Where is the truth?

Has the democratic state that came about in 1994 left South Africans better off in terms of their economic status, standard of living and general well-being?


A few comprehensive key surveys done among South Africans and probing this very question have been published in recent weeks. One would expect some clear answers from these thoroughly scientific explorations of South African society.

 


The October report on the most comprehensive community survey ever to be conducted by Stats South Africa (Stats SA) in March of this year states, “Substantial progress has been made with regard to improving the living conditions of South Africans.”


Based on a survey by the South African Institute of Race Relations (SAIRR) and released only about two weeks after the Stats SA report, the Congress of South African Trade Unions (Cosatu) concluded, “The survey backs other research findings showing growth in South Africa had not benefited the majority of people.

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Based on a statement attributed to Benjamin Disraeli, American writer Mark Twain opined, “There are three kinds of lies: lies, damned lies, and statistics.”

As Wikipedia puts it, this “semi-ironic statement refers to the persuasive power of numbers, and succinctly describes how even accurate statistics can be used to bolster inaccurate arguments.”


What pictures do recent surveys paint of the state of the South African community some 13 years after the advent of democracy?


Measuring the response of South Africans to delivery in terms of the Reconstruction and Development Plan, the ANC’s core policy platform and promise as the winning party in 1994, Stats SA concludes, “The report tables what South Africans say. They say in these areas of delivery of Meeting Basic Needs, 2007 is better than 2001 and indeed 2001 was better than 1996. Today is better than yesterday.”


This conclusion is based on the following key findings on housing and services:


• Over 70% of households now live in formal dwellings, reflecting a steady increase from 64.4% in 1996 to 68.5% in 2001 and 70.5% in 2007.


• The percentage of households where refuse is removed by a local authority at least once a week increased from 51.2% in 1996 to 55.4% in 2001 to 60.1% in 2007.


• The percentage of households using the bucket toilet system has declined from 4.1% in 2001 to 2.2% in 2007.


• Use of electricity as the main energy source for lighting increased substantially between 1996 and 2007 (from 57.6% in 1996 to 80% in 2007).


• The percentage of households with computer facilities increased from 8.6% in 2001 to 15.7% in   2007.


• Only 7.3% of households had home Internet access in 2007.


• The proportion of households owning a radio, television, computer, refrigerator and cell phone increased considerably between 2001 and 2007. For example, the proportion of households owning a cell phone increased from 32.3% in 2001 to 72.9% in 2007.


• The percentage of households with access to piped water increased from 84.5% in  2001 to 88.6% in 2007.


• The percentage of households with access to piped  water increased in all nine provinces 
• The proportion of households with access to water from domestic plumbing increased from 32.3% in 2001 to 47.3% in 2007.



Referring to the SAIRR survey, Cosatu labour market policy co-ordinator Rudi Dicks said South Africa remains one of the most unequal societies in the world compared to other developing and developed countries.


“Cosatu believes the biggest beneficiary of our growth has been the rich and the wealthy and not the vast majority of people who have failed to reap the social and economic benefits of our new democracy,” he said.


He called for “substantial state intervention to ensure the type of growth (in the economy) was more equitable and redistributive."

In an article published in the September issue of the SAIRR’s Fast Facts, Hannah Botsis claims that “statistics … show that about 20.5 million people live on less than R3 000 per year. And some 50% of people between 15 and 24 years old are unemployed. Of all those without employment 59% have never worked. South Africa is crippled by poverty, mediocre education and a lack of skills.”


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While conceding that continuation and completion rates to higher levels of education are still low, the Stats SA survey does find that “the percentage of those aged 5-24 years who are in school has increased from 63% in 1996 to 74% in 2007.


“The percentages are above 90% for those aged between six and 15 years. This indicates that the goal towards the achievement of universal primary education has almost been met.”


The percentage of people that have completed higher education did, however, also increase slightly from 1996 to 2007. In 2007, 9.1% of persons aged 20 years and above had completed higher education, against 8.4% in 2001 and 7.1% in 1996.


It also found that “overall, the percentage of persons with no education has substantially decreased from 19% in 1996 to 10% in 2007.”


A private sector survey and report on the housing sector published at the end of September this year concluded that the residential property market is booming in the (black) townships. Annual price inflation rose to 39% in March this year after hovering below 10% before 2003.


Lightstone Risk Management’s analysis of the residential market in areas previously demarcated under apartheid as peri-urban zones for black people concludes that the nature of transactions has changed significantly since 1994.


A key driver of increased demand is the combined effect of infrastructure upgrades and increased economic activity. It has made these previously neglected areas more attractive to upwardly mobile buyers.


The total number of township property transactions peaked at more than 120 000 a year during 1998 to 1999. It has since declined to between 40 000 and 50 000 annually during the past three years.


Factoring out the fact that the peak was driven by the sale of municipal properties to previously disadvantaged individuals, a new encouraging trend comes to the fore. Sales between individuals have increased from 23% during 2000 to 64% presently.


Property analysts generally seem to agree that the residential property market will for some time be driven by the ‘emerging black middle class’. One of the co-authors of the Lightstone report was quoted as saying that the impressive performance of this market sector was driven by mounting affordability issues in the former white areas and the upgrading of townships from mere dormitory towns to more mixed-use economies.


The impact of the ‘emerging black middle class’ also seems to be reflected by statistics from other economic sectors. Strong demand from the black male consumer market was one of the major factors boosting new vehicle sales in October, partly offsetting the negative effect of interest hikes.


One of the largest vehicle sales financiers, WesBank, reported that 50% of finance applications received were from that segment. The number of black males seeking finance for new cars has grown by almost 23% compared to last year, while the percentage for white males has dropped by a similar margin over the same period.


The demand for used cars has also grown amongst black males. Overall, growth seems concentrated mainly in the 26- to 36-year-old age group, where black males represent 32.4% of total vehicle sales.


However, Botsis writes that “to most South Africans the issue of the middle class is irrelevant, as it is something of which they will never be a part.”


In an address to the Chamber of Mines early in November, SAIRR deputy chair and political analyst Moeletsi Mbeki claimed South Africa is in an industrial decline, which is leaving small islands of wealth in a sea of poverty.


Manufacturing as a portion of GDP is down from 25% in the early 1980s to 16% presently, he said. 
In light of all these statistics, what is the actual truth?

Maybe it is to be found in another well known phrase: “Beauty is in the eyes of the beholder.”

 

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