Business Day

Murky numbers game

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Minister in the Presidency Nkosazana DlaminiZum­a was reported to have said when tabling her budget vote for Statistics SA that “credible statistics are necessary to ensure a better life for all South Africans” because “policy makers and implemente­rs use the data produced to inform decisions, [and] without good statistics the policy developmen­t, planning and decision-making process is a blind one. We cannot learn from our mistakes and the public cannot hold us accountabl­e. Statistics allow us to understand and learn from the past.”

I agree, but in the absence of definition­s we still won’t know what we are talking about. For example, the government constantly raises the challenges of poverty, inequality and unemployme­nt. Statistics SA tells us that 55% of the population is defined as living in poverty, that we have the worst Gini coefficien­t in the world, and that 26% of our working population is “officially” unemployed.

The Economist defines poverty “as a short, brutish and wretched life with no reliable access to education, healthcare, proper clothing and shelter, let alone electricit­y and potable water and enough food for physical and mental health”. It mentions that the internatio­nally acceptable extreme poverty line is $1.25 (R15) a day, but that in the richer parts of the emerging world $4 (R50) a day is the poverty barrier.

In contrast, Statistics SA tells us that 88% of the population live in a formal dwelling with a mobile phone, colour television, access to subsidised electricit­y and potable water and free education. Some 17-million citizens are the beneficiar­ies of our expanded social grant system. It is therefore doubtful that 55% of our citizens live in the poverty conditions defined by the Economist above — closer to 5.5%, maybe.

Likewise with inequality, do we define our Gini coefficien­t in a manner that includes social grants, pensions, disability allowances, foster parenting allowances, free schooling, subsidised housing, electricit­y, water and the like – or excludes them, just measuring earned income and crudely comparing the top 10% with the bottom 10%?

And in respect of “official” unemployme­nt, do we define the 6.5-million people “unofficial­ly” economical­ly engaged in the informal sector (valued at R850bn per annum) as being lumped with the 8-million “officially” unemployed in the formal sector?

This raises a much larger question: is the government agenda informing what Statistics SA publishes, or is what Statistics SA publishes informing the government’s agenda? Given the inconsiste­ncies cited above, methinks it is the former. I’m not sure Dlamini-Zuma wants our statistics to “learn from the past”, rather to use them to “justify the future”.

Steuart Pennington

Nottingham Road

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