Capitalism+in+Safe+Hands,+Khathu+Mamaila,+City+Press

City Press, Johannesburg, 14/04/2007 21:00 - (SA)
=Capitalism in Safe Hands=


 * Khathu Mamaila**

The only surprising thing about comments made by Finance Minister Trevor Manuel on BEE is that they made news.

Arguing that BEE in its current form is flawed and that it should be reviewed, Manuel spoke about companies that appointed blacks as tokens.

It is difficult to understand what the furore is all about because Manuel said the obvious. The rent-a-darkie phenomenon is quite popular in many BEE deals.

In many of these so-called BEE-empowered companies, blacks are made to be the faces who decorate the predominantly white company while they are not involved in its operations.

Some of them are quite willing to argue against real transformation in defence of the status quo. These are blacks who suffer from the “I am the only nigger” syndrome.

After getting to the top, not only do they kick the stepladder away but also do nothing to advance the interests of the broader majority.

They use their jobs as a money-generating scheme, without really adding value to the business. They also argue against broad-based empowerment, saying that capitalism, by definition, benefits the elite. And given the reality that BEE critics tend to focus on fewer than 10 super-rich blacks while ignoring the thousands of white billionaires and millionaires, the criticism lacks moral value. The baby is thrown out with the bath water.

If Manuel did not say anything new, is there value in his statement? Some may argue that if Manuel has reservations about BEE, he has better platforms in government and in the ANC to raise them.

For Manuel to raise these concerns publicly smacks of populism, which may be geared towards the forthcoming ANC policy conference. As the June conference approaches, more and more politicians will engage in all sorts of gimmicks to sound radical and appeal to the ANC rank and file.

But if we give Manuel the benefit of the doubt and assume his concerns are genuine, then perhaps we should ask whether there is ­anything that can be done to address the flaws in BEE.

The first point to make is that while the emerging black bourgeoisie is used as a punching bag for all BEE criticisms, the truth is that the real beneficiaries of BEE are banks, which are predominantly white entities.

A person given a stake in a company in order to get the BEE figures right is unlikely to embark on any action that may militate against the interests of his benefactors.

It is not surprising to find a black person suddenly speaking on behalf of the mining giants against royalties on revenue.

There is a popular myth that BEE was meant to benefit the black majority.

The truth is that BEE is achieving exactly what its designers sought – co-opting the black revolutionary intelligentsia to safeguard the interests of capital.

It should not be surprising that many of the beneficiaries have strong political connections with the ruling ANC.

The reason every big company desperately wants to find a partner who is also a big shot in the ANC is because of what political analyst Moeletsi Mbeki describes as insurance.

If, for instance, the ANC’s national executive committee is dominated by people who handsomely benefit from the windfalls of BEE, it is unlikely the same people will advance policies that will reverse their gains.

Big business knew of their polecat status in the eyes of the ANC and the broad liberation movement at the rendezvous of freedom. They also knew of ideals to nationalise the commanding heights of the economy, as articulated in the Freedom Charter.

They realised they needed to adapt or face extinction. They opted for adaptation.

They offered the revolutionaries of yesteryear a piece of the pie, turning them into moderates who have become staunch defenders of the system.

Capitalism is in safe hands. Its lily-white face has been darkened. The masses live in hope that they too will one day benefit. People like Manuel continue to keep the hope alive.


 * From: http://www.news24.com/City_Press/Columnists/0,,186-1695_2098799,00.html**

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