2013_14 IDP Review.pdf - KZN Development Planning

8.3.2 Poverty GapThe poverty gap can be defined as the amount of income that would be required tobring every poor person exactly up to the poverty line, thereby eliminating poverty. Itcan also be defined as the total income shortfall, expressed in proportion to thepoverty line, of families with income below the poverty threshold, divided by the totalnumber of families.For the Umzinyathi District Municipality this figure stood at R327million in 1996, and rose to R1,037 million in 2009. This figure peaked in 2008.8.3.3 Percentage of People Living Below $1 and $2 Per DayIn 1996 9% of the population lived below $1 per day and 26.2% lived below $2 perday. This figure improved to 1.6% living below $1 per day and 11.7% below $2 perday in 2009. The year 2002 saw the highest number of people living below $1 per day(12%) and the highest number of people living below $2 per day (33.8%).In 2011 figure the situation has improved drastically and currently at least 0.1% livebelow $1 per day and 6.1% live below $2 per day.8.3.4 Gini CoefficientThe Gini Coefficient is the most commonly used measure of inequality. The coefficientvaries between 0, which reflects complete equality and 1, which indicates completeinequality (one person has all the income or consumption, all others have none).The Gini Coefficient for the district rose from 0.59 in 1996, to 0.61 in 2009, and peakedat 0.63 in 2003 and 2004. This indicates a relatively high level of inequality in theUDM society. The Gini coefficient for the district in 2009 is lower than the nationalaverage.Draft 2013/14 IDP Review Page 122Prepared by Umzinyathi District Municipality22 March 2013