Liberation and Redistribution: Social Grants, Commercial Insurance, and Religious Riches in South Africa

Abstract

South Africa's liberation, marked by the first democratic elections of 1994, ushered in an unprecedented expansion of large-scale redistributive arrangements. In the post-apartheid period, the collection of money into a central fund administered anonymously and bureaucratically has gained social and political importance, particularly for poor and lower-middle-class Africans. This is most evident in a rapid expansion of government social assistance—from 1997 to 2006 the number of beneficiaries of social grants increased from three to almost eleven million, and today at least a quarter of South African households receive welfare payments. Social assistance “has been the fastest-growing category of government expenditure since 2001, and now amounts to R70 billion [almost US$7 billion in 2006] a year, about 3.4 percent of gross domestic product.” The centrality of redistribution is clear in current debates over the establishment of a Basic Income Grant (BIG) for all South Africans. Political liberation has also brought an increase in redistribution through development projects such as the National Reconstruction and Development Programme (RDP) and Black Economic Empowerment (BEE) grants.