LETTER | Entitlement-driven policies are unsustainable

Promise of a free ride blunts effort and undermines the will to invest in oneself

The new  regulations require employers of more than 50 employees to meet employment race quotas set by the government. What is particularly disturbing is that businesses will be called on to racially classify their employees, says the writer. Stock photo.
Any compulsion by the government on the private sector equates to entitlement — some form of free ride — on the part of the beneficiaries, says the writer. Picture: (123RF)

Trade, industry & competition minister Parks Tau has admitted what has long been obvious: insofar as upskilling is concerned, BEE has achieved little. This is despite billions of rand spent by the private sector on BEE. Could the problem lie in the very nature of the policy?

BEE constitutes a system of quotas, either for employment at various levels, requirements for expenditure on skills development or set-asides for tenders and contracts. Inevitably, a sense of entitlement is established. Any compulsion by the government on the private sector equates to entitlement — some form of free ride — on the part of the beneficiaries. This is widely seen as morally fair, considering our past.

However, the question is whether this is wise if the intention is to develop potential into useful skills. I submit not. Entitlement is corrosive of human endeavour. While arguably fair, the promise of a free ride blunts effort and undermines the will to invest in oneself.

It is the very design of BEE that ensures its failure.

Willem Cronje

Cape Town

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