Abstract
M.Com. (Economics)
Combating poverty is at the frontier of analyses in South Africa today. The study to combat
poverty in South Africa is six-fold. After setting the nature of the study to be pursued in
Chapter 1, the dissertation analyses the theories of poverty in Chapter 2. The record of
poverty in South Africa is analysed in Chapter 3. Chapter 4 focuses on the methods to combat
poverty in South Africa. Chapter 5 is a summary of the main findings of the study. A
proposed structure plan to combat poverty in South Africa is investigated in Chapter 6.
Chapter I analyses the problem and its setting. Reducing poverty is the fundamental objective
of economic development. It is estimated that 18 million people in the RSA live in absolute
poverty. They live in households with incomes below the minimum income level ofR695 per
month at 1990 prices. Sustainable economic growth is needed in the RSA to combat this
poverty.
Chapter 2 discusses the theories of poverty. Theories of poverty are today in a state of crisis.
The alternative model derived from radical and structuralist interpretations of poverty has also
proved disappointing. Myrdal's theory argues that poverty is caused by the inequality problem
which is closely related to unemployment and material poverty. The minority group theory
explains that poverty is caused by the death of the chief wage-earner and chronic irregularities
of work opportunities. The sub-culture theory explains poverty as a way of life.