Inequalities in South Africa

The primary problems with inequality in South Africa involve poverty and unemployment.  A great deal of the problems in South Africa spurn from racial issues and the lingering effects of apartheid. In the more than 15 year since the end of apartheid, South Africa has made some major improvements in its government, education, housing, and health programs. But while South Africa has made reform efforts, the country still struggles to create jobs and maintain equality in its employment.  As a result, those unemployed, more than ¼ of the population, live in poverty and squalor

One United Nations Report reveals that “Blacks constitute the poorest layer of the population, making up over 90 percent of the 21.9 million poor. In seven of the nine provinces more than 50 percent of the population lives in poverty.”  South Africa shares many problems that the whole of Africa does, but despite the surprisingly high unemployment rate, South Africa is one of the most productive and wealthy nations in the whole continent.

As a measure of the income distribution, the Gini coefficient represents the inequalities between incomes. Since 1995, South Africa’s Gini coefficient has risen from .596 to .635 in 2002.  South Africa is a country where the rich are extremely wealthy and the poor live in the poorest of conditions. The income distribution between the rich and poor in South Africa is shocking. 60% of South Africa’s population earn less than $7,000 per year, whereas 2.2% of the population earn more than $50,000 per year. As the working class falls further into poverty, the rich minority seems to be accruing more and more personal wealth.

With the inequalities in wealth and employment, South Africa is a ticking time-bomb for revolution.  Such protests, like the ones occurring in the Middle East, often arise from the youth, discontent with their ability to acquire jobs and the overall trends in government.  Because South Africa's government has been proactive in reforming other areas, they need to focus on the labor sector more.  For example, loosening the rigid labor regulations that restrict firms and their ability to expand would increase the employment rate.  While these problems cannot be solved instantly, South Africa needs to be proactive to get more of the lower class working for wages.

Other Source: World Bank