Posts

, , , , , , , ,

Cash for Cows: Livestock Wealth in South Africa

Livestock WealthPoverty in South Africa has historically been linked with the institution of the racial apartheid regime. The national government began to pass segregationist policies in 1948, with racial discrimination policies only officially dismantling in 1994 when South Africa became a democracy and Nelson Mandela stepped into power. Livestock Wealth is a company that introduced South Africa to “crowdfarming” as a means of supporting farmers and alleviating poverty in the country.

Apartheid and Poverty

Under the apartheid regime, the minority-white government passed policies aimed at keeping black South Africans, who made up a majority of the population, from having any meaningful participation in the economy. This left millions trapped in cycles of poverty and the residual effects of such discriminatory policies are still being contended with, in the effort to reduce poverty today.

Apartheid laws confined poor South Africans to rural regions and made the migration to urban areas difficult. The lack of opportunities and social mobility in rural areas made overcoming poverty a challenging task. The legacy of this limited mobility is still present today. South African provinces in rural areas have more households in chronic poverty compared to urban provinces. As of 2015, 25.2% of the population of urban areas lived below the upper-bound poverty line (UPBL), whereas 65.4% fell below the UBPL in rural areas. In order to reduce poverty, it is most important that rural communities receive support and investment.

Livestock Wealth

Livestock Wealth is a startup founded in 2015 by Ntuthuko Shezi which aims to provide investment for farmers in South Africa’s rural areas. Livestock Wealth allows investors from anywhere in the world to effectively purchase from South African farmers four different livestock and crop options: a free-range ox, a pregnant cow, a connected garden or a macadamia-nut tree. When the cows or the crops are sold, both the farmer and the investor receive a share of the profit.

The investment provides liquidity to farmers for whom there is limited availability of short-term funds. Livestock Wealth is currently a credit provider with South Africa’s National Credit Regulator and is registered with the Agricultural Produce Agents Council.

Livestock Wealth currently has 58 partner farmers all across the country and all cows are hormone-free and grass-fed. In recent years, its business has expanded to also provide meat for investors who join the “Farmers Club.” There are currently more than 2,800 investors with Livestock Wealth and more than $4 million has been invested.

Alleviating Poverty in South Africa

Livestock Wealth is a representation of an initiative that has great potential to alleviate poverty in South Africa. South Africa’s rural populations have a long history of exclusion from the economy and have struggled to reduce poverty for decades. Livestock Wealth provides cash investments for farmers and creates a market in which they can reliably trade. By doing so, the firm exemplifies an innovation within the South African economy, one which is helping to alleviate poverty and can inspire others to do the same.

– Haroun Siddiqui
Photo: Flickr

, , , , , , ,

Wealthy Philanthropist Donates Billions to Charities

Billions to Charities
It is no surprise that Forbes named Charles “Chuck” Feeney the James Bond of Philanthropy. After 38 years, Feeney achieved his lifetime goal: giving away all his $8 billion amassed wealth to charity and being alive to see its impact. When someone donates billions to charities, the impact should be substantial.

Charles “Chuck” Feeney

Chuck Feeney amassed his wealth from establishing a franchise of stores within thousands of airports known as the Duty-Free Shoppers Group. He also launched the General Atlantic, an American growth equity firm. Yet, the man, with this immense fortune lives in a rented San Francisco apartment. Moreover, he has even been found riding public transit. Feeney has credited his life philosophy to the Andrew Carnegie essay, “The Gospel of Wealth.” The essay declares that the millionaire’s sole duty is to give back to the poor. As Feeney donates billions to charities, he certainly obliges. Carnegie’s influence is extremely apparent within Feeney’s life. His coined phrase and mantra in life, “Giving While Living,” is essentially saying that you should give all you can to charity now rather than later. This, which closely resembles the messages behind The Gospel of Wealth.

Atlantic Philanthropies

In the early ’80s, the Duty -Free Shoppers franchise was at its peak. This is when Feeney decided to be the one who donates billions to charities. Without anyone’s knowledge, he secretly handed over all his shares and formed his new foundation, the Atlantic Philanthropies. Since 1982, the Atlantic Philanthropies has focused on issues of health, social and public policy throughout Australia, Bermuda, Ireland, South Africa, the U.S. and Vietnam. Within these countries, the foundation has addressed many important issues. Among them include facilitating the peace process in Northern Ireland, reducing the number of children without health insurance in the U.S., providing millions with HIV/AIDS medication in South Africa and helping modernize Vietnam’s health care system. While the foundation has officially dissolved recently, Feeney has one last message to relay: “To those wondering about Giving While Living: try it, you’ll like it.”

3 Countries Impacted

  1. South Africa: In the early years after Apartheid, Atlantic Philanthropies saw the opportunity to help advance South African society from its previous suppression. During the ’90s, the foundation assisted young black South African attorneys in getting their law degrees. In the 2000s, Atlantic made funds to advance nursing and health services. By the end of 2016, Atlantic Philanthropies had totaled $442 million in investments toward building democratic institutions and organizations. Overall, the foundation brought 2 million South Africans access to HIV medication. Also, it convinced the government to pledge $1 billion toward school improvements. Finally, it increased the number of nurses between 2005 and 2013 by 44%.
  2. Vietnam: The Atlantic Philanthropies have invested $381.5 million towards improving Vietnam’s public health system and renewing old libraries and universities. With Feeney’s contribution of billions to charities, Vietnam modernized its healthcare system, resulting in 9 million citizens receiving better and improved treatment. Further, the foundation focused on efforts that advocated for healthier behaviors. These included the widespread anti-smoking campaign and the passed mandate that forced motorcyclists to wear helmets. Also, in the education sector, Atlantic Philanthropies improved Vietnamese university libraries.
  3. Cuba: In the early 2000s, Cuba’s healthcare, although seen as one of the best worldwide, was suffering from a lack of resources. This, in turn, sparked the Atlantic’s activism. Overall, the foundation invested $66 million into organizations that work toward improving the care and treatment of Cubans. Moreover, these bodies spread knowledge about Cuba’s effective public health practices in nations with impoverished communities.

An Inspiring Message

Feeney’s extreme display of generosity via contributions of billions to various charities has inspired many notable philanthropists and entrepreneurs to do their part to help the less fortunate. An example of wealthy business moguls following in Feeney’s footsteps is the “Giving Pledge.” Warren Buffet and Bill Gates launched the Giving Pledge in 2010 as a campaign that seeks to persuade wealthy figures across the world to donate close to half of their wealth before they die.

– Maya Falach
Photo: Flickr

, ,

COVID-19 Brings Positive Change to South Africa

covid-19 in south africaWhen COVID-19 came to the world stage in early 2020, many scientists worried about Africa’s response to the novel coronavirus. They were worried that African countries would not have the resources to combat the global pandemic. Given the continent’s past struggles to contain diseases such as tuberculosis, HIV/AIDS and Ebola, concerns that Africa would be an epicenter for COVID-19 were well within reason. Fortunately, a comprehensive response has quelled these concerns, and COVID-19 may actually bring positive change to South Africa.

Swift Response

South Africa’s President Cyril Ramaphosa, however, showed the world that not all African countries fit the stereotypes of squalor and poverty that many believed. His response to COVID-19 in South Africa has received praise and influenced the responses of nearby leaders. It seemed like he learned from his predecessors, and his swift and strict lockdown of the country prevented COVID-19 in South Africa from getting out of control. Even though COVID-19 shut down the country, responses to the disease have had a net positive effect on South Africa, initiating safety nets, public health initiatives and economic reforms. Here are 6 ways that COVID-19 has influenced positive change in South Africa and forced to country to look to the future.

How COVID-19 has Positively Changed South Africa

  1. Less Gang Violence: Gang violence has plagued South Africa for years, and Cape Town has seen some of the worst of it. In 2018, it was one of the most violent cities in the world, with 66 homicides per 100,000 people. But when COVID-19 hit South Africa in March 2020, gangs called for a national ceasefire and homicides fell more than 70%. South Africa’s lockdown also interrupted the drug supply chains, and many gang-afflicted communities in South Africa are feeling the reprieve.
  2. Fewer Alcohol-Related Deaths: South Africans have the highest rate of drinking out of any African country. This has lead to the country’s high rate of alcohol-related deaths. Part of the COVID-19 lockdown in South Africa was also a ban on alcohol. Since the law passed, the country has seen fewer drinking-related deaths. One hospital’s trauma cases dropped by two-thirds after the ban took effect. The country saw a stunning 81% decrease in road fatalities over Easter weekend in 2020 compared to 2019. The alcohol ban hasn’t just decreased death rates, but it has also opened the country’s eyes to the drastic alcohol problem it faces.
  3. Better Welfare Services: The economic ramifications that came with shutting the country down led South Africa’s government to provide a $26 billion welfare and business support package. This was no small stimulus package. It was equivalent to about 10% of the nation’s GDP, and the plan is only predicted to grow as the pandemic continues. Businesses weren’t the only ones getting bailed out. Additional funds were set aside for child caregivers, and 6 million people were able to collect monthly unemployment benefits.
  4. Stronger Calls for Public Hygiene: COVID-19 in South Africa has also brought to light the need for stronger public health initiatives. The lockdown exposed the discrepancy between the number of people thought to have access to clean water and the number of people who can actually obtain it. A worldwide consensus that a strong healthcare system and robust public hygiene are essential to fighting coronavirus has developed. The consensus has put pressure on South Africa’s leadership to expand public health initiatives.
  5. Economic Reform: South Africa is still transitioning its economy from the legacy of apartheid. However, COVID-19 affected low-income families who work in manufacturing, tourism, service and transport more than any other group in the country. The economic devastation has been felt unequally across the country, further reinforcing the need for a new economic plan. A specific investigating unit has already been given permission to look into corruption. Further, Public Enterprises Minister Pravin Gordhan has planned widespread, structural reforms for state-owned enterprises. Essentially, South Africa missed its opportunity to transform its economy immediately after apartheid, but COVID-19 in South Africa has paved way for “New Deal” style economic reforms.
  6. Learning from the Past: The difference in South Africa’s response to COVID-19 when compared to its response to HIV (or really, the lack thereof) is a clear indicator that South Africa has learned from their past mistakes in crisis response. While South Africa is one of the most afflicted countries to date in Africa, healthcare professionals and activists in South Africa have commended the country’s quick response. As of early June, the country had conducted 635,000 COVID-19 tests, which was greater than many countries around the world. The country has even deployed thousands of health care workers to go door-to-door to do testing and screening.

While the pandemic in South Africa is not over by any means, it seems that the disease will not leave the country unchanged. Instead, COVID-19 has initiated positive change in South Africa and will leave in its wake a safer, more equitable society. South Africa will not only be more equipped to deal with diseases in the future, but will also treat its citizens fairly even absent a global pandemic.

– Hannah Daniel
Photo: Flickr

, ,

Coronavirus and Inequality in South Africa

Inequality in South Africa
The coronavirus pandemic is revealing underlying scars of inequality in South Africa, the world’s most economically unequal country. Townships, still often segregated along racial lines due to legacies of housing policies during the era of apartheid, are reporting different levels of coronavirus cases. Crowded, majority-Black townships with little space for social distancing and self-isolation are reporting higher rates of coronavirus infections than areas that were designated all-white under apartheid. According to Edward Molopi, a researcher with the Socio-Economic Research Institute in Johannesburg, “townships become virus hotspots because we haven’t dismantled the apartheid city.”

Varying Impacts of Coronavirus

As of July 17, 2020, South Africa has reported over 324,000 cases of COVID-19 and nearly 5,000 deaths. Many of these cases are found in the Western Cape. Within this province, in Cape Town, the Khayelitsha township reported the highest number of coronavirus cases in the area. In contrast, Stellenbosch, a university town, reported only 1% of the Western Cape’s cases. The stark difference in numbers of cases in these areas cannot be explained by the proportion of the population living in them, and likely have to do with overcrowding and a lack of resources in historically Black areas.

Additionally, with lockdown procedures being enforced more strictly in poor, Black, high-density townships, many are unable to work and find themselves at risk of going hungry. Coupled with the country’s worsening economy, these measures do not bode well for those in precarious economic conditions. The country’s unemployment rate is expected to exceed 35% by December of this year.

Combating the Issue

Despite these disheartening statistics and their discouraging outlook for South Africa, many individuals and non-governmental organizations are fighting for equality and economic security amid the pandemic. One such group is the Socio-Economic Research Institute, home to the researcher Edward Molopi quoted previously in this article. Based out of Johannesburg, an area severely affected by the coronavirus, the institute aims to provide legal assistance, research and advocacy for communities in South Africa afflicted by poverty and inequality. The organization’s belief is that “it is the people who are on the receiving end of poverty and inequality who are best placed to devise and implement strategies to challenge them.”

It goes without saying that the coronavirus pandemic has exposed many flaws in governments and civil societies worldwide. Not only are countries’ inadequate healthcare systems and inefficient disease control protocols revealed, but the presence of poverty, racial biases and other social ills. However, in the face of these many formidable challenges, the best of humanity has been shown as well. Ordinary people across the world are standing up for themselves and their neighbors through collective action and individual acts of kindness, providing hope in tumultuous times.

– Addison Collins
Photo: CA Times

, ,

Nelson Mandela’s Quotes on Fear

Nelson Mandela Quotes on Fear
Facing fears and overcoming them to become a better version of oneself in order to generate meaningful change is a concept that Nelson Mandela’s journey best exemplifies. During the Apartheid that plagued the nation of South Africa for 50 years, Mandela fought against discrimination and poverty that wreaked havoc in the country. This show of resistance landed him in a place of imprisonment for 27 years. After Nelson Mandela lived behind bars for a large portion of his life, one may have expected him to stop his efforts in ending Apartheid in fear of going to prison again, however, he persevered and conquered his fear and continued to fight against the injustice he witnessed. Nelson Mandela’s quotes on fear ignite a passion in people to persist against resistance.

Nelson Mandela’s Quotes on Fear

  1. “May your choices reflect your hopes, not your fears.”
  2. “I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”
  3. “Courage is not the absence of fear — it’s inspiring others to move beyond it.”
  4. “Difficulties break some men but make others. No axe is sharp enough to cut the soul of a sinner who keeps on trying, one armed with the hope that he will rise even in the end.”
  5. “I am fundamentally an optimist. Whether that comes from nature or nurture, I cannot say. Part of being optimistic is keeping one’s head pointed toward the sun, one’s feet moving forward. There were many dark moments when my faith in humanity was sorely tested, but I would not and could not give myself up to despair. That way lays defeat and death.”
  6. “We owe our children – the most vulnerable citizens in any society – a life free from violence and fear.”
  7. “There are few misfortunes in this world that you cannot turn into a personal triumph if you have the iron will and the necessary skill.”
  8. “Those who conduct themselves with morality, integrity and consistency need not fear the forces of inhumanity and cruelty.”
  9. “Men have different capacities and react differently to stress. But the stronger ones raised up the weaker ones, and both became stronger in the process.”

Nelson Mandela’s quotes on fear offer inspiration to overcome any internal obstacles an individual may face. In all of these quotes, Nelson Mandela promotes the idea of overcoming harrowing experiences or ideas in order to reclaim control to stand up against wrongdoings in society. Facing traumatic experiences that may fuel a dreary and dismal feeling can bring groups such as those discriminated against during Apartheid down in submission. However, these quotes remind those suffering marginalization to continue on their path despite forces like fear striving to end progress. Mandela’s words of wisdom highlight how fear is only a minor setback, and that anyone can stand against it to incite action against difficulties once they have conquered it.

 – Gowri Abhinanda
Photo: Flickr

 

, , , ,

Single Motherhood in South Africa

Single Motherhood in South Africa
Poverty in South Africa disproportionately affects women, a phenomenon people know as the feminization of poverty. Despite efforts by the South African government to combat severe female poverty and disadvantage, the feminization of South African poverty remains an important issue today. Single motherhood in South Africa is a huge problem because it puts a severe psychological and financial strain on both mothers and children. As of 2015, more than half of the South African population was living under the official poverty line, and homes headed by black African women are at greatest risk of impoverishment.

Despite government efforts to alleviate race-and-gender-skewed poverty with state-sponsored health care, free housing programs and subsidized basic services like water and electricity, poverty in South Africa remains overwhelmingly black and female. Half of South African children grow up in fatherless households, and the number of single mother households in the country has grown over the past several decades. Women must increasingly raise and support children alone, which increases a family’s risk of living under the poverty line.

Single-Mother Households and Poverty

The link between single-mother households and poverty is undeniable, impacting even the world’s most affluent nations. In Europe, single-mother households generally have more than double the poverty rate of two-parent households. Single-parent households are bound to bring in less money than married couples because they only have one source of income. As a result, children living in single-parent homes are three times as likely to be poor as children living with married parents.

South African women earn an average of 28 percent less than men, partly accounting for the disproportionate poverty of female-led households. Women also have a harder time finding jobs than men; almost 30 percent of working-age women are unemployed, compared to 25.2 percent of men. Women are also more likely to work in the informal, unregulated sector or do unpaid work. Other vulnerabilities, like domestic abuse, sexual assault, unwanted pregnancy and HIV prevent South African women from supporting themselves and their families.

There are psychological consequences for children in fatherless households as well as financial strains. Research has found that boys who grow up with absent fathers are more likely to display aggression and other hyper-masculine behaviors, which increases their risk for unhealthy relationships, crime and addiction. Fatherless girls are more likely to engage in high-risk sexual behaviors, experience an unwanted pregnancy or find themselves in an abusive relationship. These consequences propagate the cycle of fatherless homes.

Why is Single Motherhood in South Africa Common?

For almost 50 years, South Africa’s white-supremacist government crystalized systematic inequality on the basis of race through the system of Apartheid. Now, only 25 years into liberation, the South African people still feel these legacies deeply. One of the main contributing factors is the urban-rural divide. Apartheid relegated black South Africans were often in rural homelands far from metropolitan centers and, subsequently, jobs. Thousands of black men had to migrate to cities to find work. They lived in male-only hostels or townships, making low wages and sending money back to their families, who could not leave the homelands to join them.

Some argue that the destruction of the black family structure by the Apartheid regime contributed to patterns of male family-abandonment and neglect. This phenomenon may have had a hand in the recent increase in single-mother households.

Additionally, the vast gap in access to good education, well-paying jobs and respect in society created socio-economic inequalities in South Africa. Black South Africans remain poorly educated, and cyclical, persistent poverty traps many of them, leaving them unable to pull themselves out. In addition, 13 percent of all pregnancies in the country are teen pregnancies, which prevent mothers from finishing school and focusing on a career, resulting in continuous poverty.

The South African government recognizes the scope and seriousness of poverty in single-mother households and has adopted the National Development Plan: Vision 2030 to raise living standards, provide public services and reduce severe poverty and inequality. The policy outlines a plan to invest in education, health services, public transport, housing and social security, as well as welfare policies directed specifically at women and children, like a national nutrition program for pregnant women and a plan to increase women’s enrollment in schools, especially in rural areas. Single motherhood in South Africa is a dangerous phenomenon, and in order to alleviate this problem, women need better access to education, resources and job opportunities.

– Nicollet Laframboise
Photo: Flickr

, , ,

Obama Gives Speech on Nelson Mandela Day

President Barack Obama Nelson Mandela
On July 18, 2018, Nelson Mandela Day, former U.S. President Barack Obama gave a speech in honor of the late Nelson Rolihlahla Mandela and his legacy that continues in today’s world. The day marked 100 years since his birth and led to Obama speaking about the progress made in that time span. Despite the many people still oppressed by corrupt political systems, Obama suggested tactics that could promote a bright future.

Nelson Mandela Day

Nelson Mandela Day was made official on November 10, 2009. The United Nations General Assembly declared that the humanitarian’s birthday, July 18, would be internationally recognized to honor his achievements and philosophy. The General Assembly deemed it necessary to acknowledge Mandela’s peaceful methods of conflict resolution every year.

Mandela witnessed South Africa’s former apartheid take away human rights from the black race. This led to his advocacy work for blacks and impoverished communities along with his subsequent role of the first democratically-elected president of South Africa.

Key Points in Obama’s Speech

In his speech, Obama made parallels between the political turmoil in Mandela’s lifetime and that which still exists today. He said that advancements in technology, poverty reduction, health and international trade have led to more peace. However, there’s a danger in prioritizing innovation and business interests over human needs. New machines can increase efficiency and production, but this hurts the common worker by eliminating jobs. If political leaders worked to raise people out of poverty, it would promote democracy in their government.

Obama went on to stress the need for a fair distribution of wealth. Advancements in the economy just provide those in power the chance to widen the disparity between themselves and the poor. People living in the top one percent do not need every penny they have to spend on luxuries since they have an excess of money. Even a small amount of that excess could help people in need. In other words, people do not have to commit themselves to a life of poverty in order to help lift others out of poverty.

Since his speech was in honor of Nelson Mandela Day, he brought up the philosophies Mandela wanted to see in future generations. When he became president, his declarations were not drafted for the sole use of South Africa. He believed in human rights for people all over the world.

Obama outlined what a democracy needs in order to be successful, including open-minded people and transparency. Decision makers must be receptive to opposing viewpoints. Even though a country might uphold a democratic system, that doesn’t mean those in power always base their actions on that philosophy. Instead of spreading lies and propaganda that only serve their personal interests, political leaders must be honest with their citizens.

Continuing the Legacy of Nelson Mandela

Organizations based in South Africa are continuing work beyond Nelson Mandela Day. Rebecca’s Well is an organization that supports women on their journeys to become contributing members of society by offering to help fund their education and by providing counseling services after a divorce. Much like the activism done by Mandela, these actions ensure that a marginalized group of people receive a fair chance of fulfilling their potential.

In terms of Obama’s message about global progress, the New Voices Fellowship casts the spotlight on innovative minds from developing countries. The most effective way to help tackle poverty is by consulting with those experiencing it. With that in mind, the organization proposes solutions for how to generate income, increase access to medical services and invent technology that helps the lives of people in need.

Obama said that no one, not even Mandela during his presidency, is immune to the dangerous lure of power. Mandela recognized that truth, which is why he brought democracy to South Africa. Governments need to be reminded of it to ensure that people are free to express their opinions about how their government is being run. Citizens have power too.

– Sabrina Dubbert
Photo: Flickr

, ,

Inequality in South Africa is Still Being Perpetuated Today

Inequality in South Africa
South Africa has long been known as one of the most unequal societies in the world. In the 1990s, South Africa’s Gini coefficient–a measure that reflects inequality, where zero is absolute equality and one is absolute inequality–was, at 0.66, the highest in all the 57 countries for which this data was available. That measure, as of 2015, has remained the same. The top 10 percent of South Africans earn roughly 60 percent of all income and own 95 percent of all the country’s assets, whereas 80 percent own no wealth at all. Inequality in South Africa continues to be a major issue as the country moves to distance itself from its apartheid- era exclusionary style.

The root causes of South Africa’s severe inequality can be traced back to the establishment of Cape Town, a Dutch shipping port in the 1650s. Over the next two centuries, “military conquest and political exclusion, which took a colonial and racial form,” expanded into the interior.

After the British took over in the early nineteenth century, the defeated indigenous groups were never fully incorporated into the economic and political model. The twentieth century brought the neighboring counties under British rule, culminating in a peace settlement which “inscribed racial discrimination in the foundations of the new South African state.” The framework for inequality in South Africa had already been laid by the time the National Party came to power in 1948 and enforced its apartheid legislation.

South Africa continues a system of socioeconomic exclusion. However, whereas historically the exclusionary practices were racially-based, today the extent and depth of inequality in South Africa is increasingly intersectional. Although it continues to impact black South Africans the most, it strikes at race, gender, class and age. Over 55 percent of South Africans continue to live in poverty and unemployment sits at 25 percent.

All hope is not lost, however. The University of Witwatersrand in Johannesburg has founded a new center, the Southern Centre for Inequality Studies, that will drive a five-year-long, interdisciplinary project. It will include approximately 80 researchers from across the country: economists, historians, legal academics, healthcare experts, sociologist and other disciplines.

The most promising hope yet for combating inequality in South Africa comes from the implementation of the National Development Plan. The plan seeks to reduce inequality and eliminate poverty by 2030 by “drawing on the energies of the country’s people.” Some of the key points include: increasing employment to 24 million, ensuring all children can read and write by the third grade and providing affordable healthcare and a public transit system. It also aims to strengthen the criminal justice system, including governmental accountability. “Progress over the next two decades means doing things differently,” the plan states.

In detail, the plan calls for:

  • infrastructure investment set at 10 percent of the country’s global domestic product (GDP).
  • raising rural incomes.
  • strengthening social wages.
  • professional public service.
  • private investment to boost labor.
  • housing market gaps to be closed.
  • informal settlements to be upgraded.

After handing over the plan to President Jacob Zuma, Minister Trevor Manuel stated that “social cohesion needs to anchor the strategy.”

South Africa’s apartheid era formally came to an end in April of 1994. Less than a month later, in May of 1994, Nelson Mandela became the first black, democratically elected president. The exclusionary system that Mandela grew up in is still widely overreaching within the country, but as the nine provinces continue to work together, there will be hope. Inequality in South Africa does not have to be a perpetuation.

– Aaron Stein

Photo: Flickr

, , ,

Why Laws Are Not Enough to End Poverty in South Africa

laws aren't enough to end povertySocial justice does not work like a movie. Even if a climactic event results in the removal of unjust systems, the after-effects of injustice persist decades after the fact. Though apartheid was eliminated decades ago, South Africa still sees stark divisions between the living conditions of blacks and whites. These divisions continue due to economic barriers and reveal that laws are not enough to end poverty or prejudice.

The removal of apartheid laws brought several economic opportunities to poor, black South Africans. Unfortunately, this victory did not change ownership of land and capital from its predominantly elite white holders. Without a solid foundation for business creation, few black men and women could find substantial gain pre- or post-apartheid. Even in 2016, ten percent of South Africans own 90 percent of the nation’s wealth, and that ten percent is mostly white.

In an attempt to house black South Africans, the African National Congress built townships around major cities. Though these townships settled close to major centers of business, they were not business centers themselves. With no money flowing into these government-owned lands, the townships became ghettos with dangerous buildings and poor education. South Africa’s unemployment rate neared 28 percent in 2017 and more than half of the black population is officially unemployed.

In a 1997 Regional Review article, Ed Glaeser of the Federal Reserve Bank of Boston examined the creation of ghettos and found features of segregated areas that apply all over the world. Concentrating resources in cities brings great wealth only to those working there. When certain areas of a city are deprived of incoming wealth due to artificial barriers, like in a township, racial tensions increase. An expanding economy in the 2000s doubled the size of South Africa’s black middle class, but the financial crisis of 2008 destroyed that decade’s gains.

Though Glaeser based his studies on American ghettos, his findings easily apply themselves to South African townships. “The ghetto walls themselves, not any increase in racism they may engender, thus seem primarily responsible for the poor black outcomes associated with increased segregation,” he stated. Both black and white South Africans consider themselves victims of racism. 44 percent of whites and 73 percent of blacks believe that the two races will never trust each other.

So what has helped South Africans escape destitution? Though laws are not enough to end poverty, they can create situations that allow people to overcome their struggles. In 2014, South Africa cut the rate of extreme poverty in half. In a press release from 2014, the World Bank credits this victory to redistributed income through tax benefits. Through a progressive tax system and an investment in infrastructure, South Africa achieved higher poverty reductions than Brazil, Mexico, or Argentina that year.

The fight is not yet over. The World Bank concludes its press release with the notion that “reducing poverty and inequality further in a way that is consistent with fiscal sustainability will require a combination of better quality and more efficient public services but most importantly greater employment opportunities.”

The New York Times compared South Africa post-apartheid to Europe post-WWII. Both regions had to rise from adversity by re-engineering their economy and challenging the legacy of colonialism. Just as the Marshall Plan restored Europe to prominence, so might foreign aid bring South Africa to the glory it seeks. Although laws are not enough to end poverty, persistent intervention from other countries could help.

– Nick Edinger

Photo: Flickr

, , ,

6 Facts about Poverty in South Africa

Poverty in South Africa

South Africa is a nation with a very deep and turbulent history. Since the official end of apartheid in 1994, the country has been struggling to combat entrenched poverty and inequalities. In order to further understand the issues, here are six facts about poverty in South Africa:

  1. South Africa is a middle-income nation with some highly developed economic sectors. For instance, South Africa’s stock exchange, JSE, is the largest in Africa and top 20 worldwide. Since 2000, South Africa has shown decreasing poverty and a decreasing wealth gap.
  2. The country nonetheless still suffers from serious poverty and unemployment, with 25 to 30 percent of the workforce unemployed. According to the U.S. government, around 36 percent of the population is living in poverty.
  3. The Statistics South Africa defines poverty with three categories: the food poverty line, the lower bound poverty line and the upper bound poverty line. About 20 percent of the population lives below the food poverty line, meaning they cannot afford food that meets a minimum calorie intake.
  4. South Africa’s poverty is rooted in economic disparities. Much of the nation’s wealth, as it is a moderately wealthy nation, is concentrated in the hands of few, particularly those who controlled wealth in apartheid times. Between 60 and 65 percent of the wealth in South Africa is concentrated in the hands of the wealthiest 10 percent of the nation. Comparatively, 40 to 45 percent of wealth in the U.S is controlled by the highest 10 percent.
  5. Poverty in South Africa has actually been declining since the mid 2000s. As a result of doubled per capita health spending and the building of 1.5 million free homes, among other government initiatives, over 2 million South Africans have climbed out of extreme poverty since 2006.
  6. In addition to the increased government spending, the United Nations Development Program has been working with the South African agencies to redress South Africans who were forced off of their land during apartheid. This land restitution initiative will help decrease South Africa’s wealth gap.

While poverty in South Africa is still a large problem, the recent government and international initiatives have had a dramatic effect on poverty reduction and economic redistribution.

– John English

Photo: Flickr