Saturday, 13 February 2010

DA questions inequality report

A government report stating inequality within South Africa's black population group dropped over the past decade is at odds with an international finding it is increasing, says the Democratic Alliance.

In this regard, a paper published by the Organisation for Economic Co-operation and Development (OECD) stood in "stark contrast" to the presidency's 2009 Development Indicators report, DA parliamentary leader Athol Trollip said in a statement on Tuesday.

"The DA will therefore be writing to the Minister in the Presidency of National Planning, Trevor Manuel, requesting an official explanation for this disparity," he said.

According to the 2009 Development Indicators report, "inequality within the African population has declined since 2000".

Paper suggests otherwise

But a working paper released last month by the international OECD, titled "Trends in South African Income Distribution and Poverty since the Fall of Apartheid", suggests otherwise.

It notes South Africa's "high aggregate level of income inequality" increased between 1993 and 2008, and says "the same is true of inequality within each of South Africa's four major racial groups".

The paper further calls into question race-based redistribution policies.

"From a policy point of view it is important to flag the fact that intra-African inequality and poverty trends increasingly dominate aggregate inequality and poverty in South Africa."

"Race-based redistribution may become less effective over time relative to policies addressing increasing inequality within each racial group and especially within the African group," it states.

Report continues

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