Nep Influenced Policies In South Africa Created A Minority Elite Says Envoy


 
South Africa’s high commissioner to Malaysia David E Malcomson (centre) with Economic Club of Kuala Lumpur chairman Mohamed Iqbal Rawther (left) and KSI Strategic Institute for Asia Pacific president Michael Yeoh.KUALA LUMPUR: The Broad-Based Black Economic Empowerment (B-BBEE) programme, influenced by Malaysia’s New Economic Policy (NEP), led to the formation of a minority class of elites in South Africa, according to the country’s high commissioner to Malaysia, David E Malcomson.
The NEP, introduced in 1971 by the Tun Abdul Razak-led government, was aimed at addressing economic disparities among ethnic groups through affirmative action programmes favouring the majority ethnic group – the Bumiputeras.
Malcomson said despite efforts to address racial economic inequality, both countries had faced similar outcomes and challenges.
“One of the key documents we studied in developing the B-BBEE was the NEP, and it played a big role in (the B-BBEE’s) development,” he said.
“Essentially, we have the same outcomes and the same problems. What we’ve found is that you’ve created a new minority elite of industrialists.
“In some instances, there has been a redistribution of the economic base more widely in the country. However, if you look at our Gini coefficient, it remains unacceptably high,” he said during a lecture at the Persatuan Alumni Universiti Malaya Clubhouse yesterday.
The Gini coefficient is a measure that shows how evenly or unevenly income or wealth is distributed in a population.
A Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. In 2023, South Africa scored a Gini coefficient index of 63.
Malcomson said that in South Africa, there were numerous cases where company equity was given to workers, only for them to sell it, often back to the original owner.
“A similar situation occurred during the redistribution of farms. Either the farms were being sold off, or the original owners were being brought in as managers of the farm,” he said.
Meanwhile, he said South Africa remained committed to collaborating with countries and institutions of the global south to tackle shared challenges of underdevelopment, while advocating global equity and social justice.
He added that partnerships with countries and institutions of the global north would contribute to the development of a better world.
Separately, he reaffirmed Malaysia and South Africa’s consistent and shared stance in advocating for Palestinian rights and self-determination, as well as speaking out against human rights abuses by Israel.
He also said that the Oct 7 attack on Israel last year did not justify the recent military escalation in the Gaza strip.
“You cannot take Oct 7 as your starting point. There are decades of history before that, the recent attacks didn’t happen in isolation.
“Whatever you want to say about Oct 7, the subsequent response was completely disproportionate. It’s against international law. You cannot impose collective responsibility on people for a few in society,” he said. - FMT


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