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History in the new South Africa: an introduction - Det danske ...

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• Social – <strong>in</strong>clude non-monetary <strong>in</strong>dicators of household well-be<strong>in</strong>g, such as access<br />

to education, health <strong>an</strong>d o<strong>the</strong>r basic services.<br />

• Demographic – focus on structure <strong>an</strong>d size of households.<br />

• Vulnerability – focus on issues such as physical <strong>in</strong>security <strong>an</strong>d environmental<br />

hazards.<br />

Choos<strong>in</strong>g which <strong>in</strong>dicators to use <strong>in</strong> def<strong>in</strong><strong>in</strong>g poverty matters – different <strong>in</strong>dicators c<strong>an</strong><br />

lead to different poverty r<strong>an</strong>k<strong>in</strong>gs, priority target groups <strong>an</strong>d areas, different target<strong>in</strong>g<br />

strategies, <strong>an</strong>d so on. This has import<strong>an</strong>t implications <strong>in</strong> terms of determ<strong>in</strong><strong>in</strong>g who <strong>the</strong><br />

poor are <strong>an</strong>d where <strong>the</strong>y are located as well as design<strong>in</strong>g programmatic responses to<br />

poverty – i.e. what is needed to move people out of poverty.<br />

The poverty <strong>in</strong>dex<br />

This chapter uses <strong>an</strong> <strong>in</strong>dicator-based method of def<strong>in</strong><strong>in</strong>g poverty, unavoidable given use<br />

of census data. The selection of <strong>in</strong>dicators was <strong>in</strong>fluenced by current <strong>in</strong>ternational trends<br />

<strong>an</strong>d local conditions, as well as reflect<strong>in</strong>g key service delivery areas of government –<br />

<strong>in</strong>frastructure, services, health, education <strong>an</strong>d job creation. To measure poverty with<strong>in</strong><br />

<strong>the</strong> limitations of census data, <strong>the</strong> follow<strong>in</strong>g ten <strong>in</strong>dicators, <strong>an</strong>d <strong>the</strong>ir correspond<strong>in</strong>g<br />

def<strong>in</strong>itions, were used:<br />

Indicator Def<strong>in</strong>ition<br />

Female-headed<br />

households<br />

Proportion of households headed by women<br />

Illiteracy Proportion of population (15+) who have not completed<br />

Std 5/Grade 7<br />

Rate of unemployment Proportion of <strong>the</strong> economically available population who<br />

are unemployed (regardless of whe<strong>the</strong>r or not <strong>the</strong>y<br />

recently sought work)<br />

Household <strong>in</strong>come Proportion of households with no <strong>an</strong>nual <strong>in</strong>come<br />

Over-crowd<strong>in</strong>g Proportion of households shar<strong>in</strong>g a room with at least<br />

one o<strong>the</strong>r household<br />

Dwell<strong>in</strong>g type Proportion<br />

traditional<br />

of households classified <strong>in</strong>formal or<br />

S<strong>an</strong>itation Proportion of households who do not have a flush or<br />

chemical toilet<br />

Water Proportion of households who have no tap water <strong>in</strong>side<br />

dwell<strong>in</strong>g or on site<br />

Electricity Proportion of households who do not have electricity for<br />

light<strong>in</strong>g purposes<br />

Refuse removal Proportion of households whose refuse is not removed by<br />

local authority<br />

Table 2: Indicators used to construct <strong>the</strong> poverty <strong>in</strong>dex<br />

For each <strong>in</strong>dicator, <strong>the</strong> relev<strong>an</strong>t proportion (as a score out of a 100) was calculated. The<br />

poverty <strong>in</strong>dex was <strong>the</strong>n calculated by add<strong>in</strong>g all <strong>the</strong> scores for each <strong>in</strong>dicator <strong>an</strong>d<br />

divid<strong>in</strong>g by 10 to obta<strong>in</strong> <strong>an</strong> average overall score out of 100. A score of 100 would<br />

reflect <strong>an</strong> extremely high level of poverty while a score of 0 would reflect <strong>an</strong> extremely<br />

low level.<br />

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