Black Economic
Empowerment
After the demise apartheid the South African
Government proposed Black Economic Empowerment. Its purpose is to assist the
blacks who had been treated unfairly during the apartheid and give them
economic opportunities such as employment, vocational trainings and even early
procurement. It is estimated to last till 2014 when more than at least 30% of
the enterprises are owned by blacks. More rights are distributed to blacks for
example, mining rights are given to blacks equally.
As though more blacks are becoming middle class under
black economic empowerment, the problem of huge income disparity becomes much
more serious as well. Higher unemployment is observed. Therefore, it is still a
policy facing massive criticisms.
Financial Tsunami
In late 2000s, the financial downturn triggered by the
USA’s subprime mortgage crisis is commented to be the most severe crisis since
the second world war by the international monetary fund. because of the
interdependency of the economies around the globe, all countries are affected
and most entered the tough phase in the business cycle. However, unlike many
other developing countries, South Africa did struggle through the crisis and
gradually recovered because of the growth in both private and public consumption
Land Redistribution
The South African government proposed land
redistribution aiming at transferring 30% of the 82% million hectares owned by
white farms to black farmers. This is proposed by Gugile Nkwinti, Minister of
rural development and land reform. 6.7 million hectares had been transferred by
early 2012.
This policy faced severe criticism as well. Farmers
complained the pace of the redistribution to be too slow while at the same time
the policy is actually carrying racist treatment to a certain extent.
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