A Fair Share: Reflecting Essays on Economic Inequality in South Africa

Chapter 1
 Introduction 
Introduction
 Nico Keyser  

Why all the fuss about economic inequality? Why does economic 
inequality matter? Is it just a political theme used to support (or 
win over) the have-nots? Or, at the very extreme, is it driven by 
socialists whose goal is to establish a utopia of a supposed ‘equal 
society’, eventually resulting in a pure communist state? Or is it, 
at the fundamental level, simply a (serious) threat to economic 
sustainability and social stability?
 Yes, inequality does matter. The high levels of poverty 
and inequality in the world and South Africa justify that these 
related challenges matter and require continuous analysis, 
debate, reflection, and discussion. Poverty and its close relation 
to inequality, the likely increase in conflict and civil war, and the 
search for social justice need more inquiry into the complexity 
of inequality’s relationship with other economic variables. In 
this book, which targets the general public, policymakers, and 
anyone interested in inequality, the following essays will reflect 
on different aspects of economic inequality in South Africa, 
specifically focusing on the period after 1994. The chapters 
focus on the following topics: how to measure inequality, wealth 
inequality, wage inequalities, land distribution, access to banking 
services, inequality in service delivery, socioeconomic inequalities 
in health, and inequality in education. The final chapters focus on 
the informal sector, the consideration of a universal basic income 
grant, and economic inclusivity as some remedies for inequality in 
South Africa.  

Conceptual Clarity and Origins of Inequality
 The concepts of poverty and inequality are very often treated 
as synonyms. Although these concepts are closely related, 
their analyses require an in-depth study of each phenomenon. 
Different types of economic inequality exist, but inequality 
is generally regarded as an obstacle to economic growth and 
economic development, and correlates with multiple forms of 
social problems, such as poor health, mortality, substance abuse, 
and the breakdown of social structures. The various kinds of 
economic inequality include:1
 • income inequality: the extent to which income is distributed 
unevenly in a group of people or between different groups of 
people;
 • wealth inequality: the unequal distribution of assets (e.g., 
property, stocks, bonds, etc.) in a group of people or between 
different groups of people; and
 • remuneration inequality: the difference between people’s 
remuneration for doing the same work, which may occur 
within one company or across all remuneration received 
in a nation/community. For instance, gender differences 
in remuneration in the workplace is known as the ‘gender 
pay gap’.
 Inequality seems to have originated during the period of man’s 
moving into the era of hunter-gatherers.2 The period that 
followed – farming and herding – further entrenched inequality 
where wealth could be accumulated by producing surpluses, 
thus escalating the potential of wealth creation for those 
who could produce surpluses. Two determinants are vital in 
establishing inequality: (1) ownership of land and assets and (2) 
the ability to transfer wealth to the next generation. Over time, 
numerous factors that contribute to inequality can be identified. 
These include political inequality (which reinforces economic 
inequality); empire-building; imperialism and colonialism; 
industrialisation; commercialisation; urbanisation; financial 
sector innovation; concentration within market structures; 
trade; globalisation; and greed. Ironically, several factors have 
also contributed to the leveling or reduction of inequality, such 

A Fair Share: Reflecting Essays on Economic Inequality in South Africa