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Sense in Sociability? Social Exclusion and Persistent Poverty in South Africa

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  • Adato, Michelle
  • Carter, Michael R.
  • May, Julian

Abstract

Social capital has been identified as an important avenue of upward mobility for poorer people. However, recent theoretical work suggests that in highly polarized societies, the accumulation of social capital is likely to be fragmented and ineffective for people at the bottom of the economic pyramid. In South Africa, apartheid-era policies created such deep, socially embedded inequality producing a self-reinforcing circle of social exclusion and persistent poverty as another of apartheid's legacies. Work to date on post-apartheid income distribution-with its demonstration of increasing inequality and poverty-is consistent with this legacy hypothesis. This paper takes this hypothesis further by using a two-pronged approach that draws on quantitative and qualitative data to explore the role of different types of assets in explaining poverty status. First, novel econometric analysis of poverty and livelihood dynamics is used to test for a poverty trap that would signal the existence of a ceiling to upward mobility for poor people. The analysis finds evidence of such a trap. Secondly, the qualitative data is used to confirm and more deeply probe the reasons behind the patterns of truncated upward mobility, finding accessibility and stability of employment and state pensions as key factors explaining why people remain poor or non-poor. While this analysis finds ample evidence of active social capital and networks, these are more helpful for non-poor households while for the poor they seem to at best help stabilize livelihood at low levels and seem to do little to promote upward mobility. This paper's confirmation of the legacy hypothesis suggests the publicly provided social safety nets that exist in South Africa need to be at least maintained if not strengthened, while state policy needs to take a more aggressive role in assuring that households have access to a minimum bundle of assets and to the markets needed to effectively build on those assets over time.

Suggested Citation

  • Adato, Michelle & Carter, Michael R. & May, Julian, 2004. "Sense in Sociability? Social Exclusion and Persistent Poverty in South Africa," Staff Papers 12679, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12679
    DOI: 10.22004/ag.econ.12679
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    References listed on IDEAS

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    1. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    2. Carter, Michael R. & May, Julian, 1999. "Poverty, livelihood and class in rural South Africa," World Development, Elsevier, vol. 27(1), pages 1-20, January.
    3. Carter, Michael R. & May, Julian, 2001. "One Kind of Freedom: Poverty Dynamics in Post-apartheid South Africa," World Development, Elsevier, vol. 29(12), pages 1987-2006, December.
    4. repec:dau:papers:123456789/1560 is not listed on IDEAS
    5. Ajit Bhalla & Frédéric Lapeyre, 1997. "Social Exclusion: Towards an Analytical and Operational Framework," Development and Change, International Institute of Social Studies, vol. 28(3), pages 413-433, July.
    6. Dercon, Stefan, 1998. "Wealth, risk and activity choice: cattle in Western Tanzania," Journal of Development Economics, Elsevier, vol. 55(1), pages 1-42, February.
    7. Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 67-99, April.
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    Cited by:

    1. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    2. Shoba Arun & Samuel Annim & Thankom Arun, 2010. "How can asset accumulation strategies be meaningful for adivasis in Southern India?," Global Development Institute Working Paper Series 11210, GDI, The University of Manchester.
    3. Epo, Boniface Ngah & Abiala, Mireille Ambiana & Maimo, Clovis Wendji & Choub, Péguy Christophe Faha, 2010. "Globalization, Institutions, Asset Endowments and Poverty Reduction Outcomes in Africa within the Context of the Financial Crisis: Establishing a Transmission Mechanisms," MPRA Paper 20655, University Library of Munich, Germany.
    4. John Toye & David Hulme & University of Manchester, 2005. "The case for cross-disciplinary social science research on poverty, inequality and well-being," Economics Series Working Papers GPRG-WPS-001, University of Oxford, Department of Economics.
    5. Chengedzai Mafini & Daniel Francois Meyer, 2016. "Satisfaction with Life Amongst the Urban Poor: Empirical Results from South Africa," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 33-50, OCTOBER.

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    Food Security and Poverty;

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