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Posted 19th December 2008: MEDIA STATEMENT ON BLACK ECONOMIC EMPOWERMENT AND AFFIRMATIVE ACTION December 18 2008
The Congress of the People has noted media reports regarding the party’s policy positions on black economic empowerment (BEE) and affirmative action.
COPE believes strongly that affirmative action and black economic empowerment remain necessary instruments for the transformation of our country. These two issues were sharply debated before and during our recent congress in Bloemfontein. Congress adopted a clear policy position which focused on improving the implementation of these two policies.
We publish below the policy position agreed to at conference so that the public is better informed when debating COPE’s position on BEE and affirmative action.
The resolutions of conference will be officially released after they are ratified by the congress national committee at its next meeting in early January.
For more information please contact Sipho Ngwema on 082-499 8111 or Onkgopotse JJ Tabane on 082896 8866
Resolution on BEE and Affirmative Action
1. Affirmative Action a. There is a recognition that the economy predominantly white, and that the key objectives of affirmative action with respect to broadening participation of historically excluded groups have not been fully achieved. Senior management positions are, to a considerable extent, still dominated by whites.
b. That the shortage of skills amongst blacks is a legacy of the apartheid system, and that there has been a failure by the current government to address this satisfactorily. Because of the skills distortions in the economy, policies intended to redress the past, notably affirmative action, have generated unintended consequences.
c. That there is a need to address the unintended consequences of affirmative action and related equity policies. These unintended consequences include nepotism and cronyism in the public service, exclusion of minorities from the public service, and using race as a sole criterion of employment rather than looking at the potential. Other South African groups such as ’Coloureds’, Indians, and those of Chinese origin have at times expressed exclusion or overlooked for appointments. This has had an adverse impact on race relations, and generates inefficiencies in the economy and the public service.
d. Equity and efficiency objectives should be pursued as complementary, and underpinned by clear and well-managed human capital development strategies. Furthermore, there needs to be appropriate balance between equity policies and strengthening of the fabric of social cohesion. Race-based policies should also be sensitive to the emergence, and increasing predominance, of class tensions that both include and transcend race categories.
e. On affirmative action exemptions, certain sectors of the economy that are suffering a crisis of skills shortage - and require rare skills - could receive exemption from affirmative action in order to boost the skills base in those sectors.
f. There needs to be strong monitoring and evaluation of the implementation of affirmative action as well as its impact on the efficiency on the economy, race relations, and public service delivery. Its objectives need to be made clear and better communicated.
g. That there is a need to put a particular attention on education and mentorship programmes. Of particular importance is the need for greater investment towards technical and vocational skills development, as well as into higher education programmes that seek to address the needs of the economy.
2. BEEE a. That there is a need to address the unintended consequences of BEEE policies. These unintended consequences include creating an elite-based economic system that still leaves the majority of the population excluded from economic participation. Other unintended consequences include the practice of fronting, encouraging unproductive rent-seeking by same companies or individuals (both big and small), and fostering corruption in the public service.
b. That greater emphasis should be placed on grassroots economic development, including increasing support to black-owned SMMEs and those who are in the incipient (informal) economy. There should be strong monitoring mechanism built into policy on the success of failure to facilitate the inclusion of special groups such as youth, women and the disabled.
c. The review of BEEE should lay particular emphasis on other elements of the Score-Card, namely the socio-economic contribution of big business, procurement, and enterprise development. The centre piece should be broad-based participation. Furthermore, there should also be strong inclination towards engendering a spirit of entrepreneurship and wealth creation. |