Microsoft Word - CESR-S27-IEJ submission FINAL.docx

This joint submission by the Center for Economic and Social Rights, the Institute for Economic Justice, and SECTION27 argues that South Africa is implementing retrogressive austerity measures that threaten economic, social, and cultural rights. The authors contend that the government's focus on debt reduction is based on exaggerated concerns and that resources could be maximized through progressive tax reform and the eradication of corruption and 'state capture'. The document details how budget cuts and inefficient resourcing are severely undermining the public health and basic education systems, leading to critical staff shortages, infrastructure backlogs, and poor learner outcomes.

• South Africa has introduced retrogressive austerity measures characterized by expenditure ceilings and budget cuts that prioritize deficit reduction over social spending. Between 2016/17 and 2018/19, non-interest budget expenditure grew by an average of only 0.3%, which is significantly lower than the population growth rate of 1.6% over the same period.
• The government's justification for austerity based on a debt crisis is viewed as illegitimate, as South African debt is considered moderate by international standards. The authors argue that debt risks are primarily driven by guarantees for state-owned enterprises (SOEs), specifically Eskom, rather than excessive social spending.
• Extreme socioeconomic inequality persists, with 55.5% of the population living below the official national upper bound poverty line in 2015. Wealth inequality is stark, with estimates suggesting the wealthiest 1% of the population own half of all wealth.
• The state has failed to mobilize maximum available resources due to a regressive tax mix and administrative failures at the South African Revenue Service (SARS). This includes falling personal and corporate income tax rates and under-taxed wealth, such as capital gains and inheritance.
• Corruption and 'state capture' have led to massive resource diversion. In 2016/17, irregular expenditure reached R45.6 billion, with the health sector accounting for R11.8 billion of that total. Corruption is estimated to cost South Africa at least R27 billion annually.
• Austerity measures are severely impacting the right to health, evidenced by a 0.1% real-term cut in consolidated health spending in 2018/19. This has led to critical staff shortages, an exodus of professionals to the private sector, and a rise in medico-legal claims, which reached R51 billion in 2016/17.
• The Gauteng Department of Health serves as a case study for system collapse, where an unofficial hiring freeze to cut the wage bill led to a neonatal mortality rate of 30% at one large district hospital, compared to a 3% national average.
• The right to education is undermined by diminishing per-learner spending, which fell from R17,822 in 2010 to R16,435 in 2017. This has resulted in poor outcomes, with 78% of Grade 4 students unable to read for meaning.
• School infrastructure is in a state of crisis, with 4,358 public schools still using illegal plain pit latrines. The government has reduced funding for school infrastructure by R7.2 billion over three years, despite failing to spend billions in existing grants.
• There is a discriminatory shift in education funding away from basic education toward tertiary education. Between 2016/17 and 2019/20, the post-school education and training budget is projected to increase by 36.8%, while basic education allocations grow by only 3.1%.

APA

Institute for Economic Justice (n.d.). Microsoft Word - CESR-S27-IEJ submission FINAL.docx. https://iej.org.za/wp-content/uploads/2020/02/IEJ_Submission_August_2018_UN_CESCR.pdf

Chicago

Institute for Economic Justice. Microsoft Word - CESR-S27-IEJ submission FINAL.docx. n.d. https://iej.org.za/wp-content/uploads/2020/02/IEJ_Submission_August_2018_UN_CESCR.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Microsoft Word - CESR-S27-IEJ submission FINAL.docx |url=https://iej.org.za/wp-content/uploads/2020/02/IEJ_Submission_August_2018_UN_CESCR.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendmicrosoft, author = {{Institute for Economic Justice}}, title = {{Microsoft Word - CESR-S27-IEJ submission FINAL.docx}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2020/02/IEJ_Submission_August_2018_UN_CESCR.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }