The informal social security sector : a case for statutory regulation in South Africa

Abstract

The study commences with the background and statement of the problem essentially highlighting the need for statutory regulation of the informal social security paradigm and the problem of the dual approach to social security in South Africa. By dual approach is meant two categories or branches of social security, being formal and informal social security systems. Each system will be dealt with in detail in the study. The study reveals that the dual approach is problematic in that the majority of the people are left outside the ambit of the social security. A comparison of the existing statutory framework in South Africa is made in order to serve as a reference point for the informal social security statutory regulation. Another notable submission to be made herein is that informal social security should be defined within a broader concept of social security. At the policy level, the existing policies on social security still do not cover the majority of the people living in absolute poverty. It is also a significant finding in the study that there is a need for a close cooperation between the formal and informal social security much as they have the same noble goal of alleviating poverty. It will be argued however that the two should be kept separate and regulation of the informal social security is necessary. The relationship between the two will be explored with the view of examining the differences and similarities. It is hoped that the jurisprudence canvassed herein will inspire policy makers and governments in particular to use policies and law to ensure protection of the poor and the marginalized.