Pro-Poor Economic Growth Models for South Africa | Economic Inequality | Poverty

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These research reports were commissioned by the Oxfam GB South Africa Programme. The collection contains the following papers
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  . Pro-Poor Economic Growth Models for South Africa Research Reports prepared for Oxfam GB Halving Poverty and Unemployment in South Africa: Choices for the next ten years  Asghar Adelzadeh – Director Applied Development Research Solutions, USA What is Pro Poor Growth? What are some of the things that hinder its achievement in South Africa? Charles Meth- Honorary Research Fellow School of Development Studies University of Kwa Zulu Natal and Research Associate South African Labour and Development Research Unit, University of Cape Town Pro Poor Trade and Industry Policies: Considerations for South Africa Mohammed Jahed – Associate Professor Graduate School Of Public and Development Management, University of The Witwatersrand  26 May 2007  Contents Page No. Halving Poverty and Unemployment in South Africa: Choices for the next ten years 1  Asghar Adelzadeh – Director Applied Development Research Solutions, USA What is Pro Poor Growth? What are some of the thingsthat hinder its achievement in South Africa?   60 Charles Meth- Honorary Research Fellow School of Development Studies University of Kwa Zulu Natal and Research Associate South African Labour and Development Research Unit, University of Cape Town Pro Poor Trade and Industry Policies: Considerationsfor South Africa 133 Mohammed Jahed – Associate Professor Graduate School Of Public and Development Management, University of The Witwatersrand  © Oxfam Great Britain May 2007 These papers were commissioned by the Oxfam GB South Africa Programme. The views expressed are those of the researchers. Oxfam GB acknowledges the support to its partners in the production of the reports through funding, serving on the reference group and commenting on the TOR’s and drafts. The text may be used free of charge for the purposes of advocacy, campaigning, education, and research, provided that the source is acknowledged in full. The copyright holder requests that all such use be registered with them for impact assessment purposes. For copying in any other circumstances, or for re-use in other publications, or for translation or adaptation, permission must be secured and a fee may be charged. For further information on the issues raised in this paper please e-mail mmotala@Oxfam.org.uk or call 2711 6429283  - 1 - Halving Poverty and Unemployment in South Africa:Choices for the next 10 years By Asghar Adelzadeh Applied Development Research Solutions (ADRS) Prepared for Oxfam GB South Africa 24 May 2007   - 2 - ABSTRACT Three years ago, South Africa embarked on its second decade of democracy, announcing objectives that included halving both the unemployment rate and the poverty rate by 2015. Meeting these objectives poses major policy challenges. This paper formally establishes key requirements for an accelerated poverty reduction process, which is also  similar to the findings of pro-poor growth literature (Kakwani et al 2003). The proposed  framework integrates the role of employment and social policy as a critical nexus between growth and poverty reduction. A micro-simulation model of tax and transfers, with links to macroeconomic performance, is used to compare and contrast the effectiveness of ten policy scenarios to halve poverty and unemployment by 2015. Among the findings are: (a) both reductions in income inequality and high growth rates are necessary pre-requisites for an accelerated poverty reduction path; (b) to realise the unemployment and poverty goals, the labour market needs to be pro-poor in terms of employment allocation and income; additionally, the employment elasticity of growth  should reach 0.60, and (c) the social security system needs to be substantially expanded. These findings inform the paper’s presentation of the basic tenets of a pro-poor economic  policy framework. Overall, the paper suggests an active pro-poor role for the state.
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