Self Economic Empowerment Over Black Economic Empowerment As Unemployment rate escalates Self Economic Empowerment seems to the only safe standing point to a brighter future and furtherance of the country’s economic growth more and more young people are getting into the line of starting their own businesses, but the bigges hurdle facing small south African companies is lack of capital. There is a lot of money sitting in pension funds. Unfortunately the law stipulates that the bulk of the pension fund money should be invested in listed shares on the stock exchange. This is short sighted Muzi Kuzwayo states on the black mans medicine, understandably he adds the government wants transparencyand to limit risk, but if more money was allowed to be invested in small to medium sized companies this would provide desperately required capital this would provide desperately required capital to make companies grow. Y Not BEE What BEE therefore does, is to redistribute the capital structure, through a process of political favouring, from better to worse entrepreneurs. Afterwards, there is less wealth in the economy and the remaining assets are concentrated in the hands of an elite with the right political friends. Consumers, for whom all goods and services in the end exist, are harmed by this. BEE cannot speed up economic growth, the reduction of inequality or general black empowerment. According to the true measure of wealth – access to goods and services – almost all South Africans, including black people, are poorer thanks to BEE. The only winners in this process is the politically favoured black elite and other people (including white, coloured and Indian people) who manage to exploit this artificial system.
Posted on: Tue, 18 Mar 2014 09:35:16 +0000
Trending Topics
Recently Viewed Topics
© 2015