Linking social grants beneficiaries to poverty alleviation and economic activity - 18 January 2007

18 January 2007

 

Media Statement

 

Department releases discussion document on Linking social grants beneficiaries to poverty alleviation and economic activity

 

The Department of Social Development has released a discussion document for public comment, on strategies aimed at Linking Grants Beneficiaries to Poverty Alleviation and Economic Activity.

 

Over the past twelve years, Government has implemented several poverty alleviation measures, with social assistance being the biggest of them all, aimed at achieving the goal of a better life for all. 

 

‘’As a result of campaigns aimed at promoting the right of access to social assistance, the number of social grant beneficiaries has increased significantly, in particular the child support and disability grants.  While, on the one hand, the increase in beneficiary numbers represented the success of the awareness campaigns and proactive registration, on the other hand, this has given rise to the challenges of the sustainability of the programme, and the importance of giving South Africans the opportunity to enjoy the dignity of work,’’ said the Minister of Social Development, Dr Zola Skweyiya.

 

Dr Skweyiya invites all sectors to make their comments to assist government in its drive to get all South Africans working when they are physically and mentally able to do so. ‘’This is a central pillar of building social cohesion and inclusiveness. There has been a lack of active social assistance  programmes and poverty alleviation measures to ensure that all South Africans enjoy the dignity of work. Government is committed to ensure a better life for all, for the employed, for beneficiaries of social grants and the destitute and vulnerable,’’ the Minister added.

 

The document will form the foundation of a discussion that should bring together government, religious leaders, the NGO sector, organised labour and business and all other stakeholders to find a solution.

 

Dr Skweyiya explains: ‘’Unlike most of Government’s poverty alleviation measures, the social assistance programme was not specifically designed with exit strategies for beneficiaries, other than a change in their living circumstances and income levels. There is a lack of a proactive and deliberate strategy to link social grant beneficiaries to opportunities for economic activity.  Consequently, an intolerable proportion of able-bodied poor South Africans, including caregivers of children receiving the child support grant, and those persons with disabilities capable of rehabilitation - continue to face particular barriers to entering into, remaining in and progressing in such employment’’.

 

Dr Skweyiya adds that the macroeconomic policies over the last decade have contributed to improved economic growth performance.

 

‘’However, the labour market has not been equally responsive to the increasing demand for the creation of work opportunities, especially from the social grants beneficiary population referred to above.  The imperative is to build a gateway to improve the impact of policies; to extend government support through incentives for individuals to participate in self-development programmes, for businesses to absorb such individuals into their labour force and for civil society collaboration’’.

 

Dr Skweyiya noted however, that the success of the project of a gateway to economic activity will remain a pipedream unless the economic sector introduces measures to generate employment opportunities.

 

The discussion document is a first draft of a proposed a model for an active social grants system and an implementation plan. It it will require extensive work and consultation going forward.  A full version of the document is available on the department’s website, http://www.socdev.gov.za

Please forward your comments to: Grant Comments, Room 440 N, Private Bag X901, Pretoria, 0001 or e-mail it to grantcomments@socdev.gov.za

 

Enquiries: Lakela Kaunda on 082 782 2575.

 

Issued by the Department of Social Development

Pretoria

 

Background

Executive Summary of the Document

 

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Linking social grants beneficiaries to poverty alleviation and economic activity - 18 January 2007
Research finds no evidence of perverse incentives of social grants - 16 January 2007

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