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Social assistance reform during a period of fiscal stress

Author

Listed:
  • Servaas van der Berg

    (Department of Economics, University of Stellenbosch)

  • Krige Siebrits

    (Department of Economics, University of Stellenbosch)

Abstract

This paper reflects on the current state and likely future of the South African social assistance system, focusing specifically on its fiscal sustainability, its effectiveness as an instrument to combat poverty in a longer-term developmental sense, and its impact on the allocation of resources. Despite showing that the grants system is an effective intervention which markedly reduces poverty and apparently does not have severe undesirable behavioural effects, the paper argues that the scope for strengthening anti-poverty policy in South Africa by further expanding the social grants system nonetheless has become very limited. The main policy conclusions of the paper are that sustainable poverty reduction in South Africa requires inclusive job-creating economic growth, and that anti-poverty policy should remain focused on achieving his objective.

Suggested Citation

  • Servaas van der Berg & Krige Siebrits, 2010. "Social assistance reform during a period of fiscal stress," Working Papers 17/2010, Stellenbosch University, Department of Economics.
    • Handle: RePEc:sza:wpaper:wpapers116
    as

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    File URL: https://www.ekon.sun.ac.za/wpapers/2010/wp172010/wp-17-2010.pdf
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    References listed on IDEAS

    as
    1. Servaas van der Berg & Krige Siebrits & Bongisa Lekezwa, 2010. "Efficiency and equity effects of social grants in South Africa," Working Papers 15/2010, Stellenbosch University, Department of Economics.
    2. Servaas Van Der Berg & Megan Louw & Derek Yu, 2008. "Post‐Transition Poverty Trends Based On An Alternative Data Source1," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 58-76, March.
    3. Andries du Toit & David Neves, 2009. "Trading on a Grant: Integrating Formal and Informal Social Protection in Post-Apartheid Migrant Networks," Global Development Institute Working Paper Series 7509, GDI, The University of Manchester.
    4. Servaas van der Berg, 2009. "Fiscal incidence of social spending in South Africa, 2006," Working Papers 10/2009, Stellenbosch University, Department of Economics.
    5. Servaas van der Berg & Megan Louw & Leon du Toit, 2009. "Poverty trends since the transition: What we know," Working Papers 19/2009, Stellenbosch University, Department of Economics.
    6. Servaas van der Berg & Megan Louw & Derek Yu, 2007. "Post-transition poverty trends based on an alternative data source," Working Papers 08/2007, Stellenbosch University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:ilo:ilowps:485483 is not listed on IDEAS
    2. Leubolt, Bernhard., 2014. "Social policies and redistribution in South Africa," ILO Working Papers 994854833402676, International Labour Organization.
    3. Tiberti, Luca & Maisonnave, Helene & Chitiga, Margaret & Mabugu, Ramos, 2018. "Reforming grants to tackle child poverty: An integrated macro-micro approach," World Development, Elsevier, vol. 112(C), pages 272-281.
    4. Luca Tiberti & Hélène Maisonnave & Margaret Chitiga & Ramos Mabugu & Véronique Robichaud & Stewart Ngandu, 2013. "The Economy-wide Impacts of the South African Child Support Grant: a Micro-Simulation-Computable General Equilibrium Analysis," Cahiers de recherche 1303, CIRPEE.
    5. Armando Barrientos & Sony Pellissery, 2012. "Delivering effective social assistance: does politics matter?," Global Development Institute Working Paper Series esid-009-12, GDI, The University of Manchester.

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    More about this item

    Keywords

    Social grants; Effects of social grants; Labour market outcomes; Anti-poverty policy; South Africa;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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