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Checking Up on Agricultural Minimum Wages in South Africa

Haroon Bhorat's picture

In the developing world, there is a lively debate surrounding how minimum wages affect jobs, poverty, and income distribution. To shed light on the issue in South Africa, Haroon Bhorat, Ravi Kanbur, and Benjamin Stanwix recently did a study on the impact of the introduction in March 2003 of a minimum wage law in the agricultural sector. We spoke with Bhorat – a Professor of Economics at the University of Cape Town and an economic advisor to the Minister of Finance – on their findings.

A Great Day in South Africa for a Development Junkie

Jim Yong Kim's picture

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PRETORIA, South Africa - I have to admit it. I’m a bit of a development junkie. For most of my adult life, I’ve been reading thick tomes describing the success or failure of projects. I talk to friends over dinner about development theory. And I can’t stop thinking about what I believe is the biggest development question of all: How do we most effectively deliver on our promises to the poor?

So you can imagine how excited I was to have a day full of meetings with South Africa’s foremost experts on development: the country's ministers of finance, economic development, health, basic education, water and environmental affairs, and rural development and land reform - and then with President Jacob Zuma.

I chose to travel to South Africa as part of my first overseas trip as president of the World Bank Group because of the country’s great importance to the region, continent, and the world. It is the economic engine of Africa, and its story of reconciliation after apartheid is one of the historic achievements of our time.

What Can We Learn from Eight Successful Campaigns on Budget Transparency and Accountability?

Duncan Green's picture

Over the last couple of years, the International Budget Partnership has published a set of fascinating case studies of campaigns on issues of government accountability, budget transparency and access to information. I finally sat down and read them all recently (the summer lull is a wonderful thing). What conclusions do they draw (see end of post for links to the case studies)?

As always, good case studies endorse some of your thinking, but also add some new ideas and insights (at least for me). The common ground is that multi-pronged approaches and alliances have more impact. Successful campaigns often work across multiple layers of government (village, district, state, federal), using multiple strategies (research and insider advocacy, street protest, media). The most effective alliances often bring together unusual suspects (eg radical grassroots CSOs and nerdy thinktanks in the Mexico subsidies campaign).

Prospects Weekly: Renewed concerns earlier in the week about the Greek bail-out plan

Global Macroeconomics Team's picture
Renewed concerns earlier in the week about the Greek bail-out plan and the possibility of a credit rating downgrade for several European economies drove borrowing costs up. The European Central Bank’s (ECB) announcement on Thursday to defend the Euro has helped ease concerns somewhat.

Prospects Daily: Crude oil prices fall from 9-week high

Global Macroeconomics Team's picture

Important developments today:

1. Crude oil prices fall from 9-week high

2. German producer price inflation falls to lowest in two years

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Mashable
Gmail Downgrades, Launches SMS Version for African Countries

“While we’re used to seeing upgrades from our favorite tech products, Gmail has made an important step in the opposite direction.

Google launched Gmail SMS Wednesday, offering a mobile-based email solution for people in Kenya, Nigeria and Ghana. Gmail SMS is a tech downgrade, but it’s a lifestyle upgrade for email users without consistent Internet access.

“There’s so much you do with it: apply for a job, make an inquiry, get notifications from your social network, receive photos or an invitation that makes you smile, and just communicate back and forth with your friends,” said a post on Google’s Africa blog.”  READ MORE

Transitions in financing HIV/AIDS programs

Patrick Osewe's picture

(Portrait of mother and child. Botswana. Photo: Curt Carnemark / World Bank)

While participating in a study of HIV spending efficiency in South Africa, I met a young HIV-positive mother who had just received the joyful news that her new-born daughter was healthy and HIV-free. Wiping away tears of relief, she described the gratitude she felt for the antenatal clinic staff, who had helped start her on antiretroviral treatment (ART) and thanks to whom she now had the hope of a bright future for her daughter. This encounter was just one among many similar incidents during the study – and, as our preliminary data show, is representative of the positive impact of the Government’s strong commitment to bringing down rates of HIV.

 

South Africa has mounted one of the strongest responses to HIV in the world. Its most dramatic success has been the scale-up of ART since 2003, growing from almost nothing to the country’s largest health program that treated about 1.5 million people in 2011 (out of a total HIV-infected population of 5.6 million).

 

The impacts of this treatment drive are already showing, with overall mortality, maternal and infant deaths all on a downward trend following their HIV-related peaks in the early-to mid-2000s. However, the cost of sustaining this success is huge: South Africa has committed to putting an estimated target of almost 10% of the entire population on a life-long course of expensive drug treatment. And, even with government negotiators bringing down ART drug prices by 65% since 2008, successful testing campaigns coupled with the worrying increase in resistance to first-line therapies look set to further raise the financial risk.

 

These challenges extend beyond South Africa. An analysis of the fiscal dimensions of HIV/AIDS released by the World Bank earlier this year in a number of countries concluded that without significant additional investments in prevention starting now, the cost of treatment will rapidly become unaffordable for even the most cash-rich countries on the African continent.

Join Us for a Live Chat about Rio+20 on World Environment Day

Rachel Kyte's picture

Credit: Henrique Vicente, Creative Commons

On June 5, World Bank Vice President for Sustainable Development Rachel Kyte will host a live online chat about Rio +20 and sustainable development at live.worldbank.org. Submit questions now, and then join Rachel Kyte and economist Marianne Fay on June 5 at 14:00 GMT/10 a.m. EDT.
 

Rio +20 is coming up in a few weeks. Some 75,000 leaders, advocates, scientists and other experts are expected in person, and tens of thousands more will be watching online to see how the world can advance sustainable development.

Many of us have been advocating for greener, more inclusive growth since before the first Earth Summit at Rio 20 years ago. We’ve seen economic growth lift 660 million people out of poverty, but we’ve also seen growth patterns run roughshod over the environment, diminishing the capacity of the planet’s natural resources to meet the needs of future generations.

The growing global population needs world leaders to do more than just check in at the UN Conference on Sustainable Development, Rio+20 – it needs them to move the needle now toward truly sustainable development practices.

Malaria is a preventable and treatable disease, but for how long?

Maryse Pierre-Louis's picture

www.worldbank.org/malaria

This year, on World Malaria Day, April 25, the global health community has reason to celebrate. Indeed, thanks to substantial investments from partners and countries over the last decade, the scorecard on malaria reports good news:  a reduction of more than 50% in confirmed malaria cases or malaria admissions and deaths in recent years in at least 11 countries south of the Sahara, and in 32 endemic countries outside of Africa. Overall, the number of deaths due to malaria is estimated to have decreased from 985,000 in 2000 to 655,000 in 2010. 

The fact that an estimated 1.1 million African children were saved from the deadly grip of malaria over the last decade is an extraordinary achievement. By the end of 2010, a total of 289 million insecticide-treated nets were delivered to sub-Saharan Africa, enough to cover 76% of the 765 million persons at risk.

Over the past 5 years, four countries were certified as having eliminated malaria: Morocco, Turkmenistan, the UAE and Armenia.  In southern Africa, health ministers of eight countries -- Botswana, Namibia, South Africa, Swaziland, Angola, Mozambique, Zambia, Zimbabwe--have developed a regional strategy to progress towards E8 malaria elimination status.  

Prospects Daily: Financial market volatility is at its lowest since 2007

Global Macroeconomics Team's picture

Important developments today:

1. Financial market volatility is at its lowest since 2007

2. US manufacturing activity remains resilient amid contraction in Eurozone


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