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'BEE no solution to poverty'

Jun 24 2008 15:43

Johannesburg - Wealth redistribution is no solution to poverty, political analyst Moeletsi Mbeki told a conference on the world economy in Johannesburg on Tuesday.

"Redistribution can actually accentuate poverty and create social conflict," he said.

"I was one of the first to oppose Black Economic Empowerment (BEE), because if they're going to redistribute wealth, who is going to get what? Where are you going to get that wealth from?"

Broad Based BEE had only benefited top ANC leaders, Mbeki said.

"It benefits the people in power, but what about the poor? BEE is more of a problem than a solution."

He suggested that the government look at wealth creation rather than "fight the ghosts of the past. The ANC expends a lot of energy with BEE in an attempt to correct the past".

The only way to go bridge the gap between rich and poor was to sort out the education system and concentrate more on the development of small and medium businesses.

"BEE stops black from becoming entrepreneurs," Mbeki said.

"Black people are not necessarily against capitalism," he said,
adding that it was only the model of capitalism that the apartheid National Party had promoted that blacks did not like.

He was however unsure if the ANC could market capitalism to the
electorate.

"The ANC leaders are afraid of the unions - groups like Cosatu and the SACP - they think these groups deliver a huge constituency but they don't."

He said that the ANC had been "very good" at establishing a
political system and the Constitution, but had not done well in
economics.

"I never expected them to because they have never run a business."

He said that at least he and his brother, President Thabo Mbeki, had worked in the family's spaza shop as children.

"But when my brother gets kicked out as head of government, you
won't have anyone there who has actually managed even a spaza shop."

- Sapa

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Greg
Oct 21 2008 11:54 Report this comment

Talk is cheap people. What we need are Do-ers not talkers. If this guy could put his money where his mouth is then maybe SA could come right.

Johan Maartens
Sep 01 2008 09:07 Report this comment

I was encouraged at the logical way that Moeletsi Mbeki put his argument forward. Wealth redistribution does not create wealth, it redistributes it. Some people find this hard to understand. Wealth distribution: Whose wealth gets redistributed? The person who created that wealth. If it is now redistributed, that person takes off and starts creating wealth in another country. The problem? There are less people in South Africa who have the mentality and ability to create wealth. If South Africa had people who could create wealth, they would have created it instead of trying to obtain wealth obtained by somebody else. Is this fair? Hell no, but that is the way life works. Some people are able to create wealth and others are destined to pray on the wealth of those who created it. Allowing wealth creators to leave the country allows poverty to take over. Just because you are white does not mean that you are a wealth creator just like being black does not mean that you are a wealth creator. But it is strange that the governmnet continuously talks about wealth distribution and not wealth creation. Maybe it is as Mr. Mbkei said: The government does not understand the difference or why the difference exists.

Boerseun
Sep 01 2008 08:02 Report this comment

This man should be considered a prophet to his own people. The again, prophets never get recognition in their own country. The day will come, way to late, when the black ANC voters of RSA will see him for the visionary he is or was. He is the only black man that have have heard of in RSA that has the balls to speak his mind, have a economic plan to rescue his people from powerty, all without stealing, redistributing or discriminating against other groups. Mr M Mbeki, this Boereun recognises you as a great son of Africa. Keep doing what is right en never be silent.

GB
Sep 01 2008 07:08 Report this comment

First: A national common wealth is not a product of democracy. We need competency and awareness of the coutry needs. Second: Needs a good dose of courage to unveil the useless thogh dangerous performances of leaders whose personal anhanced figure is only based on the sopport of their proselits and for whum the valid actions needed for the achievement of the welfare of the country are a secon priority meanwhile ethinc and political interests are instead prevaling. An honest admission of this reality shall be a guide to those leadres whose intelligence and courage oblige. Third:Populism among some blqack leaders is flooding the country and opportunism amongs the white controlled industry is a shame. I say white controlled industry because the majority of the BEE gratified have nothing really to say apart to sit in and daw the money.

Nasdaq7
Jun 25 2008 14:03 Report this comment

I can't believe the Mbeki family has produced such an outstanding thinker! SA needs to produce more that is the only way out of trouble. More factories, more jobs, more exports, more income.

Amanda
Jun 25 2008 10:02 Report this comment

Im gald to see that someone is realising that the government ideas for helping black are in fact not help at all. All this has done is to widen the gap of inequality among black people. A select few are getting richer by the day, while the rest are getting poorer, and as if this is not enough, it is creating an impression among black peopl that the government has to do everything for them. I am only an economist in the making, only in my second year, but even i can can see that this is destined for doom. The past can never really be gone is we don't accept that it happened and let it go. There is no way that we could possibly make up for the harm caused by apartheid, all we can do is move on from it. We cannot help the preniosy disadvanteged by craeting a new group of "presently disadvanteged". The best we can do is to ensure that this generation, no one is disadvantaged, and that the previously disadvantaged are provided with education and skills, and opprtunities based on those skills only. No quick fixes will work. Being black can not be used as an excuse for being lazy...and i am not being insensitive, coz im black

Oh yes
Jun 25 2008 09:58 Report this comment

For all my friends.Fight poverty with poverty.

William
Jun 25 2008 09:40 Report this comment

...get your head out of the sand. Whos "sharing" their BEE cake? BEE does NOTHING for the average joe on the street. The income gap is WIDENING in South Africa (That is an economic FACT). For all your good intentions you are just failing to realise that the truth is not as pretty as you think it could be. BEE must go or the poor will revolt, and more xenophobia (ethnic cleasing) will start happening.


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