South Africa has reduced poverty but remains the world’s most unequal society, a report said on Friday, with analysts warning the yawning gap between whites and blacks threatens social stability.
The Development Indicators report showed that the income of South Africa’s poorest 10 percent rose by a third from 783 rand (US$105) in 1993 to 1,041 rand a month last year.
The richest 10 percent got richer by nearly 38 percent over the same period.
While the report acknowledges a “racial underpinning” of inequality, figures show that while black South Africans’ salaries increased by 38 percent, the incomes of white South Africans jumped by 83.5 percent between 1995 and last year.
Haroon Bhorat, an economist with the University of Cape Town, said sustained growth up until about 2006 had partially reduced poverty, but the gap between the rich and the poor had widened.
“Income inequality in the long run is bad for growth. It is a threat to social stability,” he told journalists at the report’s launch.
While South Africa and Brazil were the world’s most unequal societies in the early 1990s — based on the “Gini co-efficient,” which measures inequality — South Africa has now surpassed the South American nation.
While other countries may occasionally come in below South Africa in inequality indices, as a nation with regular and reliable data it was “now singularly the most consistently unequal society in the world.”
South Africa is considered an advanced developing nation with an annual GDP of US$144 billion, growing rapidly since the end of white-minority apartheid rule in 1994.
In 1995, 31 percent of the population lived under the poverty line of 283 rand a month, which dropped to 22 percent last year.
“The change out of extreme poverty is occurring; there are still too many people there, but there is a shift out of that,” Ronette Engela of the presidential policy unit told journalists.
“The improvement in people’s lives could be attributed to economic growth and expanding employment as well as government’s poverty alleviation initiatives ... social assistance support and better housing,” the report said.
Bhorat said South Africa had managed to finance its high poverty levels through “positive growth and high revenues through social security.”
More than 13 million people now receive social grants in South Africa, nearly double the figure in 2004.
However, amid the country’s first recession in 17 years, and high budget deficits, this was no longer sustainable.
Planning Minister Trevor Manuel said the report gave a “warts and all” account of the state of South Africa and would be used to gauge the outcomes of policy.
“The current recession of course casts a very long shadow over what we do,” he said.
POLITICAL PRISONERS VS DEPORTEES: Venezuela’s prosecutor’s office slammed the call by El Salvador’s leader, accusing him of crimes against humanity Salvadoran President Nayib Bukele on Sunday proposed carrying out a prisoner swap with Venezuela, suggesting he would exchange Venezuelan deportees from the US his government has kept imprisoned for what he called “political prisoners” in Venezuela. In a post on X, directed at Venezuelan President Nicolas Maduro, Bukele listed off a number of family members of high-level opposition figures in Venezuela, journalists and activists detained during the South American government’s electoral crackdown last year. “The only reason they are imprisoned is for having opposed you and your electoral fraud,” he wrote to Maduro. “However, I want to propose a humanitarian agreement that
ECONOMIC WORRIES: The ruling PAP faces voters amid concerns that the city-state faces the possibility of a recession and job losses amid Washington’s tariffs Singapore yesterday finalized contestants for its general election on Saturday next week, with the ruling People’s Action Party (PAP) fielding 32 new candidates in the biggest refresh of the party that has ruled the city-state since independence in 1965. The move follows a pledge by Singaporean Prime Minister Lawrence Wong (黃循財), who took office last year and assumed the PAP leadership, to “bring in new blood, new ideas and new energy” to steer the country of 6 million people. His latest shake-up beats that of predecessors Lee Hsien Loong (李顯龍) and Goh Chok Tong (吳作棟), who replaced 24 and 11 politicians respectively
Young women standing idly around a park in Tokyo’s west suggest that a giant statue of Godzilla is not the only attraction for a record number of foreign tourists. Their faces lit by the cold glow of their phones, the women lining Okubo Park are evidence that sex tourism has developed as a dark flipside to the bustling Kabukicho nightlife district. Increasing numbers of foreign men are flocking to the area after seeing videos on social media. One of the women said that the area near Kabukicho, where Godzilla rumbles and belches smoke atop a cinema, has become a “real
‘WATER WARFARE’: A Pakistani official called India’s suspension of a 65-year-old treaty on the sharing of waters from the Indus River ‘a cowardly, illegal move’ Pakistan yesterday canceled visas for Indian nationals, closed its airspace for all Indian-owned or operated airlines, and suspended all trade with India, including to and from any third country. The retaliatory measures follow India’s decision to suspend visas for Pakistani nationals in the aftermath of a deadly attack by shooters in Kashmir that killed 26 people, mostly tourists. The rare attack on civilians shocked and outraged India and prompted calls for action against their country’s archenemy, Pakistan. New Delhi did not publicly produce evidence connecting the attack to its neighbor, but said it had “cross-border” links to Pakistan. Pakistan denied any connection to