The Role of Financial Stability and Financial Inclusion in Alleviating Poverty in South Africa
Keywords:
Financial inclusion, financial stability, poverty alleviation, economic growthAbstract
Numerous challenging socio-economic issues, such as unequal resource distribution and persistent poverty levels, have long plagued South Africa. The objective of the paper is to analyse the role of financial inclusion and financial stability in dispensing socio-economic justice by alleviating poverty levels in South Africa. Prior work that this paper builds on is that the Global Financial Crisis has shown a clear connection between financial inclusion and financial stability, but this connection raises the question of whether the two can coexist and promote similar objectives. The approach is premised on ensuring that everyone has access to financial services in a stable financial system, crucial for reducing poverty and promoting economic growth. The results are that promoting financial inclusion and financial stability is critical to South Africa’s efforts to reduce poverty and promote sustainable socio-economic growth. The implications of the study are that both financial inclusion and financial stability initiatives explicitly directed at the poor should be closely monitored so they benefit these groups rather than put them at a further disadvantage. The value of the study lies in its identification of the need for policies that address involuntary financial exclusion, effectively combat income disparity, enhance poverty reduction efforts, and foster economic growth
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