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Estimates of a supply-side model of the nonprimary sectors, in which particular attention has been paid to modeling key characteristics of the evolution of the apartheid system, are presented. These imply that the wage differential between white and nonwhite workers doing similar jobs fell significantly over the last two decades to around 14 percent in 1990. This relatively small gap implies that medium-term prospects for the advancement of the disadvantaged groups in South Africa depend heavily on their ability to take up skilled employment, with the direct gains from the elimination of apartheid being relatively small.
Inhaltsangabe:Introduction: In the course of globalisation and increasing liberalisation, the question of how the costs and benefits of these processes are shared is of special concern. Recent studies suggest that they are shared unequally. Although inequality between countries is declining, global inequality is on the rise owing to the fact that inequality within countries is increasing. These developments raise the question of how growth affects inequality and vice versa. Further it has to be explored what role governments have to play to ensure that all members of society benefit from growth. Kuznets suggested that countries would initially face rising inequality as they grow richer, however, as a certain threshold of per capita income is reached the degree of inequality would decrease. From this proposition it is easy to conclude that governments do not have to be concerned about rising inequality as it eventually will decrease once the economy has reached a certain level of economic development. It may also imply that there is a trade-off between growth and equality. More recent studies challenge Kuznets proposition. These studies indicate that high levels of inequality hamper economic growth. Yet, economic growth is an important instrument in the fight against poverty. It is assumed that economic growth creates employment opportunities and increases the scope for distributive policies and thus tends to reduce poverty. Therefore, any country that is determined to address the problem of poverty ought to pay attention to the nexus between inequality and growth. In the theoretical part of this paper, arguments that support and challenge Kuznets hypothesis are analysed. Thereafter an interesting proposition developed by Addison and Corniais presented that suggests that there may be an efficient level of inequality. From these different arguments conclusions are drawn and policy implications presented. The theoretical part does not attempt to analyse the causes of inequality. To identify the causes of inequality, it would be necessary to undertake a case-by-case analysis. The general assumption for the theoretical part is that inequality is caused by unequal access to resources as well as inadequate economic policies which can lead to persistent unemployment and poverty. Unequal access may be caused by market failures especially in the capital and labour markets, or by historical and political developments that create uneven power [...]
The political freedoms ushered in by the post 1994 transition were seen at that time as the basis for redressing long-standing economic deprivations suffered by the majority of the population. The reduction of poverty, in all its dimensions, was the goal. The volume will be of interest to researchers, graduate students, and to the technical staff of international agencies and government ministries.
The distribution of incomes in South Africa in 2004, ten years after the transition to democracy, was probably more unequal than it had been under apartheid. In this book, Jeremy Seekings and Nicoli Nattrass explain why this is so, offering a detailed and comprehensive analysis of inequality in South Africa from the midtwentieth century to the early twenty-first century. They show that the basis of inequality shifted in the last decades of the twentieth century from race to class. Formal deracialization of public policy did not reduce the actual disadvantages experienced by the poor nor the advantages of the rich. The fundamental continuity in patterns of advantage and disadvantage resulted from underlying continuities in public policy, or what Seekings and Nattrass call the “distributional regime.” The post-apartheid distributional regime continues to divide South Africans into insiders and outsiders. The insiders, now increasingly multiracial, enjoy good access to well-paid, skilled jobs; the outsiders lack skills and employment.
Issues of redistribution and economic justice increasingly dominate the political agenda in South Africa. This study offers a pragmatic and comprehensive analysis of the real options behind the rhetoric, and suggest future policy proposals.
Report on income distribution and the economic implications of Apartheid in South Africa R - covers economic growth, economic structures, the causes of inequality, poverty among Africans, etc., appraises the policy of resettlement in the 'homelands', and includes government policy recommendations. References and statistical tables.
Wide-ranging essays demonstrate how the consequences of inequality extend throughout society and the political economy Despite the transition from apartheid to democracy, South Africa is the most unequal country in the world. Its extremes of wealth and poverty undermine intensifying struggles for a better life for all. The wide-ranging essays in this sixth volume of the New South African Review demonstrate how the consequences of inequality extend throughout society and the political economy, crippling the quest for social justice, polarising the politics, skewing economic outcomes and bringing devastating environmental consequences in their wake. Contributors survey the extent and consequences of inequality across fields as diverse as education, disability, agrarian reform, nuclear geography and small towns, and tackle some of the most difficult social, political and economic issues. How has the quest for greater equality affected progressive political discourse? How has inequality reproduced itself, despite best intentions in social policy, to the detriment of the poor and the historically disadvantaged? How have shifts in mining and the financialisation of the economy reshaped the contours of inequality? How does inequality reach into the daily social life of South Africans, and shape the way in which they interact? How does the extent and shape of inequality in South Africa compare with that of other major countries of the global South which themselves are notorious for their extremes of wealth and poverty? South African extremes of inequality reflect increasing inequality globally, and The Crisis of Inequality will speak to all those general readers, policy makers, researchers and students who are demanding a more equal world.