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Abstract
Under apartheid, the trappings of a welfare state for whites were created. Over time, social security was gradually extended to other groups, and recently social assistance benefits were equalised. This left South Africa with high social security levels for a middle‐income developing country. However, the social security system still largely reflects the historical needs of vulnerable white groups under apartheid, among whom unemployment was minimal, given their preferential access to jobs and education. Thus the social security system now has inadequate provision for the most vulnerable, the unemployed. In contrast, four out of five pensioners receive a means‐tested social pension — a major poverty‐alleviating factor in rural black communities. This article analyses the social security system against the backdrop of apartheid and the more recent democratisation, and assesses its major deficiencies, the forces acting for its expansion and the binding fiscal constraint.
Notes
Professor, Department of Economics, University of Stellenbosch.
An earlier version of this article was first presented as a paper entitled South Africa after apartheid: A welfare state in the making? at the Society for the Advancement of Socio‐Economics (SASE) conference on ‘Rethinking the welfare state’, Montreal, 5‐7 July 1997. The article is partly based on previous work by the author in related fields, and this work is not always separately referenced in the text. The article benefited from valuable comments by a referee of this journal.
