World Bank Report: Job Creation is the key to closing the wealth gap
Tim Harris, Shadow Minister of Finance
25 July 2012
A World Bank report released on Tuesday confirms that the South African economy is characterised by “insiders” and “outsiders”. Bridging this divide is at the heart of the DA's 'Plan for Growth and Jobs' that we will launch at the weekend in Freedom Park, Pretoria.
South Africa is one of the most unequal countries in the world. According to the World Bank report, the top 10% of the population accounted for 58% of South Africa's income whilst the bottom 10% accounted for just 0.5% of income.
Income inequality in South Africa is defined by the gap between those that have work and those that do not. This means that any intervention to tackle inequality should be measured by its ability to create jobs. The World Bank identifies that at the “heart of [South Africa’s] high inequality lies the inability to create employment opportunities on a large enough scale."
With unemployment currently sitting at 36.6% and youth unemployment at roughly 60% we are in desperate need of a new coherent economic plan to deliver us form the current crisis. The DA’s 'Plan for Growth and Jobs' will be a step towards building a dynamic and inclusive economy where every South African will have the opportunity to lift themselves out of poverty.