HAART IN SOUTH AFRICA
HIV/AIDS is an important public health and policy issue in South Africa, where nearly 20% of adults aged 15–49 are HIV positive. Policies that help address AIDS’ adverse health and socioeconomic consequences include public sector provision of Highly Active Antiretroviral Therapy (HAART) and the government’s disability grant—available to those deemed too sick or incapacitated to work who meet an income-based means test. South Africa’s government disability grants are considered important in providing income support to low-income AIDS patients. We explored the relationship between disability grants and individual and household welfare in Khayelitsha, a township of Cape Town, South Africa. We found that grant loss was associated with sizable declines in income and changes in household composition. Our results suggest that though grants officially target those too sick to work, some people were able to keep grants longer than expected, and others received grants while employed. This has helped cushion people on HAART, but other welfare measures need consideration. Our findings that large drops in income and changes in household composition follow the loss of a disability grant illustrate the need to investigate alternate social welfare programs for unemployed AIDS patients and/or more effective mechanisms to smooth consumption and income over time.