Growth and structural change

Structural change refers to dramatic shift in the way a country, industry, or market operates, usually brought on by major economic developments. South Africa has not made any huge progress in transforming the structure of its economy. Some even may say that in fact it had regressed. South Africa can be seen as a developed country and would most likely use the primary sector to generate their income.

Distribution of Income

Income distribution is extremely important for development, since it influences the society. It determines the extent of poverty for any given average per capita income and the poverty-reducing effects of growth, and even affects people's health. Income should be distributed fair between all the people in the country. In South Africa people who live in Gauteng receives more than 10,000 dollars and people living in Eastern Cape receives less than 4,000 dollars. Inequality moves along with growth, so the more a country grows the more inequality will take place.

Modernization

Modernization underpinned the idea of development as growth, with modernization defined as a linear path towards a developed industrial society. Economic development through industrial transformation would lead to economic growth, allowing poorer countries to catch up with industrial countries. A country can only be modern when it starts to use modern technology, and South Africa is starting to use more modern technology in the medical world and in our daily lives. 

Demographic Transitions

The demographic transition model graphs Birth rates, Death rates and Natural increase. The rate of Natural Increase is much higher in developing countries of the world, and many countries in HICs are actually experiencing population decline. In South Africa the demographic transition model is on stage 3, which is viewed as a marker of significant development.