Consequences Of Poverty Essay

6. Consequences of poverty

Poverty has a negative impact on individuals, businesses, society and the economy as a whole, because it places a financial burden on everyone.

a. Individuals

• The main impact of poverty is personal, because the one most affected is the one who is poor. Individuals may become discouraged by poverty, and they lose their self-esteem and confidence because they cannot provide for themselves and their families. In some countries transfers or social grants are given to caregivers of children under a certain age.

• However, these grants should not be too high, because in some cases these grants encourage the parents to have more children so that they can use the money to survive.

b. Businesses

• If people are poor they

The Reconstruction and Development programme

• The Reconstruction and Development Programme (RDP) was a socio-economic program aimed at addressing racial inequalities by creating business and employment opportunities for black. However, the RDP was a short-lived policy, mainly due to protest by investors and stakeholders who did not have any voice in the creation of the RDP. Critics of the RDP argue that it emphasized macro-economic stability.

Black Economic Empowerment

• The Broad Based Black Economic Empowerment Act of 2003 aimed to offer new economic opportunities to disadvantaged communities. Its goals include achieving the Constitutional right of equality, increasing broad-based participation of blacks in the economy, protecting the common economic market, and securing equal access to government services.

• Many scholars see BBBEE as capable of advancing economic growth economic growth promoting new enterprises, and creating sustainable job opportunities for the previously disenfranchised.

• Issues surrounding monitoring and enforcement are persistent obstacles to the success of BBBEE. Also of note is that BEE allows the beneficiaries to come exclusively from wealthy previously disadvantaged groups.

Education

Under apartheid black South Africans received only Bantu Education while white South Africans received a quality free public education. Today, South Africa spends over 20% of its education, more than any other sector.

• Educational investment accounts for a full 7% of the GDP. Since the government instituted widespread accessible education, the total number of years the average South African completes has increased.

• This significant investment in education has slowly closed the educational gap between blacks and whites.

• Key strategies of the educational reform include offering free meals to students during the school day providing free schools to the poorest areas, improving teachers training programs, standardizing progress assessment and improving learner’s standard of living.

9. Advises to the government

I think the poverty rate in South Africa is very high so here are a few strategies that the government should take in order to reduce poverty: Getting skills can offer valuable services that will be more likely to be rewarded for their effort than those who drop out of school and who are unskilled so the governments must introduce programs that are going to motivate the youth to be educated.

In order