Trick or treat

Rethinking black economic empowerment. Reviewing the 16 years since the Black Economic Empowerment was set up as a remedy to apartheid, this analysis looks at the most controversial mission of the organisation - the creation of black-owned corporations. Reviewing the 16 years since the Black Economic Empowerment (BEE) was set up as a remedy to apartheid, this analysis looks at the most controversial mission of the organization—the creation of black-owned corporations. Drawing on case studies, both in South Africa and internationally, the report finds many negative consequences that bring into question BEE's ownership in its current form. It shows how inadvertently organizers over the years have encouraged the kind of trading and deal-making that leads to opportunistic, unproductive investment and explores how BEE is also seen as a convenient cover to legitimize political patronage and corruption in the allocation of state resources. As a final note, however, the discussion praises new ventures that are professionally run and seek both financial return and social impact.

Pages: 280

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