World Bank Podcasts

The end of Apartheid in South Africa has led to many positive changes in the country. But the division of wealth and income remains inadequate to address Apartheid’s crippling economic legacy. Like many growing countries, South Africa faces the difficult challenge of redistributing its wealth. However, unlike other countries, South Africa is facing the challenge head on. CATRIONA PURFIELD, World Bank Senior Economist We look at the top ten percent. They are earning incomes that are a thousand times bigger than those in the bottom ten percent in South Africa. They are only earning ZAR 200 a year before fiscal policy takes effect. However, once we look at fiscal policy, we say that it takes taxes to the rich, and gives it to the poor in the form of fiscal benefits. And as a result of that, that gap narrows from a thousand times bigger, to sixty six times bigger. In South Africa, the government provides benefits in the form of cash payments such as child and old age grants to the poorest people. It