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Area-based initiatives are popularly applied to alleviate the spillover effects of neighbourhood poverty in deprived neighbourhoods. This study analyses the effects of two area-based initiatives on neighbourhood poverty in Cape Town between 2001 and 2011 in a controlled baseline study. The purpose of this study is to determine whether the changes were the product of policies themselves or wider structural changes in the national economy, and what were the specific outcomes of the policies. The study revealed that, despite some minor gains, these policies were ineffective in reducing poverty levels in the policy areas, and that poverty levels are primarily determined by the broader changes in the economic environment and in-migration.
Keywords: Area-based policy, neighbourhood poverty, redistribution policies, South Africa