A Summary on Black Economic Empowerement (Essay Sample)

READING 2
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1 Introduction
BEE has become one of the major strategies used by the ANC government in south Africa. Critics argue that BEE promotes re-racialization, amassment of wealth by few elites and hinders foreign investment. This paper seeks to unravel the propositions made by the BEE. These propositions will help understand whether BEE is indeed logical to use or not.
2 Propositions
2.1 Proposition 1
The first proposition is that the government needs to use state power to assert greater black ownership and control. The assertion of greater black ownership and control was in line with ANC principles of National Democratic revolution.
2.2 Proposition 2
The second proposition is that ANC would secure political power while simultaneously accepting the principles of the market economy.
2.3 Proposition 3
The third proposition stated that black empowerment was initially easily achieved through south Africa’s parastatal sector and that had to be maintained.
2.4 Proposition 4
The fourth proposition stated that the ANC was keen to promote black ownership and control of the commanding heights in the economy such as mining, energy and finance.
2.5 Proposition 5
The fifth proposition stated that black business people who lacked capital due to the inadequacies in the apartheid rule would require capital assistance from the state as well as the private sector.
2.6 Proposition 6
The sixth proposition stated that there are three phases to black empowerment. The first phase is the advance black ownership that was halted by the Asian crisis of 1997-1998. The second phase was inaugurated by the Black Economic Empowerment Commission in 2001which sought a more assertive policy through the use of charters. The third phase seeks to respond to critics that BEE has only favored the elite by introducing Broad Based Black Empowerment.
2.7 Proposition 7
The seventh proposition stated that the assumption that BEE only favored the elite is only an exaggeration as black ownership and control is extending across different levels and sectors of the economy.
2.8 Proposition 8
The eighth proposition stated that given the centrality of political leverage to the promotion of BEE and the structure of the South African economy, black capitali...