The underlying theme in this launch publication is socio-economic inequality and the dynamics that can either improve or prove detrimental to this fundamental issue. Discrepancies in living standards are a cause for concern for the general stability of South Africa, since excessive economic disparities may thwart economic growth and threaten macroeconomic stability. This is particularly true if these disparities manifest socially by, for example, age, population group and gender. High social inequality also questions the basic human rights ethos of South Africa's Constitution. Inequality indicates uneven economic participation as seen, inter alia, in poverty and hunger, high levels of unemployment, skewed skills profiles and inequitable access to productive resources.The format adopted in this publication signals the overall approach of the series. It features different stages in a research process – from the probing of contemporary issues and empirical analysis to highlighting implications for policy and further research. This issue underscores inflation, income mobility, the diffusion of information and communication technologies and HIV/Aids as some of the critical factors in economic progress and the battle against socio-economic inequality. The different ways in which inflation and HIV/Aids affect the poor and non-poor are discussed against the backdrop of international experience. The spread of information and communication technologies (ICTs), on the other hand, offers a possible window of opportunity for extending economic participation.This collection of research material starts with an article calling for more empirical research on the relationship between inflation and poverty. Although there is general consensus that the erosion of the purchasing power of poor households has more far-reaching implications than that of non-poor households, there is limited scientific research that unravels these dynamics over time. The article opens the debate by reviewing experiences in other countries and calls for empirical investigations into South Africa’s current situation, as the globalisation of the economy intensifies.The second article is a case study, using panel data on households in KwaZulu-Natal to analyse the economic and demographic dynamics of income mobility between 1993 and 1998. Conventional wisdom asserts that the success of any society should ultimately be measured in terms of vulnerable groups and those at the bottom end of the social hierarchy. KwaZulu-Natal is one of the poorest provinces in the country. General upward income mobility is most needed in the poorest of provinces. The analysis decomposes income mobility outcomes of economic factors such as gain or loss of employment and income. Mobility effects of demographic changes such as household size and composition are also examined.The next article attempts to link social mobility to overall economic inequality patterns. It explores various scenario outcomes of inequality, given the current level and incidence of HIV/Aids in South Africa. Researchers are challenged to examine the inter-generational transmission of factors that are likely to have a negative impact on the already high levels of inequality. The discussion is premised on the notion that economic growth prospects are partly dependent on the prevailing levels of inequality. Consequently assumptions used in predicting future macroeconomic outcomes of HIV/Aids should accordingly factor in intergenerational social mobility dynamics.The fourth paper is a critical appraisal of current debates on the relationship between the diffusion of information and communication technologies (ICTs) and economic growth and other labour market trends such as employment and productivity. It also reviews various studies on factors that influence South Africa’s capacity to absorb ICTs. Information on the role of ICT in ultimately broadening economic participation and mainstreaming, on the one hand, and fostering the country’s competitive integration into the global economic system, on the other, cannot be ove