POVERTY IN SOUTH AFRICA

Poverty is more than just a lack of money or resources. Understanding various definitions of
poverty and the context in which they are used is essential for accurate reporting and
interpretation.
Definitions of poverty vary according to who is doing the measuring, be it the World Bank,
governments, aid agencies or nongovernmental organisations, or people who live in conditions of
poverty. The language around poverty is constantly expanding to reflect more inclusive
approaches to the issue. In this guide we explain the differing definitions of poverty and how
poverty is measured. Poverty is a contested concept; and it is contested with good reason.
Arguments over how poverty should be conceptualized, defined and measured go beyond
semantics and academic hair-splitting. The conceptualization, definition and measurement of
poverty in a society is like a mirror-image of the ideals of that society: in conceptualizing,
defining and measuring what is unacceptable in a society we are also saying a great deal about
the way we would like things to be. It is therefore vital that the concepts, definitions and
measurements of poverty, as well as being theoretically robust, are appropriate to the society in
which they are applied.

Types of Poverty

Absolute poverty

The term absolute poverty generally refers to a specific income threshold or a fixed amount,
below which individuals are unable to meet basic needs. Internationally, it is a state in which a
family earns less than a minimum amount of income typically US$1.25 per day per person in
low-income countries. This limited income makes it difficult for the family to cover its basic
costs of living.

Relative poverty

In relative terms, individuals are considered poor when their financial position compares
unfavorably with an average living standard in society. Relative poverty may also refer to the
lowest income level of a society i.e. the portion of a population that earns the least. This creates
a completely different characterization of poverty: though absolute poverty may be eliminated as
incomes grow, there will always be a lowest-earning group in any population and always a
degree of relative poverty.

Social Exclusion

The social exclusion model recognizes that poverty is about more than insufficient material
resources. Here poverty is defined by a lack of access to food and shelter as well as a lack of
features such as dignity and security. Both relative poverty and the social exclusion model
allow for broader discussions of poverty, and are central to growing debates in relatively wealthy
countries or societies where absolute poverty has been eliminated but where relative forms
persist.
Understanding the indicators: poverty lines

A common measure of poverty is that of poverty lines. Poverty lines typically provide a
monetary cut-off; falling below the line indicates poverty. Where the poverty line is drawn
depends on how poverty has been defined.

International agencies such as the World Bank and United Nations use an international poverty
line indicator of US$1.25/day, measured at 2005 rates and adjusted for purchasing power
parity or PPP (what your money buys in each country). According to this measure, a person is
considered poor if his or her consumption or income level falls below US$1.25/day.

Because the US$1.25 amount represents extreme poverty. This is the median poverty line
across all but 15 of 75 developing countries surveyed by the World Bank. This represents a
slightly higher poverty threshold, allowing researchers to include much larger populations in
their studies.

National poverty lines may be drawn differently to include the lowest 30% of income earners in
a population, for example, or according to a combination of definitions and criteria adopted by
the measuring or evaluating authority. Because poverty lines tend to differ between countries, it
is important to be clear about the measures used when comparing poverty data sets outside the
PPP/US$1.25 figure.

Understanding the indicators: subjective measures

The information used for national and international poverty lines is determined according to
standardized measures of poverty based on experts definitions. As such, these measures are
considered objective indicators of poverty.

However, most surveys acknowledge that these indicators are not exhaustive and do not
necessarily yield a complete picture of the lived experience of being poor. To address this,
subjective poverty indicators based on individuals assessment of their own poverty are also
frequently included. These indicators may include self-perceived wealth; what individual
households believe is the minimum required to make ends meet; and individuals perceptions of
their relative economic status.

Causes, Effect & Solutions of Poverty In South Africa

South Africa counts around 5.5 million people infected by the HIV and a million waiting for an
anti-retroviral therapy. This represents over a quarter of all the people in Sub-Saharan Africa in
need of a treatment. Despite its middle class, the heritage of the apartheid, the lack of political
will, the huge inequalities as well as the cultural barriers are just as many obstacles that slow
down the efforts to provide treatment to the countrys citizens.

Due to poverty affecting more than half of the population via widespread food insecurity (and
related malnutrition) and unemployment rate around 25-30%, it makes it particularly difficult for
local populations to afford any medication at all, even less a costly therapy. When treatment
happens to be available for free, people have problems simply accessing it.
The problem with traditional medicine
Three people out of four in the country have sometimes no other choice but to accept help from
traditional healers.

The remedies they prepare are known not only for their toxicity (mental alterations, vomiting,
diarrhea...) but also for their dangerous interaction with the anti-retroviral treatment.

Solutions
1. Creating Good Jobs
When people have jobs, they have income, and when people have income, they can more easily
get themselves out of poverty. The U.N. says that unemployment and underemployment lies at
the core of poverty. For the poor, labor is often the only asset they can use to improve their well-
being.
2. Educating Women
A womans degree of education is linked to the age at which she marries and has children, to her
health and diseases, to her economic opportunities, to her social standing, and to her general
future wellbeing. Educating girls and women can reduce poverty in developing nations
3. Raising Wages
Raising the minimum wages could potentially increase the health and wellbeing of millions.
4. Microfinancing
Microfinance is defined as the supply of loans, savings, and other basic financial services to the
poor. Right now, only about 10 percent of the global population has access to traditional
banking. However, using microfinance, people who are unemployed or who have a low
income could get small loans to help them become self-sufficient. An organization called Kiva
has provided more than $329 million to 786,000 borrowers, with a repayment rate of 98.97%.
Microfinance is a promising way to alleviate poverty.
5. Gender Equality
As the U.N. Development Programme says, when women have equal access to education, and
go on to participate fully in business and economic decision-making, they are a key driving force
against poverty. Not only this, but better gender equality raises household incomes
and translates into better prospects and greater well-being of children, which is a smart way
reduce the poverty for future generations as well as our own.
6. Transparency in Government Spending
Creating transparency in government spending of money can help reduce corruption in
governments. When governments are accountable to their citizens for their action, or inaction, in
different areas of the federal budget, the citizens will be able to accurately assess how well their
leaders are leading their country.
7. Canceling National Debts
It is internationally recognized that the debt burden of the worlds poorest, most indebted
countries has to be tackled if they are to set themselves on a path of sustainable growth,
development, and poverty reduction. This is why the International Monetary Fund and the
World Bank have created the Initiative for Heavily Indebted Poor Countries (HIPCs). The
initiative helps with the debt relief to currently 23 poor countries (mostly in Africa) that are
committed to eradicating poverty.
8. Access to Healthcare
Universal health insurance coverage in all countries can help achieve a goal of ending extreme
poverty by 2030. He says that because about 100 million people are pushed into extreme
poverty every year by having to spend money on health issues, and that because health
issues push about another 150 million into severe financial hardship, universal health insurance
could greatly relieve poverty, globally.
9. Access to Clean Water and Sanitation
The World Bank says that access to clean water and sanitation is one of the most cost-effective
development interventions, and is critical for reducing poverty. The reasons for this are that
women can use the time that they would have spent fetching water to work and produce more,
agricultural production could increase, and the costs of services and goods could go down.
10. Nutrition, Especially in Infants
Adequate nutrition is an incredibly important indicator of a persons ability to get out of poverty,
later in life. Those who are malnourished from the time of conception to 24 months, postpartum
have a higher risk of lifelong physical and mental disability. Because of this, they are often
trapped in poverty, and are not able to make the full contribution to the social and economic
development of their households and communities, as adults.
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