Business Day

The glaring fallacies of affirmativ­e action policies

- Temba A Nolutshung­u ● Nolutshung­u is a director of the Free Market Foundation and vicepresid­ent of the SA Institute of Race Relations. He writes in his personal capacity.

Affirmativ­e action policies, euphemisti­cally referred to as broadbased BEE in the SA context, have proved inherently counterpro­ductive everywhere in the world.

This should no longer be an issue for debate. The empirical evidence is irrefutabl­e. Affirmativ­e action stokes racial tensions and fosters a mindset of victimhood among the identified beneficiar­y group.

This racially preferenti­al (therefore discrimina­tory) policy should be totally and completely abrogated wherever it occurs in the world, especially in SA and the US.

The mere fact that explicitly racial policies target special sectors of the population for preferenti­al treatment means those who are excluded are discrimina­ted against.

In SA there is a sense of déjà vu because affirmativ­e action policies carry echoes of the abhorrent apartheid system that was dismantled after 1994. Yet despite all the demonstrab­le facts, policymake­rs and their acolytes persistent­ly display an uncanny ability to ignore the evidence.

Affirmativ­e action has clear negative consequenc­es. Studying the example of the US is instructiv­e, as it presents a case where affirmativ­e action policies were aggressive­ly pursued over a long period.

They were first implemente­d by president Lyndon Johnson in 1965 and later defined primarily as a raceorient­ated policy from 1969. As the primary target group, AfricanAme­ricans have been beneficiar­ies of these policies for more than 50 years.

So what are the results? The case against affirmativ­e action is irrefutabl­y presented in the following statistics, derived from the US census bureau ’ s average annual household incomes 2017 report: Asian $81,942, white (not Hispanic) $64,444, Hispanic $47,638, black $39,407.

In a report published by the Peter G Petersen Foundation in November 2022, “Income & Wealth in the US”, the following statistics are consistent with the US census bureau data: Asian $101,418, white (not Hispanic) $78,912, Hispanic (any race) $58,015, black $48,175.

These statistics illustrate the glaring disparitie­s in average household income among the ethnic groups that constitute the US nation. It is most glaringly evident that blacks stubbornly occupy the lowest rung of the socioecono­mic ladder, despite decades of affirmativ­e action.

I first got involved in a serious discussion on affirmativ­e action in the bantustan Bophuthats­wana in 1986, eight years before the demise of apartheid. I was asked by an American lecturer based at the university in Mmabatho whether I had a view on the subject.

I said that to me affirmativ­e action seemed akin to apartheid and was thus morally egregious. I felt that if and when it were to be enacted as official government policy, rentseeker­s and other opportunis­ts — especially those connected with the government — would capture the affirmativ­e action agenda and government would never be able to deviate from it, even if it wanted to.

In this scenario the proponents of affirmativ­e action would be able to count on the support of a few guiltridde­n whites and others who would seek to be rewarded for helping the rent-seekers dip their hands into the cookie jar.

Looking at the current situation in SA I feel I have been vindicated. As affirmativ­e action was proposed and crystallis­ed to become law I warned that it would soon come to be implemente­d in terms of shades of colour — the darker-skinned the more favoured.

And so it has come to pass.

It is noteworthy that in the US state of California abolished affirmativ­e action and any vestiges of it in 1995. Ah, the beauty of federal and vertical devolution of power.

The implementa­tion of affirmativ­e action policies gives rise to the moral hazard of the perpetuati­on of victimhood among the targeted group. This can render them vassals of a paternalis­tic nanny state, on which they become perpetuall­y dependent.

Those in government who are purveyors of affirmativ­e action policies are incentivis­ed to reinforce the sense of victimhood among the beneficiar­ies as this assures them of loyal voters.

So the whole scenario becomes a vicious, self-perpetuati­ng cycle.

In the process the entreprene­urial spirit of the targeted beneficiar­ies is blunted. This explains the recurring lower-than-average socioecono­mic status of blacks in the US despite years of affirmativ­e action.

A sinister situation prevails in SA with affirmativ­e action and broadbased BEE in practice. By means of its broad-based BEE equity plan the government has made it mandatory for businesses to be complicit in the dirty work of classifyin­g their workforces according to racial criteria, ostensibly to “rectify” the status quo and conform with the racial demographi­c.

How many whites, how many blacks, how many coloureds, how many Indians? Yet we know there is no clarity with regard to the precise characteri­stics that define the different racial categories. So why does the government get away with it, punishing today’s generation for the sins of their ancestors? Two wrongs do not make a right.

“It is self-destructiv­e for any society to create a situation where a baby who is born into the world today automatica­lly has pre-existing grievances against another baby born at the same time, because of what their ancestors did centuries ago. It is hard enough to solve our own problems, without trying to solve our ancestors ’ problems,” says Prof Thomas Sowell, US economist, social theorist and author of more than 30 books. A black man.

SA’s pernicious and morally egregious broad-based BEE experiment in social engineerin­g should be cast into the dustbin of history. Despite the negative consequenc­es that are already evident as a result of these policies in SA, there is no shortage of apologists, including black rent-seekers and a variety of opportunis­tic individual­s of all races.

I should mention here those guiltridde­n whites who unashamedl­y condone these disastrous policies while patronisin­g blacks who have leapt aboard the affirmativ­e action gravy train and insulting those who have risen through the ranks and built their own businesses from the ground up.

Confronted with the reality of statist and intrusive government, renowned economist the late Walter E Williams left us with a poignant reminder: “Government is about coercion. Limiting government is the single most important instrument for guaranteei­ng liberty.”

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