2013_14 IDP Review.pdf - KZN Development Planning

4.4.2 POVERTY GAPThe poverty gap can be defined as the amount of income that would be required to bring everypoor person exactly up to the poverty line, thereby eliminating poverty. It can also be defined asthe total income shortfall, expressed in proportion to the poverty line, of families with incomebelow the poverty threshold, divided by the total number of families.For the Umzinyathi DistrictMunicipality this figure stood at R327 million in 1996, and rose to R1,037 million in 2009. Thisfigure peaked in 2008.4.4.3 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 per day. Thisfigure improved to 1.6% living below $1 per day and 11.7% below $2 per day in 2009. The year2002 saw the highest number of people living below $1 per day (12%) and the highest numberof people living below $2 per day (33.8%).In 2011 figure the situation has improved drastically and currently at least 0.1% live below $1per day and 6.1% live below $2 per day.4.4.4 GINI COEFFICIENTThe Gini Coefficient is the most commonly used measure of inequality. The coefficient variesbetween 0, which reflects complete equality and 1, which indicates complete inequality (oneperson 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 peaked at 0.63in 2003 and 2004. This indicates a relatively high level of inequality in the UDM society. TheGini coefficient for the district in 2009 is lower than the national average.Draft 2013/14 IDP Review Page 15Prepared by Umzinyathi District Municipality22 March 2013