Abstract
M.Com. (Economics)
The aim of this study was to look at the economic survival problem that has been very much in appearance in South Africa, especially recently. This will translate into a study of poverty in South Africa. In the second chapter I tried to get a clearer definition of poverty by, firstly looking at some formal definitions relating to poverty and then to look more generally at other descriptions of poverty from a more economic point of view. In this chapter we also discuss the Lorenz curve and how that can be used to measure poverty using income and the consumption of the population. Following on from this, in the third chapter we look at some definitions and theories of income and consumption. The theories we look at are the following : The General Consumption theory of Keynes, the Relative Income Hypothesis, the Permanent Income Hypothesis and the Life Cycle Hypothesis. After narrowing down the main cause of poverty,
in the next two chapters we look at some characteristics of the poor in the rural areas as well as in the urban and metropolitan areas. In the chapter concerning the poor in the rural areas, the characteristics we look at are among others, the income, climatic problems, educational problems and health problems of the poor communities in these areas. When we discuss the characteristics of the urban and metropolitan poor,
we also discuss the occurrence of unemployment and some measures that can alleviate this problem. In the sixth chapter we look at a comparison of South Africa with other countries in the world regarding the poverty problem, mainly at where South Africa fits into the world picture. In the summary some possible solutions for the whole poverty
problem is put forward.