Africa’s unemployment rate is estimated to be around 40 per cent and while the economy has been growing at an average annual rate of about 2,7 per cent over the past decade, growth has failed to generate jobs.An estimated one in nine South Africans is also infected with the HIV virus that causes AIDS and this has worsened poverty by killing off breadwinners.UN IRIN notes that like other developing countries, South Africa faced the considerable challenge of achieving economic growth and poverty alleviation without environmental degradation.The constitution had included provisions to protect the environment, but “the relationship between socio-economic goals and the environment is not fully understood at all levels of government”, the report said.Increased awareness, further capacity building, and including the costs of degradation in expenditure decisions were among the steps the authorities could take to ensure that environmental concerns were considered when implementing economic decisions.The South African Press Association (Sapa) meanwhile writes that overall the report’s findings were in line with recent assessments of the performance of government during the first decade of freedom.However, some of the statements and conclusions contradicted other researches on sustainable development issues, and the context that informed the analysis and conclusions were not sufficiently explained.The government said the assessment of the performance of the economy and the UN’s findings were similar to other recent assessments.However, the main missing element with regard to the economy and jobs, was the legacy of the past and the role that it had continued playing, particularly in terms of economic growth.It added that the pro-poor economic growth framework proposed in the report seemed very much to be what the democratic government was pursuing.It added that the discussion on economic indicators and trends did not explain why trends had been or were happening.There were some problems with some of the data used to reach certain profound conclusions.Meanwhile the South African government has donated R100 million to United Nations agencies to help with poverty alleviation projects in the rest of southern Africa.The Cape Times reported that the countries benefiting from the donation are Lesotho, Swaziland, Mozambique, Zimbabwe, Malawi and Zambia.The region has been hit by a huge decline in crop production, owing to poor rainfall, erratic weather and the political and economic crisis.UN World Food Program (WFP) spokesperson Richard Lee was quoted as saying “The donation is for emergency operations, and in terms of size, Zimbabwe is the biggest country in need in the region.”Last month his organisation fed 3,5 million people in Zimbabwe, but this month the operation will be scaled down throughout the region because good rains have produced good crop yields.- http://www.worldbank.org/developmentnewsA decade after the end of white-minority rule, the report said South Africa remains one “of the most unequal societies in the world”.It also said the percentage of the population living on below US$1 per day increased to 10,5 per cent in 2002 from 9,4 per cent in 1995.Income distribution among whites, who comprise about 10 per cent of the country’s 45 million people, was more equal than it was among blacks and other ethnic groups.There has been much debate about inequality in South Africa.Some studies suggest it has been widening as the post-apartheid economy liberalises after decades of global isolation.Others suggest a more stagnant scenario.All agree that income cleavages remain sharp and that most black South Africans live in poverty.South Africa’s unemployment rate is estimated to be around 40 per cent and while the economy has been growing at an average annual rate of about 2,7 per cent over the past decade, growth has failed to generate jobs.An estimated one in nine South Africans is also infected with the HIV virus that causes AIDS and this has worsened poverty by killing off breadwinners.UN IRIN notes that like other developing countries, South Africa faced the considerable challenge of achieving economic growth and poverty alleviation without environmental degradation.The constitution had included provisions to protect the environment, but “the relationship between socio-economic goals and the environment is not fully understood at all levels of government”, the report said.Increased awareness, further capacity building, and including the costs of degradation in expenditure decisions were among the steps the authorities could take to ensure that environmental concerns were considered when implementing economic decisions.The South African Press Association (Sapa) meanwhile writes that overall the report’s findings were in line with recent assessments of the performance of government during the first decade of freedom.However, some of the statements and conclusions contradicted other researches on sustainable development issues, and the context that informed the analysis and conclusions were not sufficiently explained.The government said the assessment of the performance of the economy and the UN’s findings were similar to other recent assessments.However, the main missing element with regard to the economy and jobs, was the legacy of the past and the role that it had continued playing, particularly in terms of economic growth.It added that the pro-poor economic growth framework proposed in the report seemed very much to be what the democratic government was pursuing.It added that the discussion on economic indicators and trends did not explain why trends had been or were happening.There were some problems with some of the data used to reach certain profound conclusions.Meanwhile the South African government has donated R100 million to United Nations agencies to help with poverty alleviation projects in the rest of southern Africa.The Cape Times reported that the countries benefiting from the donation are Lesotho, Swaziland, Mozambique, Zimbabwe, Malawi and Zambia.The region has been hit by a huge decline in crop production, owing to poor rainfall, erratic weather and the political and economic crisis.UN World Food Program (WFP) spokesperson Richard Lee was quoted as saying “The donation is for emergency operations, and in terms of size, Zimbabwe is the biggest country in need in the region.”Last month his organisation fed 3,5 million people in Zimbabwe, but this month the operation will be scaled down throughout the region because good rains have produced good crop yields.- http://www.worldbank.org/developmentnews