an Eldis Resource
Devising social security interventions for maximum poverty impact
Can social security redress endemic poverty in South Africa?
Authors:
S. van der Berg; C. Bredenkamp
Publisher:
Centre for Social Science Research, University of Cape Town (UCT), South Africa, 2002
Is social security, designed to provide protection against various contingencies, well suited to the elimination or redress of large-scale, endemic poverty? This article attempts to contribute to the debate surrounding social security systems in South Africa, as the basic income grant system is now considered not viable.
The paper analyses
- the 1995 income distribution data to identify where social security interventions are most likely to have a significant poverty alleviating effect
- the nature of the social security system, and an overview of gaps in certain components of the system is given
- poverty from the perspective of social security to identify vulnerable groups
The authors argue that given a somewhat improved fiscal position, the time might be ripe for expanding some existing social security programmes or for introducing some new ones as a way of improving the reach and impact of the social security system. Three options are suggested:
- Expanding coverage of the social insurance system. To do this in the two areas of agriculture and domestic service which are still largely uncovered may pose a similar threat to jobs in these low wage sectors as minimum wage legislation. An alternative would be to provide some tax concessions encouraging more employers in these fields to provide social insurance.
- Expanding social assistance: a promising area for expanding social assistance lies in the direction already taken with the child support grants. The means test should perhaps be reconsidered and the means-tested CSG could perhaps make way for a child grant, which over time could be expanded to higher age groups.
- Low-wage public employment schemes. Whilst these target the poor through self-selection, as only the poorest are willing to work for such low wages, unfortunately the administrative costs can be large.
The paper concludes that sustained economic growth remains the necessary condition for substantial poverty reduction. However, the social security system in South Africa nevertheless provides, and should continue to provide, income security to many of the poor. For this reason, realistic but serious efforts at incrementally expanding the social security system are essential.
