Predatory Welfare : Debt, Race, and Cash Transfers

In Predatory Welfare, Erin Torkelson explores how the direct cash transfer program instituted in South Africa revised and reworked post-apartheid racialized and gendered dispossession, despite its promise of ameliorating extreme poverty.Beginning in 2012, she focuses on how poor Black South African women asserted their entitlements to social assistance and responsibilities for familial care against the pressures of expropriation built into the grant payment system. Because the grants did not cover monthly bills, recipients were pushed into predatory loans collateralized by welfare payments.Torkelson finds that the state-sponsored but privately-run program was fundamentally undermined by its reliance on digital financial technologies which encoded wider forces of colonial rule, nationalist politics, and global development.Even when the government assumed control of grant payment in 2018, the neoliberal bent of fiscal policy continued to drive recipients into debt in new ways.Drawing on seven years of ethnographic fieldwork and organization – in grant payment queues, loan offices, grocery stores, Parliament, and the Constitutional Court – Torkelson demonstrates how cash transfers can offer a means to making racial capitalism more acceptable and how recipients can push back to demand reparation.