Black economic empowerment (BEE) continues to cultivate human and natural exploitation for the benefits of few at the expenses of far too many. It turns de-colonisation into a private business for self-enrichment. Henning Melber on the ensuing kleptocracy in Namibia and the possibility of another Zimbabwean style tragedy.

A Namibian parliamentary committee hearing was told in April 2007 by the executive secretary of the state-owned Namibia Development Corporation (NDC) in liquidation (during apartheid days the 'Bantu Investment Corporation'), that the tens of millions of Namibian dollars dished out earlier as credits to black empowerment initiatives will in most cases not be repaid – even though many of the lenders are among the nouveau riche.

Limits to liberation
Ever since independence in 1990, Namibia’s government has blamed the country’s exploitation under settler colonialism for the unabated social disparities. Indeed, the transfer of political power left, as part of a negotiated settlement, the existing socio-economic structures largely untouched. The inequalities were endorsed as status quo in terms of constitutionally protected ownership and property rights. Limited social changes had to be induced inside this legally binding framework guided by a policy of 'national reconciliation' and 'affirmative action'. As a result, the privileged segment of society became racially less exclusive.

But according to the empirical evidence presented by the annual Human Development Reports of the United Nations Development Programme (UNDP), Namibia remains among the most unequal societies in the world – despite an average per capita income ranking it as lower middle-income country. A World Bank commissioned report alerted in 2005 that these inequalities 'represent a threat to national cohesion, peace, and political stability'. A UN country assessment warned of an unfolding humanitarian crisis due to the combination of HIV/Aids, food insecurity and the ineffective delivery of critical social services to the most vulnerable groups.

Despite such concerns, the government has refused to introduce a Basic Income Grant (BIG) - demanded for years by a broad church-based alliance - as not feasible in terms of its fiscal constraints. But more than a billion Namibian dollars was spent on a luxurious new high security state house complex. Nonetheless in April 2007 it was justified as a 'pro-poor' measure during the budgetary debate in parliament. A SWAPO MP demanded in all seriousness that posh cars should be exempted from the speed limit on Namibia’s roads.

Power, privilege and poverty
Black economic empowerment (BEE) has so far served the interests of a new political-bureaucratic elite from the ranks of the erstwhile liberation movement. Those who liberated mainly themselves profitably cashed their access to the country’s resources through their political and public service offices.

Corruption and misappropriation of funds nourished a parasitic minority. This had been spectacularly confirmed by several high calibre cases of fraud and self-enrichment schemes looting pension funds and other public finances. Shady business practices illustrated in a textbook way the infamous 'fat-cat syndrome' prevailing. Prime Minister Nahas Angula called the abuse of several hundred million Namibian dollars from the state administered pension funds on get-rich-quick schemes masquerading as BEE 'just asset-stripping'.

In a revelation of self-enrichment schemes, described by the locally published Insight magazine in March 2006 as 'the mother of all empowerment deals'. Since mid-2006 another 'horde of black economic empowerment groups' have come under increased scrutiny. The deal set up between the South African oil giant Sasol and a conglomerate of locally created pseudo-firms without any proper offices, named a former trade union leader and several high-ranking government officials operating within an intricate web of pseudo-enterprises, as its main Namibian beneficiaries. As the former trade unionist declared in defence of the deal, the shareholders were 'just black entrepreneurs who needed the money and took advantage of a given situation'.

A popular school of thought within critical poverty research holds the view that it is the concentration of economic and political power in the hands of narrow privileged groups that creates and perpetuates inequalities. According to such an understanding, the analysis of power is fundamental to any examination of poverty. Privatisation of public resources results in political-administrative power as personalised power; in politics as a kind of business enterprise; and in vertical clientele relationships of a neo-patrimonial nature. The result is an increasingly authoritarian and incompetent state that rarely responds to public pressure.

The (class) struggle continues
Since independence, Namibia has produced a crypto-capitalist, petty-minded self-enriching new black elite, which spends its energy exploiting the public purse. There is an absence of a meaningful, profit-generating industrial sector, where capital would be additionally accumulated through surplus production based on the exploitation of value adding labour - which implies at least employment for a majority of people. The creation of individual wealth relies on the privatisation of natural resources (mainly in the sectors of fishing, mining, agriculture and tourism) or benefits linked to privileges in the public sector and state owned enterprises. Public procurement and other outsourcing activities by those occupying the commanding heights of the state agencies turn 'affirmative action' and BEE into self-rewarding schemes among loyal members of the erstwhile liberation movement.

Such co-optation into the ruling segments within an already existing socio-economic system is far from social transformation. BEE continues to cultivate human and natural exploitation for the benefits of few at the expenses of far too many. It turns de-colonisation largely into a private business for self-enrichment. A result of such kleptocracy is the gradual loss of legitimacy. Zimbabwe-type decay is the writing at the wall. De-colonisation of such kind is not about redistribution of (relative) wealth for the ordinary people. It is self-enrichment for a new elite and business as usual.

* Dr Henning Melber is executive director of the Dag Hammarskjöld Foundation in Uppsala, Sweden where he was research director at The Nordic Africa Institute, 2000-2006. A son of German immigrants, he joined SWAPO in 1974. Hw was director of The Namibian Economic Policy Research Unit (NEPRU) in Windhoek, Namibia between 1992 and 2000.

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