Economic Empowerment Policies Research Articles

How Has South Africa’s Membership of BRICS Intensified Uneven and Combined Development in the Country and Beyond?

The recent African scramble has resulted in uneven and combined development (UCD) in Sub-Saharan Africa (SSA) throughout the 21st century due to unequal exchange. South Africa plays a sub-imperial role in this scramble in SSA. It both exploits and is exploited. The mining industry in South Africa has attracted interest from colonial powers, English-speaking businesses, and foreign investors, making it a highly lucrative sector. Furthermore, most black South Africans have been employed in the mining industry since the late 19th century. Over the past 25 years, the African National Congress government has utilised the mining industry to achieve economic transformation through black economic empowerment policies. This study proposes that the mining sector in South Africa is responsible for the ongoing UCD, despite receiving new investments and empowerment policies. South Africa’s inclusion in BRICS has broadened its range of international partners beyond its traditional Western or African counterparts. However, South Africa’s decision to join the BRICS group in 2011 has not yet yielded the expected transformation in the country’s economy and growth. As a result, it is uncertain whether South Africa’s BRICS membership has addressed the country’s persistent problem of UCD. This study argues that South Africa’s BRICS membership has exacerbated UCD in the country. This study proposes that Trotsky’s UCD analytical framework is useful for analysing South Africa’s policy choice to join BRICS, which strengthens its sub-imperial role.

The Village Government's Strategy to Enhance Women's Participation in Development in Desa Poleonro, Lamuru District, Bone Regency

This research aims to delve into the strategies employed by the village government to enhance the participation of women in the development of Desa Poleonro, Lamuru District, Bone Regency. The village is considered a representation of challenges and potentials in fostering inclusive development, taking into account its cultural diversity and natural resources. The research methodology employed is qualitative descriptive. The study primarily focuses on qualitative data collection through interviews. The findings reveal that the village government has implemented various strategies, including training programs, economic empowerment policies, and support for women's participation in decision-making processes. However, resistance to cultural change and resource limitations remain significant challenges. Patriarchal culture and restricted access to education and economic resources impact the role of women in village development.

KELESTARIAN KEPIMPINAN ANWAR IBRAHIM MEMENUHI KEHENDAK PENGUNDI MUDA

This article aims to explore the extent to which Anwar Ibrahim's sustainable leadership meets the needs of young voters. Specifically, this article will address the following questions: Is Anwar Ibrahim a sustainable Prime Minister referring to the younger generation? Is Anwar Ibrahim's leadership charisma easily understood by young people? Is the introduction of Anwar Ibrahim's leadership policies accepted by young people? A combination of quantitative and qualitative research methods is used in this study. A total of 51 respondents aged 18-26 were randomly selected to answer the survey distributed through a quantitative approach. Five informants were interviewed through a qualitative approach. Respondents are undergraduate students majoring in Public Relations, Faculty of Communication and Media Studies at UiTM Melaka. Six steps of thematic analysis were used to analyze the transcripts of the informants. The qualitative findings indicate that Anwar Ibrahim is very friendly to young people and concerned about any issues raised. He is also recognized to possess leadership, aura, and charisma to lead the country. Young people accept Anwar Ibrahim's leadership but require clarification on false news thrown at his leadership and government. Referring to the quantitative study, 70% of respondents agree that he is highly charismatic to lead. 64% of respondents are confident in the government's policies and services, while 72% support the economic empowerment policies implemented by Anwar Ibrahim. It is hoped that this research will be refined by the leadership of Anwar Ibrahim for the empowerment agenda of Malaysia's sovereign, integrity, and competitive civilization.

BROAD-BASED BLACK ECONOMIC EMPOWERMENT POLICY AND ENTREPRENEURSHIP IN SOUTH AFRICA

This article examines the effects of the Broad-based Black Economic Empowerment (BBBEE) policy on black entrepreneurship in South Africa. The BBBEE policy is a legal framework aimed at addressing historical inequalities by promoting equal opportunities and encouraging the participation of black individuals in the economy. The policy highlights include increased access to funding for previously marginalized groups to start and grow their businesses, improved market access to encourage large businesses to partner with small businesses owned by previously marginalized groups, and increased skills and development. Using the policy as a quasi-natural experiment, the study adopts a difference-in-difference estimation technique contrasting periods before and after implementation and measuring its effectiveness on black entrepreneurial entry. Results from the analysis indicate that the policy was ineffective in improving black entrepreneurship in South Africa.

Making Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) More Care-Responsive - Programmatic notes for Women's Economic Empowerment Policy and Programming

Making Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) More Care-Responsive - Programmatic notes for Women's Economic Empowerment Policy and Programming

A Trapeze Act : Women Balancing Paid Work and Unpaid Care Work in Nepal - National Report for Women's Economic Empowerment Policy and Programming

A Trapeze Act : Women Balancing Paid Work and Unpaid Care Work in Nepal - National Report for Women's Economic Empowerment Policy and Programming

'My Work Never Ends' : Women Balancing Paid Work and Unpaid Care Work in India - National Report for Women's Economic Empowerment Policy and Programming

'My Work Never Ends' : Women Balancing Paid Work and Unpaid Care Work in India - National Report for Women's Economic Empowerment Policy and Programming

Black Economic Empowerment and Quota Allocations in South Africa's Industrial Fisheries

ABSTRACTPower asymmetries in the governance of value chains mean that inequalities in access to resources and share of value added are skewed against smaller players. Policies enforcing market rules and ensuring fairness are ineffective when power is deeply entrenched, necessitating different rules to address such inequalities. South Africa's Black Economic Empowerment (BEE) policies and competition laws target economic redress and inclusion of historically disadvantaged people in business ownership and control of economic activities. BEE criteria have been embedded in many industry charters and implementation codes, and competition law is well established and effectively implemented. Yet, the impacts of these instruments have been limited and slow, especially in sectors where a few companies dominate. This article examines the interactions between value chain dynamics and industrial fishery quota allocations, BEE policy and competition dynamics in the hake deep‐sea trawl fishery sector. It shows that, even in one of the most regulated sectors of South Africa's economy, large incumbents retain a disproportionate amount of power vis‐à‐vis smaller players. The article concludes that if rules protect incumbency, inequality will be sustained. Quota allocations, transformation and competition regulation should go hand in hand to facilitate the effective participation of black‐owned businesses as competitors in value chains.

Creative Economic Empowerment Policy in Supporting Tourism Potential in Banten Province

The purpose of this study is to discuss creative economic empowerment policies in supporting tourism potential in Banten Province. The research method uses a qualitative descriptive research approach. The technique of determining the informants in this study was determined based on the purposive sampling technique through data collection techniques through observations, interviews and document searches. Data analysis techniques are carried out continuously during data collection in the field until data collection is completed. This analysis includes several activities, namely reviewing data, grouping data, finding what is important according to the research focus and studying and deciding what to report. The results of the study indicate that the policy of empowering the creative economy in supporting tourism potential is still not fully effective, based on the analysis of the ABCD (Asset Based Community Development) approach even though the changes have come from within the community but still have obstacles to existing capacities and assets in the community, relationships and orientation towards sustainable community growth.

Are secondary equity offerings of Black Economic Empowerment (BEE) REITs less underpriced than non-BEE REITs?

PurposeThe purpose of this paper is to contribute to the literature on secondary equity offerings (SEOs) by examining the impact of the Black Economic Empowerment (BEE) policy on secondary equity offering (SEO) pricing dynamics of South African Real Estate Investment Trusts (REITs).Design/methodology/approachWith a sample of 152 SEOs of South African REITs from 2010 to 2020, ordinary least squares (OLS) models, fixed effect models, parametric and non-parametric tests were applied to test for the impact of BEE on the underpricing of SEOs.FindingsSignificant underpricing is discovered in highly compliant (BEE) REITs; in other words, SEOs pricing of BEE compliant REITs are more underpriced compared to non-compliant BEE REITs. With this, BEE compliant REITs and more so, highly compliant BEE REITs in particular leave more money on the table.Practical implicationsThe government is therefore aware of the impact policy interventions play when REITs raise financing through SEOS. With these, highly compliant BEE REITs will need to be more strategic when making BEE compliance decisions as this is shown in our study to impact the underpricing of SEOs.Originality/valueThis is the first study to investigate SEO underpricing for the BEE policy using the South African REITs context.

The Relationship of Social Policy and Public Diplomacy: Black Economic Empowerment Strategy and Turkey-South Africa Relations

Turkey-South Africa Relations, whose history goes back to the beginning of the 19th century, entered the process of development again in the post-2000 period. Although Turkey and South Africa are two countries that have the potential to support each other economically and politically, the relations are not at the desired level. In this new period, unlike previous years, Turkey has been using public diplomacy tools intensively in the relations between the two countries within the framework of the African expansion in foreign policy. South Africa's policies to change the unequal social structure from the past and the failure of these policies with respect to the desired performance emerge as an appropriate and even necessary field for public diplomacy that can be implemented by Turkey in the relations between the two countries. For this reason, it is thought that Turkey's understanding of the black economic empowerment policies of South Africa since 1994, the problems related to these policies, and the development of appropriate public diplomacy tools for these problems will contribute to the development of relations between the two countries.

Corporate Social Responsibility Preferences in South Africa

What leads firms in South Africa (SA) to prefer specific CSR initiatives over others? The researchers analyzed secondary data from publicly available information of 231 listed firms on the Johannesburg Stock Exchange. To determine national/institutional level preferences, ten CSR activities were identified among all firms and ranked in terms of their mean score of whether each firm participated in an activity or not. To determine industry/stakeholder influence, CSR activities were regressed against the firms’ industry. The preference for two CSR activities, education and training and enterprise development, are common across industries. This demonstrates the institutional effect of SA’s national Black economic empowerment (BEE) policy, which promotes such activities. Charitable donations, infrastructure provision, employee voluntarism and efforts in arts, culture and sports prevail in certain industries. The preferences of firms in the mining and construction industries stand out relative to other industries. Managers have to carefully select CSR activities that respond to various societal pressures. We show an example of management responses to pressures arising from both the national and industry level context. The study is the first to rank CSR activities of South African firms. We also reveal the promise of institutional theory to examine the phenomenon of CSR in the South African context.

The Implementation of the Broad-Based Black Economic Empowerment (B-BBEE) Policy in South Africa: a Myth or a Reality in SMEs?

The post independent South African government in 1994 started operating in an environment that was characterised by racial discrimination, exclusion of the black majority from the economic activities of their country and were relegated to second class citizens by apartheid. The Black Economic Empowerment (BEE) became the main driver of the South African Government’s effort to overcome the apartheid legacy and was seen as a tool address these imbalances. This article analyses the effects of the Broad-Based Black Economic Empowerment (B-BBEE) policy on the SMEs. This research contributes to the knowledge of African governments on how the indigenous policies can close the gap between the white minority who control the economy and the disadvantaged black majority who have been marginalised by their colonial masters. Methodologically, the study critically analysed the literature of B-BBEE policy and how it has been implemented in South Africa since it was put in place. The researcher drew insights from Black Economic Empowerment (BEE), which was later amended to Broad-Based Black Economic Empowerment (B-BBEE) and the findings of other researchers.

Racial capitalism, ruling elite business entanglement and the impasse of black economic empowerment policy in South Africa

The high rate of inequality in South Africa is rooted in colonial dispossession and racial exploitation, and still runs primarily along the racial divide. Policy initiatives taken to redress past economic injustices through the black economic empowerment (BEE) have failed to bring economic transformation. Using the twin lenses of epistemic violence and racial capitalism, this study analyses how entangled interests aimed to co-opt the ruling party elite by the apartheid-era business elite led to the BEE impasse. The pervasiveness of cultural alienation in BEE failure suggests that a shift to restorative justice is necessary to break from the impasse.

Intruders in a Balancing Act: Black Economic Empowerment, Transitional Justice and Investment Arbitration Tribunals

Abstract This article examines the role of ad hoc investment arbitration tribunals in arbitrating highly sensitive matters in transitional justice contexts, focusing on disputes arising from black economic empowerment (BEE) policies in countries formerly under racially discriminatory regimes. After an overview of the investment protection system, the article introduces the historical context of BEE policies. It subsequently analyses three main disputes, one against South Africa and two against Zimbabwe, where white concession holders and landowners relied on Bilateral Investment Treaties to claim compensation for the consequences of BEE mining and land redistribution policies. These disputes provide a testing ground to shed light on the role of investment arbitration in the context of transitional justice. The article concludes that such a role essentially amounts to an intrusion in the perilous ‘balancing act’ of managing a transitional justice process.

Black economic empowerment policy and the transfer of equity and mine assets to Black people in the South Africa’s mining industry

Background: The Minerals and Petroleum Resources Development Act (MPRDA) and the Mining Charter, which both came into force in 2004, required white-owned and foreign-owned companies operating in the country to transfer 26% of the value of equity ownership and ensure that historically disadvantaged persons (HDSAs) attain 40% control of mine assets. The regulations are part of the broad-based black economic empowerment (B-BBEE) policy that seeks to transform the whole economy and enable black people to participate fully in all sectors of the economy after years of exclusion under apartheid laws. The inclusion of black people in the industry started with conglomerates unbundling mining houses in the early 1990s. Elsewhere such programmes succeed through selective government intervention. The South African government instead is pursuing a hands-off approach leaving HDSAs to survive under market mechanisms, which limits HDSAs’ chances of exploitation of opportunities.Aim: To explain challenges of attaining and sustaining equity target levels and highlight the extent to which black people own equity and mine assets, explore strategies used and reveal other realities in the implementation of the policy. These aims are met by exploring the ownership structures of white-owned, foreign-owned and black-owned companies and BEE deals concluded by them between the 1990s and 2015. It was also important to learn from the experiences of countries that pursued similar policies as a means of providing knowledge and information to policymakers and the general public.Setting: The study used a sample of 72 mining companies in South Africa operating in various mineral categories.Methodology: This article used a qualitative approach involving both secondary and primary data. Purposeful selective sampling was used to draw from all listed mining companies with a cut-off of July 2011. The market capitalisation of these were used to estimate equity targets owned by black people. Another 16 mining companies not listed were used to explore the strategies, challenges and other realities. This required exploring changes in shareholding structures and BEE deals concluded. Face-to-face structured interviews were conducted with a total of 35 executives, top management or their representatives from 27 companies, a few members of academia and government officials between 2012 and 2014.Results: Targets set by the MPRDA and the Mining Charter have not been met. Thus, little equity ownership has been transferred to black people. A broad category of black people have, however, benefited from BEE deals. These include individual companies, consortiums, communities and employee ownership schemes. To avoid risks, the sellers of mine assets host black people in separate companies, special purpose vehicles and holding companies. In general, lack of capital, dilution of black shareholding, indebtedness and limited expertise to run extractive ventures successfully challenge the survival of black-owned companies. Despite these problems, a few such companies are worth billions of rand.Conclusion: The success of empowerment policies that seek to offer selective preferences to enterprises elsewhere has depended on the government’s concerted efforts. These include establishing institutions to oversee policy execution and having financial and other supports. Challenges that black-owned mining companies face indicate a call for help. Unless the government intervenes and supports them there is a danger that white-owned and foreign-owned companies will completely buy back the assets once sold to black people resulting in a failure of the empowerment policy.

Assessing Funding Mechanism Available for Mining Companies in Zimbabwe

The mining sector has been the cornerstone of economic growth in Zimbabwe hence funding becomes very crucial to resuscitate the economy. The study aimed to assess the funding mechanisms for the mining sector of Zimbabwe and the effect of these on the performance of the sector. A quantitative study was carried out in the mining sector. The research findings showed that respondents pointed out that the funding mechanisms used in the mining sector of Zimbabwe are project finance, finance by private equity, public bonds and loans from banks and other financial institutions. It was also revealed that over and above available mechanisms, investment in the mining sector is being influenced by Interest rate, Business economic empowerment policies, bank lending criteria and Technical information, simultaneously. Furthermore, the study established that the mining sector needs skilled and technical staff, Technical information, banks’ lending criteria and Capital markets to get funding from investors. It was derived that, investment in the mining sector will increase production, product quality and profitability which in turn lead to infrastructural development. In addition, it is envisaged that funding will result in mining exports increase at the same time that new technologies are being introduced and the GDP is rising. Owing to the focus being exclusively on the funding of the mining sector, the study also recommended further studies on other factors, besides funding, that are affecting the performance of the sector.

Ahlak ve Sosyal Refah İlişkisi: Güney Afrika Örneği

Gelir dağılımı ve yoksulluk durumları biçiminde somutlaşan sosyal refahın oluşumunda ahlaki değerlerin önemli bir belirleyiciliği söz konusudur. Ahlaki değerlerin toplumda işlevsel ve baskın olduğu durumlarda iktisadi üretkenlik-etkinlik ve sosyal adaletin varlığı şeklinde tezahür eden bu durum, tersi durumda ekonomik kalkınma ve sosyal adalet sorunlarının bulunduğu, sosyal güven eksikliği ve yolsuzluğun karakteristik özellikler olduğu bir toplumsal yapı olarak ortaya çıkmaktadır. Modern dünyanın sosyal refahla ilgili sorunlarını çözmede piyasanın yanı sıra kamu ekonomisinin de etkin olamaması sosyal refahın ahlak boyutunun önemini göstermektedir. Güney Afrika’da yüzyıllık bir sömürü düzeninin ardından iktidarı devralan siyah hükümet tarafından başlatılan ulusal ölçekli bir sosyal adalet girişimi olarak siyah ekonomik güçlendirme politikalarının başarısızlık nedenleri arasında yolsuzluk önemli bir yere sahiptir. Yolsuzlukların güçlendirme politikalarına başarısızlığın yanı sıra ekonomik yapı ve sorunlar gibi teknik nitelikli diğer faktörlerden farklı olarak meşruiyet kaybı gibi daha köklü etkide bulunması ve sosyal refahı artırmak yerine daha da kötüleştirmesi ahlak sosyal refah ilişkisini somut olarak ortaya koyan çarpıcı bir örneklik oluşturmaktadır.

Inheriting the family farm: Generational wealth transfers in rural Kenya

AbstractMotivationIntergenerational wealth transfers are economically important and have direct consequences on the distribution—or redistribution—of household and community wealth. In sub‐Saharan Africa, documented instances of weakly enforced statutory laws and outdated or misaligned customary laws create a space for practices that undermine the fair and smooth transition of wealth across generations.PurposeThis study presents data drawn from a larger mixed‐methods study that evaluated a succession (inheritance) curriculum offered in a farming community in Kenya.Approach and MethodsA sub‐set of intervention participants (n = 58) ranging in age from 20 to 78 were invited to participate in post‐test focus group discussions. Discussions followed a semi‐structured interview guide and included questions that evaluated the succession curriculum.FindingsIn addition to evaluating the intervention, emerging conversations centred on the economic and sociocultural significance of intergenerationally held family wealth. The narrative from these focus groups underscores the importance the community places on family‐held wealth and how failures in the financial socialization process have compromised the generational wealth‐transfer system. Further, both younger and older participants identified youth unemployment and substance misuse as factors that have led to a breakdown in the wealth‐transfer process. This breakdown can and has resulted in the loss of household wealth, as well as in the marginalization of vulnerable individuals including women and children.ImplicationsThis article concludes by identifying mutable factors that have implications for economic empowerment policies and programmes. This includes strengthening parental financial capabilities and facilitating access to legal resources to facilitate wealth transfers.

Policy Implementation of Fisheries Economic Empowerment and Economic Resilience in the Long-Term of Sustainable Development in Kupang City, Indonesia

A substantial problem for the economic development of fishermen in Kupang City, Indonesia is that there are 5,955 fishermen who still have a smaller income than the expenditure and limited access to the rights to control fisheries resources. The purpose of this study is to analyze and describe the implementation of fisheries economic empowerment and economic resilience policies in Kupang City using descriptive qualitative methods focusing on the Sala Model theory proposition from Riggs (1964) within the framework of fishermen economic empowerment development paradigm and the framework of economic resilience and political resilience (capital) which matters to economic geography and its economic sustainable development policy for the fishermen, from (da Costa, 2018). The results have shown that the implementation of fishermen’s economic empowerment policy through the provision of capital assistance, training and infrastructure facilities by the local government in Kupang City was not responsive to fishermen; The political support of the Indonesian government is inconsistent, it appears in the lack of internal control and its systems in the process of using ships by fishing groups; In response to this, the local government of Kupang City through related agencies should make progressive policies based on the Sala Model theory from Riggs (1964) and fishermen’s economic resilience and political resilience (capital) for sustainable development theory from (da Costa, 2018). Its model’s theories have an aim to achieve a productive economy at a high level (sufficient level). In order to achieve a sufficient level of economy, the work specialization is needed and positive political development through policies should not be formalistic. Concretely, an affirmative action is needed, that is, the assistantship is not given to individuals; The fishing unit is given to fishermen according to their wants and needs without going through a project approach, this fact shows that there is a limitation or minimization of the fishermen’s economic resources or resilience in the region. Furthermore, from fishermen’s economic resilience for sustainable development, a policy management and its implementation of the local government in the region is assessed as the top final solution where the fishermen would achieve their long-term of economic resilience (productive or sufficient level) which was supposed to be successful if there was not having a lack of policy from the local government in the region regarding the physical resource i.e., technology policy (ship). The fishermen have been facing this economic problem which means that the analysis of economic resilience is important and promptly. The importance of the economic resilience’s analysis and political resilience (capital) according to da Costa’s (2018, p. 160) Theories align or conform with the Sala Model Theory (Riggs, 1964). Importantly, the ship technology has a function as a medium from the fishermen in accessing the fisheries. However, the result has shown that from the point of views of da Costa (2018) matters about the sufficient or productive level of economic resources (resilience) of fishermen which was not still achieved due to their limited access (man power or capitals) and income, discrimination in granting loans to fishermen as long as insufficiency support of the local government to the fishermen’s economic livelihoods. It implies to economic geography’s perspective which puts forward fishermen’s knowledge and skills (ability or endeavor: human or individual resilience) to reach a longer term of economic resilience in the region. Finally, this study emphasizes on the future fishermen’s policy actions which should be viewed as a mandatory action to be implemented by the local Government in Indonesia. Thus, the economic empowerment and resilience of fishermen in the region i.e., Kupang City, Indonesia can be effectively and productively or sufficiently implicated in increasing the ability of the regional economy as it supports a sustainable development in the region.