In this thesis the feasibility of making social transfers conditional in South Africa is
examined with specific focus on the Child Support Grant. Currently, there are more
than 8.7 million children receiving Child Support Grants, which is impacting positively
on poverty alleviation. Yet, social outcomes, especially in health and education are
poor. The conditionality of transfers will compel the parents/guardians of these
children to ensure that the children regularly attend school and also utilise the health
services. Conditional cash transfers, by their nature, attempt to address the low
demand for these services, which are available but are not being utilised.
The National Income Dynamic Study (NIDS) is employed to test empirically whether
it will be feasible to institute conditionality to the CSG. The methodology adopted is
to determine if there is any statistically significant difference (education and health
outcomes) between the recipients of the CSG with non-recipients of the CSG.
Moreover, the population (as extrapolated from the sample) is separated into four
groups, namely, children that qualify and receive the grant (QR), children that
qualify and do not receive the grant (QNR), children that do not qualify and receive
the grant (NQR) and children that do not qualify and do not receive the grant
(NQNR). Subsequently, educational and health outcomes are compared between
these groups to determine if there is any statistically significant difference between
them.
The results demonstrate that school attendance is high among children, and there is
no significant difference in school attendance between the recipients and nonrecipients
of the CSG; as well as between the QR, QNR, NQR and NQNR. Moreover,
there is no substantial difference in education outcomes (grade repetition) between
the recipients and non-recipients of the CSG; as well as between the four groups.
Similar results are found for health where there is no statistically significant
difference between the groups regarding utilisation of health services as well as
health outcomes.
Therefore, conditionality of the CSG would not be feasible, as it does not address the
causes of poor health and education outcomes, which are mainly due to supply-side
deficiencies. Government should rather strengthen current poverty alleviation
policies which seem to be impacting positively on poverty reduction.