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Building an inclusive social protection system in South Africa

Author

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  • Falilou Fall
  • Andre Steenkamp

Abstract

South Africa has an incomplete social protection system without a mandatory pension savings scheme. Designing a universal insurance pension system would allow to reduce the important government funded pension grant system and ensure that the old-age population has decent income. Only 40% of employees are contributing to a form of saving-retirement scheme, with often a low pension. Moreover, South Africa has a dual, public and private, health care system. Half of the country’s health-care spending goes to the private sector, which covers only 16% of the population. Moreover, the health care system fails to deliver affordable quality services. The COVID-19 pandemic has highlighted the unequal distribution of health care services between public and private health providers. Around 70% of critical care beds available were in the private health care sector. Finally, the sizeable unconditional cash transfer system though reaching a large share of the population fail to lift many children in the poorest families above the poverty line.

Suggested Citation

  • Falilou Fall & Andre Steenkamp, 2020. "Building an inclusive social protection system in South Africa," OECD Economics Department Working Papers 1620, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1620-en
    DOI: 10.1787/e01d1e09-en
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    Cited by:

    1. Li, Shengping & Rismanchi, Behzad & Aye, Lu, 2022. "A simulation-based bottom-up approach for analysing the evolution of residential buildings’ material stocks and environmental impacts – A case study of Inner Melbourne," Applied Energy, Elsevier, vol. 314(C).

    More about this item

    Keywords

    Health; Pension; Social Protection; Unemployment Insurance;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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