How did hunger levels in the former homelands catch up with the rest of South Africa? A hundred years after the Land Act of 1913¶

Literature › Works

Dieter von Fintel; Louw Pienaar (2014). How did hunger levels in the former homelands catch up with the rest of South Africa? A hundred years after the Land Act of 1913. Econ3x3 (web forum). Econ3x3.


Type	other
Scope	Post-1994 South African economy
Method	econometric
Period studied	2002–2010
Regions	Former homelands, South Africa
Themes	bantustans removals influx, agriculture land, inequality poverty unemployment, transition post apartheid, origins segregation
Citation key	`fintel2014`

Argument¶

The article argues that the hunger gap between former homelands and the rest of South Africa, visible in 2002, had disappeared by 2008. Using General Household Survey data, the authors show that land reform and renewed small-scale agriculture do not explain the convergence. The main cause was the faster expansion of social grants in the homelands, where households depend more on grants and less on labour-market income. The convergence masks persistent poverty and weak labour-market linkages, so grants may not address deeper poverty in the long run.

Evidence and method¶

General Household Survey (2002-2004, 2008-2010) self-reported hunger and income-source data; homeland status identified via magisterial districts (to 2004) and GIS link files (from 2008); linear probability models; Labour Force Surveys on commercial farm employment; 1911 census and secondary literature (Bundy, Klasen & Woolard, Van der Berg et al.).

Findings¶

Hunger was significantly more prevalent in the former homelands in 2002. (p. 4)

In 2002, this percentage was 10% for homeland households and 7.3% for non‐homeland households.
The hunger gap was eliminated by 2008 as homeland hunger fell faster. (p. 4)

by 2008 only 2.8% of households in former homelands reported hunger – matching the reported 3% in non‐homeland regions.
Overall, the share of African households whose adults never went hungry rose sharply after 2002. (p. 3)

this percentage increased from approximately 60% in 2002 to 80% in 2008/2010
Rising reported land ownership did not explain the narrowing of the hunger gap. (p. 4)

our statistical analysis indicates that this trend has not been instrumental in reducing the hunger gap between the former homelands and non‐homelands regions.
Formal land reform beneficiaries reported more hunger than non-beneficiaries. (p. 5)

households that were beneficiaries of this policy have experienced greater levels of hunger relative to non‐beneficiaries
Grants became a much larger share of homeland household income, 2002-2010. (p. 5)

the share of grants in the income of African households in former homeland areas has increased significantly: from about 30% in 2002 to 40% in 2010
Household income composition explains about half the initial gap, with lack of labour income central. (p. 6)

the composition of household income explains about half of the initial gap in hunger between the former homelands and the rest of South Africa.
Social grants were the main factor in the post-2002 narrowing of the gap. (p. 6)

Social grants, rather than land reform and resurgent agriculture, have been the main factor in reducing hunger levels in the former homelands.
Grants are an imperfect long-run remedy; labour-market links matter. (p. 7)

Our work highlights the importance of linkages to the labour market.