The first democratic elections in South Africa in 1994 marked a decisive break with the past and brought to an end the oppression of the black majority. The advent of democracy brought not only political freedom, but also promised emancipation from social and economic deprivation. This dream was to a large extent encapsulated in the African National Congress's (ANC's) Reconstruction and Development Programme (RDP), which was premised on the Freedom Charter.

During Nelson Mandela's presidency (1994–99), South Africa enjoyed a honeymoon period during which various facets of the new democracy were put into place, such as the new Constitution, which allowed black people to participate as equal citizens in the country of their birth. Democracy was, however, not only about the attainment of political rights. Crucially, it also entailed the eradication of poverty. In other words, in order for democracy to be tangible, people needed jobs, decent houses, education and other socio-economic rights.

But it is precisely over the important issue of government delivery in these areas that critical questions have been raised about the character of the transition. Even as the country enjoyed unprecedented economic growth, inequalities continued to widen. In 1994 South Africa's Gini Coefficient stood at a relatively high 0,57, but by 2008 it had increased to at least 0,65, making the country one of the most unequal societies in the world. Moreover, levels of unemployment have remained stubbornly high at around 30 per cent. The economic boom seems to have created few permanent jobs and only the rapid growth of the informal economy has prevented unemployment figures from spiralling out of control.

It is in the realm of housing provision that the dilemmas of delivery have been most acute. Since 1994 the government has built nearly two million new houses, a major feat. However, the government's own estimates suggest that the housing backlog is still at least two million. Equally serious has been the fact that most of the government's new housing projects have been located in old townships, thereby reinforcing the racially constructed landscape of apartheid – poor black people remain confined to dormitory areas on the margins of urban centres.