Poverty reduction strategies in South Africa

Abstract

Between 45-57% of South Africans are estimated to be engulfed by poverty. In an attempt to identify policy instruments that could help change this status quo, the various strategies that have been implemented in countries (e.g. China, Vietnam and Uganda) that are known to have been relatively successful in reducing poverty are reviewed. In the process, this dissertation discusses the literature regarding poverty, with a particular emphasis on the definition, measurement and determinants thereof. Furthermore, South Africa's anti-poverty strategies are discussed. It turns out that these have met limited success. This is largely due to insufficient pro-poor economic growth, weak implementation/administration at the municipal level, slow asset redistribution, high income/wealth inequality, low job generation rate by SMME's, high HIV/AIDS infection rate, public corruption and inadequate monitoring of poverty. Therefore, if meaningful progress towards poverty reduction is to be achieved, the government needs to deal with the foregoing constraints accordingly.