intergenerational transmitted poverty and wealth a life course perspective; south africa

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Intergenerational Transmitted Poverty & Wealth Creation Towards a Lifecourse Approach to Community Development; Lessons for South Africa Mthokozisi Sidambe & James Chakwizira October 2008

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Intra-household dynamics play a critical role in the transmission of poverty. Instead of focusing on poverty, the paper argues, development practice should channel its efforts towards fostering intergenerational wealth creation. Therefore, a clear understanding of intra-household and community dynamics of poverty transmission is an essential starting point for designing effective socio-economic development interventions.

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Page 1: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Intergenerational Transmitted Poverty

& Wealth Creation

Towards a Lifecourse Approach to Community Development;

Lessons for South Africa

Mthokozisi Sidambe & James Chakwizira

October 2008

Page 2: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

• Core Rural Development Challenges

- Poverty & Wealth Life Testimony Definitions

- Why focus on Intergenerational transfer of poverty and wealth (ITPW)

- Unemployment trends

- Percentage of people living below R250 per month poverty lines

- Persons below MLL (Eastern Cape Example)

- Chronic and Transient Poverty: The Continuum Classes of the Poor

- The substances being transferred

- Parent to Child Intergenerational Transfer of Wealth and Poverty

• Prerequisites for Sustainable Rural Livelihoods and Development

- Care’s Livelihood Security Model

- Life course Perspective to Poverty Alleviation

- Dalisoka Primary School, EC Life Story of a Girl Child

- Minibus Taxi Industry and the BBBEE footprints in South Africa

• Marrying Theory and Practice: An Example

- Possible Strategic and Practical Life Course Interventions

• Concluding Remarks

Outline of Presentation

Page 3: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Why focus on Intergenerational transfer of poverty and wealth (ITPW)?

Growth and Development History

Transfer of poverty and wealth (ITPW)

Decades of consistent attack on poverty

MDGs

Lessons & options

Page 4: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

‘’You want to know to how I define poverty. How can you ask that question when you yourself see that I live in poverty? The definition of poverty is right in front of you. Look at me, I stay alone. I don’t have enough food. I have no decent clothing or accommodation. I have no clean water nearby to drink. Look at my swollen leg. I can’t get to the clinic, which is too far for me to walk. So what kind of definition do you expect me to give you which is better than what you are seeing with your naked eyes?’’

(Sachikonye 2003: Preface).

Poverty & Wealth Life Testimony

Page 5: Intergenerational transmitted poverty and wealth   a life course perspective; south africa
Page 6: Intergenerational transmitted poverty and wealth   a life course perspective; south africa
Page 7: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

HSRC’s social need index• Population/ health facilities• Road length/ km2

• Population density• Electricity and water provision• Dependency ratio• Pupil/ teacher ratio• Unemployment• Poverty gap• Etc.

HighMed-highMediumMed-lowLow

Core Challenge for Rural Dev. Addressing the Access

Divide … AND

..and addressing the high concentrations of poverty & associated social needs in the deep rural economy environments

Deep rural – developmental environments

Page 8: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Persons Below MLL – Eastern Cape Province (an example)

Page 9: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Chronic and Transient Poverty: The Continuum Classes of the Poor

THE POVERTY CLASS

CHARACTERISTICS

The “always poor” Whose poverty score (income, consumption, nutritional status, human deprivation index etc) in each period is below a defined poverty line

The “usually poor” Whose mean poverty score over all periods is less than the poverty line but are not poor in every period

The “churning poor” With a mean poverty score around the poverty line but who are poor in some periods but not in others

The “occasionally poor”

Whose mean poverty score is above the poverty line but have experienced at least one period in poverty

The “never poor” With poverty score in all periods above the poverty line

Page 10: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

The Substances being Transferred

Source: Moore, K. (2001:10)

Page 11: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Parent to Child Intergenerational Transfer of Wealth and Poverty

Source: Moore, K. (2001:5)

Page 12: Intergenerational transmitted poverty and wealth   a life course perspective; south africa
Page 13: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Lifecourse perspective to poverty alleviation

Age & life

phase

Level & type of LC

intervention

0 X

Pre

-Na

tal In

fan

cy

Ch

ild

ho

od

Tee

na

ge

Ad

ult

ho

od

Old

-ag

e

(Tw

ilig

ht)

INT

ER

VE

NT

ION

S

HealthInterventionsEducation &Awareness

NutritionSchoolsAccess

CurriculaSET

EmploymentJobsLED

Career Guidance

Safety NetsLiving Pension

(Old-age grants)

CROSS-CUTTINGGender, Disabled, HIV/AIDS (Health and well-being), Environmental Conservation, Good Governance

Accessibility – access to all basic human needs e.g. education, health etc

At the Moment BBBEE is looking at this phase. Our proposal – stretch it – it’s a continuum

BBBEE

Page 14: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Possible Strategic and Practical Life Course Interventions

Life Course Perspective to

Poverty Alleviation

Education

Appropriate Technology

Indigenous Knowledge Systems

P - PoliticalE - EconomicS - SocialT - TechnicalP – PhysicalL – Legal E - EcologicalG – Globilisation

(Need to pay attention to all these in LC public interventions)

P - PoliticalE - EconomicS - SocialT - TechnicalP – PhysicalL – Legal E - EcologicalG – Globilisation

(Need to pay attention to all these in LC public interventions)

Labour intensive job employment e.g. EPWP

Strengthening local capacity and institutions Partnerships

Page 15: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Concluding Remarks and Thoughts

Interface BetweenTheory

& Practice

CollectiveLearning &

Action(R&D

Demo Projects

etc)

Intergrated&

ComprehensivePackages

SustainableDevelopment

& Communities

Need for Multi-disciplinary approachTo Life course Interventions

Page 16: Intergenerational transmitted poverty and wealth   a life course perspective; south africa

Thank you …

Mthokozisi Sidambe

Email: [email protected]

James Chakwizira, CSIR

Email: [email protected]