Social Assistance Amidst the COVID-19 Epidemic in South Africa: A Policy Assessment

In an attempt to minimise the negative economic impacts of COVID-19 on vulnerable households the South African government allocated R50 billion in additional social assistance spending. The cash transfer package included a temporary increase in existing grants and introduced a new “Covid grant.” We assess the chosen package and compare it with an initial proposal to increase the Child Support Grant (CSG). Coverage, cost and welfare effects are calculated to measure the relative impacts in each case. We find that while a significant increase in the CSG delivers resources most progressively, the addition of the COVID-19 grant may potentially reach a much larger group of otherwise uncovered, vulnerable individuals. Critically, this extended coverage comes at a cost to the poorest households, via additional transfers to the upper income deciles. However, we identify several categories of vulnerable household groups which suggests that the workers most negatively affected by the pandemic are not necessarily those in the poorest households. The paper emphasises that social assistance to mitigate the consequences of COVID-19 should not be viewed necessarily as a standard poverty reduction exercise, but rather as an attempt to mitigate COVID-19-related income shocks for the vulnerable who were most negatively affected by the pandemic.     

Experiences with and the viability of a recycling pilot project in a Cape Town township

This paper documents the experience with an NGO-initiated recycling programme in Hangberg Township, Cape Town. The 11-week trial project achieved 70% sign-up but suffered substantial drop-out. The NGO’s attempt to brand block leaders as ‘eco-heroes’ was unsuccessful and there were concerns about the distribution of project benefits. The project diverted 26% by mass of the estimated solid waste refuse stream of 2.5 kg per person per week and made R1752 from selling 1.965 tons of recycling. Some 970 kg of compostables were diverted but not processed as part of the project. Project accounts revealed a benefit–cost ratio of 0.123 in which the sale of recyclables and landfill costs avoided were the only benefits and wages and consumables the main costs. While a more equitable distribution of benefits could improve the cost–benefit ratio, there are other good reasons for donors to fund projects of this nature.     

GRADUATE UNEMPLOYMENT IN THE FACE OF SKILLS SHORTAGES: A LABOUR MARKET PARADOX1

Analysts agree that South Africa's unemployment is structural in the sense that the unemployed generally possess lower skills than what is required by the economy. In the context of increasing demand for skilled workers due to technological changes and the need to become globally more competitive, graduates would be expected to find employment without difficulty. However, against expectations unemployment has been increasing among young people with tertiary qualifications since 1995. This paper investigates the nature of this phenomenon. Evidence suggests that learners are inadequately prepared for both tertiary studies and entry into the labour market. Lack of, or inadequate career guidance means that they do not choose fields of study and types of qualifications with good employment prospects. In addition, lack of soft skills and workplace experience mean that employers are reluctant to employ graduates, preferring more experienced people instead.     

Accounting for national waste data: a Southern Tasmania outsourcing perspective

This paper assesses the extent to which the accountability expectations of the Australian federal government with respect to the reporting of waste data are satisfied by local government authorities in Southern Tasmania. A case study, based on the Southern Tasmanian Waste Strategy Authority and its member councils, shows the complex accountability relations generated by outsourcing of waste management services in local government and the instrumental, legalistic attitude of managers to their accountability responsibilities.     

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.