Social assistance reform during a period of fiscal stress

Servaas van der Berg () and Franz Siebrits

No 17/2010, Working Papers from Stellenbosch University, Department of Economics

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.

Keywords: Social grants; Effects of social grants; Labour market outcomes; Anti-poverty policy; South Africa (search for similar items in EconPapers)
JEL-codes: H31 H53 I38 J65 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (5)

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