Cape Town - The real incomes of the poorest 30% of South Africans have increased by an above-average amount, according to President Mbeki.
However, he said, so have the incomes of the top 10% of citizens.
Answering questions in the National Assembly on Thursday, the president drew on a variety of statistics to show that even though the gap between the poorest and richest was still unacceptably wide and getting slightly wider, the poor were a deal better off than they were.
He also suggested that there was less inequality among the middle classes, and among the skilled working class in terms of both race and gender.
Answering a question from an ANC member NN Sibhidla, who wanted to know whether government policies were reducing the gap between the rich and the poor, he said that the answer was too complex for a straight yes or no.
Stats SA's household expenditure survey showed, he said, that the Gini co-efficient, which measures the gap, continues to remain high between social groups and within those groups. The Gini coefficient for the whole country was 0.72.
But if the social grants were taken out of the equation the Gini co-efficient went to 0.8. "That is, a reduction in inequality through redistributive policies reduces the Gini coefficient by eight percentage points," Mbeki told MPs.
The Gini coefficient is a measure of statistical dispersion used as a measure of inequality of income distribution or inequality of wealth distribution. It is defined as a ratio with values between 0 and 1.
A low Gini coefficient indicates more equal income or wealth distribution, while a high Gini coefficient indicates more unequal distribution.
Zero corresponds to perfect equality, with everyone having exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income.
'Doesn't mean more poverty'
"This does not mean growing impoverishment among sections of our population," the president insisted. "In this regard the Stats SA report says from 2000 to 2005/06, black African households' share of consumption expenditure rose from 42.9% to 44.3S% and their share of the population rose from 78.3% to 79.4%.
"Black African households experienced increases in share of expenditure in each expenditure category except in for miscellaneous goods and services, with the largest increases occurring in food and non-alcoholic beverages, furnishings, household equipment and maintenance and communications."
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