State social benefits in South Africa

The growth of South African state‐provided social security is traced from its origins in British colonialism, through the consolidation under apartheid of racially discriminatory benefits mainly to protect white interests, to the present time of political change when there is a rapid move towards racial parity. It is a difficult system to understand, because of the fragmentation created by apartheid: benefits are delivered through 17 separate “governments”, geographically different from each other, using different information systems and, until recently, characterized by secrecy regarding information. This paper is based on interviews conducted in all administrations in 1991, and it focuses on the state social pensions and grants for elderly people, disabled people, child and family care, and poor relief. Major problems with the system are those of access, racial discrimination, inefficiency, corruption, and the way in which the means test is implemented. Does the social security system have a role to play in addressing the inequality and poverty produced by apartheid? In rural areas most beneficiaries live in three‐generational families, and the benefit is consumed by the household. It is suggested that its potential is greatly underestimated, and rather than being seen as an expensive burden, the social security system should be enthusiastically embraced. It is already in place; it can relatively easily be made more efficient.