Inequality in post-apartheid South Africa
President Nelson Mandela's democratic election in 1994 marked the end of
political apartheid in South Africa. [1] Under apartheid, South Africans were classified into four
different races: white, black, coloured, and
Indian/Asian. [2] About 80% of the South African population is
classified as black, about 9% as white, 9% as coloured, and
2% as Indian/Asian. [3] Under apartheid, whites held political
power, and other races were barred from voting. While the
end of apartheid opened the door for equal opportunity of all
South Africans regardless of race, today’s South
Africa struggles to correct theinequalities created by decades
of apartheid. Despite a
rising GDP, poverty, unemployment, income inequality, life
expectancy, land ownership, and educational achievement
have worsened since the end of apartheid and the election of
the African National Congress. The end of
the apartheid system inSouth Africa left the country socioeconomically divided by race. Subsequent government
policies have sought to correct the imbalances through state
Nelson Mandela votes in the 1994
presidential elections, which included
non-white South Africans and marked the
end of apartheid
intervention with varying success.
Rising economic inequality in South Africa[edit]
Many of the inequalities created and maintained by apartheid still remain in South Africa. Income
inequality has worsened since the end of apartheid, but it has begun to deracialize
somewhat [4] Between 1991 and 1996, the white middle class grew by 15% while the black middle
class grew by 78%[5] The country has one of the most unequal income distribution patterns in the
world: approximately 60% of the population earns less than R42,000 per annum (about US$7,000),
whereas 2.2% of the population has an income exceeding R360,000 per annum (about
US$50,000). Poverty in South Africa is still largely defined by skin color, with blacks constituting
the poorest layer. Despite many ANC policies aimed at closing the poverty gap, blacks make up
over 90% of the country's poor at the same time they are 79.5% of the population.[6][7]
Income distribution[edit]
A comparison of data from the 2008 National Income Dynamics Study (NIDS) and the 1993 Project
for Statistics on Living Standards and Development (PSLSD) found that income inequality had
increased both aggregately and between racial groups.[8] In 2008, the wealthiest 10% earned 58%
of the total income, and the top 5% earned 43% of the total income.[8] This is a worsened situation
from 1993, when the top 5% earned 38% of the total income.[8]
A map showing severity of income inequality by country as measured by the Gini
coefficient. South Africa has one of the highest levels of income inequality in the
world.
Poverty levels[edit]
Under the national poverty line of $43 per month, 47% of South Africans are impoverished.[9] The
number of people living on less than $1 a day has doubled from 2 million in 1994 to 4 million in
2006.[10] In 2005, 63% of black children lived in households earned less than 800 rands, compared
to only 4% of white children.[4] The spatial segregation of black Africans to poor, rural areas is
correlated with higher levels of poverty.[11]
Land ownership[edit]
In 2006, 70% of South Africa’s land was still owned by whites.[10] This is despite the promises of
the African National Congress to redistribute 30% of the land from whites to blacks.[12] Whites hold
much of South Africa’s land, secured through freehold type regimes.[13] More than one-third of the
population occupies 13% of the land, often in insecure or secondary ways.[13]
Educational achievement[edit]
After the end of apartheid, separate, racially defined departments of education were replaced by
nine provincial Departments of Education which collaborate within the national Department of
Education.[14] Illiteracy 27% of 6th grade students are functionally illiterate.[14] However, only 4% of
the wealthiest students are functionally illiterate, indicating a stark divide in literacy between
income quartiles [14] The spatial segregation of apartheid continues to affect educational
opportunities. Black and low-income students face geographic barriers to good schools, which are
usually located in expensive neighborhoods [14]While South Africans enter higher education in
increasing numbers, there is still a stark difference in the racial distribution of these students.
Currently, about 58.5% of whites 51% of Indians enter some form of higher education, compared to
only 14.3% of coloureds and 12% of blacks.[15]
Causes of post-apartheid inequality[edit]
Unemployment[edit]
South Africa has extremely high unemployment rates. The overall unemployment rate was 26% in
2004, but historically disadvantaged groups like rural populations, women, and blacks experience
higher rates of unemployment.[16] Unemployment is mainly concentrated among unskilled blacks,
who comprise 90% of the unemployed.[16][17] The ANC government has pledged to cut overall
unemployment to 14% by 2014, but so far, their efforts have not caused dramatic drops in
unemployment.[18] Much of the high unemployment rate is due to the
decliningmanufacturing industry.[18] The unemployment rate for black South Africans has increased
from 23% in 1991 to 48% in 2002.[19] Unemployment continues to rise despite robust economic
growth, suggesting structural factors that may be constraining the labor market.[17]