Nearly three decades after the end of apartheid, South Africa continues to struggle from high levels of poverty and unemployment. Ostensibly to rectify this, the ruling African National Congress (ANC) has advanced a policy framework of "Black Economic Empowerment" (BEE), which identifies disadvantage on the basis of race and allocates benefits accordingly.   


David Ansara speaks with Dr Anthea Jeffery, Head of Policy Research at the Institute of Race Relations, about the ideological underpinnings of BEE, and why it has led to vast capital accumulation for a small, politically-connected elite.  


Dr Jeffery proposes an alternative solution: "Economic Empowerment for the Disadvantaged" (EED). Under the EED policy, empowerment interventions would be made on the basis of socio-economic status, rather than on racial grounds, with the private sector being incentivised to play a more active role in the distribution of welfare.


TIMESTAMPS  


(0:00) Intro

(0:50) Understanding BEE and its origins

(7:25) How BEE enriches the elite and hurts the poor

(10:07) An alternative model of empowerment

(20:34) The role of the state

(23:11) Existing forms of welfare distribution

(25:45) The role of business

(30:32) Low-fee private education  

(32:38) Overcoming political obstacles to EED

(37:19) How decentralisation improves choices

(39:26) Why BEE can't be fixed

(44:54) Conclusion