South African cities were extremely divided racially when the transition to democracy occurred in 1994, as a result of policies under apartheid such as pass laws and the Group Areas Act. The apartheid legacy of racial segregation and inequality continues to affect the cities. A change to a deracialized city does not seem likely for the foreseeable future. Few neighborhoods are becoming integrated to any significant degree. Lack of economic development and marginality of the urban population are the greatest obstacles to urban improvement.