Phuhlisani has joined conference participants in reviewing key trends in poverty and inequality in South Africa. We will feature highlights from the conference in a series of short articles over the next few days. 

Deputy President Kgalema Motlanthe opened the conference by means a video address. He stated that poverty and inequality are threats which prevent society functioning at “an optimal level.” He noted the need for multisectoral responses to address poverty and inequality highlighting that “simple co-ordination is not enough.' Interventions have to be combined with stronger M&E. The Deputy president warned that “if a programme does not work there is no rationale for its continuation.” He challenged conference delegates to identify any elements missing in government’s poverty eradication framework.

In a key note presentation to the conference UCT economist Murray Liebbrandt identified poverty and inequality trends from a comparison of 1993 and 2008 data. Analysis of relative income shares by deciles showed that in 2008 the top ten percent had captured 58% of income, rising from 53.9% in 1993. He observed that South Africa had “unleashed an amazingly unequal society” in which increased inequality was apparent within all racial groups.

Where poverty had decreased this was clearly attributable to social grants. With respect to access poverty there had been a substantial increase in access to electricity and water. However the decline in the labour market had dramatically reduced urban rural remittance transfers. Unemployment had risen sharply reflected by an increase in zero worker households and a decline in 2+ worker households.

Liebbrandt cautioned that while the roll out of social grants was “a world class achievement” it was starting to “push fiscal limits”. He observed that short run poverty alleviation was not sustainable and that sustainable solutions would only be found in increased productivity and more jobs

Fellow panellist Adam Habib warned that “the post 1994 transformation will unravel if we do not address inequality”. He criticised simplistic notions that “if we just get the right policy everything will be all right”, warning that development “is not about getting the right technocrats in the Presidency – development is about politics”. He argued that we need to recognise the structural conditions of political agency. Habib emphasised the need to pluralise power and ensure direct accountability to citizens in constituencies.