SA world’s most unequal society – and it has worsened since democracy

THE government has expressed disappointment with its track record of transforming the country after a World Bank report showed that inequality has deepened since the dawn of democracy, with South Africa being the most unequal society.

The results of the probe, which assessed poverty and inequality from 1994 to 2015, revealed that only one in four South Africans could currently be considered as either middle class or upwards in terms of means.

The report was presented to Minister for Planning, Monitoring and Evaluation Nkosazana Dlamini Zuma yesterday.

It was commissioned in 2016 as a collaborative initiative by the bank and the country’s institutions, including Statistics SA.

It was also aimed at identifying the key drivers, challenges and possible policy actions for socio-economic transformation.

World Bank country director Dr Paul Noumba Um said more than 75% of South Africans slipped into poverty at least once between 2008 and 2015, with the poverty headcount being higher in rural areas.

“Half of South Africans during the 2008-2014/15 period were considered chronically poor or having average consumption below the upper bound of the poverty line.

“At least 78% of South Africans were in poverty at least once during this period.”

Um said despite the overall positive trend on poverty reduction between 2006 and 2015, it had increased between 2011 and 2015, with at least 2.5 million more South Africans slipping into poverty.

“About 40% of the South African population lived below the lower bound poverty line in 2015, up from 36.4% in 2011,” he said.

The report said high wealth inequality and low intergenerational mobility inherited from apartheid saw the disparities being passed down from generation to generation, with signs that the situation was worsening.

Dlamini Zuma said the report’s findings, though not surprising, were disappointing and the current administration would have to pull up its socks.