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The case for social security in South Africa: An economic perspective

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  • Theo van der Merwe

Abstract

Sound economic arguments exist for social security in a market system, since it can promote efficiency and equity. Furthermore, social security can reduce the risks of economic insecurities caused by unemployment, poverty and the new international economic environment to individuals and society. For a developing country, South Africa has a relatively well-developed social security system. However, it cannot address all the needs without major fiscal adjustments. The most viable approach may be to target only the most vulnerable groups, although such an approach may be criticised from an equity perspective. An important limitation of the South African social security system is that many unemployed individuals go without coverage, which may contribute towards instability. It may be necessary to revisit public works programmes in conjunction with the private sector.

Suggested Citation

  • Theo van der Merwe, 2000. "The case for social security in South Africa: An economic perspective," Development Southern Africa, Taylor & Francis Journals, vol. 17(5), pages 717-735.
    • Handle: RePEc:taf:deveza:v:17:y:2000:i:5:p:717-735
    DOI: 10.1080/713661436
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    1. Ravallion, M., 1990. "Reaching The Poor Through Rural Public Employment; A Survey Of Theory And Evidence," World Bank - Discussion Papers 94, World Bank.
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