Analysis of the distributional effects of COVID-19 and state-led remedial measures in South Africa

Abstract

Typescript prepared by Gary Smith.United Nations University World Institute for Development Economics Research provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research.The Institute is funded through income from an endowment fund with additional contributions to its work programme from Finland, Sweden, and the United Kingdom as well as earmarked contributions for specific projects from a variety of donors.

The Impact of COVID-19 on Global Inequality and Poverty

“…For South Africa, we use the results from Barnes et al (2021). This study contains decile growth rates comparing April-June 2020 with March 2020 and uses a measure of disposable income.…”

The COVID-19 crisis and the South African informal economy: A stalled recovery

“…As noted earlier in the chapter, the South African government introduced a temporary relief grant (the SRD Grant) of ZAR350 5 a month per person. While the grant amount is very small (roughly the equivalent of US$22), its impact on poverty and inequality has been well documented (Barnes et al 2021), with many arguing this should form the basis of a universal income guarantee (see, for example, IEJ 2021). Institutionalizing the SRD Grant is a critical policy priority for those working informally.…”

Informal freelancers in the time of COVID-19: Insights from a digital matching platform in Mozambique

“…It also merits note that, unlike in some other countries where temporary public support has been able to cushion some of the (employment) effects of the pandemic on the poorest (e.g. Barnes et al 2021), such support has been almost completely absent in Mozambique to date. 11 Nonetheless, reflecting on the specific impact channels through which the pandemic may have operated, the net effects may be more complex than a simple uni-directional contraction on both the demand and supply sides of the market for informal labour.…”