Wages are too low and cost of living too high - National Planning Commissioner
Statistics South Africa (Stats SA) released a report that South Africans living in poverty in the year 2015 were worse off than they were in 2011.
Stats SA's Poverty Trends report shows that 30.4 million South Africans are living in poverty. It also shows that while poverty was reduced in the country between 2006 and 2011, it has now worsened again.
What is causing poverty levels to increase in the country? How can poverty be reduced?
Stephen Grootes, 702 host, spoke to National Planning Commissioner Dr Miriam Altamn about these stats and what they mean for the country.
Altman says the report is an excellent review of information.
What it doesn't give you, is a trend.Dr Miriam Altman, Commissioner in the National Planning Commission
The key message in this report that people should take away is that income poverty fell dramatically between 2006 and 2011.Dr Miriam Altman, Commissioner in the National Planning Commission
That's what one would expect in a low growth environment explains Altman. She goes on to say that it is important to note the strengthened social wage.
In 2006, 66% of people were living in deep poverty and now 51% are not much better off, she says.
There's no doubt we need structural reform, stresses Altman. She says there are two sides of the poverty story.
One side is that we do need to strengthen the social wage - and the cost of living is too high relative to what people earn. On the side, is the side of growth, which is the long range solution to this problem.Dr Miriam Altman, Commissioner in the National Planning Commission
Altman explains that the politics of the moment is not the key issue in relation to our long range growth trajectory.
She says South Africa has had this problem for thirty to forty years and it is common to economies such as this. Mineral's economy tend to grow more slowly, be less diversified, have high-income inequality, much conflict and very little investment in human resource development, she explains.
What we see in South Africa is very common to the kind of country that we are. And there are some countries that have broken out. It is possible to break the pattern but it would require long term political commitment.Dr. Miriam Altman, Commissioner in the National Planning Commission
Take a listen:
This article first appeared on 702 : Wages are too low and cost of living too high - National Planning Commissioner
Bruce Whitfield talks to SweepSouth cofounder Aisha Pandor about her attitude to money (hopes and fears, successes and failures).Read More
The Money Show’s Bruce Whitfield interviews columnist Tom Eaton about his new book, "Is it me, or is it getting hot in here?"Read More
The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.Read More
"We’ve done all of the back-end work. There are one or two locations where it will make sense," says CEO Ryan Williams.Read More
Bruce Whitfield talks to amaBhungane investigative journalist Dewald van Rensburg, who extensively interviewed Matodzi.Read More
In a viral video posted last week, businessman Vusi Thembekwayo slammed politicians for the devastating impact the lockdown has had small businesses.Read More
Pavlo Phitidis tells more about a strategy that he has been using for years and how to apply this in a business.Read More
Personal financial adviser Warren Ingram says active fund managers in South Africa have had a terrible time.Read More
Association of Meat Importers and Exporters CEO Paul Matthew says there are mechanisms to deal with a possibility of dumpingRead More
DPE acting director-general Kgathatso Tlhakudi says there is hope ahead of talks with Numsa, Sacca and pilots association.Read More