Factors influencing the comparability of poverty estimates across household surveys

The South African existing literature on poverty mainly adopted the money-metric approach to examine poverty levels and trends since the advent of democracy. In general, poverty increased until the end of the 1990s, before a downward trend took place. Despite the robust findings on the trends, poverty levels differed because of various reasons, ranging from the use of different poverty lines across the studies, to the adoption of different approaches to collect the income and expenditure information, and the presence of a high proportion of households reporting zero or unspecified income. This article aims to fill the existing research gap by explaining the possible factors accounting for the contrasting poverty levels across the eight commonly used South African censuses and household surveys between 1993 and 2012.     

Gendered trends in poverty in the post-apartheid period, 1997–2006

This study investigates whether trends in the extent and depth of poverty in South Africa over the past decade have been gendered. We examine whether females are more likely to live in poor households than males and whether this has changed over time, and how poverty has changed for female-headed and male-headed households. We use data from the 1997 and 1999 October Household Surveys and the 2004 and 2006 General Household Surveys, which have the advantage of collecting information on the individual receipt of social grant income. We find that although poverty rates have fallen for both males and females, and for male-headed and female-headed households, the decline has been larger for males and for male-headed households. Gender differences in poverty rates have therefore widened over the period. We show that these findings are robust to the possible underestimation of household income and to adjustments for household composition.     

Estimating a poverty line: An application to free basic municipal services in South Africa

One of the key interventions aimed at improving the welfare of South African households has been local government's provision of a package of free basic municipal services to poor households. It is, however, not completely clear how different municipalities identify households that are eligible for these services. Evidence suggests that many municipalities currently provide services to all households with a monthly income of less than R1500 a month. This ‘free basic services poverty line’ is, however, low in comparison with a number of unofficial poverty lines used by policymakers and researchers in South Africa. This paper considers the impact of increasing the value of the free basic services line, in terms of the additional share and number of households eligible for support and the additional financial cost. We find that urban municipalities would face the steepest increases in their free basic services budgets with any potential increase in the free basic services poverty line.     

The determinants of rural and urban household poverty in the North West province of South Africa

Based on standard poverty measures, the extent of poverty in the North West province is on average worse than in South Africa. For instance, the poverty gap ratio for North West is twice that of the South African average, and the FGT index is three times as high. This article therefore aims to identify the determinants of rural and urban poverty in the North West province of South Africa. Using data gathered from a survey of 593 black households across the province, probit model estimates suggest that the major significant determinants of household poverty in both rural and urban areas are education and household size. A difference between rural and urban poverty is, first, that extra female adults in a rural household raise the probability of poverty. Secondly, having a migrant (out) worker as head of the household in rural areas lowers the probability of poverty, while this does not apply to urban households. A sensitivity analysis for the robustness of the results over a range of poverty lines reveals that the impact of education is much stronger for poorer households than for more wealthy households.     

Supporting Local Economic Development in Post-Apartheid South Africa

South Africa's apartheid era has left a bitter legacy of retarded economic development. Local Economic Development has been identified by the South African government as a key strategy through which issues of development and, more importantly, poverty alleviation can be addressed by local governments. This paper reviews current Local Economic Development policy in South Africa, before proceeding to an examination and analysis of the impact of the primary government support mechanism designed to promote such development initiatives, namely the Local Economic Development Fund. Whilst such support is of vital importance, far greater levels of intervention will be needed to fully address the massive scale of current local development needs.     

THE IMPACT OF HEALTH ON POVERTY: EVIDENCE FROM THE SOUTH AFRICAN INTEGRATED FAMILY SURVEY

This paper examines the impact of health status on poverty status, accounting for the endogeneity of health status. Using exogenous measures of health status from the South African Integrated Health Survey, we instrument for health status while allowing for covariation among the unobservables influencing both health and household poverty status. Health status, as captured by the body mass index, is shown to strongly influence poverty status. Households that contain more unhealthy individuals are 60 per cent more likely to be income poor than households that contain fewer unhealthy individuals, and this finding appears invariant to the choice of poverty line.     

Poverty,HIV/AIDS and the old age pension in Bhambayi,Kwazulu-Natal,South Africa

To date the international community has tended to direct HIV prevention programmes, treatment, care and supportive services to young adults and children, with little concern about the impact on older people. Since empirical evidence on the socioeconomic impact of HIV/AIDS on households with older persons is lacking, this paper attempts to fill this gap, using data from a household-based survey conducted in Bhambayi, a mixed formal and informal settlement north of eThekwini, KwaZulu-Natal. The findings highlight the links between the uptake of the South African old age pension, poverty and HIV/AIDS in households with older persons. The paper makes recommendations for both government and non-governmental organisations in respect of community-based support systems for such households affected by HIV/AIDS.     

Food poverty,hunger and household production in rural Eastern Cape households

More than two decades since the advent of democracy in South Africa, the place of small-scale agriculture in rural development, poverty alleviation and food security remains ambiguous and highly contested. However, there is now some new evidence that official income poverty estimates in South Africa may be underestimating the contribution of rural, land-based livelihoods when measuring household well-being. This paper aims to explore this possibility further by identifying how household production activities are associated with improved food security among rural Eastern Cape households in the former homelands. The analysis is based on data from Statistics South Africa’s 2008/9 Living Conditions Survey and its annual General Household Surveys. In adopting a food poverty lens, the findings suggest that hunger levels are lower among farming households in the Eastern Cape even though a higher percentage of these households (relative to non-farming households) live below the national food poverty line. The paper concludes by discussing some implications for policy.     

KwaZulu-Natal Income Dynamics Study (KIDS) 1993–98: A longitudinal household database for South African policy analysis

An important adjunct of apartheid has been the absence of credible and comprehensive data on which policies, such as poverty reduction strategies, can be grounded. The 1993 Project for Statistics on Living Standards and Development (PSLSD) provided the first comprehensive household database for South Africa. Despite its usefulness, however, the one round PSLSD cannot provide answers to many questions important to policy researchers and practitioners, particularly questions about dynamic processes. The primary objective in this article is to introduce a new longitudinal household database, based on the PSLSD, which begins to fill this gap. Households surveyed by the PSLSD in KwaZulu-Natal province were re-surveyed in 1998 by the KwaZulu-Natal Income Dynamics Survey (KIDS). As a research endeavour, the KIDS project addresses one of the most vexing and important problems confronting contemporary South Africa: understanding the forces and mechanisms which contribute to the perpetuation of apartheid's legacy of poverty and inequality.     

Dualism or underdevelopment in South Africa: what does a quantitative assessment of poverty,inequality and employment reveal?

Debate over the nature of South African society has continued through the first decade of democratic government, including the question of a ‘First’ and a ‘Second’ economy. This paper focuses on the numbers and characteristics of those who might fit into the ‘Second’. The data examined suggest that both poverty and inequality have increased in South Africa since 1993, while also suggesting the presence of poverty traps that may hinder mobility and prevent individuals getting ahead despite the dramatic economic and political reforms since 1994. We estimate that some 6.2 million could be described as belonging to the ‘Second’ economy. However, we argue that there is more to the relationship between those who are marginalised and those who are benefiting from South Africa's achievement than a dualistic and disarticulated ‘First’ and ‘Second’ economy. Linkages of inclusion and exclusion determine the size, characteristics and future of the two economies.     

The Political Economy of Middle‐Income Traps: Is South Africa in a Long‐Run Growth Trap? The Path to “Bounded Populism”

The current literature on middle‐income traps has been dominated by economists who have relied on economic explanations mainly around stages of development and the structural transformation of economies. But there is an equally vigorous literature from political science which speaks to the political economy of transitions. We look at the dynamics of how economic modernisation triggers structural changes with winners and losers and how this is reflected in the polarisation of the political sphere amongst middle‐income countries. This paper asks the question of whether South Africa is an archetypical example of a country stuck in a trap and how this has affected the policy choices that it has made. South Africa needs to move up the value chain with a viable value proposition, and this requires a very different policy set and human capital plan.     

The KwaZulu-Natal Income Dynamics Study (KIDS) third wave: methods,first findings and an agenda for future research

The panel study known as the KwaZulu-Natal Income Dynamics Study (KIDS) has been extended by a new wave of data collection conducted in 2004. This third wave of the study interviewed 865 households containing core adult members from 760 of the households contacted in 1993. It also conducted interviews in next-generation households that have split off from the parental households and in the current households of children who have been fostered out. The study finds that the proportion of people aged 20–44 dying between the second and third waves was nearly three times the proportion dying between the first two waves. The pattern of income distribution is one of increasing poverty and inequality since 1993, although the partial reversal of these trends in the post-1998 period is hopeful, as are signs of relative prosperity among those who established independent next-generation households. In addition, access to services has improved.     

Community‐driven Development: A Viable Approach to Poverty Reduction in Rural Burkina Faso

Abstract: Various efforts by national governments, non‐governmental organizations (NGOs) and international donors have shown limited success in reducing poverty in sub‐Saharan Africa. As a result, poverty is still persistent in most households especially in rural areas. The persistence of poverty on the continent can be in part attributed to the top‐down approach to development adopted by various poverty alleviation programs. This paper focuses on poverty reduction programs in Burkina Faso and argues that a community‐driven approach to development and poverty reduction has the potential of lifting rural populations out of poverty trap.     

The reach and impact of Child Support Grants: evidence from KwaZulu-Natal

This paper examines the reach and impact of the South African Child Support Grant, using longitudinal data collected through the Africa Centre for Health and Population Studies. The grant is being taken up for a third of all age-eligible resident children, and appears to be reaching those children living in the poorer households of the demographic surveillance area (DSA). Children who received the grant are significantly more likely to be enrolled in school in the years following grant receipt than are equally poor children of the same age. However, older brothers and sisters of grant recipients, when they were observed at younger ages, were less likely than other children to be enrolled in school – perhaps reflecting the greater poverty in grant-receiving households. Thus the grant appears to help overcome the impact of poverty on school enrolment.     

Poverty Alleviation in the People's Republic of China: The Implications for Sino–African Cooperation in Poverty Reduction

Abstract: In the last thirty years, remarkable achievements have been made in China's poverty reduction course. The dramatic fall in China's poor can be attributed mainly to a high rate of economic growth, government poverty reduction policies and targeted programmes and pro‐poor macroeconomic and industrial policies. This paper focuses on China's poverty reduction policies and programmes and their impact on the poor regions and poor households. Lessons are drawn for poverty reduction and economic development in African countries. The paper also explores the potential for collaboration in poverty reduction between China and African countries and recommendations are made for the governments and donor agencies.     

Strengthening institutional safety nets in South Africa: Sharing operation hunger's insights and experiences

Poverty and malnutrition are major problems in South Africa, especially among black people in rural areas. The poorest are heavily dependent on social pensions, remittances, low wages, piece jobs and, to a very small extent, household agriculture. Industrial safety nets are weak and do not necessarily help the vulnerable to overcome their poverty. This article draws on the experience of Operation Hunger, a South African NGO founded in 1980, to examine the impact of poverty‐alleviation programmes on the recipients. The article reviews the strategies employed by the government and NGOs to strengthen vulnerable households ‐food aid, public works and agricultural programmes ‐ drawing on Operation Hunger's experience in these areas. The article concludes that targeting, monitoring and evaluating, and piloting development programmes are crucial, and stresses the importance of NGOs in this regard.     

Poverty,human rights law and socio-economic realities in South Africa†

South Africa is a nation of immense variety. It has rich cultural diversity, an enviable climate and an abundance of natural resources. However, it is also a nation with vast economic disparities and a highly unequal distribution of income. Hence, in spite of abundant resources and a seemingly vibrant economy, South Africa still faces an enormous poverty problem that is fundamentally no different from that of other African countries. As in many other African countries this problem of poverty is compounded by the HIV/AIDS pandemic; by high levels of unemployment; by low levels of education; and by a number of other factors. Today, South Africa has one of the best constitutions in the world and a Bill of Rights that contains an array of justiciable socio-economic rights. The South African government has also attempted to alleviate poverty and mitigate its effects through progressively developing and expanding a social welfare system and other programmes such as the Reconstruction and Development Programme (RDP) and the Growth, Employment and Redistribution (GEAR) strategy. The purpose of this article is to analyse the role of human rights (specifically the Bill of Rights in the Constitution) and government efforts to alleviate poverty (through certain programmes and service delivery) in the face of adverse socio-economic realities in South Africa.     

BUILDING AND LINKING A MICROSIMULATION MODEL TO A CGE MODEL FOR SOUTH AFRICA

This paper examines the microeconomic effects of macroeconomic policies or shocks in South Africa. In particular, the paper considers the effects of macroeconomic policies on poverty and inequality by building and linking a microsimulation (MS) model to a Computable General Equilibrium (CGE) model. In the South African context, where poverty and inequality are at high levels, this novel approach enables us to identify the winners and losers of any policy change, so that the impact on poverty and inequality can be assessed in detail.     

金融普惠可以提高减贫质量吗?——基于多维贫困的分析

切实提高减贫质量对我国打赢打好脱贫攻坚战和守住脱贫成果至关重要。金融普惠作为当前我国金融改革和脱贫攻坚的重要举措,是否有助于提高减贫质量仍是有待回答的问题。文章基于中国家庭金融调查2015年数据,从多维贫困和多维贫困脆弱性两方面出发研究了金融普惠对我国农村减贫质量的影响。研究发现,金融普惠可以同时降低农村家庭多维贫困和多维贫困脆弱性,并且对多维贫困问题严重的农村家庭有更大的作用;区分不同贫困和不同金融服务发现,金融普惠可以显著降低收入贫困、教育贫困及生活质量贫困,对健康贫困的影响则不显著;银行营业网点与金融服务点渗透、以及储蓄、贷款、保险及数字金融服务使用可以提高减贫质量,而其他金融机构渗透、信用卡使用及银行服务评价的作用相对有限。进一步地,文章研究了金融普惠减贫质量效应的环境条件,发现村庄市场及制度环境和家庭需求环境改善有助于充分发挥金融普惠的积极作用,相反则可能构成一定的制约。最后,文章检验了金融普惠的影响机制,发现促进农村家庭人力与物质资本积累、以及地区经济发展等在其中发挥了重要的中介作用。文章结论为我国提高减贫质量提供了可靠的政策工具,同时也可促进我国全面建成小康社会和经济实现...     

Distributional Impact of Globalization‐induced Migration: Evidence from a Nigerian Village

Abstract: One of the contentious issues about the globalization process is the mechanism by which globalization affects poverty and inequality. This paper explores one of the various strands of the globalization–inequality–poverty nexus. Using microlevel survey data from over 300 poor households in the small village of Umuluwe (about 30 miles west of the regional capital of Owerri) in south‐east Nigeria, the paper investigates whether individuals who migrate from the village to take advantage of the urban‐biased globalization process do better than non‐migrant villagers. The paper concludes that, while the migrant villagers tend to earn slightly higher incomes than the non‐migrant villagers, the poverty profiles of both categories of households are essentially the same. In other words, and contrary to conventional wisdom, globalization has not succeeded in alleviating poverty amongst the poor villagers who explicitly took advantage of the process. The paper argues that, by changing relative prices in the urban areas, structural adjustment appears to have eliminated any advantage that globalization may have bequeathed to the migrant villagers.