Development indicators released on Friday showed strides in reducing
poverty but economists warned that advances relied heavily on social
grants that may be rendered unsustainable by the recession.
The third national report of indicators was released by Minister in the Presidency for National Planning, Trevor Manuel, who said the findings on development gains were mixed and would provide pointers for future policy.
"The indicators are presented warts and all... It needs to and will find more resonance in government planning," said Manuel.
The good news included an increase in access to potable water, a one percent drop in the prevalence of HIV/AIDS, success in the fight against malaria and an increase in both school attendance and the rollout of social grants to the point where more than 13 million people now benefited from social security.
The flip-side showed grave concerns about the quality of education, an increase in the number of women dying from pregnancy complications and a slowdown in the percentage of households joining the electricity grid.
University of Cape Town economist Hooran Bhorat said the period under review in the report, which goes back to 1995, showed a clear decline in poverty levels but also a worrying simultaneous increase in income inequality.
"The problem is that in the same period income inequality went up," said the academic, who was part of a panel invited by Manuel to comment on the report.
He said this had reached the point where South Africa was now the single most constantly unequal society in the world, a position it used to share with Brazil until the Latin American nation rapidly redressed its imbalances in the past decade.
Bhorat said this was not only a threat to social stability but could undermine economic growth, which has been dealt a blow by the global slowdown and South Africa's first recession since the early 90s.
The full Development Indicators 2009 report can be downloaded by clicking here.
Visit www.info.gov.za for an overview of the key indicators.
Sapa
