Govan Mbeki Local Municipality 2011/12 - Co-operative ...

coefficient
2009
African 0.51 0.59
White 0.88 0.43
Coloured 0.70 0.65
Asian 0.79 0.51
Total 0.59 0.66
Source: Global Insight: Regional eXplorer 388 (2.2b)
Gini Coefficient
IHS Global Insight (2009) defines the Gini coefficient is a summary statistic of income
inequality, which varies from 0 (in the case of perfect equality where all households
earn equal income) to 1 (in the case where one household earns all the income and
other households earn nothing). A low Gini coefficient indicates more equal income
or wealth distribution, while a high Gini coefficient indicates more unequal
distribution. In practice the coefficient is likely to vary from approximately 0.25 to
0.70.
In terms of Table 3 above, most Gert Sibande local municipalities have relatively high
Gini coefficients or high levels of income inequality. While the levels of inequality are
broadly characteristic of the broader South Africa, the fact that they have continued
to increase since 1996 and remain above the national level is a cause for great
concern.
Income Poverty
Poverty is often defined as deprivation of those things that determine the quality of
life, including food, clothing, shelter and safe drinking water, as well as "intangibles"
such as the opportunity to learn and to enjoy the respect of fellow citizens. One of the
important indicators of poverty in a region is the number of households with an
income below the Minimum Living Level (MLL). The MLL is annually determined by
the Bureau of Market Research (UNISA). It is calculated for different regions, racial
groups, household sizes, and reflects the minimum amount a household needs to
earn to meet its basic needs.
IHS Global Insight D307
Development
MP307: Govan Mbeki Local Municipality
Poverty indicators
Percentage of people in poverty
Number of
people in
poverty 1996 2009 1996 2009
African 62,670 102,837 37.8% 40.1%
White 1,627 404 4.1% 1.0%
Coloured 486 820 19.9% 34.6%
Asian 94 246 4.5% 9.7%
Total 64,877 104,306 30.8% 34.7%
Regional eXplorer 524 (2.3e)
In terms of Table 3 above Mkhondo municipality has the highest number (69.5%) of
people living below the MLL ,while the number is lowest (35,6%) in Govan Mbeki.
While it is encouraging that poverty rates have declined across all municipalities
since 2001 they remain above the national rate of 42.9%. The decline has been
widely attributed to the extension of the state’s social security network.
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