FFC: Qualitative Analysis of Impact of Social grants in South Africa
STATUS: Current
PROJECT LEADER:
Van der Bergh, GM (Mr Gray),
Watani, H (Ms Manana), Mabugu, M.R. (Prof Margaret)
OTHER TEAM MEMBERS: Booysen, AS (Ms Denise), Mbanda, V. (Ms Vandudzai), Tsoanamatsie, N.L. (Ms Nthabiseng),
Ngandu, NSC (Mr Stewart)DEPARTMENT RESPONSIBLE: ()
Abstract
Social Grants have been expanded greatly in recent years, and are particularly aimed at poor families. They offer a potential source of protection against poverty for the poor. It is generally agreed in South Africa that the social grants system has contributed to reducing poverty as well as shielding vulnerable groups from adverse effects, particularly from the financial and economic crisis of 2008 and 2009 (Van der Berg 2007, Chitiga et al 2010 and Ngandu et al 2010). The Financial and Fiscal Commission and its partners have identified several documented channels for the macroeconomic and household-level impacts of social grants: (1) changes in labour supply of different household members, (2) investments of some part of the funds into productive activities that increase the beneficiary household?s revenue generation capacity, and (3) prevention of detrimental risk-coping strategies such as distress sales of productive assets, children school drop-out, and increased risky income-generation activities such as commercial sex, begging and theft. Research has also documented three types of local economy impacts: (4) transfers between beneficiary and ineligible households, (5) effects on local goods and labour markets and (6) macroeconomic (growth) and multiplier effects on income and/or welfare. This project seeks to analyse the economy wide effects and specifically the welfare implications of social grants in South Africa. It examines the effectiveness of social grants in South Africa, and how recipients use their grants. As a form of social protection, social grants not only ameliorate poverty and provide a safety net, they also potentially promote social transformation.
