Caring for the marginalised, downtrodden and vulnerable segments of society is a noble and necessary pursuit. It forms the mainstay of any left-leaning party’s political plank, many civil society organisations exclusively or partially fight poverty and other social ills, and the private sector does its bit through its corporate social responsibility programmes.
Every country – even the rich ones but some much more than others – on earth faces challenges with poverty, unemployment, hunger and drug addiction. Although not widely adopted around the world, the green agenda and Environmental, Social and Governance (ESG) initiatives are aimed at making the world more egalitarian, sustainable and fairer to the poor. Affirmative action (AA) is officially seen as a measure to eradicate discrimination against members of the designated (or previously disadvantaged) groups.
But as Thomas Sowell noted: Any policy must be measured by its result and not its intent. And some of the well-intended policies cause greater harm than good, for the intentions become the yardstick for measurement, and not the outcomes. People who question these measures as ineffective or even immoral are often attacked for their lack of compassion and ignorance about suffering and history. And their advocates’ zero-sum thinking leaves no room for alternative proposals and debate. And so ineffective and dubious, but seemingly noble, policies are maintained in spite of the damage they may cause. But above all, they fall prey to short-termism and political expediency without remedying the underlying challenges that give rise to them.
Take, for instance, the newly-proposed regulations in terms of the Employment Equity Amendment Act. It seeks to impose racial quotas on the respective economic sectors and more stringently on the private sector. Nobody wants to prevent skilled black people from being appointed and promoted, but as has been shown in polls by the Institute of Race Relations (IRR), a large majority of South Africans oppose quotas that come at the expense of merit. It is consistently a very low priority for everybody and pale in comparison to issues such as crime, service delivery and unemployment.
Not only is it unfair to minority groups, but it will also do little to solve black poverty and unemployment. The economy grew at a paltry 0.4% in the first quarter of 2023 and shrunk in the last one of 2022. Hence, there are simply not enough jobs being created to lower the 33% (narrow definition) unemployment rate.
And the specialisation of labour means there are not enough suitably qualified people from the designated groups to fill positions that require specific skill sets. South Africa has an overabundance of unskilled labour that needs to be absorbed and only a faster growing economy with vastly greater freedom for entrepreneurs will deliver this.