171
can be proposed that all second generation or third generation descendants be broadly regarded as indigenous and strict registration and records processing be applied.
The African economic ethic of indigenisation has thus failed to address the critical issues of poverty. Furthermore, the South African Model of indigenisation in BEE was inward-looking and only sees South African citizens as the only ones who should benefit from BEE. Any other people, black or white, in the SADC do not enjoy any preferential treatment. This contradicts the spirit of regional integration. There is therefore a need to rethink the African economic ethic from a SADC regional perspective.
172
government has the duty to repair the damage that was done. This makes affirmative action an ethical imperative for the state. Affirmative action or Black Economic Empowerment (BEE) was brought up also as one of several theories and strategies to provide a solution to Namibia’s Economic problems. Instead, of BEE the cabinet of Namibia opted for calling it the
“Transformational Economic and Social Empowerment Framework” (TESEF). (African Research Bulletin, 2007:17211B).
The need for the economic and social transformation in Namibia can only be understood after understanding the history behind the present economic status of the country. As former president of Namibia Sam Nujoma argued:
Those who are seeking to bring about fundamentally new social order in Nambia should understand fully the events which happened in the last hundred years or so, to shape the present social order (Nujoma, 1986:5).
A brief look at the historical overview of how social and economic inequalities were brought about in Namibia will now be described.
7.3.1 Brief History of Economic and Social Discrimination in Namibia
Pre-colonial Namibia was made up of a society characterised by communal ownership of land and production on such land was based on family labour. The family labour was divided on sex and age. Hunting and cattle herding were mainly done by men and young boys. Child rearing, fishing, preparation of food and cultivation were done mainly by women. The main ethnic groups where the Damaras, Namas and Hereros who were pastoralists, the Okavangos and Ovambos who were agro-pastoralists and the San (Bushmen) who were hunters and gatherers (United Nations Institute for Namibia, 1986:27-28).
Before the arrival of whites, there was a political economy which existed in which the communities traded amongst themselves. The arrival of European traders disrupted the existing trade structures as they dominated trade and caused intertribal wars. Important to note is that the trade did not lead to productive development of the native people as they lost cattle (productive
173
resources) in exchange for consumables such as sugar, coffee and liquor, (Mbuende, 1988:38;
Bley, 1971: xxi).
During the period of Germany South West Africa (1884 – 1915), when Namibia was under Germany Colonial rule, the Africans were systematically dispossessed of their land, resources and traditional lifestyle and channelled as a source of cheap labour for the whites. Africans lost 75 percent of their land. This led to an anti-colonial resistance war from 1904 to 1907. During this war, Hereros and Namas became victims of German genocide loosing up to 80 percent and 50 percent of their people respectively (Helbig and Helbig, 1983:168; Katjavivi, 1988:10). The genocide only stopped to preserve the source of labour for the German whites. After the First World War Namibia, then South West Africa, was brought under South African rule. The Africans were further subjected to discrimination by the apartheid system. At independence in 1990 the Namibia Economy was dominated by whites (Oden, 1991:1-2).
7.3.2 Implementation of Affirmative Action in Namibia
Article 23 of the constitution of Namibia which was adopted in 1990 provided the foundation for affirmative action or Black Economic Empowerment:
Nothing contained in Article 10 hereof shall prevent Parliament from enacting legislation providing directly or indirectly for the advancement of persons within Namibia who have been socially, economically or educationally disadvantaged by past discriminatory laws or practices, or for the implementation of policies and programmes aimed at redressing social, economic or educational imbalances in the Namibian society arising out of past discriminatory laws or practices, or for achieving a balanced structuring of the public service, the police force, the defence force, and the prison service.
The Constitution outlawed apartheid and racial discrimination. Parliament was enabled to pass laws which promoted the advancement of the previously disadvantaged people. Furthermore, the Constitution called for putting into place and implementing policies and programmes aimed at correcting the economic and social imbalances that came as a result of past discrimination (Republic of Namibia, 1990:14-15)
174
Affirmative action in Namibia was aimed at bringing about representativeness in institutions which were dominated by whites, changing the institutional culture from that shaped by racist practices of the colonial era, and bringing about socioeconomic redistribution towards equity (Jauch, 1998:18). To bring about a change in the organisational culture there was a need not only to change the people but to bring in people with the right attitude. A different political perspective was necessary to bring about the desired changes. Bringing about a fair representation of people in institutions would not be a problem and could easily be achieved.
What would be more difficult would be the culture change of all the three objectives of the Namibian Affirmative Action. The most difficult to achieve was to bring about fundamental changes in the distribution of wealth. As Sachs (1992) points out, reducing inequalities and bringing about improvements in living standards of the majority can best be achieved through a combination of government practices and strong community and other structures and does not only depend on affirmative action measures (Sachs, 1992).
In Sachs’ argument, affirmative action may avail more business opportunities for previously disadvantaged groups, but it should not be the key mechanism to eradicate poverty or redistribute wealth. The capitalist culture should also be introduced to the beneficiaries so that the whole distribution exercise would be sustainable. According to Charlton and Niekerk 1994, generally race-based affirmative action programmes normally benefit the middle-class urban blacks.
Gender-based affirmative action also targets urban middle class black and white women. In Jauch’s view, this means the rural population is generally left out in such programmes. This then brings about utilitarian ethical concerns of the appropriateness of such affirmative action. Jauch (1998:19) again argued that class based affirmative action tends to benefit the urban working class more than the poor from the rural areas. Perhaps for this reason there were calls for government and community practices to take note of such inadequacies. The historical background of Namibia suggests that the inequalities or economic imbalances were a result of racial discrimination, hence the affirmative action in Namibia was modelled around a racially based programme of wealth distribution. There was however a need for measures to be put in place to make sure that the poor majority benefitted from the programmes (Cargill, 2010).
Notable affirmative action or BEE deals in Namibia were done by Namibia Liquid Fuels and South Africa Oil and Gas Company SaSol; broad based empowerment groups with Old Mutual.
175
big players in the insurance industry, stimulus with motor parts and accessories company Cymot;
P.E. Minerals with Rosh Pinah, Epia Investments with Ohlthaver, a breweries and retail giant, Ohlthevier and List, and Omatemba Fleet Services with Imperial Car Rental. More indigenous doctors and lawyers have gone into private practice making some notable strides in this direction. (African Research Bulletin, 2007:173 27A).
Despite these huge strides noted in the affirmative action drive in Namibia there has been huge discontent from many blacks who complain that they are deriving very limited benefits because the level of business they are getting is way below the maximum they need to survive because they are not accepted compared to their white counterparts. It was noted that as at 2008 the implementation of affirmative action was based on the Constitution, and in the absence of specific legislation it was difficult to pin down detractors. It is hoped that the promulgation of the Affirmative Action (Employment) Act of 1998 will improve on the Namibian employment relations.
As in other SADC countries, the success of BEE or affirmative action in Namibia has been limited by poor capitalisation on the part of blacks and the stereotyping against black businesses.
Giliomee (2008:765) observed that empowerment driven by the state in which it imposes on large corporations the requirement to promote economic advancement of a specific racial group benefits mainly the business and middle-class elite that might continue requiring support from the state.
According to Jauch (1998), socioeconomic redistribution of wealth using approaches like BEE or affirmative action requires measures to control the private sector. This has been the difficult part for governments resulting in slower progress compared to areas where focus would have been on representativeness and institutional culture change. Government could have been restricted by the global neo-liberal pressures to implement some of the measures. The other challenge has been the lack of clarity and failure to develop a common understanding of the issues, terms and procedures of BEE or affirmative action. It has also been difficult to dismantle the colonial structures which have remained largely intact and protect the interests and survival of those who were favoured previously.
176
The affirmative action in Namibia has largely been inward-looking and seeking to bring benefits to Namibian blacks. This perspective appears to contradict the regional integration drive as other SADC potential investors are regarded as not indigenous. According to Jauch (1998), the affirmative action loan scheme in Namibia has failed to bring about notable redistribution of land and better representation in the allocation of fishing quotas. A few individuals have actually benefitted. Jauch (1998:22) noted that “…as a reformist policy, affirmative action has not challenged the economic structures which determine the distribution of wealth and income”.
There is therefore a need to rethink the African economic ethic of indigenisation if meaningful development and benefits are to be derived for the majority of poor people.