Black Economic Empowerment
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Black Economic Empowerment (BEE) is a program launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds and Indians) economic opportunuties previously not available to them. It includes measures such as Employment Equity, skills development, targets for ownership and management and preferential procurement.
Rationale
After the end of Apartheid in 1994 and with the advent of majority rule, control of big business in both the public and private sectors still rested primarily in the hands of white individuals. According to Statistics South Africa, Whites comprise just under 10% of the population, meaning that most of the country's economy was controlled by a very small minority. BEE is intended to transform the economy to be representative of the demographic make-up of the country.Effects
This policy has seen the development and acquisition of businesses by capable and educated persons who were marginalised under apartheid. Typically, this would be done by guarantees (by quota) of black employment at certain levels of a company. BEE reaches much further than the affirmative action programmes in other countries. It sets quotas for black ownership of companies across various significant economic sectors in South Africa, including but not limited to mining, financial services, IT, tourism and agriculture.Criticism
There have been allegations that black economic empowerment is being used to enrich a small, politically-connected elite, while leaving the majority of poor black South Africans unaffected. These allegations of crony capitalism have arisen because many beneficiaries of BEE are close to the ruling party, the African National Congress.Critics also argue that BEE's aim was to attempt to create equality of the workforce of South Africa as a whole by enforcing the advantaging of the previously disadvantaged (Black, Coloured and Indian) and the disadvantaging the previously advantaged (White). This results in businesses having to consider the social background of any potential applicant instead of making decisions purely based on qualifications and experience.
Instead of using this type of policy, it has been suggested by critics that a policy of qualification equality should be used. This would allow businesses to focus on employing the person with the highest qualifications, the most experience and the best recommendations. To allow previously disadvantaged individuals to achieve these qualifications and experience, critics of BEE say that the government should place more emphasis on secondary and tertiary education, as well as subsidise companies wishing to employ entry level applicants.
In response to criticism, the South African Government launched Broad Based Black Economic Empowerment.
External links
- [Broad-Based Black Economic Empowerment Act, 2003] was signed into law on 9 January 2004
- [DTI BEE Strategy] (large PDF)
- [mPowerRatings] Black Economic Empowerment news articles, charters, codes of good practice, etc
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