Regional Trade Integration, Economic Growth and Poverty Reduction in Southern Africa

3 Poverty Dimensions and Reduction Strategies in the SADC Region

3 PovertyDimensionsandReductionStrategies intheSADCRegion Tanaka Mukura SADCregion:Economicgrowthindicatorsandpovertyprofile Alitanyofpovertystatistics Poverty in SADC member states remains one of the greatest challenges the region is facing and, as such, member states lag behind in their implementation schedules to achieve the Millennium Development Goal (MDG) targets. The levels of poverty have remained high. About 32 per cent of the SADC population of approximately 245 million lives below the international poverty line of US$1 per day, while about 70 per cent lives below the US$2 per day international poverty line.1 According to SADC, member countries continue to register poor socioeconomic conditions , rising inflation, lack of access to basic social services such as clean water, sanitation and health and lack of access to basic infrastructure. Furthermore, the region remains host to the highest number of people infected and affected by the HIV virus and other communicable diseases. The causes of poverty in southern African countries can be grouped into two main categories, namely natural or manmade factors; or ‘entrenched factors of poverty’. Natural causes include droughts and flooding, natural disasters such as hurricanes, earthquakes and agricultural cycles. These often have serious impacts for many families that rely on subsistence farming for survival. However, manmade factors such as warfare and civil unrest (in the cases of Mozambique, Angola and Zimbabwe), the colonial legacy of exploitation, corruption, social inequality (racism and treatment of women) and environmental degradation often have a more disastrous impact on livelihoods in southern Africa. 52 REGIONAL TRADE INTEGRATION, ECONOMIC GROWTH AND POVERTY REDUCTION IN SOUTHERN AFRICA There is no universally accepted definition of poverty. It takes many forms, varying from one community to another, and as such has been described in many ways. It has been likened to ill-being, that is, hunger, sickness, failure to access health facilities, lack of accommodation, illiteracy , joblessness, lack of access to clean water, powerlessness, and lack of representation and freedom. Robert Chambers describes development in the context of the web of poverty’s disadvantages and development as a ‘good change’ (Figure 3.1). Poverty levels are viewed through a variety of indicators which, among others, include real income per capita (relative poverty), the poverty line (absolute poverty), the Human Development Index (HDI), the Human Poverty Index (HPI), the Gini Coefficient Index of Income Inequality, the Lorenz Curve of Income Distribution, the Gender-related Development Index, the Gender Empowerment Measure, the Decile-Dispersion Ratio, the Participatory Wealth Ranking, the Housing Index, the Share of Income, and basic needs. Economicgrowthindicators The SADC region has one of the lowest income levels in the world. Compared to developed countries, SADC average per capita income is 25 times Figure 3.1: Development as good change – from ill being to wellbeing Source: Chambers (2006)2 ILLBEING WELLBEING Powerlessness = Insecurity Bad social relations Material lack/poverty Physical weakness/illness Freedom of choice and action Good social relations Security Enough for a good life Physical wellbeing The experience of living and being The bad and the good life POVERTY DIMENSIONS AND REDUCTION STRATEGIES IN THE SADC REGION 53 below that of highly industrialised countries. However, the fortunes of the region are rapidly changing. Over the past decade, SADC countries have recorded high positive real GDP growth rates and GDP per capita (PPP in US$), and declining inflation for all countries, excluding Zimbabwe . Economic growth was highest among the SADC least developed countries (LDCs). For example, Angola achieved the highest, a world record , economic growth rate of nearly 14 per cent from 2006–2008, while Mozambique, Malawi Madagascar and Tanzania all recorded growth rates in excess of five per cent. The more developed SADC countries, namely South Africa, Mauritius, Botswana and Namibia, also recorded moderate growth rates, while Zimbabwe was the only exception to this growth trend (Figure 3.2). The following figures and table show the trends in real GDP growth rates, GDP per capita, income distribution and inflation trends for SADC member countries. Figure 3.2:TrendsinrealGDPgrowthratesinSADCcountries Source: SADC and National Statistics, IMF IFS database M o z a m b i q u e A n g o l a B o t s w a n a D R C L e s o t h o M a d a g a s c a r M a l a w i M a u r i t i u s N a m i b i a R S A S w a z i...