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WP 03/075 - Estimates for Poverty Alleviation in South Africa, with an Application to a Universal Income Grant

Author: 
Haroon Bhorat

Date of Publication: 
April 2003

Abstract: 
Through the use of the standard tools of poverty analysis, this paper attempts to firstly measure the minimum financial contribution required from the state to eliminate poverty in the society. Secondly, we measure the absolute and relative household poverty impact of instituting a universal income grant, set at different monthly values. Finally, a brief costing exercise of such a grant is undertaken. The minimum financial contribution simulations are very useful insights into the scale and nature of the poverty challenge in South Africa. The universal income grant numbers testify to the importance of balancing the undoubted need for poverty alleviation as against the pressure on the fiscus. such interventions are likely to induce.

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