The impact of tourism on poverty in South Africa

This paper evaluates the potential impact of tourism on poverty in South Africa on the basis of recent survey data on international tourism spending patterns. It looks at three scenarios, using an applied general equilibrium model. The main finding is that the poor benefit very little in the short term from additional tourism income. A further finding is that domestic and international tourist expenditure affect the economy differently; both markets are therefore important. In essence, the research confirms that tourism receipts can be used as a tool to alleviate poverty, but in South Africa this must be supported by policies that focus on the labour market and human resource development.     

Measurements and determinants of multifaceted poverty in South Africa

Poverty, despite being a multifaceted concept, is commonly measured in either absolute or relative monetary terms. However, it can also be measured subjectively, as people form perceptions on their relative income, welfare and life satisfaction. This is the first study that uses the National Income Dynamics Study data to analyse poverty across various objective and subjective methods. The paper finds that while respondents' poverty status varies across methods, blacks remain the racial group most likely to be defined as poor by at least one method. The multivariate analysis reveals that the impact of some explanatory variables, such as experience of negative events, frequency of crime victimisation, health status and importance of religious activities, is mixed across methods.     

The level of poverty in South Africa: Consideration of an experiential measure

Poverty is usually measured on a basis that is either subjective (respondent's perceptions) or objective (relating to some externally set standard). This article draws on an ‘experiential’ measure of poverty in which respondents with children report on whether or not they have had sufficient money to feed their children. Data from South Africa's 1994 October Household Survey showed that this and other measures revealed similar levels of poverty. However, the picture drawn of the social distribution of poverty suggests a higher incidence amongst those in squatter settlements and a lower incidence in rural areas.     

Globalisation,poverty and corruption: Retarding progress in South Africa

ABSTRACT

Poverty and corruption can both immiserate a nation. Globalisation through open trade can potentially increase economic growth, providing employment and increased incomes to the poor. Corruption can dampen or even reduce these positive developments. Although globalisation is considered instrumental in development strategies, theoretically, the impact of globalisation on poverty reduction is ambiguous, an ambiguity that is also reflected in the empirical literature. The corruption-poverty literature clearly reveals that empirical findings on such association are at best heterogeneous. This article examines the effects of globalisation and corruption on poverty using time series data for South Africa for the period 1991–2016. Three indicators of poverty and recently developed measures of globalisation and corruption were employed in the logistic regression model used for estimation. The results confirm that globalisation reduces poverty while corruption intensifies it. The globalisation findings are robust across the different measures of poverty while unidirectional results show corruption increases poverty.     

The development status of women in South Africa: Patterns and progress in the provinces

The development status of women in South Africa declined between 1996 and 2001. This study examined whether the decline was pervasive throughout the nine provinces, and whether any development patterns were apparent among the provinces. The findings revealed that women had lost ground across the board, both in absolute terms and relative to men. They also showed that certain ranking patterns prevailed among the nine provinces and, notably, that women in provinces with pre-existing poor development statuses may also be predisposed to a poor development status relative to men. This double burden may translate into a perpetuation of poverty for women who find themselves in these provinces.     

Inequality in South Africa: The distribution of income,expenditure and earnings

This article empirically analyses the state of inequality in South Africa. International comparisons show South Africa to be among the most unequal countries in the world. The levels of income inequality and earnings inequality are analysed with a range of measures and methods. The results quantify the extremely high level of inequality in South Africa. Earnings inequality appears to be falling in recent years, with relative losses in the upper-middle parts of the earnings distribution. Decomposing income inequality by factor source reveals the importance of earnings in accounting for overall income inequality. The article concludes by observing that, internationally, significant sustained decreases in inequality rarely come about without policies aimed at achieving that, and suggests that strong policy interventions would be needed to reduce inequality in South Africa to levels that are in the range typically found internationally.     

Welfare policy and the transformation of social security in South Africa

Social security is based on the belief that all citizens should be protected by the state against the main vicissitudes of life: old age, unemployment, disability and sickness. The success of welfare programmes internationally in improving poverty, income distribution and unemployment is appraised. Income maintenance in South Africa, which is discriminatory and ineffective in meeting real human needs, is examined. Although welfare should not promote dependence, neither should it be so hard to come by as to punish the poor.     

Estimating the future health care cost of population aging in South Africa

ABSTRACT

This paper analyses the relationship between health care expenditure and population aging in South Africa using yearly data from 1983 to 2015. Empirical evidence from an Autoregressive Distributed Lag approach to cointegration indicates that old dependency and life expectancy are major drivers of public health expenditure in South Africa besides the income. Particularly, when structural breaks are controlled for, income exhibits a long-term elasticity with respect to health spending greater than unity; suggesting that South African public health care has become a luxury good over time. Interestingly, South African public health spending is found to be responsive to demographic development only in the long run. This is consistent with the micro evidence that health expenditure increases with individual age with significant impacts in the long term. Finally, using economic and demographic projections statistics, we find that public health expenditure could roughly double in the next fifteen years ceteris paribus.     

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.     

The Impact of the Earned Income Tax Credit on Poverty: Analyzing the Dimensions by Race and Immigration

This paper analyzes the effectiveness of the Earned Income Tax Credit (EITC) on poverty transitions, with an emphasis on native-born African–Americans and immigration. A probit model is estimated using data from the Current Population Survey (CPS), which evaluates the impact of EITC participation and immigration on transitions out of poverty. The EITC is found to be a useful tool in combating poverty and is effective for African–Americans, though only for women. More importantly, the results show that the implementation of state-level EITCs can mitigate the adverse effects of immigration for native-born African–Americans.

The Spatial Dimension of Welfare and Poverty: Lessons from a Regional Targeting Programme in Indonesia

This paper examines the spatial dimension of welfare and poverty in Indonesia and explores the effective policy interventions to remedy the regional economic disparity which was most vividly shown during the recent economic crisis. The econometric estimations confirm the existence of a spatial poverty trap, where poverty persists for generations. The inclusion of the placement of Impres Desa Tertingal (IDT) implemented during 1994–96 suggests that the regional targeting programme could fail to achieve its policy goal when the empowerment of local communities is insufficient. It is suggested that full–scale decentralization could remedy the targeting policy failure.
JEL classification : O 15; O 18; R 15     

Community poverty and inequality in western China: A tale of three villages in Guizhou Province

Using a census survey of households in Guizhou Province, this paper examines the patterns of village poverty and inequality and their major correlates. The results show that poverty incidences vary greatly among villages and inequality is relatively high within villages in these impoverished areas. Although agriculture is still the major source of livelihood in this inland western region, income from local nonfarm jobs and remittance is more unevenly distributed and accounts for the largest share of overall income inequality. Surprisingly, blood donation is another major source of cash income. On the expenditure side, health care was found to be one of the most important sources of inequality. The paper also found that the distribution of assets, particularly land holdings, contributes to overall income inequality.     

Income growth, inequality and poverty reduction: A case study of eight provinces in China

This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989–2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sectors.     

An investigation into factors impacting financial exclusion at the bottom of the pyramid in South Africa

Financial exclusion has been shown to have negative socio-economic effects on citizens, especially at the bottom of the economic pyramid. South Africa suffers from high levels of financial exclusion, disproportionately at the bottom of the pyramid. This study investigates nine factors identified from the literature as being positively associated with financial exclusion using a logistic regression model. The findings show that the most significant factors associated with being financially excluded at the bottom of the pyramid in South Africa were educational level, primary source of income, age, home language and number of dependents. The study further found that gender, relationship status and home ownership were not associated with being financially excluded. An interesting finding was that living in a rural area as opposed to an urban area was not significantly associated with being excluded. The findings and their implications for expanding financial inclusion at the bottom of the pyramid are discussed.     

Production of and trade in African indigenous vegetables in the urban and peri-urban areas of Durban,South Africa

This paper reports on the farming and trade of lesser known crops, here termed African indigenous vegetables (AIVs), in the Durban metropole. Most households grow AIVs, and collect them from the wild, primarily for home consumption. Modal income from sale was approximately R30 per month per farmer, most of whom were middle-aged to elderly females, with limited education, who had been cultivating AIVs here for many years. The main constraints to greater sales were deemed to be low market demand and adverse climate. The commonest AIVs grown were pumpkin leaves, taro and amaranth. Although most farmers sold very little, there is a thriving retail trade in AIVs. Generally, retailers were females, but younger and more educated than the farmers. The majority viewed retailing as a full-time occupation. Modal income for retailers was R450 per month, but included non-AIV produce. Most of the traders thought there was insufficient market demand for AIVs.     

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.     

新疆城乡居民收入与支出关系的实证分析——兼论影响城乡居民收入差距的原因

非均衡的发展战略使得我国城乡收入分配机制发生了根本性的变化;文章通过对新疆城乡居民收入与支出关系的实证分析,得出新疆城乡居民收入与支出在呈线性关系的同时,也存在着差距不断扩大的趋势,这种趋势阻碍了农村居民消费性支出的增长;文章在最后对引起新疆城乡居民收入差距不断扩大的原因进行分析。     

Gender, poverty and deprivation: Evidence from the Republic of Guinea

The article examines the relationship between gender and consumption poverty and between gender and deprivation in the Republic of Guinea. National household survey data reveal that women are not more likely than men to be consumption poor or to suffer greater consumption poverty. Participatory Poverty Assessment data from the village of Kamatiguia reveal that women are “worse off” than men when deprivation includes, inter alia, excessive work load and reduced decision-making authority. When consumption poverty poorly correlates with other dimensions of deprivation, it should not be the sole guide for equity-based policy intervention.     

The contribution of trout fly fishing to the economy of Rhodes,North Eastern Cape,South Africa

Recent government legislation, which calls for the eradication of trout from ecosystems where they may cause harm, could damage the tourism appeal of many South African catchments. However, no South African studies have tried to quantify the economic impact of removing trout from rivers and streams. This study aimed first to value the Rhodes trout fishery, North Eastern Cape, South Africa, and second to assess whether the trout fly fishing industry in Rhodes could form the foundation for the implementation of a local economic development initiative. Overall, the study found that the trout fishing industry directly generates approximately R5 658 240 per annum, and sustains a minimum of 39 direct job opportunities for the community of Rhodes, and can therefore provide the impetus for the creation of a tourism-based local economic development programme.