Government yesterday released the results of its progress report entitled "Towards a 15-year Review". The report takes stock of progress, since the attainment of democracy, in achieving the objective of improving the quality of life of all South Africans.
Presenting the report findings at the Union Buildings on Wednesday, Joel Netshitenzhe, head of policy co-ordination and advisory services, said the country had gone a long way to eradicating apartheid and had "notched up" a faster rate of growth and development, but still faced some significant challenges.
Among the key areas of progress mentioned in the report are those related to social development and the reduction of poverty. The report shows that there has been overall improvement in people's lives through mainly well-targeted programmes to reduce poverty with regard to income (mainly through grants), access to social services, and to assets (housing and land). Poverty has decreased from 52.5% in 1995 to 47.9% in 2007.
The key driver in the reduction of poverty has been the increased spending and distribution of social grants. Beneficiaries of the government's social security assistance programme have grown from 2.5million in 1999 to just over 12 million in 2007. The social grant system is effectively the largest form of government support for the country's poor.
The past 14 years have also seen more South Africans gain access to basic services. Between 1996 and 2007 the percentage of people with access to electricity for lighting increased from 58% to 80%. Similarly the number of people with access to water increased from 62% to 88% and sanitation from 52% to 73%.
Housing is one of the state's biggest success stories. According to the review, between 1994 and 2008, 3.1 million housing subsidies were approved, and 2.3 million units were completed as a result of expenditure of R48.5 billion. This allowed 9.9 million citizens to access state-subsidised housing opportunities. Of the subsidies, 53% went to women-headed households.
One of the country's major achievements since 1994 has been to stabilise the economy. In 1994, South Africa was recovering from its longest downward phase since 1945, lasting from March 1989 to May 1993. "Confronted by an unsustainable budget deficit and high debt service costs, high inflation, low investor confidence and a run on the currency, government made macroeconomic balance the main focus of economic policy for much of the first five years of democracy," says the review.
Since 1994 there have been 14 successive years of real GDP growth. The pace accelerated from about 2003, and with it GDP per capita growth.
Global investor confidence in South Africa has also improved in part to management of inflation down from 18.9% in 1991 to below 10% (prior to 2008) as well as the reduction of public sector debt from 44% of GDP in 1994 to less than 20% of GDP in 2008.
The review states that unemployment increased for several years, peaking at 31.2% in 2003. However, faster GDP growth turned the trend as the net number of new jobs started to outstrip labour force growth. By 2007, the unemployment rate was 23%.
Other areas of success mentioned in the report include South Africa's entry into the international community of nations as evidenced by the country's inclusion in global economic reports as well as the hosting of a series of major international events.
Tourism is also touted as one of South Africa's key successes in recent years with arrivals growing from 5.7million in 1998 to a record 9 million in 2007. Cumulatively this growth is estimated to have created over 400 000 direct jobs.
Despite the successes Netshitenzhe said that not enough has been done to address trends in poverty, inequality and state legitimacy in South Africa. Problems identified five years ago had proved more deep-seated than previously recognised, he said.
"Growth has exposed weaknesses... the increase in the rate of growth, does not necessarily result in a reduction in poverty." Nor had growth reduced inequality, but had rather created a bigger gap between the rich and poor, he said.
Netshitenzhe suggested that future governments will be required to act boldly in addressing the prevailing problems.
"Success will require a decisive state with higher levels of legitimacy, and a more cohesive society," he said.
Source: Sapa / SAGN
