South Africa

    South Africa’s government set a target to cut income inequality in a country where half the population survives on only 8 percent of national income. The government will aim to boost jobs through industrial policy interventions and subsidies for low-wage workers as a way to reduce inequality, the National Treasury said in its Budget Review on Feb. 17. “The key dimensions of our transformation challenge are clear and well known,” Finance Minister Pravin Gordhan said in a copy of his budget speech. “One in four adults seeking work is unemployed, and almost half our young people have not found work. Income inequality is amongst the highest in the world.” South Africa wants to reduce the Gini coefficient, a measure of income inequality, to 0.59 in 2014 from 0.66 in 2010 and boost per-capita income to 57,618 rand (USD7,504) from 46,907 rand. South Africa’s unemployment rate of 24.3 percent is the highest of 62 countries tracked by Bloomberg. (Bloomberg)

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