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That spending represented 15 percent of the economy's total household expenditure of R839 billion, according to the Reserve Bank's 2004 household expenditure report. The Eighty20 analysis, which is based on a method devised by CK Prahalad, drew on a range of surveys conducted by Statistics SA, the All Media Product Survey, the Reserve Bank and the Financial Diaries research, which is funded by FinMark Trust.

The analysis showed that 60 percent of the 5.2 million households where individuals were living on less than R20 a day, were in rural areas. It showed that 1.3 million of those households in rural areas and 990 000 in urban areas were unable to meet their daily food needs. In 4.4 million, or 41 percent of households, individuals lived on between R20 and R139 a day, while 793 000 households, or 7 percent, lived on between R149 and R279 a day. Only 326 000, or 3 percent of households, lived on R280 or more a day per person.

The research also examined how low-income households spent their money. Melzer said the analysis showed that 146 473 poor households had television sets, 118 516 had music systems, 106 187 had electric hotplates, 101 241 had refrigerators and 80 464 had DVD players. It found that R105 a month per person went on food, R98 per adult on transport to work, R41 per child on transport to school, R30 per person on clothing, R14 per person on gambling, drinking and smoking, and R10 per person on telecommunications.

Seven million children receive child support grants and 10 million South Africans receive social grants. On a positive note, it found that although there was still a huge backlog of housing, 200 000 houses were being subsidised by the government a year, while 80 percent of houses had been electrified since 1993.

However, 1.8 million people still live in shacks, 328 000 live in backyard dwellings, 1.5 million live in traditional dwellings and 726 123 live in houses that are structurally weak. Together, these constitute a total housing backlog of 5.2 million.

A total of 15 million, or 36 percent, of children in the country live with both parents and the rest live either with one parent or without any. The survey pointed out that intrahousehold financial linkages were relatively common, particularly for poorer households.

Sixteen percent of all households and 22 percent of poor households had a family member who was a migrant worker. Fourteen percent of poor households had made cash contributions to family members outside the household in the previous 12 months. Thirty-two percent of poor

households had another dwelling aside from their main residence. The survey highlighted significant growth in the number of people between the ages of 24 and 44 dying from HIV/AIDS -related diseases.