Browsing by Author "Xaba, Nkhaba Jantjie"

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    A comparative study of Afrikaner Economic Empowerment and Black Economic Empowerment : a case study of a former South African parastatal in Vanderbijlpark
    (Stellenbosch : Stellenbosch University, 2020-03) Xaba, Nkhaba Jantjie; Heinecken, Lindy; Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Sociology & Social Anthropology.
    ENGLISH ABSTRACT: Since 1994, there have been many debates as to why Broad-Based Black Economic Empowerment (BBBEE) has been unable to deliver the same economic benefits post 1994, as the Afrikaner Economic Empowerment (AEE) had done after the depression despite the similarities in approach and intentions. Both programs relied on a welfare state to pass a legislative and macroeconomic strategy to provide jobs, develop skills and roll out series of welfare policies to uplift the poor. Nevertheless, due to several factors, these did not have a substantial impact on decreases in unemployment, poverty and inequality among blacks, and social empowerment is an alternative. A review of literature points to a number of different factors and influences that led to Afrikaner disempowerment, ranging from conflict, drought and diseases to discrimination in the labour market, as well as level of education. Studies showed that AEE developed a nationalist program using language, religion and race to implement legislation that protected and promoted the economic interests of white Afrikaners. This was accompanied by a macroeconomic policy based on Keynesian principles where State Owned Enterprises (SOEs) were used to provide protected jobs, develop skills and provide welfare services such as education, housing and healthcare. Labour market influences that contributed to empowerment included - standard employment practices, employment benefits and protective trade unions. However following the 1970s financial crisis, SOEs were accused of being too cumbersome, too rigid, routinized and inflexible and this led to the implementation of New Public Management (NPM) approach comprising of measures involving downsizing, restructuring, privatization, outsourcing and flexible employment to cut costs, improve efficiency (Carstens and Thornhill, 2000:187). Additionally, AEE became more successful because of the nature and role of civil society organisations (CSOs) such as the Helpmekaarvereeniging, the Broederbond and the Afrikaanse Christelike Vrouevereeniging (ACVV), as well as organisations promoting Afrikaner culture such as language (Federasie van Afrikaanse Kultuurvereniging -FAK) and religion (Dutch Reformed Church-DRC), acting as the voice of the poor and helping to build social capital. Under BEE, the review of literature revealed that the root cause of black disempowerment was the unjust racial policies of the previous regime. The ANC government implemented a legislative framework that focused on redress, instead of nationhood. This program was accompanied by two contradictory macroeconomic policies; one (Reconstruction and Development Programme - RDP) focusing on state-led development to uplift the poor, the other (GEAR), focused on neoliberal ideology and concentrating on reducing fiscal deficits, inflation control, stable exchange rates, decreasing barriers to trade and capital liberalization, was to reduce trade barriers and achieve growth and development. Under this new economic framework, the state rolled out NPM strategies that included privatisation of SOEs, downsizing the size of the public sector expenditure, outsourcing public services to promote empowerment, and employment flexibility. There is a growing amount of informal, seasonal, and contract work-generally known as “non-standard jobs” and a new “working poor” in many sectors of the South African economy. Unfortunately, under BEE, social empowerment was not effective as CSOs were not as organized as they were under AEE. GEAR caused chaos among many CSOs as they attempted to redefine their ties with the government and many isolated them from the state through the fairly shut down, bureaucratic and expert-led system of policymaking. The study investigated these issues through in-depth interviews with sixty-seven former and current employees, participant observation with leaders and members of the BJO and focus group discussions with three former black employees and four leaders Solidarity union. The study showed that the primary reason why AEE was successful in uplifting the whites is that it focused on a small homogenous population of mainly Afrikaners, while BEE targeted a larger and diverse group not based on ethnicity. AEE was supported by the economic, political-legal and socio-cultural dimensions. The macroeconomic policy was underpinned by a Keynesian ideology where the state, business, and white trade unions formed a ‘social contract’ to uplift the poor. Under BEE, the ANC-led government adopted a ‘neo-liberalised’ macroeconomic policy that advocated privatisation, deregulation, downsizing, flexible employment and outsourcing to cut costs and increase efficiency. The result was job losses, less training, a rise in atypical forms of employment such as casual, part-time and contract employment accompanied by few employment benefits. In addition, there was a strong organised civil society movement supporting AEE and the development of social capital through language, religion and nationalism; while under BEE CSOs were alienated from the state and focused on various issues rather than the upliftment of a specific group. Such gaps led primarily to BEE's inability to raise the vulnerable. The study suggests problems to be discussed in improving BEE legislation and the role of social empowerment.