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Dimensions Poverty

2004

Dime nsio ns of Po ve rty in Po st-Ap arthe id So uth Africa 1 9 9 6 -2 0 0 1 A POVERTY STATUS REPORT D e ve lo p m e n t Po licy Re s e arch U n it School of Economics • University of Cape Town Dime nsio ns of Po ve rty in Po st-Ap arthe id So uth Africa 1 9 9 6 -2 0 0 1 Prepared by: Haroon Bhorat Laura Poswell Pranushka Naidoo July 2004 Acknowledgement: This publication was sponsored by the Secretariat for Institutional Support through Economic Research in Africa (SISERA). Their generous financial assistance in this regard is acknowledged. ISBN: 1-920055-01-0 Development Policy Research Unit University of Cape Town 4th Floor, Robert Leslie Social Science Building Upper Campus Rondebosch 7701 University of Cape Town Private Bag Rondebosch 7701 Tel: Fax: e-mail: Web Address: + 27 21 650-5705 + 27 21 650-5711 dpru@commerce.uct.ac.za http://www.commerce.uct.ac.za/dpru D e ve lo p m e n t Po licy Re s e arch U n it School of Economics • University of Cape Town Table of Con t en t s WH AT IS PO VERTY AN D H O W D O WE M EASURE IT?........................................................1 SO UTH AFRICA: PO PULATIO N , H O USEH O LD S AN D REGIO N AL GD P.........................3 ASSET AN D SERVICES D EPRIVATIO N ..................................................................................5 DWELLINGS..........................................................................................................................................5 WATER ...................................................................................................................................................6 SANITATIO N ........................................................................................................................................ 8 ENERGY TYPES..................................................................................................................................... 8 REFUSE REMO VAL..............................................................................................................................9 PRIVATE GO O DS .............................................................................................................................1 0 ECO N O M IC ACTIVITY, ED UCATIO N PRESEN T AN D FUTURE O PPO RTUN ITIES........11 EDUCATIO NAL ATTAINMENT......................................................................................................11 INDUSTRY O F EMPLO YMENT.......................................................................................................12 EARNINGS FRO M EMPLO YMENT................................................................................................1 3 UNEMPLO YMENT............................................................................................................................1 4 UNEMPLO YMENT AND THE ABILITY TO SATISFY HO USEHO LD FO O D NEEDS .............15 UNEMPLO YMENT, SO URCES O F INCO ME AND HO USEHO LD FO RMATIO N ...............16 ACCESS TO FINANCE......................................................................................................................1 7 H EALTH .................................................................................................................................18 CRIM E...................................................................................................................................2 1 CO N CLUSIO N .....................................................................................................................2 2 REFEREN CES.........................................................................................................................2 4 1 “To b e p o o r is to b e hungry, to lack she lte r and clo thing, to b e sick and no t care d fo r, to b e illite rate and no t scho o le d . But fo r p o o r p e o p le , living in p o ve rty is m o re than this. Po o r p e o p le are p articularly vulne rab le to ad ve rse e ve nts o utsid e the ir co ntro l. The y are o fte n tre ate d b ad ly b y the institutio ns o f state and so cie ty and e xclud e d fro m vo ice and p o w e r in tho se institutio ns” (W o rld Bank 2000, p .15). “Fro m a hum an d e ve lo p m e nt p e rsp e ctive , p o ve rty m e ans the d e nial o f cho ice s and o p p o rtunitie s fo r a to le rab le life ” (UN DP 1997, p .5). “Po licy d e b ate s have ind e e d b e e n d isto rte d b y o ve re m p hasis o n inco m e p o ve rty and inco m e ine q uality, to the ne gle ct o f d e p rivatio ns that re late to o the r variab le s, such as une m p lo ym e nt, ill he alth, lack o f e d ucatio n, and so cial e xclusio n” (Se n 1999, p .108) Po ve rty ta ke s o n m u ltip le d im e n sio n s a n d in e sse n c e d e sc rib e s a sta te o f d e p riva tio n tha t p re ve n ts a n in d ivid u a l fro m a tta in in g so m e m in im u m “ so c ia lly a c c e p ta b le ” sta n d a rd o f livin g. This sta te o f d e p riva tio n c a n the re fo re b e m e a su re d in a n u m b e r o f wa ys a n d a c c o rd in g to va rio u s a p p ro a c he s. The m o st c o m m o n ly u se d m e tho d o f p ro filin g p o ve rty in a so c ie ty in vo lve s firstly e sta b lishin g the m in im u m a m o u n t o f m o n e y re q u ire d to m e e t the c o st o f a n in d ivid u a l’ s (o r ho u se ho ld ’ s) b a sic n e e d s, whic h wo u ld in c lu d e a fo o d a n d n o n -fo o d c o m p o n e n t. This p o ve rty lin e is the n u tilise d in c o n ju n c tio n with sp e c ific m e a su re s o f p o ve rty to d e ve lo p a n a p p ro p ria te d e sc rip tio n o f in d ige n c e in the so c ie ty. H o we ve r, p o ve rty lin e s a re d iffic u lt to m e a su re a n d the c ho ic e o f lin e o fte n im p re c ise . Fu rthe rm o re , in d ic e s a re o fte n su b je c tive a n d a rb itra ry in the c ho ic e o f va ria b le s o r we ights u se d in the ir c o n stru c tio n . Ye t a n o the r wa y o f c o m p a rin g re la tive we llb e in g o f p re -d e fin e d gro u p s is the p o ve rty d o m in a n c e a p p ro a c h. In this typ e o f a n a lysis, n o p o ve rty lin e s a re u se d , b u t gro u p s a re m e a su re d a ga in st e a c h o the r in te rm s o f c ho se n in d ic a to rs su c h a s in c o m e le ve ls o r a c c e ss to c e rta in a sse ts o r se rvic e s. Usin g in c o m e a s a n e xa m p le , the d o m in a n c e m e tho d gra p hic a lly d e p ic ts the c u m u la tive p ro p o rtio n o f tho se with a c c e ss to e a c h a n d e ve ry in c o m e le ve l, fo r e a c h gro u p b e in g c o n sid e re d . If it is sho wn tha t o n e gro u p ’ s c u m u la tive d istrib u tio n a lwa ys fa lls a b o ve o r b e lo w a n o the rs ’ , stro n g 1 2 McKenzie 2003, p 9 McKenzie 2003, p 3 sta te m e n ts c a n b e m a d e a b o u t re la tive we llb e in g. Fo r e xa m p le , in the c a se o f in c o m e , it c o u ld the n b e sta te d tha t o n e gro u p is b e tte r o ff tha n a n o the r fo r e a c h a n d e ve ry in c o m e p o ve rty lin e c ho se n . Me a su rin g the n u m b e r o f p o o r a c c o rd in g to a p o ve rty lin e a p p ro a c h a n d c o n sid e rin g c ha n ge s o ve r tim e re q u ire s a c c u ra te in c o m e o r e xp e n d itu re d a ta . In So u th Afric a the in c o m e a n d e xp e n d itu re su rve ys (1 9 9 5 a n d 2 0 0 0 ) c o lle c t the re le va n t d a ta . At p re se n t, the re a re a n u m b e r o f q u e stio n s o n the q u a lity a n d c o m p a ra b ility o f the se d a ta se ts, with the d a ta q u a lity o f the 2 0 0 0 su rve y c u rre n tly u n d e r re vie w. G ive n this, the re is n o re c e n t d a ta se t with whic h o n e c a n c o n fid e n tly c a rry o u t p o ve rty c o u n ts fo r the c o u n try. An a lte rn a tive a p p ro a c h to m e a su rin g p o ve rty, in the a b se n c e o f d a ta o n in c o m e a n d c o n su m p tio n , is to u se a sse t-b a se d in d ic a to rs. An a sse t in d e x c a n b e c o n stru c te d u sin g d a ta o n ho u se ho ld d u ra b le s (fo r e xa m p le , o wn in g a ra d io , re frig e ra t o r e t c ) a n d h o u s e h o ld c ha ra c te ristic s (fo r e xa m p le , the n u m b e r o f ro o m s in a ho u se o r sa n ita tio n fa c ilitie s). Pro vid e d a su ffic ie n tly b ro a d c la ss o f a sse t in d ic a to rs is u se d , the in d e x sho u ld re fle c t d iffe re n tia tio n o f livin g sta n d a rd s a c ro ss 1 ho u se ho ld s. O n e o f the a d va n ta ge s o f u sin g a n a sse t-b a se d in d e x is tha t it a vo id s the p ro b le m s o f re c a ll b ia s, se a so n a lity a n d m ism e a su re m e n t tha t c a n o c c u r with in c o m e a n d c o n su m p tio n 2 b a se d m e a su re s o f p o ve rty. A we ll-kn o wn e xa m p le o f a n in d e x u se d to re fle c t d iffe re n c e s in we llb e in g is the Un ite d N a tio n s D e ve lo p m e n t Pro gra m m e ’ s H u m a n D e ve lo p m e n t In d e x (H D I). This m e a su re is u se d to c o m p a re c o u n trie s in te rm s o f the ir a c hie ve m e n ts in a tta in in g a c e rta in sta n d a rd o f livin g p ro xie d fo r b y in d ic a to rs o f life e xp e c ta n c y a t b irth, a d u lt lite ra c y, a c o m b in e d p rim a ry, se c o n d a ry a n d te rtia ry sc ho o lin g e n ro lm e n t ra tio a n d G ro ss D o m e stic Pro d u c t p e r c a p ita . W ith the re c e n t re le a se o f c e n su s 2 0 0 1 , we ha ve a t o u r d isp o sa l a we a lth o f d a ta o n a ra n ge o f livin g sta n d a rd s in d ic a to rs o the r tha n in c o m e / e xp e n d itu re . Thro u gh c o m p a riso n s o f the se in d ic a to rs with tho se re p o rte d in c e n su s 1 9 9 6 , we c a n d e ve lo p a p ic tu re o f d e p riva tio n in 2 0 0 1 a n d o f c ha n ge s in we llb e in g o ve r tim e . In this re p o rt we u se m a in ly a n a sse t-b a se d a p p ro a c h c o m b in e d in so m e in sta n c e s with p o ve rty d o m in a n c e a n a lysis. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT W H AT I S PO VERTY AN D H O W D O W E M EASU RE I T? 2 O u r c ho ic e o f p o ve rty in d ic a to rs in c lu d e s tho se c o m m o n ly u se d in the lite ra tu re o n p o ve rty a n a lysis, the re le va n c e o f whic h to So u th Afric a is stro n gly su p p o rte d b y the fin d in gs o f the So u th Afric a n Pa rtic ip a to ry Po ve rty Asse ssm e n t whic h c o n te xtu a lise d the e xp e rie n c e o f p o ve rty thro u gh the vo ic e s o f So u th Afric a n s the m se lve s. Ke y the m e s to e m e rge fro m this p ie c e o f wo rk re ve a le d tha t in So u th Afric a to b e p o o r m e a n s to : “Be alie nate d fro m yo ur co m m unity, to b e unab le to sufficie ntly fe e d yo ur fam ily, to live in o ve rcro w d e d co nd itio ns, use b asic fo rm s o f e ne rgy, lack ad e q uate ly p aid and se cure jo b s and to have fragm e nte d fam ilie s” (May 2000, p 5). Fu rthe rm o re , we c o n sid e r vu ln e ra b ility a ke y d im e n sio n o f p o ve rty a n d in c lu d e in d ic a to rs o f lo w a d e q u a c y to d e a l with sho c ks in o u r a n a lysis. Ultim a te ly tho u gh, while the in c o m e p o ve rty a p p ro a c h is wid e ly u se d a n d e xtre m e ly p o we rfu l, it d o e s e xc lu d e b o th a sse ts p o sse sse d a n d se rvic e s a c c e sse d b y in d ivid u a ls in the so c ie ty. The se ra te s o f o wn e rship a n d a c c e ss in va ria b ly, a re c ritic a l, a d d itio n a l d e sc rip to rs o f p o ve rty in a so c ie ty, a n d the y will b e the d o m in a n t a n a lytic a l d e sc rip to r o f p o ve rty in this re p o rt. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT The a im o f this re p o rt is to p ro vid e a p ic tu re o f a sse t a n d se rvic e s d e p riva tio n , e c o n o m ic a c tivity, a n d he a lth a n d sa fe ty, a n d to illu stra te the c ha n ge s in the se in d ic a to rs fro m 1 9 9 6 to 2 0 0 1 . W e u se the c e n su s d a ta (1 9 9 6 a n d 2 0 0 1 ) 3 to a n a lyse shifts in the se in d ic a to rs d u rin g the 5 ye a r p e rio d , a n d in c a se s whe re d a ta o n shifts is n o t a va ila b le , we a tte m p t to c re a te a b ro a d e r p ic tu re fo r 2 0 0 1 u sin g m o re d e ta ile d d a ta fro m the La b o u r Fo rc e Su rve y, Se p te m b e r 2 0 0 1 . W e a n a lyse the in d ic a to rs o f e c o n o m ic a n d so c ia l we llb e in g o n the n a tio n a l le ve l a n d fo r thre e p ro vin c e s, n a m e ly, G a u te n g, Kwa Z u lu -N a ta l, a n d Lim p o p o . The se p ro vin c e s we re c ho se n to illu m in a t e t h e re gio n a l d isc re p a n c ie s in we llb e in g tha t e xist in So u th Afric a , e ve n o n a p ro vin c ia l le ve l. G a u te n g wa s c ho se n a s a p ro xy fo r the ric he st p ro vin c e s (G a u te n g a n d the W e ste rn Ca p e ), Lim p o p o a s re p re se n ta tive o f the p o o re st p ro vin c e s (Lim p o p o , the Fre e Sta te a n d the Ea ste rn Ca p e ) a n d Kwa Z u lu -N a ta l a s 3 the m o re a ve ra ge p e rfo rm e r. The re p o rt b e gin s with a b rie f o ve rvie w o f t h e d e m o g r a p h ic a n d lo c a t io n -s p e c ific c ha ra c te ristic s o f the c o u n try in 1 9 9 6 a n d 2 0 0 1 . Se c tio n 2 the n c o n sid e rs ke y in d ic a to rs o f d e p riva tio n su c h a s a c c e ss to b a sic go o d s a n d se rvic e s. Se c tio n 3 fo c u se s o n e c o n o m ic in d ic a to rs o f we llb e in g a n d in c lu d e s d a ta o n e d u c a tio n , e m p lo ym e n t a n d u n e m p lo ym e n t. Se c tio n s 4 a n d 5 p ro vid e a d d itio n a l c o ve ra ge o f fu n d a m e n ta l p o ve rty in d ic a to rs n o t in c lu d e d in the p re vio u s se c tio n s su c h a s he a lth sta tu s a n d c rim e . Fin a lly, se c tio n 6 e n d s the re p o rt with so m e c o n c lu d in g re m a rks. Prior research on income poverty has found that the Eastern Cape, Free State and Limpopo rank as the poorest provinces, with Gauteng and the Western Cape being the least poor. The remaining provinces are found between these extremes. The poverty rates and rankings for the provinces vary with the survey data and poverty lines used (see Bhorat et.al 2001; May 2000; Statistics South Africa 2000.) 3 SO U TH AFRI CA: PO PU LATI O N , H O U SEH O LD S AN D REGI O N AL GD P The a n a lysis b e gin s with a b rie f o ve rvie w o f the d istrib u tio n o f in d ivid u a ls a n d ho u se ho ld s b y p ro vin c e . As c a n b e se e n in Ta b le 1 , the o ffic ia l p o p u la tio n figu re fo r 2 0 0 1 wa s 4 4 .8 m illio n , risin g fro m 4 0 .6 m illio n in 1 9 9 6 . This a m o u n ts to a n in c re a se o f 1 0 .4 p e rc e n t o ve r the 5 ye a r p e rio d 4 o r a p p ro xim a te ly 2 p e rc e n t p e r a n n u m . p e rc e n ta ge p o in ts fro m 9 .1 m illio n in 1 9 9 6 to 1 1 .2 m illio n in 2 0 0 1 . Me a n ho u se ho ld siz e fe ll fro m 4 .1 to 3 .8 p e o p le . In te re stin gly, a ltho u gh Kwa Z u lu -N a ta l is the la rge st p ro vin c e in te rm s o f a c tu a l n u m b e r o f re sid e n ts, G a u te n g ra n ks a s the p ro vin c e with the gre a te st n u m b e r o f ho u se ho ld s. The re a so n fo r this d isp a rity is d u e to the d iffe re n c e in ho u se ho ld siz e , w it h h o u s e h o ld s s ig n ific a n t ly la rg e r in Kwa Z u lu -N a ta l (m e a n o f 4 .3 in 2 0 0 1 ) c o m p a re d with tho se in G a u te n g (m e a n o f 3 .2 in 2 0 0 1 ). Thu s the sha re o f ho u se ho ld s in G a u te n g a c c o u n ts fo r 2 3 .7 p e rc e n t o f the to ta l in 2 0 0 1 , The sp a tia l d istrib u tio n o f the Table 1: Population and Share of Population by Province, 1996 and 2001 p o p u la c e b y the c o u n try ’ s n in e Population Share of Population p ro vin c e s p ro ve s illu m in a tin g 1996 2001 1996 2001 p a rtic u la rly in the c a se o f the tre n d Eastern Cape 6 302 525 6 4367 63 15.5% 14.4% d a ta . In b o th 1 9 9 6 a n d 2 0 0 1 , the Free State 2 633 504 2 706 775 6.5% 6.0% 7 348 423 8 837 178 18.1% 19.7% p r o v i n c e w i t h t h e la r g e s t Gauteng 8 417 021 9 426 017 20.7% 21.0% p o p u la tio n wa s Kwa Z u lu -N a ta l, KwaZulu-Natal Limpopo 4 929 368 12.1% 11.8% 5 273 642 fo llo we d b y G a u te n g, the Ea ste rn Mpumalanga 2 800 711 3 122 990 6.9% 7.0% Ca p e a n d Lim p o p o . In te rm s o f Northern Cape 840 321 82 2727 2.1% 1.8% p o p u la tio n in c re a se s, G a u te n g North West 3 354 825 3 669 349 8.3% 8.2% 3 956 875 4 524 335 9.7% 10.1% a n d the W e ste rn Ca p e ha ve Western Cape National 40 583 573 44 819 776 100.0% 100.0% e xp e rie n c e d the gre a te st gro wth a s the fo rm e r ’ s p o p u la tio n ro se b y Source: Census 1996; Census 2001 2 0 p e rc e n t o ve r the 5 ye a r p e rio d fo llo we d b y Kwa Z u lu -N a ta l (KZ N ) with 1 8 .6 a n d the la tte r ’ s b y 1 4 p e rc e n t . The Ea ste rn Ca p e , p e rc e n t a n d the Ea ste rn Ca p e with 1 3 .5 p e rc e n t. Fre e Sta te a n d N o rthe rn Ca p e ha ve e xp e rie n c e d The N o rthe rn Ca p e is the sm a lle st m a kin g u p le ss the sm a lle st c ha n ge s o f le ss tha n 3 p e rc e n t , tha n 2 p e rc e n t o f to ta l ho u se ho ld s in 2 0 0 1 . o r le ss tha n 1 p e rc e n t p e r a n n u m . Su c h sta rk d iffe re n c e s in the p ro vin c ia l p o p u la tio n gro wth Ta b le 2 a lso re ve a ls the d ive rge n c e b e twe e n the ra te s re fle c t m a jo r shifts in the d istrib u tio n o f ru ra l-u rb a n n a tu re o f the p ro vin c e s. G a u te n g the p o p u la tio n . This c a n la rge ly b e a ttrib u te d to a n d the W e ste rn Ca p e a re p re d o m in a n tly u rb a n , in te r-p ro vin c ia l m igra tio n , with tho se in se a rc h whe re a s Lim p o p o is m o stly ru ra l. Kwa Z u lu -N a ta l o f b e tte r e c o n o m ic o p p o rtu n itie s m o vin g to fa lls b e twe e n the se e xtre m e s with a re la tive ly the re la tive ly m o re p ro sp e ro u s re gio n s. e ve n p ro p o rtio n o f ho u se ho ld s fo u n d in b o th typ e s o f re gio n s. The n a tio n a l a ve ra ge in d ic a te s Ta b le 2 sho ws the d istrib u tio n o f ho u se ho ld s b y tha t 6 2 .4 p e rc e n t o f So u th Afric a n ho u se ho ld s p ro vin c e , the m e a n ho u se ho ld siz e , a s we ll a s the a re c la ssifie d a s b e in g lo c a te d in u rb a n a re a s. p ro p o rtio n o f ho u se ho ld s lo c a te d in u rb a n a re a s. The n u m b e r o f ho u se ho ld s in c re a se d b y 2 3 .7 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape National Households 1996 2001 1 332 342 1 512 590 625 033 733 138 1 964 108 2 651 596 1 660 694 2 087 125 982 455 1 180 160 732 909 603 836 187 088 206 837 720 625 929 339 982 967 1 173 429 9 059 149 11 207 123 Share of Households 1996 2001 14.7% 13.5% 6.9% 6.5% 21.7% 23.7% 18.3% 18.6% 10.8% 10.5% 6.7% 6.5% 2.1% 1.8% 8.0% 8.3% 10.9% 10.5% 100.0% 100.0% Source: Census 1996; Census 2001 and 10% samples 4 See Statistics South Africa 2003a Mean household size 1996 2001 4.3 4.1 3.8 3.6 3.3 3.2 4.5 4.3 4.6 4.3 4.3 4.0 3.8 4.2 4.0 3.8 3.7 3.6 4.1 3.8 % of households in urban areas 1996 2001 43.0% 40.4% 72.5% 78.8% 96.5% 96.6% 52.6% 53.0% 13.1% 12.7% 43.1% 45.3% 68.2% 76.4% 42.2% 38.6% 90.3% 88.8% 59.9% 62.4% A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT Table 2: Households, Share of Households, Mean Household Size and Area Type by Province, 1996 and 2001 4 Co n sid e rin g gro ss d o m e stic p ro d u c t (G D P) p e r c a p ita p e r p ro vin c e highlights, ye t a ga in , the va st d isp a ritie s b e twe e n the re gio n s. In wha t fo llo ws, the p o ve rty situ a tio n in So u th Afric a is e xp lo re d u sin g m a in ly a n a c c e ss to se rvic e s a n d a sse t-b a se d a p p ro a c h whic h c o n sid e rs a c c e ss to b a sic go o d s a n d se rvic e s a s ke y in d ic a to rs o f we llb e in g. Cha n ge s in the c ho se n in d ic a to rs a re in ve stiga te d fo r the in te r-c e n sa l p e rio d in a n e ffo rt to highlight whe re im p ro ve m e n ts ha ve b e e n m a d e o r d e c lin e s e xp e rie n c e d . Fo r this a n a lysis n a tio n a l figu re s a re c o n sid e re d , a s we ll a s tho se fo r thre e p ro vin c e s, n a m e ly, G a u te n g, Kwa Z u lu N a ta l, a n d Lim p o p o . Twe n ty p e rc e n t o f the p o p u la tio n re sid e in G a u te n g, the se c o n d la rge st p ro vin c e whic h is highly u rb a n ise d a n d ha s the highe st le ve ls o f in c o m e ge n e ra tin g p ro d u c tive a c tivity. Lim p o p o is the fo u rth la rge st p ro vin c e in p o p u la tio n te rm s b u t is m o stly ru ra l a n d re la tive ly p o o r. Kwa Z u lu -N a ta l ha s the la rge st p o p u la tio n a n d ha s a re la tive ly e ve n ru ra l-u rb a n sp lit. Fu rthe rm o re , Kwa Z u lu N a ta l p e rfo rm s with m e d io c rity in te rm s o f G D P p e r c a p ita a n d o n m a n y gro u n d s, lie s c lo se to the n a tio n a l a ve ra ge s. In m a n y wa ys, the p e rfo rm a n c e o f G a u te n g will b e in d ic a tive o f tha t o f the W e ste rn Ca p e , whic h is a lso re la tive ly we ll o ff. Lim p o p o figu re s will b e sim ila r to tho se o f the Ea ste rn Ca p e a n d Fre e Sta te , with Kwa Z u lu -N a ta l d isp la yin g m o re c lo se ly t h e c h a ra c t e ris t ic s o f t h e in t e rm e d ia t e p ro vin c e s. The fo c u s in this re p o rt is o n in d ic a to rs o f e c o n o m ic we llb e in g, vu ln e ra b ility a n d o p p o rtu n itie s to im p ro ve o n e s sta n d a rd o f livin g. Firstly, it is n o te wo rthy tha t n a tio n a l G D P ha s in c re a se d o n ly m a rgin a lly in re a l te rm s o ve r the p e rio d , a t a p p ro xim a te ly 0 .5 p e rc e n t p e r a n n u m . Co n se q u e n tly, sm a ll c h a n ge s a c ro ss th e p ro vin c e s o ve r the 1 9 9 6 to 2 0 0 1 p e rio d a re visib le . The we a lthie st p ro vin c e s in G D P p e r c a p ita te rm s a re G a u te n g a n d the W e ste rn Ca p e , with the p o o re st b e in g Lim p o p o a n d the Ea ste rn Ca p e . The re la tive we a lth o f G a u te n g a n d the W e ste rn Ca p e is the d rivin g fo rc e b e hin d the p o p u la tio n m o ve m e n ts m e n tio n e d p re vio u sly. In te rm s o f G D P p e r c a p ita , the o the r p ro vin c e s fin d the m se lve s in the m id d le o f the sp e c tru m . Eve n tho u gh G a u te n g c o n trib u te s the gre a te st sha re to n a tio n a l G D P, the in c re a se in p o p u la tio n in G a u te n g ha s o u tstrip p e d re a l G D P gro wth, thu s le a d in g to a d e c lin e in re a l G D P p e r c a p ita in the p ro vin c e . Su c h sm a ll c ha n ge s in re a l gro wth p e r c a p ita o ve r the 5 ye a rs fro m 1 9 9 6 to 2 0 0 1 m ight su gge st the re wo u ld ha ve b e e n little sp a c e fo r im p ro ve m e n ts in sta n d a rd s o f livin g o f So u th Afric a 's p o o r o ve r the p e rio d . G o ve rn m e n t p o lic ie s a im e d a t im p ro vin g the p light o f tho se in n e e d , su c h a s in c re a se d u tilitie s p ro visio n , m a y in d e e d im p ro ve a c c e ss to b a sic se rvic e s, b u t la c k o f e c o n o m ic o p p o rtu n itie s like fo rm a lse c t o r e m p lo ym e n t m ig h t w o rk in t h e o p p o site d ire c tio n to ke e p p e o p le in a sta te o f d e p riva tio n . Figure 1: Gross Domestic Product per capita (at constant 1995 South African Rand prices) by Province, 1996 and 2001 30000 GDP per capita at constant (1995) prices A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 25000 20000 15000 10000 5000 0 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Western Cape National 1996 7421 12840 26039 11419 6513 Mpumalanga Northern Cape North West 14097 15316 10896 20887 14087 2001 8065 12786 24645 11395 7526 14156 16528 10097 20992 14307 Source: Census 1996; Census 2001; Statistics South Africa 2003b 5 ho u sin g n e gligib le . The re ha s b e e n little c ha n ge in d we llin g typ e s fro m 1 9 9 6 to 2 0 0 1 . Kwa Z u lu N a ta l ha s a m o re e ve n sp re a d o f d we llin g typ e s a n d ha s e xp e rie n c e d n o ta b le shifts sin c e 1 9 9 6 . Sp e c ific a lly, the in c id e n c e o f ho u se ho ld s re sid in g in fo rm a l d we llin gs in c re a se d b y 6 p e rc e n ta ge p o in ts to 6 1 p e rc e n t in 2 0 0 1 with a c o rre sp o n d in g 4 p e rc e n ta ge p o in t d e c lin e o f tra d itio n a l d we llin gs to 2 8 p e rc e n t a t the e n d o f the p e rio d . In fo rm a l d we llin gs c o m p rise 1 1 p e rc e n t o f the p ro vin c ia l to ta l in b o th 1 9 9 6 a n d 2 0 0 1 . It is in Lim p o p o , ho we ve r, whe re the m o st d ra m a tic re lo c a tio n ha s ta ke n p la c e . In this, the p o o re st p ro vin c e in o u r a n a lysis, the sha re o f ho u se ho ld s in tra d itio n a l stru c tu re s d e c lin e d fro m 3 2 p e rc e n t to 2 0 p e rc e n t with fo rm a l ho u sin g ’ s sha re risin g fro m 6 2 p e rc e n t to 7 7 3 p e rc e n t o ve r the five ye a r p e rio d . G ive n the ru ra l n a tu re o f this p ro vin c e , it is q u ite re m a rka b le tha t the p ro p o rtio n o f fo rm a l d we llin gs c o m p a re s with tha t in G a u te n g a n d is sign ific a n tly highe r tha n Kwa Z u lu -N a ta l. It is e n c o u ra gin g to n o te tha t, a c ro ss the b o a rd , the fa llin g in c id e n c e in tra d itio n a l ho u sin g ha s b e e n c o m p e n sa te d fo r p rim a rily b y a n in c re a se in the in c id e n c e fo r fo rm a l, ra the r tha n in fo rm a l ho u sin g. ASSET AN D SERVI CES D EPRI VATI O N In a sse t-b a se d a p p ro a c he s to p o ve rty a n a lysis, the re a re a se t o f fa irly sta n d a rd in d ic a to rs tha t a re u se d to m e a su re re la tive we llb e in g. The se ra n ge fro m the typ e o f d we llin g in d ivid u a ls re sid e in , a c c e ss to b a sic se rvic e s su c h a s c le a n d rin kin g wa te r, re fu se re m o va l, sa n ita tio n , e n e rgy fo r c o o kin g a n d lightin g, to u tilisa tio n o f a sse ts su c h a s re frige ra to rs, te le p ho n e s a n d ra d io s. In this se c tio n whe re the d a ta is a va ila b le , we c o n sid e r the shifts in m a n y o f the se in d ic a to rs fro m 1 9 9 6 to 2 0 0 1 , a t the n a tio n a l le ve l a n d fo r o u r 3 se le c te d p ro vin c e s. In so m e c a se s, we p ro vid e m o re d e ta il u sin g d e sc rip tive 2 0 0 1 d a ta with the a im o f c re a tin g a b ro a d e r a n d m o re su c c in c t p ic tu re o f livin g c o n d itio n s a t this tim e . D wellings To b e p o o r is to lack she lte r…. H o u sin g is a ke y a sse t fo r the p o o r a n d c a n p ro vid e m o re tha n a p la c e o f she lte r a n d a sp a c e fo r livin g. As a n a sse t, a ho m e is a p o te n tia l so u rc e o f in c o m e (fo r e xa m p le , ro o m s c a n b e re n te d ), c a n se rve a s se c u rity fo r lo a n s a n d a s a 5 p la c e o f wo rk. In d ic a tio n s o f d we llin g q u a lity p ro vid e a d e e p e r in sight in to tho se ho u se ho ld s tha t a re m o st vu ln e ra b le to sho c ks su c h a s a d ve rse we a the r c o n d itio n s. The La b o u r Fo rc e Su rve y, Se p te m b e r 2 0 0 1 , a ske d q u e stio n s o n the sta te o f ho u sin g Figu re 2 sho ws the c ha n ge s tha t ha ve o c c u rre d in the typ e s o f d we llin gs o c c u p ie d b y ho u se ho ld s fo r the thre e se le c te d p ro vin c e s a n d n a tio n a lly. Figure 2: Dwelling Types by Province, 1996 and 2001 It c a n b e se e n tha t a t the n a tio n a l le ve l 6 8 .5 p e rc e n t o f ho u se ho ld s live d in fo rm a l d we llin gs in 2 0 0 1 , u p fro m 6 4 p e rc e n t in 1 9 9 6 . The sha re o f in fo rm a l h o u sin g re m a in e d a lm o st c o n sta n t o ve r th e p e rio d a t th e 6 1 6 p e rc e n t m a rk , with the in c id e n c e o f tra d itio n a l d we llin gs d e c lin in g fro m 1 8 p e rc e n t in 1 9 9 6 to 1 5 p e rc e n t in 2 0 0 1 . 100% 80% 60% 20% 0% 1996 2001 Gauteng 1996 2001 1996 Kw aZulu-Natal 2001 1996 Limpopo 2001 National Other 1.6% 0.3% 1.5% 0.4% 1.4% 0.2% 1.4% 0.3% Traditional 0.7% 1.3% 32.0% 27.9% 31.8% 19.7% 18.2% 14.8% Informal / shack 23.8% 23.9% 11.2% 10.8% 4.9% 6.6% 16.0% 16.4% Formal 73.9% 74.5% 55.3% 61.0% 62.0% 73.4% 64.4% 68.5% Source: Census, 1996; Census, 2001 5 6 7 Moser 1996, p.9 Note: The number of informal dwellings nationally rose from 1,453,013 in 1996 to 1,836,236 in 2001 (Census, 1996; Census, 2001 and author’s own calculations.) The structure of formal homes in Limpopo is such that 71% of these dwellings have walls made of brick with the remainder made of cement blocks or concrete. Eighty six percent of the roofs are constructed of corrugated iron or zinc. These structures are defined as formal according to the materials with which they are built. It should be noted that even though they are more durable than traditional homes, the structures are often simple shells Which will scarcely be found with, for example, a flush or chemical toilet. (Labour Force Survey, 2001 and author's own calculations) A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 40% W he n c o n sid e rin g the p ro vin c e s in m o re d e ta il, it c a n b e se e n tha t fo rm a l ho u sin g d o m in a te s the p ic tu re fo r G a u te n g with a lm o st thre e q u a rte rs o f ho u se ho ld s re sid in g in su c h d we llin gs. The p ro p o rtio n o f in fo rm a l ho u sin g sign ific a n tly e xc e e d s tha t o f o the r p ro vin c e s a t 2 4 p e rc e n t, with tra d itio n a l 6 re p a ir, sp e c ific a lly o n the c o n d itio n o f Figure 3: Percentage of Households Residing in Dwellings in Poor Repair by Province in 2001 d w e llin gs ro o fs a n d w a lls. W e c a lc u la te d a m e a su re o f d we llin g80.0% vu ln e ra b le ho u se ho ld s, c a te go rise d a s tho se ho m e s with we a k o r ve ry 60.0% we a k ro o fs o r wa lls. Figu re 3 sho ws tha t a c c o rd in g to o u r m e a su re , 1 9 p e rc e n t o f ho u se ho ld s in So u th 40.0% Afric a c a n b e c la ssifie d a s b e in g in p o o r r e p a ir a n d t h e r e fo r e a s p a rtic u la rly in se c u re stru c tu re s. As to 20.0% b e e xp e c te d , fo rm a l d we llin gs a re ra re ly in p o o r re p a ir a n d sin c e 0.0% G a u te n g ha s the highe st p ro p o rtio n o f Gauteng KwaZulu-Natal Limpopo National 10.1% 10.5% 15.0% 11.5% Formal fo rm a l d we llin gs, it se e m s re a so n a b le 39.5% 59.2% 50.4% 44.5% Informal to e xp e c t G a u te n g to ha ve b e tte r 56.9% 44.1% 46.9% 36.8% Traditional 16.9% 23.4% 21.7% 19.2% q u a lity d we llin gs. O f n o te is the Mean vulnerable households gre a te r p ro p o rtio n o f Lim p o p o ’ s Source: Labour Force Survey, 2001 fo rm a l d we llin gs tha t a re d we llin gvu ln e ra b le , re fle c tin g d iffe rin g q u a lity An o the r in d ic a to r o f q u a lity o f life within the o f fo rm a l ho u sin g b e twe e n the p ro vin c e s. ho m e is the le ve l o f o ve rc ro wd in g. Figu re 4 Im p o rta n t to o , is tha t in fo rm a l d we llin gs fa ir sho ws the p ro p o rtio n o f ho u se ho ld s with a n wo rse tha n tra d itio n a l d we llin gs, a ltho u gh 8 a ve ra ge o f two o r m o re p e o p le p e r ro o m . b o th typ e s a re re la tive ly highly in se c u re . In fo rm a l d we llin gs a re the m o st d e p rive d , with Kw a Z u lu -N a t a l in fo r m a l h o m e s a r e o f o ve rc ro wd in g b e in g m o st se ve re in the se p a rtic u la rly p o o r q u a lity, with 5 9 p e rc e n t b e in g 9 a b o d e s , t h u s fu r t h e r e m p h a s is in g t h e c la ssifie d a s vu ln e ra b le . vu ln e ra b ility o f the se ho u se ho ld s. Altho u gh G a u te n g p e rfo rm s the b e st a n d Lim p o p o the Eve n with the in c id e n c e o f vu ln e ra b ility lo we st wo rst, the re is little d iffe re n c e in the p ro p o rtio n s a m o n gst fo rm a l d we llin gs, n a tio n a lly c lo se to a c ro ss the se p ro vin c e s. ha lf o f in fo rm a l d we llin gs a n d o ve r a third o f tra d itio n a l d we llin gs c a n b e c la ssifie d a s vu ln e ra b le . This su gge sts tha t while the p ro visio n o f fo rm a l ho u sin g is a ke y p o lic y in te rve n tio n , the re re m a in s the sho rt-te rm su b sid ia ry a im o f im p ro vin g the q u a lity a n d sa fe ty o f e xistin g d we llin gs. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT The a b o ve ha s illu stra te d , within the c o n te xt o f a thre e p ro vin c e o ve rvie w o f d we llin g typ e s, tha t firstly, fo rm a l d we llin gs a re the d o m in a n t fo rm o f ho u sin g n a tio n a lly a n d a c ro ss the thre e p ro vin c e s. Se c o n d ly, it is im p o rta n t to n o te tha t the re ha s b e e n a n in c re a se in the a b so lu te n u m b e rs o f in fo rm a l d we llin gs. Fin a lly, within the a b o ve c o n te xt, the m e a su re o f Figure 4: Percentage Households with 2 or more Household ho u se ho ld d we llin g vu ln e ra b ility re ve a ls Members per Room by Province in 2001 tha t it is in fo rm a l d we llin gs whic h a re 60.0% d isp ro p o rtio n a te ly in d isre p a ir a n d o ve rc ro wd e d , b o th n a tio n a lly a n d a c ro ss the thre e p ro vin c e s. 40.0% W ater 20.0% 0.0% Gauteng KZN Limpopo National formal 15.4% 17.5% 19.9% 16.6% informal 39.7% 37.7% 44.0% 37.8% traditional 22.3% 29.3% 35.3% 31.7% Average 21.3% 23.0% 24.6% 22.4% Source: Census, 2001 N ote: Number of Rooms includes kitchens but exclude bathrooms and toilets 8 9 Ac c e ss to c le a n d rin kin g wa te r a n d s a n it a t io n s e r vic e s p r o vid e s a fu n d a m e n ta l b a sis fo r p ro m o tin g go o d he a lth o f the p o p u la tio n . Figu re 5 sho ws tha t n a tio n a lly, ga in s ha ve b e e n m a d e in wa te r p ro visio n in the in te r-c e n sa l ye a rs with a c c e ss to p ip e d wa te r (in the d we llin g, ya rd o r p u b lic ta p ) in c re a sin g fro m 8 0 p e rc e n t in 1 9 9 6 to 8 4 .5 p e rc e n t People per room is calculated as household size divided by the number of rooms where number of rooms include kitchens, but exclude bathrooms and toilets. Data is not available to control for size of rooms. 7 Figure 5: Main water supply for the household by Province, in 2 0 0 1 . H ighly u rb a n ise d G a u te n g p e rfo rm s e xc e p tio n a lly we ll with 9 7 .5 p e rc e n t o f ho u se ho ld s u tilisin g p ip e d wa te r a s the m a in so u rc e . In te re stin gly, a c c e ss to p ip e d wa te r in Lim p o p o e xc e e d s tha t in Kwa Z u lu -N a ta l. In fa c t, Kwa Z u lu N a ta l re sid e n ts a p p e a r to b e the m o st su sc e p tib le to u sin g p o o r q u a lity wa te r with 1 8 .4 p e rc e n t o f wa te r o b ta in e d fro m rive rs, stre a m s, d a m s o r sp rin gs in 2 0 0 1 . W it h a s ig n ific a n t p r o p o r t io n o f ho u se ho ld s in Kwa Z u lu -N a ta l u sin g su c h p o o r q u a lity wa te r, the like liho o d o f a n o u tb re a k o f wa te r-b o rn e d ise a se s su c h a s c ho le ra , is in c re a se d . 1996 and 2001 100% 80% 60% 40% 20% 0% 1996 2001 1996 Gauteng 2001 Kw aZulu-Natal 1996 2001 1996 Limpopo 2001 National Borehole/ rain w ater tank/ vendor/other 3.9% 2.4% 9.5% 8.4% 13.5% 11.5% 7.8% 6.2% River/stream/dam/spring 0.1% 0.2% 24.3% 18.4% 11.0% 10.5% 12.3% 9.4% Piped w ater (all types) 96.0% 97.5% 66.3% 73.2% 75.5% 78.0% 79.8% 84.5% Altho u gh the b igge st ga in s in a c c e ss to p ip e d wa te r ha ve b e e n m a d e in Kwa Z u lu N a ta l (a 6 p e rc e n ta ge p o in t in c re a se ), the Source: Census, 1996; Census, 2001 m o st d e p rive d p ro vin c e a c c o rd in g to this in d ic a to r, the fa c t tha t o ve r a q u a rte r o f the p ro vin c e ’ s ho u se ho ld s still d o n o t ha ve to sp e n d b e twe e n 1 5 to 4 4 m in u te s to re a c h a c c e ss to p ip e d wa te r is su gge stive o f the the ir wa te r so u rc e with a fu rthe r 8 p e rc e n t o f c ha lle n ge still fa c in g the p ro vin c e . ho u se ho ld s ta kin g 4 5 m in u te s o r m o re to ge t to wa te r. Kwa Z u lu -N a ta l fa irs o n ly m a rgin a lly W he n c o n sid e rin g the tim e ta ke n fo r a ho u se ho ld b e tte r with 1 8 p e rc e n t o f ho u se ho ld s re q u irin g to a c c e ss its p rim e wa te r so u rc e , it b e c o m e s 1 5 to 4 4 m in u te s a n d a n o the r 5 p e rc e n t e vid e n t tha t Lim p o p o is the p o o re st p e rfo rm e r, sp e n d in g m o re tha n 4 5 m in u te s to re a c h the ir fo llo we d b y Kwa Z u lu -N a ta l a n d the n G a u te n g. wa te r so u rc e . This figu re sho ws c le a rly ho w G a u te n g d o m in a te s b o th p ro vin c e s a n d Figu re 6 sho ws the c u m u la tive p ro p o rtio n o f the Kwa Z u lu -N a ta l d o m in a te s Lim p o p o in te rm s o f ho u se ho ld s in e a c h p ro vin c e in te rm s o f the tim e tim e to m a in wa te r so u rc e . Su c h figu re s ta ke n to re a c h the ir m a in wa te r so u rc e . It c a n e m p ha sise the p light o f the p o o r in te rm s o f b e se e n th a t n a tio n a lly 8 5 p e rc e n t o f tim e sp e n t fe tc hin g b a sic e sse n tia ls su c h a s ho u se ho ld s ha ve a c c e ss to wa te r within wa te r, a n d why a c c e ss to c le a n wa te r n e a r the 1 4 m in u te s o f the ir ho m e . Fu rthe rm o re , 9 6 ho m e c a n m a ke a fu n d a m e n ta l d iffe re n c e to p e rc e n t o f ho u se ho ld s a re within a 4 4 m in u te sta n d a rd s o f livin g, a n d the a b ility to p u rsu e p a id p ro xim ity o f the ir m a in wa te r so u rc e . In e c o n o m ic a c tivity. Lim p o p o in 2 0 0 1 , 1 9 p e rc e n t o f ho u se ho ld s ha d Figure 6: Distance to Water in Minutes by Province in 2001 1.20 0.80 0.60 0.40 0.20 0.00 0 1-14 min 15-44 45+ Gauteng 0.95 0.98 1.00 1.00 Kw aZulu-Natal 0.59 0.77 0.95 1.00 Limpopo 0.52 0.73 0.92 1.00 National 0.73 0.85 0.96 1.00 Source: Labour Force Survey, 2001 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 1.00 8 Figure 7: Sanitation for Households by Province, 1996 and 2001 Sanitation Im p r o ve m e n t s in s a n it a t io n h a ve a lso b e e n m a d e with in c re a se s in flu sh o r c he m ic a l to ile ts o f 9 p e rc e n ta ge p o in ts n a tio n a lly. Sim ila r ga in s (o f 4 to 5 p e rc e n ta ge p o in ts) ha ve b e e n m a d e a c r o s s t h e 3 p r o vin c e s u n d e r c o n sid e ra tio n in d ic a tin g th a t o th e r p ro vin c e s m u st h a ve e xp e rie n c e d su p e rio r a d va n c e s. 100% 80% 60% 40% The c o n tra st b e twe e n the p ro vin c e s is sta rk with G a u te n g b o a stin g a n 8 7 p e rc e n t in c id e n c e o f flu sh o r c he m ic a l to ile ts c o m p a re d with Lim p o p o ’ s m e re 1 8 p e rc e n t in 2 0 0 1 . It is in te re stin g to n o te tha t e ve n tho u gh o ve r 7 0 p e rc e n t o f Lim p o p o d we llin gs a re c la ssifie d as ‘ fo rm a l ’ , o n ly 1 8 p e rc e n t o f a ll ho u se ho ld s ha ve a fu n c tio n in g to ile t. The Source: Census, 1996; Census, 2001 high a n d e xc e p tio n a lly high p ro p o rtio n s Energy types o f p it la trin e s in Kwa Z u lu -N a ta l a n d Lim p o p o re sp e c tive ly re fle c t the ru ra l n a tu re o f the se To b e p o o r is to use b asic fo rm s o f e ne rgy …. p ro vin c e s. Fu rthe rm o re , the n o n e o r u n sp e c ifie d c a te go rie s in the se 2 a re a s a re a lso high, Th e c o u n t r y ’ s p o s t -1 9 9 4 e le c t r ific a t io n su gge stin g tha t a p p ro xim a te ly 1 in 8 Kwa Z u lu p ro gra m m e ha s b e e n a n in te n sive , a n d in d e e d N a ta l ho u se ho ld s a n d 1 in 6 Lim p o p o ho u se ho ld s high-p ro file o n e . The d a ta b e lo w, in su m , ha ve n o to ile t fa c ility a t a ll. c o n firm s the tre m e n d o u s su c c e ss a c hie ve d in e n su rin g this im p ro ve d a c c e ss to e le c tric ity fo r lightin g p u rp o se s. N a tio n a lly, while Figure 8: Energy types used for Lighting by Province, 1996 and 2001 5 8 p e rc e n t o f a ll ho u se ho ld s ha d a c c e ss to e le c tric ity fo r lightin g in 1 9 9 6 , within five ye a rs this figu re ha d in c re a se d to 7 0 p e rc e n t. D isc o u n tin g o f c o u rse the c o n stra in ts fa c e d b y ho u se ho ld s in te rm s o f u se r fe e s fo r this fo rm o f e n e rgy, it is c le a r tha t the ga in s fro m the e le c trific a tio n p ro gra m m e ha ve b e e n fa r-re a c hin g. 20% 0% 1996 2001 Gauteng None of the above/ unspec 3.0% 1996 2001 1996 Kw aZulu-Natal 1.4% 15.7% 13.1% 2001 1996 Limpopo 21.7% 2001 National 18.0% 12.9% 9.7% Bucket latrine 2.5% 0.5% 0.9% 0.3% 0.5% 0.1% 4.6% 2.4% Pit latrine 11.6% 9.9% 41.6% 41.0% 64.7% 63.7% 32.2% 28.4% Flush toilet or chemical toilet 82.9% 87.2% 41.7% 45.4% 13.1% 18.0% 50.3% 59.1% 100% 80% 60% 40% A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 20% 0% 1996 2001 1996 Gauteng 2001 1996 2001 Kw aZulu-Natal 1996 2001 Limpopo National Other 1.1% 0.5% 1.4% 1.0% 1.7% 0.9% 1.2% 0.8% Candles 16.9% 15.9% 39.9% 35.0% 37.1% 27.6% 28.5% 22.7% Paraffin 2.5% 2.9% 5.2% 2.6% 24.6% 7.7% 12.6% 6.8% Electricity 79.6% 80.8% 53.5% 61.4% 36.6% 63.8% 57.6% 69.7% Source: Census, 1996; Census, 2001 Eve n w ith G a u te n g ’ s a lre a d y high e le c tric ity u sa ge ra te s in 1 9 9 6 , a t 7 9 p e rc e n t, the re ha s b e e n a m a rgin a l in c re a se o ve r the 5 -ye a r p e rio d , a s 8 1 p e rc e n t o f ho u se ho ld s in 2 0 0 1 re p o rte d a c c e ss to e le c tric ity fo r lightin g. This wa s re fle c te d e sse n tia lly in a o n e p e rc e n ta ge p o in t d ro p in c a n d le u sa ge . Kw a Z u lu -N a ta l a n d Lim p o p o sh o w sign ific a n t shifts. In Kwa Z u lu -N a ta l the re ha s b e e n a n in c re a se o f 8 p e rc e n ta ge p o in ts in ho u se ho ld s u sin g e le c tric ity fo r lightin g while in Lim p o p o whe re ju st o ve r a third o f ho u se ho ld s ha d a c c e ss to e le c tric ity in 1 9 9 6 , 5 ye a rs la te r, ju st u n d e r two -third s o f ho u se ho ld s re p o rte d 9 ha vin g a c c e ss. As a re su lt o f this e le c trific a tio n , the re we re d e c lin e s in p a ra ffin a n d c a n d le s a s a n e n e rgy so u rc e , with the m a jo r shift b e in g fro m p a ra ffin . Cle a rly, fo r the m o re d e p rive d p ro vin c e s a n d fo r the c o u n try a s a who le , the p o sta p a rthe id p e rio d re fle c ts a p ro c e ss o f a ra p id e xp a n sio n in the u se o f e le c tric ity a s the p re fe rre d e n e rgy so u rc e fo r lightin g. Figure 9: Energy Types used for Cooking by Province, 1996 and 2001 100% 80% 60% 40% It is in te re stin g to n o te tha t e n e rgy c ho ic e s fo r c o o kin g a re q u ite d iffe re n t to tho se fo r lightin g. This will la rge ly b e a fu n c tio n o f c o st, a va ila b ility, the e ffe c tive n e ss o f the e n e rgy so u rc e to p e rfo rm the give n ta sk a n d the a sse t re q u ire m e n ts fo r c o o kin g. Figu re 9 sho ws the in c re a se in e le c tric ity u se d fo r c o o kin g n a tio n a lly is a m u c h lo we r 4 p e rc e n ta ge p o in ts fro m 1 9 9 6 to 2 0 0 1 Source: Census, 1996; Census, 2001 c o m p a re d with the rise o f 1 2 p e rc e n ta ge im p a c te d o n b y flu c tu a tio n s in the p ric e o f this p o in ts fo r lightin g. It is a lso a p p a re n t ho w go o d , whic h in tu rn m o ve s with the in te rn a tio n a l im p o rta n t p a ra ffin is a s a n e n e rgy so u rc e fo r o il p ric e . In d e e d , Bho ra t a n d O o sthu iz e n (2 0 0 3 ) c o o kin g in a ll thre e p ro vin c e s a n d ho w sign ific a n t sho we d tha t gre a t c ha n ge s in the p ric e o f wo o d is in the m o re ru ra l a re a s. p a ra ffin fro m 1 9 9 9 to 2 0 0 1 re su lte d in p a ra ffin ra n kin g a s o n e o f the 4 highe st c o n trib u to rs to O n c e a ga in , the p a tte rn in G a u te n g ha s re m a in e d in fla tio n fo r the 4 0 p e rc e n t p o o re st ho u se ho ld s sta b le with p a ra ffin risin g b y 1 p e rc e n ta ge p o in t 10 to b rin g the 2 0 0 1 figu re to 2 1 p e rc e n t. Kwa Z u lu in the c o u n try. This in d ic a te s tha t tho se he a vily N a ta l ha s a lso e xp e rie n c e d o n ly m in o r c ha n ge s re lia n t o n this re so u rc e will b e highly vu ln e ra b le in its e n e rgy u sa ge p a tte rn s with a slight d e c lin e to su c h p ric e s sho c ks. O n c e a ga in , this is in wo o d u se b e in g re p la c e d b y e le c tric ity. Ye t fo re m o st a m o n g st in d ivid u a ls o c c u p yin g a ga in it is in Lim p o p o whe re the gre a te st ga in s in fo rm a l d we llin gs. ha ve b e e n m a d e , a ltho u gh fro m a ve ry lo w b a se . The re ha s b e e n a 5 .5 p e rc e n ta ge p o in t in c re a se Refuse rem oval in e le c tric ity u se d fo r c o o kin g, m o stly re p la c in g wo o d . H o we ve r, in this p ro vin c e wo o d is b y fa r Access to a servi ce such as el ectri ci ty, i n the the p re d o m in a n t e n e rgy so u rc e fo r c o o kin g i ni ti al phase, i s undertaken i n a fai rl y central i sed with u sa ge ra te s o f a lm o st 6 0 p e rc e n t. O n ly o n e fashi on by the rel evant parastatal – i n thi s case q u a rte r o f ho u se ho ld s in the Lim p o p o u se Eskom. H ow ever, i n the case of refuse removal , e le c tric ity fo r c o o kin g. these fal l under the purvi ew of l ocal government authori ti es. Effecti vel y thi s type of servi ce i s The m o re d e p rive d a re he a vily re lia n t o n p a ra ffin hi ghl y decentral i sed maki ng i t harder for a n d wo o d . The c ho ic e b e twe e n the se will b e provi nci al and nati onal government to i ntervene sha p e d b y a va ila b ility a n d p ric e . Fo r e xa m p le , in and shape these acti vi ti es. In addi ti on, the rates 2 0 0 1 6 7 p e rc e n t o f ho u se ho ld s tha t re sid e d of refuse removal may al so be i ntri catel y l i nked in t r a d it io n a l d w e llin g s , w h ic h w e r e to the payment (or non-payment) of property p re d o m in a n tly in ru ra l a re a s, u se d wo o d a s rates w i thi n communi ti es, so i mpacti ng on thi s the ir p rim a ry e n e rgy so u rc e fo r c o o kin g. In parti cul ar servi ce del i very. We report here the c o n tra st, 6 0 p e rc e n t o f ho u se ho ld s o c c u p yin g shi fts that have occurred i n the i nci dence and in fo rm a l ho m e s, whic h we re m a in ly in u rb a n type of refuse removal . a re a s, u se d p a ra ffin a s the ir m a in c o o kin g fu e l. W o o d will b e m o re re a d ily a va ila b le in ru ra l At the n a tio n a l le ve l, the re ha s b e e n a m o d e st a re a s, whe re it is o fte n c o lle c te d b y m e m b e rs o f im p ro ve m e n t in re gu la rise d re fu se re m o va l, with the ho u se ho ld a n d the re fo re “ fre e ” . Pa ra ffin will 5 5 p e rc e n t o f a ll ho u se ho ld s ha vin g re fu se b e m o re re a d ily a va ila b le in u rb a n a re a s a n d re m o ve d b y a lo c a l a u tho rity a t le a st o n c e a “ fre e ” wo o d le ss so . H o u se ho ld s tha t a re he a vily we e k in 2 0 0 1 , u p fro m 5 1 p e rc e n t in 1 9 9 6 . re lia n t o n p a ra ffin , will the re fo re a lso b e he a vily 20% 1996 2001 Gauteng 10 2001 Kw aZulu-Natal 1996 2001 Limpopo 1996 2001 National 4.7% 6.9% 6.8% 5.0% 4.3% 8.6% 6.8% Wood 0.9% 0.7% 29.5% 27.0% 63.2% 59.5% 22.9% 20.5% Paraffin 19.3% 21.4% 17.8% 17.9% 12.3% 11.2% 21.5% 21.4% Electricity 72.9% 73.2% 45.8% 48.3% 19.5% 25.0% 47.1% 51.4% Other (including animal dung, coal and gas) 6.8% 1996 The poor here are defined in terms of household expenditure, and refer to the lowest spending 40% of Households in 1999. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 0% 10 Figure 10: Refuse removal by Province, 1996 and 2001 The backlog though is clear in that just under a third of all households in the society still resort to using their own refuse dump. O f interest is the fact that local authorities ensure either regular waste removal – or almost no removal at all. Hence the share of households reporting waste removal ‘less often ’ by local authorities is negligible across all provinces and at the national level. 100% 80% 60% 40% The re wa s a n e xistin g high le ve l o f wa ste re m o va l in G a u te n g, a n d this ha s in c re a se d m a rgin a lly o ve r the 5 -ye a r p e rio d . Kwa Z u lu N a ta l sho ws the la rge st im p ro ve m e n t in re gu la r re fu se re m o va l risin g fro m 4 2 p e rc e n t in 1 9 9 6 to 4 9 p e rc e n t in 2 0 0 1 . W ithin Lim p o p o , while re fu se re m o va l b y a lo c a l a u tho rity e d ge d u p fro m 1 2 p e rc e n t to 1 5 p e rc e n t o f a ll ho u se ho ld s, tho se u sin g Source: Census, 1996; Census, 2001 the ir o wn re fu se d u m p n o t o n ly re m a in s the G a u te n g (6 6 p e rc e n t). Fu rthe rm o re , 6 2 p e rc e n t d o m in a n t fo rm o f wa ste re m o va l, b u t ha s a lso o f ho u se ho ld s in G a u te n g ha ve a re frige ra to r, in c re a se d sin c e 1 9 9 6 . Cle a rly the n , the in c re a se whilst o n ly 3 9 p e rc e n t o f ho u se ho ld s in Lim p o p o in the n u m b e r o f ho u se ho ld s o ve r this p e rio d ha s ha ve a re frige ra to r. The n a tio n a l a ve ra ge fo r m e a n t tha t while lo c a l a u tho ritie s ha ve b e e n re frige ra to r u tilisa tio n sits a t 5 2 p e rc e n t in 2 0 0 1 , re sp o n d in g, the re sp o n se ra te ha s n o t b e e n a figu re whic h se e m s p a rtic u la rly lo w whe n a d e q u a te , a s illu stra te d b y the gro wth in o wn c o n sid e rin g su c h a fu n d a m e n ta l b a sic a sse t. re fu se d u m p ra te s. This re fle c ts the e xte n t o f d e p riva tio n c o u n trywid e . Po sse ssio n o f su c h a sse ts is c lo se ly lin ke d Private G oods to a c c e ss to e le c tric ity. The gra p h fo r te le p ho n e a n d c e ll p ho n e a c c e ss is e xtre m e ly in te re stin g In d ivid u a l o wn e rship o f a n d ho u se ho ld a c c e ss to with the e xc e p tio n a lly high u p ta ke ra te s o f a n u m b e r o f b a sic go o d s a re a lso in d ic a to rs o f the c e ll p ho n e p la in ly a p p a re n t. In e ve ry va ria tio n s in livin g sta n d a rd s. Figu re 1 1 sho ws p ro vin c e , ho u se ho ld a c c e ss to a c e ll p ho n e ra te s o f a c c e ss to o r o wn e rship o f a ra n ge o f e xc e e d s tha t o f a c c e ss to a la n d lin e . In the go o d s b y p ro vin c e fo r 2 0 0 1 . e xtre m e is Lim p o p o , with o n ly 8 p e rc e n t o f ho u se ho ld s ha vin g a te le p ho n e in the d we llin g, W e se e tha t in 2 0 0 1 m o st ho u se ho ld s ha ve a t b u t 2 5 p e rc e n t ha vin g a c e llu la r te le p ho n e . le a st a ra d io a n d tha t te le visio n u sa ge to o is Ac c e ss to p e rso n a l m o to rise d tra n sp o rt is lo w wid e sp re a d , with a c c e ss p a rtic u la rly e xte n sive in in a ll p ro vin c e s, with o n ly 3 0 p e rc e n t o f ho u se ho ld s in G a u te n g ha vin g p o sse ssio n Figure 11: O wnership of selected Private Goods by Province in 2001 o f a ve hic le su c h a s a c a r, b a kkie o r va n . In Lim p o p o this n u m b e r is ha lve d . Fin a lly, we c o n sid e r c o m p u te rs. A c o m p u te r in the ho m e is a n im p o rta n t in d ic a to r o f fu tu re o p p o rtu n itie s in the wo rkp la c e . The se ra te s a re lo w a c ro ss the p ro vin c e s with 1 5 p e rc e n t o f ho u se ho ld s in G a u te n g a n d a m e re 2 p e rc e n t o f ho u se ho ld s in Lim p o p o , ha vin g a c o m p u te r. 20% 0% 1996 2001 Gauteng A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 1996 2001 Limpopo 1996 2001 National 2.6% 2.6% 11.5% 10.4% 17.6% 15.8% 9.7% 8.7% Ow n refuse dump 7.4% 8.7% 41.4% 38.6% 67.2% 68.2% 32.7% 32.6% Communal refuse dump 3.3% 2.3% 2.9% 0.8% 3.0% 1.0% 3.2% 1.7% Removed by local authority less often 3.8% 2.2% 1.2% 1.0% 0.8% 0.7% 2.3% 1.5% Removed by local authority at least once a w eek 82.9% 84.2% 42.9% 49.2% 11.4% 14.2% 52.2% 55.4% 80.0% 60.0% 40.0% 20.0% Radio Refrigerator Telephone in dw elling Cell Phones Television Computer Gauteng 77.4% 62.1% 32.4% 45.1% 65.7% 15.1% 30.0% Kw aZulu-Natal 73.0% 46.9% 24.1% 28.5% 47.3% 7.1% 20.0% Limpopo 69.7% 38.9% 7.7% 24.9% 39.8% 2.2% 15.1% Source: Census, 2001; Labour Force Survey, September 2001 2001 Kw aZulu-Natal No rubbish disposal 100.0% 0.0% 1996 vehicle(car, bakkie or van) 11 e d u c a tio n a n d the re fo re b e tte r p ro sp e c ts o f fin d in g wo rk b e in g the o n e s m o re like ly to m igra te . Lim p o p o p e rfo rm s p a rtic u la rly p o o rly w ith a p p ro xim a te ly 3 3 .4 p e rc e n t o f its p o p u la tio n witho u t a n y fo rm o f fo rm a l e d u c a tio n a n d o n ly 1 4 p e rc e n t with c o m p le te d se c o n d a ry e d u c a tio n in 2 0 0 1 . Fu rthe rm o re , the re ha s b e e n ve ry little im p ro ve m e n t in the se figu re s o ve r the in te r-c e n sa l p e rio d , with the o n ly ga in s re fle c te d in a le ss tha n 2 p e rc e n ta ge p o in t in c re a se in the a tta in m e n t o f a te rtia ry q u a lific a tio n . Kwa Z u lu -N a ta l ha s e xp e rie n c e d slightly b e tte r im p ro ve m e n ts in G ra d e 1 2 c o m p le tio n b u t a sim ila rly lo w in c re a se in a tta in m e n t o f highe r e d u c a tio n q u a lific a tio n s. ECO N O M I C ACTI VI TY, ED U CATI O N PRESEN T AN D FU TU RE O PPO RTU N I TI ES to b e p o o r is to b e illite rate and no t scho o le d And to lack ad e q uate ly p aid and se cure jo b s H a vin g a d e c e n t q u a lity e d u c a tio n a n d a c c e ss to a n a d e q u a te ly p a id a n d se c u re jo b a re wa ys tha t e n su re p e o p le ha ve su ffic ie n t c o m m a n d o ve r re so u rc e s to m a in ta in so m e so c ia lly a c c e p ta b le sta n d a rd o f livin g. The y d e te rm in e c u rre n t in c o m e e a rn in g a n d sa vin gs p o te n tia l a n d sha p e fu tu re o p p o rtu n itie s fo r the in d ivid u a l a n d tho se who m the in d ivid u a l su p p o rts. A ro b u st re la tio n sh ip b e tw e e n e d u c a tio n a l o u tc o m e s a n d p o ve rty is ge n e ra lly fo u n d , a s tho se with little o r n o e d u c a tio n a re the wo rst o ff a n d tho se with the highe st le ve l e d u c a tio n ha ve a c c e ss to the b e st p a yin g jo b s with the gre a te st b e n e fits. N a tio n a lly, the re wa s a 1 .4 p e rc e n t d e c lin e in the p ro p o rtio n o f in d ivid u a ls with n o sc ho o lin g fro m 1 9 9 6 to 2 0 0 1 . This im p ro ve m e n t wa s e sp e c ia lly sign ific a n t fo r p e rso n s in the 2 0 to 3 0 ye a r a ge gro u p , whic h sa w a re d u c tio n o f 6 .5 p e rc e n t in the p ro p o rtio n o f in d ivid u a ls 11 witho u t a n y fo rm a l sc ho o lin g. Fu rthe rm o re , fo r Lim p o p o the p ro p o rtio n o f in d ivid u a ls in the 2 0 to 3 0 ye a r a ge gro u p with n o sc ho o lin g d ro p p e d fro m 3 2 .4 p e rc e n t in 1 9 9 6 to 1 9 .6 p e rc e n t in 2 0 0 1 , in d ic a tin g a c o m b in a tio n o f im p ro ve d e n ro lm e n t a n d gra d e p ro gre ssio n ra te s a m o n gst the yo u th. H o we ve r, it is im p o rta n t to b e a r in m in d tha t the se figu re s d o n o t re fle c t d iffe re n c e s o r im p ro ve m e n ts in the q u a lity o f sc ho o lin g, whic h is a ke y c o n c e rn . Educational Attainm ent Sin c e 1 9 9 6 , th e re h a s b e e n a m a rke d im p ro ve m e n t in e d u c a t io n a l a t t a in m e n t thro u gho u t So u th Afric a , with a d istin c t d e c re a se in the p ro p o rtio n o f in d ivid u a ls with n o sc ho o lin g a n d a sign ific a n t in c re a se in the p ro p o rtio n o f in d ivid u a ls with G ra d e 1 2 o r highe r e d u c a tio n . This is c le a rly e vid e n t in Figu re 1 2 whic h c o m p a re s the le ve l o f Figure 12: Educational Attainment of Population over 20 Years O ld e d u c a tio n a l a tta in m e n t in 1 9 9 6 to tha t by Province, 1996 and 2001 in 2 0 0 1 . 100% 11 Source: Census, 1996; Census, 2001 80% 60% 40% 20% 0% 1996 2001 Gauteng 1996 2001 1996 Kw aZulu-Natal 2001 1996 Limpopo 2001 National Higher 8.4% 12.6% 4.8% 6.9% 4.5% 6.8% 6.2% 8.4% Std 10/Grade 12 23.6% 28.0% 15.9% 19.8% 14.0% 14.0% 16.4% 20.4% Some secondary 40.2% 34.3% 31.8% 28.8% 26.6% 26.1% 33.9% 30.8% Complete primary 6.7% 5.5% 6.7% 5.7% 5.9% 5.5% 7.5% 6.4% Some primary 11.7% 11.2% 17.9% 16.9% 12.1% 14.1% 16.7% 16.0% No schooling 9.5% 8.4% 22.9% 21.9% 36.9% 33.4% 19.3% 17.9% Source: Census, 1996; Census, 2001 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT It c a n b e se e n tha t G a u te n g c le a rly o u tp e rfo rm s the c o m p a ra to r p ro vin c e s with n o t o n ly the highe st p ro p o rtio n o f in d ivid u a ls with a G ra d e 1 2 o r highe r e d u c a tio n q u a lific a tio n in 2 0 0 1 (so m e 2 8 p e rc e n t a n d 1 2 .6 p e rc e n t re sp e c tive ly), b u t it ha s a lso se e n the gre a te st in c re a se s in the a tta in m e n ts o f the se highe r le ve ls o f e d u c a tio n with in c re a se s o f a p p ro xim a te ly 4 p e rc e n ta ge p o in ts fo r e a c h sin c e 1 9 9 6 . The se su p e rio r p e rfo rm a n c e ra te s c o u ld b e in d ic a tive o f b e tte r e d u c a tio n p ro visio n in G a u te n g, b u t c o u ld a lso b e lin ke d to the in te r-p ro vin c ia l m igra tio n p re vio u sly m e n tio n e d , with tho se with highe r 12 Industry of Employment The re is a c lo se lin k b e twe e n e d u c a tio n a l a tta in m e n t, the typ e o f wo rk a n in d ivid u a l is e n ga ge d in a n d the a sso c ia te d e a rn in gs p o te n tia l. Figu re 1 3 illu stra te s the sha re o f in d ivid u a ls in e m p lo ym e n t b y in d u stry typ e fo r the thre e p ro vin c e s a n d the c o u n try a s a who le fo r 2 0 0 1 . It c a n b e se e n tha t the re la tive im p o rta n c e o f d iffe re n t in d u strie s a s p ro vid e rs o f e m p lo ym e n t d iffe rs su b sta n tia lly a c ro ss the p ro vin c e s, re fle c tin g to so m e e xte n t the d iffe re n c e s in the ru ra l-u rb a n n a tu re o f the se re gio n s a n d the d iffe rin g G D P le ve ls. The to ta l n u m b e r o f e m p lo ye d a t the n a tio n a l le ve l in 2 0 0 1 wa s e stim a te d a t a p p ro xim a te ly e le ve n m illio n . G a u te n g a c c o u n ts fo r a b o u t 2 5 p e rc e n t (a p p ro xim a te ly 2 ,8 m illio n ) o f to ta l e m p lo ym e n t, whilst Kwa Z u lu -N a ta l a c c o u n ts fo r 1 8 p e rc e n t (a p p ro xim a te ly 2 m illio n ) a n d Lim p o p o a m e re 8 p e rc e n t (a p p ro xim a te ly 8 7 0 0 0 0 ) o f the e m p lo ye d . N a tio n a lly, it is e vid e n t tha t the W ho le sale and Re tail Trad e se c to r is the m a in p ro vid e r o f e m p lo ym e n t with 2 2 p e rc e n t o f the e m p lo ye d fo u n d in this se c to r. Co m m unity, So cial and Pe rso nal Se rvice s a n d Manufacturing fo llo w in im p o rta n c e a c c o u n tin g fo r 1 8 p e rc e n t a n d 1 5 p e rc e n t o f n a tio n a l e m p lo ym e n t re sp e c tive ly. This p a tte rn o f the 3 d o m in a n t se c to rs ho ld s fo r G a u te n g whic h is a lso c ha ra c te rise d b y a re la tive ly high sha re o f e m p lo ye d fo u n d in Finance and Busine ss Se rvice s a n d m in im a l in vo lve m e n t in Agriculture (in c lu d in g hu n tin g, fo re stry a n d fishin g) c o m p a re d with Kwa Z u lu N a ta l a n d Lim p o p o . The im p o rta n c e o f the Finance and Busine ss Se rvice s se c to r in G a u te n g is highlighte d b y the in c re a se in its sha re o f 12 e m p lo ym e n t fro m 1 0 .1 p e rc e n t in 1 9 9 7 to 1 5 .5 p e rc e n t in 2 0 0 1 . In Kwa Z u lu -N a ta l a n d Lim p o p o , W ho le sale and Re tail Trad e a lso sta n d s a s the la rge st e m p lo ye r b u t in Kwa Z u lu -N a ta l, Manufacturing o u twe ighs Co m m unity, So cial and Pe rso nal Se rvice s in im p o rta n c e . Manufacturing a c c o u n ts fo r o n ly 8 p e rc e n t o f e m p lo ym e n t in Lim p o p o , a p ro vin c e in whic h Agriculture fe a t u re s a s t h e t h ird la rg e st e m p lo ye r a n d c o m p rise s 1 6 p e rc e n t o f p ro vin c ia l e m p lo ym e n t. In a d d itio n , it is im p o rta n t to n o te tha t the sha re o f e m p lo ye d in the Se rvice s se c t o r (c o m m u n it y, so c ia l a n d p e rso n a l se rvic e s) is c o n sid e ra b ly la rge r in Lim p o p o tha n in G a u te n g o r Kwa Z u lu -N a ta l. The Se rvice s se c to r typ ic a lly c o m p rise s o f go ve rn m e n t e m p lo ye e s su c h a s te a c he rs, a n d he n c e we c a n d e d u c e tha t go ve rn m e n t is a n im p o rta n t so u rc e o f e m p lo ym e n t fo r in d ivid u a ls in Lim p o p o . Mo re o ve r, e ve n tho u gh W ho le sale and Re tail Trad e is the p re d o m in a n t e m p lo ye r in the Lim p o p o , the q u a lity o f e m p lo ym e n t in t h is s e c t o r d iffe r s s ig n ific a n t ly Figure 13: Industry of Employment by Province in 2001 100% Private households Community, social and personal services 80% Financial ni termediation, ni surance, real estate and business services Transport, storage and communication 60% A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT Wholesale and retail tr ade Construction 40% Electricity, gas and water supply M anufacturing 20% M ining and Quarrying 0% Gauteng KwaZulu-Natal Source: Labour Force Survey 2001 12 Statistics South Africa 1997 Limpopo National Agriculture, hunting, fo restry and fishing 13 Table 3: Skills Levels of the Employed by Province in 2001 Gauteng KwaZulu-Natal Limpopo National Highly skilled 26.3% 23.1% 18.8% 21.1% Skilled 51.4% 49.5% 45.9% 50.8% Unskilled 22.0% 27.4% 35.1% 27.9% Skill Level Source: Labour Force Survey 2001 b y p ro vin c e . In G a u te n g, fo r e xa m p le , 6 5 .6 p e rc e n t o f W ho le sa le a n d Re ta il e m p lo ym e n t is fo u n d in the fo rm a l se c to r whe re a s in Lim p o p o this figu re is 3 6 .1 p e rc e n t thu s in d ic a tin g tha t a lm o st two third s o f jo b s in W ho le sa le a n d Re ta il in Lim p o p o a re in fo rm a l a n d will, in m a n y c a se s, 13 b e highly in se c u re . The skills p ro file o f the e m p lo ye d b y p ro vin c e give s fu rthe r in d ic a tio n o f va ria tio n s in e a rn in gs p o te n tia l fo r tho se tha t d o ha ve wo rk. Ta b le 3 sho ws u n su rp risin gly tha t it is G a u te n g tha t ha s the gre a te st p ro p o rtio n o f its wo rke rs c la ssifie d a s highly skille d a n d Lim p o p o the le a st, with the o p p o site p a tte rn ho ld in g fo r u n skille d wo rke rs. The skills p ro file o f the p ro vin c e s, a n d the c o u n try a s a who le , is e xc e e d in gly im p o rta n t whe n c o n sid e rin g fu tu re e m p lo ym e n t o p p o rtu n itie s a n d tha t So u th Afric a ’ s gro wth t r a je c t o r y h a s b e e n c h a r a c t e r is e d b y e m p lo ym e n t gro wth in fa vo u r o f the m o re highly 14 skille d sin c e the 1 9 7 0 s. Fro m this sta n c e , G a u te n g is c le a rly the b e st o ff. H o we ve r, the m a tc h b e twe e n skills a c q u ire d b y in d ivid u a ls a n d the skills re q u ire d in the m a rke t c a n n o t b e ign o re d with ge n e ra l u p skillin g o n ly tra n sla tin g in to jo b s if the skills a re tho se the m a rke t d e m a n d s. Earnings from Em ploym ent Fro m this d isc u ssio n o n e m p lo ym e n t p a tte rn s, it c a n b e in fe rre d tha t G a u te n g, w ith its su b sta n tia lly la rge r p ro p o rtio n o f wo rke rs in Finance and Busine ss Se rvice s a n d with the highe st p ro p o rtio n o f wo rke rs c la ssifie d a s skille d , a n d lo we st sha re d e sc rib e d a s u n skille d , will b e the re gio n whe re the highe st a ve ra ge in c o m e s a re e a rn e d . This is in d e e d the p ic tu re tha t p re va ils, a s is e vid e n t in Figu re 1 4 . Figu re 1 4 illu stra te s the c u m u la tive d istrib u tio n o f in c o m e fro m e m p lo ym e n t fo r the thre e p ro vin c e s u n d e r c o n sid e ra tio n a n d the c o u n try Figure 14: Cumulative distribution of Monthly Income from Employment by Province in 2001 120.0 100.0 60.0 40.0 20.0 0.0 None R 1 - R 400 14 R 801 - R 1600 R 1601 - R 3200 R 3201 - R 6400 R 6401 - R 12800 R 12801 - R 25600 R 25601 or more Gauteng 2.0 8.4 21.4 45.5 65.9 81.7 92.1 97.1 100.0 Kw aZulu-Natal 2.7 17.6 35.8 56.9 75.9 89.9 96.6 98.9 100.0 Limpopo 2.4 29.9 49.5 65.3 81.4 94.0 98.3 99.3 100.0 National 2.2 16.0 33.0 55.0 74.0 87.9 95.4 98.4 100.0 Source: Census, 2001 13 R 401 - R 800 Statistics South Africa 2001, Labour Force Survey 2001 Bhorat, H. & Hodge, J. 1999 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 80.0 14 a s a who le . It re fle c ts the p ro p o rtio n o f the e m p lo ye d e a rn in g b e lo w o r e q u a l to the u p p e r b o u n d o f e a c h re c o rd e d in c o m e c a te go ry. It su gge sts tha t a t e a c h a n d e ve ry in c o m e c a te go ry, b a rrin g p e rha p s the ve ry sm a ll p ro p o rtio n o f the sa m p le a t the highe st in c o m e c a te go rie s, the sha re o f e m p lo ye d e a rn in g b e lo w a n y give n in c o m e c a te go ry is a lwa ys la rge r in Lim p o p o tha n fo r Kwa Z u lu -N a ta l a n d a lwa ys la rge r in Kwa Z u lu -N a ta l tha n in G a u te n g. wha te ve r lo w e a rn in gs lin e c ho se n , the p ro p o rtio n o f Lim p o p o wo rke rs d e fin e d a s p o o r will a lwa ys e xc e e d tho se in Kwa Z u lu -N a ta l whic h will in tu rn a lwa ys e xc e e d tho se in G a u te n g. The d a ta re fle c t the sta rk d iffe re n c e s in q u a lity o f e m p lo ym e n t, in ho w the la b o u r m a rke t is re m u n e ra tin g its p a rtic ip a n ts a n d in the re la tive vu ln e ra b ility a m o n gst the e m p lo ye d a c ro ss the p ro vin c e s. U nem ploym ent Fo r e xa m p le , the p ro p o rtio n o f the e m p lo ye d e a rn in g R4 0 0 o r le ss p e r m o n th within G a u te n g is a b o u t 8 .4 p e rc e n t, whe re a s 1 7 .6 p e rc e n t o f e m p lo ye d in d ivid u a ls in Kwa Z u lu -N a ta l, 1 6 p e rc e n t o f e m p lo ye d in d ivid u a ls n a tio n a lly, a n d 3 0 p e rc e n t o f e m p lo ye d in d ivid u a ls in Lim p o p o e a rn le ss tha n R4 0 0 a m o n th. Fu rthe rm o re , the sha re o f the e m p lo ye d e a rn in g b e lo w R3 2 0 0 p e r m o n th in G a u te n g sta n d s a t 6 6 p e rc e n t, while this figu re is 7 4 p e rc e n t n a tio n a lly, 7 6 p e rc e n t in Kwa Z u lu -N a ta l a n d ju st o ve r 8 0 p e rc e n t fo r the Lim p o p o . This e vid e n c e in d ic a te s tha t the p ro p o rtio n o f the wo rkin g p o o r within Lim p o p o (d e p e n d in g o n the lo w e a rn in gs lin e ) is a s m u c h a s twic e the sha re fo u n d in G a u te n g. Fu rthe rm o re , ho we ve r the “ wo rkin g p o o r ” a re d e fin e d , tha t is, fo r To b e p o o r is to lack ad e q uate ly p aid and se cure jo b s N o t o n ly d o tho se in Lim p o p o e a rn , o n a ve ra ge , su b sta n tia lly le ss tha n tho se in b o th Kwa Z u lu N a ta l a n d G a u te n g, b u t the e c o n o m ic a lly a c tive a re a lso m o re vu ln e ra b le give n m o re se ve re lim ita tio n s o n e m p lo ym e n t p ro b a b ilitie s in this p ro vin c e . This a sse rtio n is su p p o rte d b y Figu re 1 5 whic h sho ws the n u m b e r o f u n e m p lo ye d fo r o u r se le c te d p ro vin c e s a n d n a t io n a lly, a s w e ll a s t h e a s s o c ia t e d u n e m p lo ym e n t ra te s. The u n e m p lo ym e n t d a ta u se d he re re fe rs to the e xp a n d e d o r b ro a d ly d e fin e d u n e m p lo ye d , who a re tho se willin g 15 a n d a b le to wo rk, b u t d o n o t ha ve a jo b . Figure 15: Expanded Unemployed and Unemployment Rates by Province, 1997 and 2001 9000000 60.0% 8000000 50.0% 7000000 6000000 40.0% 5000000 30.0% 4000000 3000000 20.0% 2000000 10.0% A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT 1000000 0.0% 0 Gauteng KwaZuluNatal Limpopo National Unemployment Rate - 1997 31.2% 42.9% 46.4% 36.2% Unemployment Rate - 2001 34.1% 46.0% 54.5% 41.2% Unemployment - 1997 1157460 1216342 535374 5215542 Unemployment - 2001 1446700 1681329 1037035 7727343 Source: O ctober Household Survey 1997; Labour Force Survey 2001 15 Statistics South Africa (1998) uses the following definition of unemployment as its official definition. The unemployed are those people within the economically active population who (a) did not work during the seven days prior to the interview, (b) want to work and are available to start work Within a week of the interview, and (c) have taken active steps to look for work or to start some form of self-employment in the four weeks prior to the interview. The expanded unemployment rate excludes criterion (c). Among those included in the expanded but not the official definition of Unemployment will be discouraged job seekers (those who said they were unemployed but had not taken active steps to find work in the four weeks prior to the interview). In the face of severe constraints to employment opportunities, the expanded definition of unemployment is adopted in this report to capture the depth and severity of the unemployment problem. 15 N a tio n a lly, the figu re s a re c a u se fo r gre a t c o n c e rn with the a lre a d y e xtre m e ly high u n e m p lo ym e n t ra te o f 3 6 p e rc e n t in 1 9 9 7 risin g to 4 1 p e rc e n t in 2 0 0 1 . Eve n in the p ro vin c e with the highe st G D P p e r c a p ita , the u n e m p lo ym e n t ra te ha s in c re a se d fro m 3 1 p e rc e n t to 3 4 p e rc e n t o ve r the 4 ye a r p e rio d . O n c e a ga in , it is like ly to b e in -m igra tio n o f tho se se e kin g e m p lo ym e n t o p p o rtu n itie s t h a t h a s r e s u lt e d in t h is in c r e a s e . Kw a Z u lu -N a t a l h a s s ig n ific a n t ly w o r s e u n e m p lo ym e n t ra te s tha n G a u te n g a n d ha s se e n a sim ila r rise fro m 4 3 p e rc e n t to 4 6 p e rc e n t. In fa c t, in a b so lu te te rm s, it is Kwa Z u lu -N a ta l tha t fa irs the wo rst in tha t the highe st n u m b e r o f u n e m p lo ye d a re fo u n d in th is p ro vin c e , re la tive to G a u te n g a n d Lim p o p o . Lim p o p o d o e s n o t o n ly su ffe r fro m e xc e e d in gly p o o r e m p lo ym e n t p ro sp e c ts b u t the situ a tio n ha s wo rse n e d su b sta n tia lly in ju st 4 ye a rs, with a n in c re a se in the ra te o f u n e m p lo ym e n t fro m 4 6 p e rc e n t to 5 4 p e rc e n t. W he re a s fo r m a n y o f the o the r in d ic a to rs o f p o ve rty e ve n tho u gh Lim p o p o is re la tive ly the wo rst o ff, it ha s in the m a jo rity o f c a se s e xp e rie n c e d the gre a te st ga in s, in te rm s o f u n e m p lo ym e n t this p a tte rn is re ve rse d . This is o f d e e p c o n c e rn whe n c o n sid e rin g the e xte n t to whic h gro win g jo b le ssn e ss c a n c o n trib u te to the e n tre n c hm e n t o f ho u se ho ld p o ve rty. N a t io n a lly, 2 7 p e rc e n t o f h o u s e h o ld s re sp o n d e d t h a t t h e y so m e t im e s h a d p ro b le m s sa tisfyin g the ir fo o d n e e d s in the la st 1 2 m o n ths, with a fu rthe r 1 2 p e rc e n t in d ic a t in g t h a t t h e y o ft e n o r a lw a ys e xp e rie n c e d p ro b le m s. This a m o u n ts to 3 9 p e rc e n t o f h o u se h o ld s in th e c o u n try, a c c o u n tin g fo r 4 6 p e rc e n t o f the p o p u la tio n , b e in g in a situ a tio n whe re the y c o u ld n o t sa tisfy the ir d ie ta ry re q u ire m e n ts. Figure 16: “In the past 12 months, how often, if ever, did this household have problems satisfying its food needs?” Food Security - Gauteng 4% 5% 20% 61% Food Security - KwaZulu-Natal 10% 4% 8% never seldom sometimes often always 25% 52% U nem ploym ent and the ability to satisfy household food needs 11% never seldom sometimes often always Food Security - Limpopo To b e p o o r is to b e unab le to sufficie ntly fe e d yo ur fam ily 8% 7% 43% 37% Food Security - National 5% 5% 7% never seldom sometimes often always 51% 27% 10% never seldom sometimes Source: Labour Force Survey 2001 (Author’s own calculations) 16 often Note: While such a question is highly subjective, it does provide a proxy indicator for the degree of household food security. always A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT The d isc u ssio n a n d d a ta o n u n e m p lo ym e n t in So u th Afric a highlights the va st n u m b e rs o f the e c o n o m ic a lly a c tive p o p u la tio n who a re u n a b le to fin d p a id wo rk. Cle a rly, in c o m e p o ve rty will b e se ve re fo r m a n y ho u se ho ld s to whic h the u n e m p lo ye d a re a tta c he d . The c o n se q u e n c e s o f su c h high u n e m p lo ym e n t ra te s a re im m e d ia te ly c le a r whe n c o n sid e rin g fo o d se c u rity. A q u e stio n in the La b o u r Fo rc e Su rve y, Se p te m b e r 2 0 0 1 give s u s so m e in sight in to whe the r ho u se ho ld s c a n sa tisfy the ir fo o d re q u ire m e n ts. Re sp o n d e n ts we re a ske d to a n swe r the fo llo win g q u e stio n : In the p a st 1 2 m o n ths, ho w o fte n , if e ve r, d id this ho u se ho ld ha ve p ro b le m s sa tisfyin g its 16 fo o d n e e d s? The d a ta in Figu re 1 6 , b y p ro vin c e , m a tc h e xc e p tio n a lly c lo se ly to the u n e m p lo ym e n t d a ta in Figu re 1 5 . 16 The d iffe re n c e s b y p ro vin c e a re o n c e a ga in sta rk with G a u te n g b y fa r the b e st o ff a n d Lim p o p o e xc e p tio n a lly vu ln e ra b le with 3 7 p e rc e n t o f ho u se ho ld s so m e tim e s ha vin g p ro b le m s a n d a n a d d itio n a l 1 5 p e rc e n t o fte n o r a lwa ys b e in g u n a b le to m e e t the ir fo o d n e e d s. Figure 17: Household Formation by Number of Unemployed and by Province in 2001 100% 80% 60% 40% Up o n c lo se r a n a lysis o f the d a ta , it wa s re ve a le d tha t 5 3 p e rc e n t o f ho u se ho ld s tha t ha ve a t le a st o n e u n e m p lo ye d p e rso n fa ll in to the so m e tim e s, o fte n o r a lwa ys c a te go ry. Fu rthe rm o re , tho se ho u se ho ld s tha t a re fo o d in se c u re b u t d o ha ve sa la rie s/ wa ge s a s the p rim a ry in c o m e so u rc e , a re fo r the m o st p a rt ho m e to e a rn e rs tha t a re p re d o m in a n tly in lo we r e n d jo b s a n d / o r in the in fo rm a l 17 se c to r. Su c h d e sc rip tive a n a lysis fu rthe r Source: Labour Force Survey 2001 and authors’ own calculations e m p ha sise s ho w la b o u r m a rke t vu ln e ra b ility tra n sla te s in to ho u se ho ld vu ln e ra b ility, m o ve to ho u se ho ld s in whic h the re a re m e a su re d in this sp e c ific c a se b y a p ro xy fo r p e n sio n / gra n t re c ip ie n ts, with u n e m p lo ym e n t the d e gre e o f ho u se ho ld fo o d se c u rity. sta tu s the n a ffe c tin g ho u se ho ld fo rm a tio n . 20% 0% A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT U nem ploym ent, Sources of I ncom e and H ousehold Form ation The c o n se q u e n c e s o f u n e m p lo ym e n t re a c h b e yo n d b a sic n e e d s a n d sta rt to im p a c t o n fa c to rs su c h a s ho u se ho ld fo rm a tio n a s we ll. If o n e is u n e m p lo ye d , o n e will n e e d to re ly o n o the rs in o rd e r to su rvive . It wo u ld the re fo re b e e xp e c te d tha t the u n e m p lo ye d wo u ld a tta c h the m se lve s to ho u se ho ld s with re gu la r in c o m e e a rn e rs. In So u th Afric a two c ritic a l so u rc e s o f in c o m e , o the r tha n wa ge s a n d sa la rie s, a re p e n sio n s a n d re m itta n c e s. Figu re 1 7 sho ws the ho u se ho ld b y the m a in in c o m e so u rc e o f the ho u se ho ld a n d the n u m b e r o f u n e m p lo ye d p e r ho u se ho ld . It c a n b e se e n tha t n a tio n a lly, sa la rie s a n d wa ge s a re the p rim a ry in c o m e so u rc e fo r 6 0 p e rc e n t o f ho u se ho ld s, fo llo we d b y p e n sio n s a n d gra n ts tha t a re the m a in so u rc e fo r a fu rthe r 1 8 p e rc e n t. Re m itta n c e s a re a lso sign ific a n t a t 1 4 p e rc e n t. As the m a jo rity o f the p e n sio n s a n d gra n ts c o m p rise o ld a ge p e n sio n s (a n d in c re a sin gly the c hild su p p o rt gra n t), a p ic tu re e m e rge s o f high n u m b e rs o f u n e m p lo ye d within a ho u se ho ld b e in g d e p e n d e n t o n tho se who re c e ive o ld a ge p e n sio n s. It is like ly tha t the u n e m p lo ye d in fa c t 17 Statistics South Africa 2001, Labour Force Survey 2001 Gauteng Kw aZulu-Natal Limpopo 0 1 2 3 4+ Total ave by province no income 0.9% 3.9% 6.2% 4.7% 5.4% 2.5% 4.0% 1.0% 1.7% other non-f arm income 4.7% 4.5% 4.5% 3.9% 5.7% 4.6% 3.3% 5.7% 5.0% Sales of f arm products 1.1% 0.8% 0.5% 1.3% 1.1% 1.0% 0.5% 0.9% 2.5% Pensions and grants 15.3% 17.2% 25.6% 30.8% 35.7% 17.8% 10.3% 19.0% 26.7% Remittances 8.6% 20.6% 24.0% 18.5% 17.3% 13.8% 7.4% 17.1% 25.3% Salaries/ w ages 69.2% 52.8% 39.0% 40.7% 33.6% 60.1% 74.0% 56.3% 38.7% Pro b le m s o f e xc e ssive p re ssu re o n the e ld e rly a rise fro m su c h situ a tio n s in whic h lim ite d re so u rc e s n e e d to b e sha re d a m o n gst m o re a n d m o re p e o p le . The a b ility o f the se ho u se ho ld s to c o p e with sho c ks m a y b e re d u c e d , thu s in c re a sin g vu ln e ra b ility. In d e e d , e xc e ssive d e p e n d e n c e c a n re su lt in e n tire ho u se ho ld s b e in g p u she d in to p o ve rty. O n c e a ga in it is Lim p o p o , with the highe st ra te s o f u n e m p lo ym e n t a n d lo we st in c o m e e a rn e rs, fo r whic h d e p e n d e n c y o n gra n ts is m o st e vid e n t with 2 7 p e rc e n t o f ho u se ho ld s b e in g re lia n t m a in ly o n p e n sio n s a n d 2 5 p e rc e n t o n re m itta n c e s. The n u m b e rs o f u n e m p lo ye d a tta c he d to ho u se ho ld s with the se m a in in c o m e so u rc e s is e xc e p tio n a lly high in this p ro vin c e . In fa c t, a c ro ss a ll p ro vin c e s, the p ro p o rtio n o f ho u se ho ld s with a t le a st o n e u n e m p lo ye d m e m b e r is e xtre m e ly high; in G a u te n g, 4 1 p e rc e n t o f ho u se ho ld s ha ve a t le a st o n e u n e m p lo ye d m e m b e r, in Kwa Z u lu N a ta l the figu re is highe r a t 4 6 p e rc e n t a n d in Lim p o p o it is e ve n highe r a t 4 9 p e rc e n t o f ho u se ho ld s. W ith su c h figu re s we a re ye t a ga in m a d e a wa re o f the e xte n t o f ho u se ho ld vu ln e ra b ility n a tio n wid e . 17 Access to finance A fin a l a sp e c t o f this se c tio n is a b rie f lo o k a t the ho u se ho ld s ’ a c c e ss to fin a n c e thro u gh d iffe re n t sa vin gs p la n s, p riva te p e n sio n s a n d life in su ra n c e . Sa vin gs a re o fte n e sse n tia l to fu n d in ve stm e n ts a n d re fle c t the p o te n tia l fo r ho u se ho ld s to stim u la te fu tu re e c o n o m ic a c tivity. Sa vin gs, p e n sio n s a n d life in su ra n c e a re a lso e xtre m e ly im p o rta n t sa fe ty n e ts whic h c a n b e d ra wn u p o n in the e ve n t o f a su d d e n sho c k, fo r e xa m p le , a d e a th in the ho u se ho ld o r lo ss o f a jo b . Sa vin gs th e re fo re c u sh io n vu ln e ra b ility. Ta b le 4 sho ws a c c e ss to a ra n ge o f fin a n c ia l a sse ts fo r 2 0 0 1 . It is e vid e n t fro m the ta b le tha t sa vin gs in a b a n k a c c o u n t is the m o st c o m m o n fo rm o f sa vin gs n a tio n a lly a n d a c ro ss the p ro vin c e s, fo llo we d b y life in su ra n c e with 4 2 p e rc e n t o f ho u se ho ld s d e c la rin g the y ha d sa vin gs in a b a n k a c c o u n t a n d with 2 6 p e rc e n t ha vin g life in su ra n c e in 2 0 0 1 . O n c e a ga in , la rge d isc re p a n c ie s a c ro ss the p ro vin c e s e xist with 5 3 p e rc e n t o f ho u se ho ld s in G a u te n g ha vin g m o n e y in a b a n k sa vin gs a c c o u n t a s o p p o se d to ju st o n e third o f ho u se ho ld s in Lim p o p o . In te re stin gly, the p ro p o rtio n o f ho u se ho ld s with life in su ra n c e is sim ila r in G a u te n g a n d Kwa Z u lu -N a ta l a t 2 7 p e rc e n t a n d 2 5 p e rc e n t re sp e c tive ly. Lim p o p o , ye t a ga in , fa lls fa r b e hin d with o n ly 1 3 p e rc e n t o f ho u se ho ld s with life in su ra n c e . Also o f n o te is the sign ific a n tly highe r p ro p o rtio n o f ho u se ho ld s in Kwa Z u lu -N a ta l with sa vin gs in a sto kve l (1 2 p e rc e n t), c o m p a re d with b o th G a u te n g (6 p e rc e n t) a n d Lim p o p o (7 p e rc e n t). Un su rp risin gly, p riva te p e n sio n s a re m o st c o m m o n in G a u te n g (1 8 p e rc e n t), fo llo we d b y Kwa Z u lu -N a ta l (1 1 p e rc e n t). O n ly 7 p e rc e n t o f ho u se ho ld s in Lim p o p o ha ve sa vin gs in a p riva te p e n sio n . Fro m Ta b le 4 it is c le a r tha t a c c e ss to fin a n c ia l a sse ts is m u c h b e tte r in G a u te n g, the m o st e c o n o m ic a lly p ro sp e ro u s p ro vin c e , tha n it is in Kwa Z u lu -N a ta l o r Lim p o p o . It a p p e a rs tha t within the p o o re r p ro vin c e s, the c ho ic e o f sa vin gs typ e will b e d e te rm in e d b y a va ila b le o p tio n s. H e n c e , whe re sto kve ls a re m o re d e ve lo p e d a n d e n tre n c he d , a s the y a re in Kwa Z u lu -N a ta l, the se wo u ld b e p re fe ra b le to wha t a re u su a lly e xtre m e ly high in te re st b e a rin g c a sh lo a n s. In Lim p o p o , ho we ve r, the re m a y b e fe we r o p tio n s o f sa vin g a s p a rt o f a sto kve l with re sid e n ts p o te n tia lly ha vin g little a lte rn a tive b u t to a c c e ss m u c h-n e e d e d fin a n c e thro u gh a c a sh lo a n . As with a ll the d e sc rip to rs c o ve re d in this se c tio n we se e o n c e a ga in tha t p ro sp e c ts fo r fu tu re e c o n o m ic o p p o rtu n itie s a n d gro wth a re o ve rwhe lm in gly in G a u te n g, a n d e xtre m e h o u se h o ld vu ln e ra b ilit y is p e rva sive in Lim p o p o . The b re a d th a n d d e p th o f a c c e ss to sa vin gs thro u gh fin a n c ia l in stru m e n ts in d ic a te s tha t it is ho u se ho ld s in G a u te n g tha t a re b e st e q u ip p e d to m o b ilise sa vin gs fo r the p u rp o se o f in ve stm e n t a n d a lso ha ve the gre a te st sa fe ty n e ts in p la c e to le sse n the e ffe c ts o f in c o m e s h o c ks . Lim p o p o is e xt re m e ly vu ln e ra b le in this re ga rd with Kwa Z u lu -N a ta l p e rfo rm in g in te rm e d ia te ly. Table 4: Access to Financial Assets in 2001 Savings in a stokvel Private Pension Gauteng 52.8% 6.2% 17.7% 6.7% 27.4% KwaZulu-Natal 37.9% 12.0% 11.0% 4.0% 25.0% Limpopo 33.4% 7.2% 7.0% 2.1% 13.0% National 42.2% 6.9% 14.0% 5.0% 25.7% Source: Labour Force Survey 2001 Unit trusts Life Insurance A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT Savings in a bank account 18 p ro vin c e p e rfo rm s a t the m e a n in te rm s o f m o st in d ic a to rs o f p o ve rty c o n sid e re d thu s fa r, it is e vid e n t tha t o n this fu n d a m e n ta l in d ic a to r o f we llb e in g, the p o p u la tio n o f Kwa Z u lu -N a ta l is se ve re ly d isa d va n ta ge d . H EALTH To b e p o o r is to b e sick and no t care d fo r To b e vulne rab le to ad ve rse e ve nts o utsid e yo ur co ntro l In fa c t, the a ve ra ge life e xp e c ta n c y figu re s fo r So u th Afric a a p p e a r to h a ve little c o rre la tio n with o u r p re vio u sly a c c o u n te d fo r in d ic a to rs o f e c o n o m ic we llb e in g. The p rio r c ha sm b e twe e n G a u te n g a n d Lim p o p o , o n n e a rly a ll p re vio u s m e a su re s, a lm o st c o m p le te ly d isa p p e a rs in this in sta n c e . In 2 0 0 1 , the e stim a te s o f life e xp e c ta n c y in G a u te n g a n d Lim p o p o a re a p p ro xim a te ly 5 5 .8 ye a rs a n d 5 5 .4 ye a rs re sp e c t ive ly su g g e st in g t h a t fa c to rs d rivin g re d u c tio n s in life e xp e c ta n c y e stim a te s stre tc h fa r b e yo n d a c c e ss to b a sic go o d s a n d se rvic e s a n d e ve n he a lth c a re . It is the p ro je c te d d e va sta tin g im p a c t o f H IV/ AID S tha t is d rivin g re d u c tio n s in the se figu re s. The fin a l in d ic a to rs o f p o ve rty in c lu d e d in this re p o rt a re tho se re la tin g to he a lth a n d sa fe ty. Im p r o v e d h e a lt h c o n t r ib u t e s t o w a r d s p ro d u c tivity in the wo rkp la c e a n d e n ha n c e s e d u c a tio n a l a tta in m e n t. “ A high p re va le n c e o f d ise a se a n d p o o r he a lth in a c o u n try ha rm s e c o n o m ic p e rfo rm a n c e while highe r life e xp e c ta n c y, a ke y in d ic a to r o f he a lth sta tu s, stim u la te s e c o n o m ic gro wth ” (D a y a n d G ra y 2 0 0 2 , p .4 2 8 ). In c o n sid e rin g he a lth, o u r fo c u s is o n tra d itio n a l in d ic a to rs o f he a lth sta tu s su c h a s life e xp e c ta n c y a t b irth, in fa n t m o rta lity ra te a n d H IV p re va le n c e . In a d d itio n , e stim a te s o f tu b e rc u lo sis in c id e n c e ra te s a re in c lu d e d (d u e to its re la tio n ship with H IV p re va le n c e ) a n d a n e stim a te o f a c c e ss to he a lth c a re in te rm s o f d ista n c e . The o the r he a lth in d ic a to r sho wn in Figu re 1 8 is the IMR, whic h re fe rs to the n u m b e r o f c hild re n le ss tha n o n e ye a r o ld who d ie in a ye a r, 20 p e r 1 0 0 0 live b irths in tha t ye a r. The IMR is a tra d itio n a lly a c c e p te d in d ic a to r o f he a lth sta tu s a n d a p p e a rs m o re c lo se ly re la te d to he a lth c a re se rvic e s in So u th Afric a tha n life e xp e c ta n c y. If the IMR is re la tive ly high, it su gge sts tha t the le ve l o f he a lth c a re in the re gio n e xa m in e d is n o t o p tim a l. Figu re 1 8 re ve a ls tha t b e twe e n 1 9 9 6 a n d 2 0 0 2 , the IMR ha s d e c re a se d in G a u te n g a n d Lim p o p o . A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT The re is a d istin c t re la tio n ship b e twe e n e c o n o m ic p e rfo rm a n c e a n d he a lth sta tu s. A highe r life e xp e c ta n c y is a sso c ia te d with e c o n o m ic p ro sp e rity, w hilst p o o r he a lth, p ro xie d fo r b y the in fa n t m o rta lity ra te (IMR), is a s s o c ia t e d w it h d e t r im e n t a l e c o n o m ic p e r fo r m a n c e . Fig u r e 1 8 s im u lt a n e o u s ly illu stra te s life e xp e c ta n c y fo r Figure 18: Life Expectancy (1996 and 2001) and Infant Mortality Rate 1 9 9 6 a n d 2 0 0 1 , a n d the IMR (1996 and 2002) by Province fo r 1 9 9 6 a n d 2 0 0 2 , fo r the th re e p ro vin c e s a n d th e 70 c o u n try a s a who le . Figu re 1 8 sho ws n a tio n a lly, a n d fo r a ll p r o v in c e s c o n s id e r e d , t h a t life 18 e xp e c ta n c y ha s d e c re a se d d ra m a tic a lly fro m 1 9 9 6 to 2 0 0 1 . This d e c lin in g tre n d in life e xp e c t a n c y o f So u th Afric a n s is e xp e c te d to c o n tin u e u n til the ye a r 19 2015. The d ro p in life e xp e c ta n c y is m o st sta rk in Kw a Z u lu -N a t a l w it h t h e e stim a te a t o n ly 4 9 ye a rs in 2 0 0 1 , a d ro p o f m o re tha n 1 0 ye a rs in o n ly a 5 ye a r p e r io d . Alt h o u g h t h is 18 19 20 80 70 60 60 50 50 40 40 30 30 20 20 10 0 10 Gauteng KwaZulu-Natal Limpopo National Life Expectancy - 1996 63.6 59.8 61.4 60.8 Life Expectancy - 2001 55.8 48.9 55.4 53.5 IMR - 1996 60.3 54.5 56.5 56.1 IMR - 2002 46 68 53 59 0 Source: Life Expectancy (South African Human Development Report 2003) IMR (Day and Gray 2002) Life Expectancy at birth refers to the average number of additional years a person could expect to live if current mortality trends were to continue for the rest of that person ’s life (Day and Gray 2002, p.437) South African Human Development Report, 2003, p.26-27. Definition obtained from the South African Health Review (Day and Gray 2002, p.437) 19 H IV/ AID S p re va le n c e ra te s (a m o n g wo m e n 21 su rve ye d a t a n te -n a ta l c lin ic s ) a s we ll a s the in c id e n c e o f Tu b e rc u lo sis o r TB (whic h re fe rs to the n u m b e r o f c a se s o f the c o n d itio n re p o rte d to the D e p a rtm e n t o f H e a lth p e r 1 0 0 0 0 0 22 p o p u la tio n fo r tha t ye a r ) wa rra n t fu rthe r a tte n tio n a n d a re illu stra te d in Figu re 1 9 . TB a n d H IV a re two o f the m o st d e va sta tin g d ise a se s in the c o u n try a n d ha ve b e e n d u b b e d the “ d e a d ly p a ir ” b e c a u se the y a re kn o wn fo r a c tiva tin g a n d re a c tiva tin g e a c h o t h e r. Ac c o rd in g t o t h e So u t h Afric a n D e p a rtm e n t o f H e a lth, it ha s b e e n re ve a le d tha t H IV in c re a se s the c ha n c e o f re a c tiva tin g d o rm a n t TB in fe c tio n fro m 1 0 p e rc e n t to 23 5 0 p e rc e n t d u rin g a p e rso n ’ s life p e r ye a r. m in d tha t the re a l in c id e n c e o f TB m a y e ve n b e highe r tha n tha t e stim a te d , d u e to lo w d e te c tio n ra te s in m a n y ru ra l a re a s with p o o r la b o ra to ry se rvic e s a n d / o r o ve ra ll lo w he a lth 26 se rvic e u tiliz a tio n ra te s. It is the re fo re p o ssib le tha t the p a rtic u la rly lo w ra te s re p o rte d in Lim p o p o , whic h is m a in ly ru ra l, a re in fa c t gre a tly u n d e re stim a te d . A sim ila r p a tte rn ho ld s fo r H IV p re va le n c e . Figu re 1 9 c le a rly sho ws a n in c re a se in the p re va le n c e o f H IV in fe c te d in d ivid u a ls fro m 1 9 9 6 to 2 0 0 1 . The in c re a se in the p re va le n c e ra te is d istin c tly la rge r in G a u te n g a n d Kwa Z u lu N a ta l tha n it is in Lim p o p o , a n d fo r tha t m a tte r the c o u n try a s a who le . This c le a rly in d ic a te s tha t G a u te n g a n d Kwa Z u lu -N a ta l a re m o re su sc e p tib le to the H IV/ AID S p a n d e m ic a n d its d e va sta tin g c o n se q u e n c e s. H e a lth o u tc o m e s in Kwa Z u lu -N a ta l se e m b le e k. The p ro vin c e is sa d d le d with high le ve ls o f TB in c id e n c e a n d H IV p re va le n c e , a n d a n IMR e stim a te la rge r tha n the n a tio n a l a ve ra ge . In te re stin gly, Lim p o p o , the p o o re st p ro vin c e o n a lm o st a ll o the r m e a su re s o f p o ve rty, ha s p e rfo rm e d re la tive ly we ll in te rm s o f o u r c ho se n he a lth in d ic a to rs. Eve n if the d a ta is p o o rly c a p tu re d fo r this p ro vin c e , it se e m s p o ssib le tha t its d e e p ly ru ra l n a tu re a n d the re la tive “ iso la tio n ” o f its p o p u la tio n fro m the m a in stre a m e c o n o m y, m a y in fa c t b e shie ld in g it In te rm s o f the TB in c id e n c e ra te , Figu re 1 9 c le a rly illu stra te s a n in c re a se in a ll the p ro vin c e s c o n sid e re d fro m 1 9 9 9 to 2 0 0 1 . This in c re a se is strikin gly e vid e n t in G a u te n g whe re TB in c id e n c e ro se fro m Figure 19: Tuberculosis Incidence (1999 and 2001) and HIV Prevalence 2 2 3 .5 in 1 9 9 9 to 3 4 6 .7 in 24 (1996 and 2001) by Province 2 0 0 1 . Fu rthe rm o re , the TB in c id e n c e ra te in Kwa Z u lu N a ta l m im ic s tha t o f the 500 40 c o u n try a s a who le a n d is 450 35 su b sta n tia lly highe r tha n tha t in 400 30 G a u te n g a n d Lim p o p o . This 350 su gge sts tha t the re a re o the r 25 300 p ro vin c e s in the c o u n try with 250 20 a highe r TB in c id e n c e ra te tha t 200 15 a r e d r ivin g t h e n a t io n a l 150 a ve r a g e . Sp e c ific a lly, t h e 10 100 W e ste rn Ca p e h a d a TB 5 50 in c id e n c e ra te o f ju st o ve r 8 0 0 0 0 in 2 0 0 1 . This c a n b e e xp la in e d Gauteng KwaZulu-Natal Limpopo National b y the c o a sta l n a tu re o f the 223.5 386.4 109.1 359.6 TB-1999 25 346.7 436.4 187.2 425.7 TB-2001 p ro vin c e a n d a lso p o ssib ly in 15.5 19.9 7.9 14.1 HIV-1996 p a rt to b e tte r c a p tu re d d a ta . In 29.8 33.5 14.5 24.8 HIV-2001 fa c t, it is im p o rta n t to b e a r in Source: Day and Gray 2002 21 22 23 24 25 26 The definition of HIV prevalence in this context refers to the percentage of women surveyed testing positive for HIV (Day and Gray, 2002, p.449). Definition obtained from the South African Health Review (Day and Gray 2002, p.443) Department of Health: Statistical Notes, July 2000. Source: Day and Gray, 2002, p.445; Note: The data provided on TB incidence is not a trend because the incidence rates tend to fluctuate from year to year. According to the South African Human Development Report (2003), the highest TB incidence rates historically occur in the coastal provinces because they experience higher levels of humidity as compared to the rest of the country. Day and Gray, 2002, p.443 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT H o we ve r, the ga in s in G a u te n g a re m o re m a rke d in d ic a tin g tha t he a lth c a re se rvic e s ha ve im p ro ve d sign ific a n tly in this p ro vin c e . In c o n tra st, the IMR ha s in c re a se d in Kwa Z u lu N a ta l fro m 5 4 .5 d e a ths p e r 1 0 0 0 live b irths to 6 8 d e a ths p e r 1 0 0 0 live b irths. O n c e a ga in it se e m s tha t the im p a c ts o f H IV/ AID S is d rivin g this tre n d , a n d fa r o u twe ighin g a n y p o ssib le im p ro ve m e n ts in he a lth c a re se rvic e s in this p ro vin c e . 20 Figure 20: Cumulative Distribution of Time Taken to Reach a Clinic by Province in 2001 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 0-14 15-29 30-44 45-59 60+ Gauteng 46.2% 83.8% 95.8% 97.5% 99.3% KwaZulu-N 21.3% 63.0% 84.8% 92.0% 99.4% Limpopo 22.8% 59.3% 81.0% 87.5% 99.6% National 36.3% 71.8% 87.5% 92.2% 99.4% Source: Labour Force Survey 2001 to so m e e xte n t fro m the sp re a d in H IV/ AID S. W he n c o n sid e rin g a c c e ss to he a lth c a re se rvic e s, ho we ve r, the p ro vin c e o n c e a ga in p e rfo rm s p o o rly. Figu re 2 0 illu stra te s a c c e ss to he a lth c a re se rvic e s in te rm s o f the c u m u la tive d ista n c e to a c lin ic , m e a su re d a s tim e ta ke n to re a c h a c lin ic . A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT It is e vid e n t fro m Figu re 2 0 tha t a p p ro xim a te ly 4 6 p e rc e n t o f ho u se ho ld s in G a u te n g a re within 1 5 m in u te s re a c h o f a c lin ic , in d ic a tin g tha t a c c e ss to he a lth c a re in te rm s o f d ista n c e is m u c h b e tte r in G a u te n g tha n it is in the o the r p ro vin c e s c o n sid e re d . The d o m in a n c e o f this p ro vin c e ho ld s. In te rm s o f re la tive “ q u a lity ” o f he a lth c a re a c c e ss b e twe e n Kwa Z u lu -N a ta l a n d the Lim p o p o , d o m in a n c e d o e s n o t ho ld a s the lin e s fo r the se p ro vin c e s in te rse c t. Lim p o p o fa irs slightly b e tte r in te rm s o f c lo se a c c e ss with 2 3 p e rc e n t o f ho u se ho ld s b e in g within 1 5 m in u te s o f a c lin ic a s o p p o se d to 2 1 p e rc e n t o f ho u se ho ld s in Kwa Z u lu -N a ta l. 27 Day and Gray, 2002, p.473 In te rm s o f fu rthe r d ista n c e s, ho we ve r, Kwa Z u lu N a ta l fa irs m a rgin a lly b e tte r with, fo r e xa m p le , 6 3 p e rc e n t o f its ho u se ho ld s b e in g within 3 0 m in u te s o f a c lin ic a s o p p o se d to 5 9 p e rc e n t o f Lim p o p o ’ s h o u s e h o ld s . Fu rt h e rm o re , a p p ro xim a te ly 7 p e rc e n t o f ho u se ho ld s in Kwa Z u lu -N a ta l a n d 1 2 p e rc e n t o f ho u se ho ld s in Lim p o p o re q u ire m o re tha n a n ho u r to re a c h a c lin ic . The se a re q u ite c le a rly in d ivid u a ls fro m ru ra l a re a s. O n this m e a su re , Kwa Z u lu N a ta l p e rfo rm s re la tive ly p o o rly a n d b e lo w the n a tio n a l a ve ra ge , n o d o u b t c o n trib u tin g to the high IMR d isc u sse d a b o ve . In a d d itio n , it is in te re stin g to n o te tha t in te rm s o f m e d ic a l p ra c titio n e rs p e r 1 0 0 ,0 0 0 p o p u la tio n , in 2 0 0 1 , the re we re a p p ro xim a te ly 1 2 .2 d o c to rs (m e d ic a l p ra c titio n e rs) p e r 1 0 0 ,0 0 0 p o p u la tio n in Lim p o p o , whilst in G a u te n g a n d Kw a Z u lu -N a ta l th e re w e re a p p r o xim a t e ly 2 8 . 7 a n d 2 2 . 3 d o c t o r s 27 re sp e c tive ly fo r e ve ry 1 0 0 ,0 0 0 p e o p le . 21 It is im p o rta n t to highlight tha t So u th Afric a ’ s c rim e ra te s a re a m o n gst the highe st in the wo rld a n d the re a re n o n e who a re shie ld e d fro m 28 its e ffe c ts. Fu rthe rm o re , vio le n t c rim e s c o m m it t e d a g a in st ho u se ho ld m e m b e rs c a n ha ve d ire c o n se q u e n c e s fo r tha t ho u se ho ld , a n d c a n o fte n c a u se vu ln e ra b le h o u se h o ld s to b e c o m e p o ve rty29 stric ke n . Co n ve rse ly, it is p o ssib le tha t in d ivid u a ls who a re livin g in p o ve rty, m ight re so rt to c o m m it c rim e s a s a live liho o d stra te gy, thu s e n ge n d e rin g a vic io u s c yc le o f p o ve rty a n d c rim e . Figure 21: Crimes committed against households in Rural and Urban Areas by Province in 1997 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Gauteng Kw aZulu-Natal Limpopo National Urban 24.0% 21.1% 6.2% 22.1% Rural 16.5% 19.3% 13.2% 18.1% Source: Statistics South Africa Victims of Crime Survey, 1998 Crim e s c a n b e d e fin e d a s b e in g c o m m itte d a ga in st ho u se ho ld s o r in d ivid u a ls. W e re p o rt so m e sta tistic s he re fro m the Vic tim s o f Crim e 30 Su rve y 1 9 9 8 a s fin a l in d ic a to rs o f p o ve rty fo r the c o u n try a n d a c ro ss the thre e se le c te d p ro vin c e s. Figu re 2 1 sho ws the p ro p o rtio n o f ho u se ho ld s tha t e xp e rie n c e d a t le a st o n e c rim e in 1 9 9 7 , in c lu d in g live sto c k the ft, in u rb a n a n d n o n -u rb a n 31 a re a s. It c a n b e se e n t h a t n a t io n a lly a p p ro xim a te ly 1 in 5 ho u se ho ld s in d ic a te d ha vin g b e e n the vic tim o f a t le a st o n e c rim e in 1 9 9 7 with c rim e slightly m o re wid e sp re a d in u rb a n a re a s. Urb a n G a u te n g fa re s the wo rst in te rm s o f in c id e n c e o f ho u se ho ld c rim e fo llo we d b y u rb a n Kwa Z u lu -N a ta l. Crim e ra te s, ho we ve r, a re highe r tha n the n a tio n a l a ve ra ge in ru ra l Kwa Z u lu -N a ta l. In te rm s o f the typ e o f h o u se h o ld c rim e , ‘ h o u se b re a kin g a n d b u rgla ry ’ is the m o st c o m m o n c rim e c o m m itte d o n ho u se ho ld s in G a u te n g, Kwa Z u lu -N a ta l a n d the c o u n try a s a who le . Lim p o p o p e rfo rm s b y fa r the b e st, with b o th ru ra l a n d u rb a n c rim e ra te s fa llin g we ll b e lo w the n a tio n a l a ve ra ge s. In this p ro vin c e , the m o st c o m m o n c rim e c o m m itte d a ga in st a ho u se ho ld is ‘ the ft o f live sto c k ’ e m p ha sisin g the ru ra l n a tu re o f Lim p o p o . 28 29 30 31 32 33 34 In te rm s o f c rim e s c o m m itte d a ga in st in d ivid u a ls, the p a tte rn o f in c id e n c e b y p ro vin c e ho ld s. In 1 9 9 7 the p ro p o rtio n o f in d ivid u a ls who in d ic a te d tha t the y we re the vic tim o f a t le a st o n e c rim e a ga in st the ir p e rso n wa s 1 4 .9 p e rc e n t in G a u te n g, 1 2 .5 p e rc e n t in Kwa Z u lu -N a ta l a n d 6 .3 p e rc e n t in Lim p o p o . N a tio n a lly, the figu re 32 la y c lo se st to G a u te n g a t 1 4 .6 p e rc e n t . Fo r the p ro vin c e s e xa m in e d , the m o st c o m m o n typ e o f c rim e wa s ‘ the ft o f p ro p e rty ’ . It is in te re stin g to n o te tha t in Lim p o p o a n d Kwa Z u lu -N a ta l the se c o n d m o st p re va le n t typ e o f c rim e c o m m itte d o n in d ivid u a ls wa s a ssa u lt (whic h is in lin e with the n a tio n a l a ve ra ge ). In G a u te n g, ho we ve r, the se c o n d m o st p re va le n t typ e o f c rim e c o m m itte d o n a n in d ivid u a l wa s c o rru p tio n fo llo we d b y fra u d . Asid e fro m the p a in a n d lo ss su ffe re d b y vic tim s o f c rim e , the thre a t o f c rim e c re a te s a n e n viro n m e n t u n c o n d u c ive t o p ro d u c t ive 33 a c tivity. Fu rthe rm o re , a high c rim e e n viro n m e n t is like ly to d isc o u ra ge in ve stm e n t a n d stifle 34 lo n g-te rm gro wth in So u th Afric a . It is p la u sib le tha t su c h lim ita tio n s to gro wth m ight hin d e r p o ve rty a lle via tio n e ffo rts. Demombynes and Ozler , 2002 May, 2000, p.133 Statistics South Africa.Victims of Crime Survey 1998. The Victims of Crime Survey 1998 defines household crimes as those crimes committed against the household, for example, theft of property from a dwelling. Individual crimes are those crimes committed against the individual, for example, pickpocketing or sexual offences. (Statistics South Africa 1999, pp16-18) Statistics South Africa Victims of Crime Survey, 1998 Note: Results from the 1999 World Bank Greater Johannesburg Metropolitan Area large firm survey (manufacturing firms) which involved 325 firms, indicated that 94% of firm CEO 's rated crime and theft as the major obstacle to firm growth (Lewis, 2002). Demombynes and O zler , 2002 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT CRI M E 22 Figure 22: Access to Assets and Services by Province in 2001 A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT CO N CLU SI O N This re p o rt ha s c o n sid e re d a ra n ge Electricity for lighting 100.0% o f in d ic a to rs o f we llb e in g, re fle c tin g 80.0% Electricity for cooking Flush toilet or chemical toilet o n m a n y o f the d im e n sio n s o f 60.0% p o ve rty. Co m p a riso n s ha ve b e e n 40.0% m a d e a c ro ss 3 p ro vin c e s c ho se n a s 20.0% p ro xie s fo r d iffe re n t le ve ls o f in tra 0.0% Piped water Refuse removal by local authority c o u n try livin g sta n d a rd s, with shifts in p o ve rty m e a su re s a n a lyse d o ve r t i m e . Li n k s b e t w e e n a s s e t Telephone in home or household has o wn e rship , la b o u r m a rke t sta tu s Formal housing cell phone a n d fo o d se c u rity a re e vid e n te m p ha siz in g the stru ggle s in c o m e Refrigerator p o o r ho u se ho ld s fa c e to m e e t the ir b a sic n e e d s. O n the se m a rke rs, Gauteng KwaZulu-Natal Limpopo National G a u t e n g c le a r ly o u t p e r fo r m s Kw a Z u lu -N a t a l w h ic h c le a r ly o u tp e rfo rm s Lim p o p o . The ra n kin g p ro vin c e ha s a re la tive ly high n u m b e r o f o f p ro vin c e s, ho we ve r, is n o t a s ro b u st whe n ho u se ho ld s livin g in fo rm a l d we llin gs a n d with e xa m in in g o the r fo rm s o f p o ve rty su c h a s p o o r te le p ho n e s. Altho u gh it p e rfo rm s b e st in te rm s h e a lth a n d sa fe ty. Fu rth e rm o re , o n tw o o f re frige ra to r o wn e rship , 4 in 1 0 ho u se ho ld s fu n d a m e n ta l livin g sta n d a rd s m e a su re s – the in this re la tive ly we ll-o ff p ro vin c e d o n o t p o sse ss p ro p o rtio n o f ho u se ho ld s livin g in fo rm a l this b a sic a sse t. Lim p o p o a n d Kwa Z u lu -N a ta l fa ir d we llin gs a n d p ro p o rtio n o f ho u se ho ld s with sign ific a n tly wo rse o n a lm o st a ll m e a su re s, a c c e ss to p ip e d wa te r – Lim p o p o , the p ro vin c e e xc e p t in the c a se o f fo rm a l ho u sin g in Lim p o p o , with the highe st in c o m e p o ve rty, a p p e a rs to ha ve with figu re s riva llin g tho se o f G a u te n g. It is q u ite a highe r sta n d a rd o f livin g tha n Kwa Z u lu -N a ta l. re m a rka b le a n d e n c o u ra gin g tha t so m a n y d we llin gs in the Lim p o p o a re b u ilt o f b ric ks o r The figu re s in this se c tio n c o a le sc e m a n y o f the c o n c re te , a ltho u gh the d iffe re n c e in q u a lity o f in d ic a to rs we ha ve c o n sid e re d a n d sho w c le a rly the se ho m e s a n d tho se in G a u te n g will b e sta rk. the re la tive we a lth d o m in a n c e o f G a u te n g b u t In fa c t, Lim p o p o with the lo we st G D P p e r c a p ita a lso the flu c tu a tio n s in the re la tive p e rfo rm a n c e ha s gre a te r a c c e ss to p ip e d wa te r a n d e le c tric ity o f Kwa Z u lu -N a ta l a n d Lim p o p o . Fo r e a c h o f fo r lightin g tha n Kwa Z u lu -N a ta l in d ic a tin g tha t the in d ic a to rs, the d ista n c e fro m the c e n tre b a sic livin g c o n d itio n s a re in so m e in sta n c e s m e a su re s the p e rc e n ta ge a c c e ss in te rm s o f tha t su p e rio r in this p ro vin c e . The la c k o f in c o m e in sp e c ific in d ic a to r. Fo r e xa m p le , in Figure 23: Education, Employment, Food Security, Health and Safety by Province te rm s o f e le c tric ity fo r c o o kin g, a p p r o xim a t e ly 2 5 p e r c e n t o f % ag e d 2 0 m oorr e w i t a h t rm ci o rh i g h e r 100% ho u se ho ld s in Lim p o p o , 4 8 p e rc e n t o f ho u se ho ld s in Kwa Z u lu -N a ta l 80% a n d 7 3 p e rc e n t o f ho u se ho ld s in 60% L i ef e x p ea cn tc ya s p r o p t i oo rn o f a v e r a g e l i f e % em ployed e x p et ca n c y o f u- pmipdedr l en ci o m e co u t r i e s G a u te n g ha ve a c c e ss to e le c tric ity 40% fo r c o o kin g p u rp o se s. Fu rthe rm o re , 20% the d ista n c e s b e twe e n the p ro vin c ia l 0% lin e s s h o u ld a ls o b e n o t e d a s in d ic a to rs o f the e xte n t o f % n o vt i c t i omfp e r s o n cairlm ec o mmi t t e dg a i n s t y o u d iffe re n tia l a c c e ss. % hgi h l y sl l keid w eo r sk (1997) In 2 0 0 1 , G a u te n g, a lm o st e n tire ly u rb a n , p e rfo rm e d p a rtic u la rly we ll in t e r m s o f t h e p r o p o r t io n o f h o u se h o ld s w it h p ip e d w a t e r, sa n ita tio n , e le c tric ity a c c e ss a n d re fu se re m o va l. Fu rthe rm o re , the % i n d i v i d iuna lhso eu hs o l de lsd o mo r n ee rv h u n g r y Gauteng K w a Z uN l ua- t a l L i mp o p o Nation 23 In te rm s o f e d u c a tio n a l a c hie ve m e n ts a n d e c o n o m ic o p p o rtu n itie s, the ra n kin g o f the p ro vin c e s is m o re sta b le . Altho u gh the re ha ve b e e n im p ro ve m e n ts in e d u c a tio n a l a tta in m e n t thro u gho u t the c o u n try o ve r the in te r-c e n sa l p e rio d , a m e re 2 1 p e rc e n t o f Lim p o p o re sid e n ts a ge d 2 0 o r highe r ha d c o m p le te d gra d e 1 2 o r stu d ie d fu rthe r in 2 0 0 1 . In d ivid u a ls in G a u te n g a re the m o st e d u c a te d , highly skille d , m o st like ly to ha ve a se c u re jo b , a n d a s a re su lt ha ve im p ro ve d a c c e ss to fin a n c e s. Fu rthe rm o re , o u r a n a lysis ha s sho wn tha t e m p lo ye d in d ivid u a ls in G a u te n g a re a lso e xp e c te d to e a rn the highe st a ve ra ge in c o m e s. In 2 0 0 1 , the p ro p o rtio n o f the wo rkin g p o o r in Lim p o p o e xc e e d e d tho se in Kwa Z u lu -N a ta l fo r e ve ry lo w e a rn in gs lin e c ho se n , whic h in tu rn e xc e e d e d tho se in G a u te n g. In c re a se s in u n e m p lo ym e n t we re fo u n d a c ro ss a ll p ro vin c e s, b u t Lim p o p o e xp e rie n c e d the gre a te st rise . The situ a tio n is d ire , a s c a n b e se e n in the d ia gra m with o n ly 4 6 p e rc e n t o f tho se willin g a n d a b le to wo rk, fin d in g e m p lo ym e n t in 2 0 0 1 . The lin ks b e twe e n fo o d se c u rity a n d e a rn in gs a n d e m p lo ym e n t p o te n tia l a re c le a r with G a u te n g o n c e a ga in p e rfo rm in g b e st a n d Lim p o p o wo rst. Eve n so , the p e rc e n ta ge o f in d ivid u a ls livin g in ho u se ho ld s whic h in d ic a te d tha t the y ‘ se ld o m o r n e ve r ’ ha d a p ro b le m sa tisfyin g the ir fo o d n e e d s is lo w fo r a ll p ro vin c e s. In G a u te n g, 3 in 1 0 ho u se ho ld s in d ic a te d tha t the y ‘ so m e tim e s, o fte n o r a lwa ys ’ ha d d iffic u ltie s o b ta in in g su ffic ie n t fo o d . In Kwa Z u lu -N a ta l this figu re s sta n d s a t 4 in 1 0 a n d in Lim p o p o a n e xc e e d in gly c o n c e rn in g 6 in 1 0 . Altho u gh o n the e c o n o m ic in d ic a to rs a n e xtre m e ly b le a k p ic tu re o f the p ro sp e c ts o f the Lim p o p o is d e ve lo p e d , in te rm s o f he a lth a n d sa fe ty, this p ro vin c e p e rfo rm s re la tive ly we ll. O n life e xp e c ta n c y m e a su re s, it ra te s o n a p a r with G a u te n g, w ith Kw a Z u lu -N a ta l p e rfo rm in g e sp e c ia lly p o o rly. H IV p re va le n c e is sign ific a n tly lo we r. In te rm s o f e xp o su re to c rim e , in d ivid u a ls a n d ho u se ho ld s in this p ro vin c e to o a re le a st e xp o se d . It a p p e a rs the n tha t the d e e p ly ru ra l n a tu re o f the p ro vin c e a n d p e rha p s its high d e gre e o f e xc lu sio n fro m the m a in stre a m e c o n o m y o f the c o u n try, m a y b e in su la tin g it fro m so m e o f the d e va sta tin g e ffe c ts o f the H IV p a n d e m ic . D e c lin e s in life e xp e c ta n c y a n d in c re a se s in H IV p re va le n c e fo r a ll the p ro vin c e s p a in t a wo rryin g p ic tu re o f the fu tu re . Fro m the a b o ve it is c le a r tha t a n y a n a lysis o f p o ve rty in So u th Afric a , sho u ld c o m b in e b o th the sta n d a rd in c o m e a p p ro a c h to p o ve rty with a p p ro p ria te m e a su re s o f the a sse ts o wn e d a n d se rvic e s a c c e sse d b y the p o p u la c e . The se la tte r in d ic a to rs a re vita l m a rke rs fo r the d e gre e a n d e xte n t o f ‘ e n title m e n t d e p riva tio n ’ in the so c ie ty. This p a rtic u la r sta tu s re p o rt ha s c ho se n a p ro vin c ia l c o m p a riso n a s a p o in t o f c o n tra st, a ltho u gh it sho u ld b e n o te d tha t o the r c o va ria te s su c h a s ra c e a n d ge n d e r o f ho u se ho ld he a d , lo c a tio n a n d m e a n ye a rs o f sc ho o lin g o f a ho u se ho ld , c o n tin u e to re m a in im p o rta n t p re d ic to rs o f a sse t p o ve rty a n d se rvic e s d e p riva tio n . Ultim a te ly tho u gh, the re p o rt ha s a tte m p te d to p ro vid e a p o st-a p a rthe id sn a p sho t o f so m e the a d va n c e s tha t ha ve b e e n m a d e in a sse t o wn e rship a n d se rvic e s p ro visio n to p o o r ho u se ho ld s. The y re fle c t sim u lta n e o u sly, o n the a d va n c e s tha t ha ve b e e n m a d e in c e rta in re sp e c ts, a n d the sign ific a n t c ha lle n ge s tha t la y a he a d fo r this so c ie ty. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT the Lim p o p o b e c o m e s e vid e n t, ho we ve r, whe n c o n sid e rin g a c c e ss to b a sic a sse ts su c h a s te le p ho n e s a n d re frige ra to rs, fo r whic h fe we r tha n 1 in 3 p o sse ss the fo rm e r a n d o n ly 4 in 1 0 , the la tte r. This la c k o f in c o m e is fu rthe r e m p ha siz e d whe n c o n sid e rin g the lo w u sa ge ra te o f e le c tric ity fo r c o o kin g re la tive to lightin g, a n d re la tive to tha t o f Kwa Z u lu -N a ta l. In te rm s o f c ha n ge s o ve r tim e , the a n a lysis b a se d o n c e n su s d a ta in d ic a te d tha t im p ro ve m e n ts ha ve b e e n m a d e in te rm s o f a c c e ss to a sse ts a n d se rvic e s, p a rtic u la rly with re ga rd to the u se o f flu sh o r c he m ic a l to ile ts a n d the a va ila b ility o f e le c tric ity fo r lightin g p u rp o se s, o n a n a tio n a l le ve l. Mo re o ve r, ge n e ra lly the p ro vin c e with the la rge st b a c klo gs in 1 9 9 6 , ha d m a d e the gre a te st p ro p o rtio n a l ga in s b y 2 0 0 1 . 24 REFEREN CES Bhorat, H. & Hodge, J. 1999, “Decomposing Shifts in Labour Demand in South Africa ”, South African Journal of Economics, Vol 67(3). Bhorat, H., Leibbrandt, M., Maziya, M., van der Berg, S. & Woolard, I. 2001, Fighting Poverty: Labour Markets and Inequality in South Africa, UCT Press, Lansdowne. Bhorat, H. & O osthuizen, M. 2003, Inflation and the Poor, Unpublished Paper, DPRU. Demombynes, G. & Ö zler, B. 2002, Crime and Local Inequality in South Africa, World Bank Working Paper No. 2925, Available [online]: http:/ / econ.worldbank.org/ view.php?id=21897 Accessed 28/ 07/ 2004. Department of Health. 2000, HIV\AIDS and Tuberculosis The Deadly Pair, Statistical Notes, Vol.2, No. 18, Available [online]: http:/ / www.doh.gov.za/ facts/ index.html. Accessed 21/ 06/ 2004. Day, C & Gray, A.. 2002, South African Health Review , Health Systems Trust, Pretoria. Lewis, J. 2002, Promoting Growth and Employment in South Africa, Africa Region Working Paper series 32, The World Bank. May, J. 2000, Poverty and Inequality in South Africa: Meeting the Challenge , David Philip Publishers, Cape Town. A A POVERT POVERTY Y ST STA ATTUS US REPORT REPORT McKenzie, D. 2003, Measuring Inequality with Asset Indicators, BREAD Working Paper No. 042, Available[online]: http:/ / www.cid.harvard.edu/ bread/ abstracts/ 042.htm Accessed 28/ 07/ 2004. Moser, C. 1996, Confronting Crisis: A summary of Household Responses to Poverty and Vulnerability in Four Poor Urban Com m unities, Environmentally Sustainable Development Studies and Monographs Series No.8, Washington: The World Bank. Sen, A. 1999, Development as Freedom , Anchor Books: A Division of Random House, Inc, New York. South African Reserve Bank (SARB). 2001, Q uarterly Bulletin December 2001 , No 222, South African Reserve Bank, Pretoria. Statistics South Africa, 1996, Census. Statistics South Africa, 1997, O ctober Household Survey Statistics South Africa, 1998, Unemployment and employment in South Africa, Available [online]: http:/ / www.statssa.gov.za/ publications/ publicationse arch.asp . Accessed 28/ 07/ 2004. Statistics South Africa. 1999. Statistical Release P0341, Victims of Crime Survey 1998. Available [online]: h t t p : / / w w w . s t a t s s a . g o v . z a / d e fa u lt 3 . a s p . Accessed 04/ 06/ 2004. Statistics South Africa. 2000, Measuring Poverty in South Africa, Statistics South Africa, Pretoria. Statistics South Africa, 2001a, Labour Force Survey (September) Statistics South Africa, 2001b, Census. Statistics South Africa, 2003a. Statistical Release P0302, Mid-year estimates 2003 Statistics South Africa, 2003b. Statistical Release P0441, Gross Domestic Product United Nations Development Programme (UNDP). 1997, Human Development Report, O xford University Press, New York. United Nations Development Programme (UNDP). 2003, South Africa Human Development Report, O xford University Press Southern Africa, Cape Town World Bank. 2000, World Development Report 2000/ 2001, Attacking Poverty, O xford University Press, New York. (Chapter 1. The Nature and Evolution of Poverty p15) World Bank. 2002, World Development Indicators 2002, The World Bank, United States of America. World Bank. 2004, World Development Report 2004: M ak in g Se rv ic e s W o rk f o r Po o r Pe o p le , A Copublication of the World Bank and O xford University Press, Washington. O TH ER ES TL I T E BL A L AI AV The Post-Apartheid South African Labour M arket:A Status Report Prepared by Laura Poswell The labour market often lies at the centre of South Africa ’s numerous economic growth and policy challenges. These relate to issues such as skills constraints, unemployment, emigration and the impact of HIV/ AIDS. The aim of this publication is to collate and crystallise the key research that has been undertaken in these diverse areas. Ultimately it is hoped that the publication serves as a useful reference document for policy makers, unionists and other individuals and institutions interested in the detailed workings of the South African labour market. While clearly not exhaustive, this status report does attempt to cover a wide set of labour market issues. Price: R30.00 The Status Report on: The Post-Apartheid South African Labour Market is available from our offices at: Development Policy Research Unit University of Cape Town Private Bag Rondebosch, 7701 Tel: +27 21 650-5705 Fax: +27 21 650-5711 Fighting Poverty: Labour M arkets and Inequality in South Africa by Haroon Bhorat, Murray Leibbrandt, Muzi Maziya, Servaas van der Berg and Ingrid Woolard Unquestionably, poverty and inequality are among the major challenges that face South Africa today. In this well-researched, comprehensive volume, the authors: ! Use new techniques to measure and analyse household inequality and poverty in South Africa ! Analyse the nature and functioning of vulnerability in the labour market ! Explore the links between labour market participation and household poverty and inequality ! Investigate current social and labour market policies ! Examine the implications of current anti-poverty policies and strategies An exciting aspect of this ground-breaking work is the proposals for the development of new and effective strategies and policies to fight poverty in South Africa. Price: R100.00 “This study uses current methods in modern labour economics, deploys them on appropriate South African data sets, and answers questions on which previously we had limited knowledge, or in some cases, none at all. We regard this volume as the major reference work on labour markets, poverty and inequality in South Africa.” Gary Fields and Erik Thorbecke, Cornell University Fighting Poverty: Labour Markets and Inequality in South Africa is available from our offices: Development Policy Research Unit University of Cape Town Private Bag Rondebosch, 7701 Tel: +27 21 650-5705 Fax: +27 21 650-5711 Pro vince s of So uth Africa Limpopo Mpumalanga Northern Cape Gauteng Free State Eastern Cape Wes tern Cape Nata al KwaZ ulu-Nat Cover Photographs: Courtesy of Neil van Niekerk – http://www.planetneil.com/township/photos3.html & b.ontong • Design & Layout: b. e. ontong Westt PProvince North rovince North wes