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Fifteen Year Review of Income Poverty Alleviation Programmes in the Social and Related Sectors Full Final Report

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Fifteen Year Review of Income Poverty Alleviation Programmes in the Social and Related Sectors Full Final Report FFIIFFTTEEEENN YYEEAARR RREEVVIIEEWW OF INNCCOOMMEE PPOOVVEERRTTYY AALLLLEEVVIIAATIIOONN PPRROOGGRRAMMMMEESS IINN TTHEE SSOOCCIIAALL AANNDD RREELLAATTEDD SSEECCTTOORRSS Irwin Friedman & Lungile Bhengu PCAS Fifteen Year Review Of Income Poverty Alleviation Programmes In The Social and Related Sectors Full Final Report Irwin Friedman1 and, Lungile Bhengu2 Published by Health Systems Trust 401 Maritime House Tel: 031 - 307 2954 Salmon Grove Fax: 031 - 304 0775 Victoria Embankment Email: [email protected] Durban 4001 Web: http://www.hst.org.za South Africa April 2008 This study was funded by GTZ on behalf of the Policy and Advisory Services Unit of the Presidency, Government of South Africa Suggested citation: Friedman I, and Bhengu L, Fifteen Year Review Of Income Poverty Alleviation Programmes In The Social and Related Sectors, Health Systems Trust; 2008 The information contained in this publication may be freely distributed and reproduced, as long as the source is acknowledged, and it is used for non- commercial purposes. Project funded by GTZ for PCAS Presidency, Government of South Africa 1 Research Director at Health Systems Trust 2 Independent consultant 1 CONTENTS Full Final Report......................................................................................................1 Acknowledgements.................................................................................................3 Abbreviations ..........................................................................................................6 Abbreviations ..........................................................................................................6 1. EXECUTIVE SUMMARY ....................................................................................8 Objective of this review...........................................................................................8 The meaning of poverty ..........................................................................................8 Poverty and unemployment ....................................................................................9 Anti-poverty programmes .....................................................................................14 Employment generating programmes, enterprise development and income support ..................................................................................................................18 The National Public Works Programme...................................................... 19 Expanded Public Works Programme (EPWP)............................................ 21 The National Youth Service ........................................................................ 25 Learnerships................................................................................................ 30 Cooperatives ............................................................................................... 31 Nutrition, land reform and food security programmes ..........................................33 Possible solutions to poverty alleviation ...............................................................36 Affordability in terms of current macro-economic policy.......................................38 2. THE BRIEF (Aims and Background to the paper)............................................41 3. INTRODUCTION ..............................................................................................42 4. UNDERSTANDING POVERTY ........................................................................46 4.1 Defining poverty .................................................................................... 46 4.2 Getting the measure of what it means to be poor................................. 48 4.3 Poverty and unemployment .................................................................. 56 5. POLICY APPROACHES TO POVERTY ..........................................................60 5.1 Global Policy ......................................................................................... 60 5.2 Major South African Policy................................................................... 62 6. REVIEW OF INCOME POVERTY IN SOUTH AFRICA ..................................70 2 6.1 The pre-1994 historical perspective...................................................... 70 6.2 After 1994 – the rise and fall of income poverty .................................. 73 7. SPECIFIC ANTI POVERTY PROGRAMMES ..................................................99 7.1 The social wage .................................................................................. 102 7.2 Social grants........................................................................................ 106 7.3 Community public works programmes................................................ 113 7.4 National Youth Service........................................................................ 135 7.4 Learnerships....................................................................................... 145 7.5 Cooperatives ....................................................................................... 150 7.6 Nutrition, Land Reform and Food Security Programmes.................... 159 7.7 The Integrated Sustainable Rural Development Strategy (ISRDS).... 164 7.8 Indicators of poverty reduction though service provision.................... 166 8. DISCUSSION..................................................................................................169 9. POSSIBLE SOLUTIONS ................................................................................174 9.1 Some general principles...................................................................... 174 9.2 Strategic overview............................................................................... 177 9.3 Affordability in terms of current macro-economic policy ..................... 178 APPENDIX..........................................................................................................199 Glossary .................................................................................................... 199 Development indicators: mid-term review 2007........................................ 205 Small business development agencies..................................................... 211 Reports on cooperatives: .......................................................................... 214 REFERENCES ...................................................................................................223 Acknowledgements The authors would like to thank staff from Department of Trade and Industry, the Offices of Economic Affairs and others in a range of Government Departments at National level as well in the Provinces for providing valuable information on the projects being undertaken. In particular we would like to thank Percy Moleke, in the Presidency for her help and guidance and Anna McCord for helpful comments and additional references. 3 TABLES Table 1: Youth Advisory access points........................................................... 28 Table 2; The Incidence of Poverty at various poverty lines in 2006............... 51 Table 3: Equity profile of the labour force 2002.............................................. 58 Table 4: % of the population living below US$1, $2 and poverty line (2003). 74 Table 5: % of households by LSM and share of expenditure in 2005............ 76 Table 6: Measures of poverty from 1993 to 2004........................................... 78 Table 7: Income inequality Measures............................................................. 82 Table 8: Poverty income by household size (R per month)............................ 85 Table 9: Waiting for growth: Comparison of Growth Scenarios (1990).......... 93 Table 10: Is South Africa following the Kuznet's Curve?................................ 94 Table 11: Performance of SA Economy 1994-2006....................................... 96 Table 12: Income Poverty & Inequality Star (relative shifts in indicators) ...... 98 Table 13: Average value of social wage and social grants per household per month (2004)................................................................................................. 103 Table 14: Gross value of the social wage and social grants ........................ 105 Table 15: Various forms of social assistance available................................ 107 Table 16: Thresholds for being able to obtain social assistance.................. 107 Table 17: Growth in Social Grants 1994 – 2008 .......................................... 108 Table 18: Defining the CBPWP .................................................................... 116 Table 19: The NEDLAC Framework for job creation.................................... 118 Table 20: CBPWP Projects in 1997.............................................................. 122 Table 21: National Public Works Programme Objectives............................. 124 Table 22: List of EPWP Sector activities & targets....................................... 130 Table 23 Youth in the population aged 20-35 years old (mid 2006 est.) ..... 135 Table 24: Youth Advisory access points....................................................... 140 Table 25: Business Development Services.................................................. 140 Table 26: SMME Financing .......................................................................... 140 Table 27: Skills Development and Transfer.................................................. 141 Table 28: The role of samaf in poverty alleviation.......................................
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