- Title
- The impact of the BBB-EE policy instrument on wealth inequality : A case study on the banking sector of South Africa
- Creator
- Moshikaro, Kei Kgaogelo Felia
- ThesisAdvisor
- Keeton, Gavin
- ThesisAdvisor
- Arendse, Jacqueline A (Jacqueline Anne), 1962-
- Subject
- Black Economic Empowerment (Program : South Africa)
- Subject
- Income distribution South Africa
- Subject
- South Africa Economic policy
- Subject
- South Africa Economic conditions 1991-
- Subject
- Banks and banking South Africa
- Subject
- South Africa. Financial Sector Regulation Act, 2017
- Date
- 2021-10
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10962/191035
- Identifier
- vital:45052
- Description
- It has been recognised that, whether measured in terms of income or wealth, South Africa remains as one of the most unequal societies in the world. Reducing these high levels of inequalities has been an important area of focus through the formulation of policy instruments by South African policy makers. Within a specific focus on the South African banking sector, the objective of this research is to ascertaining the extent to which addressing inequalities was in fact achieved through the changing of wealth ownerships under the Broad Based Black Economic Empowerment policy instrument. To contextualise, the thesis surveys literature on two stylised economic hypotheses on both income and wealth to understand the potential causes of their respective inequalities. An exploration of both income, wealth measurements and their distributions in South Africa are presented, in addition to policy instruments designed to ameliorate income and wealth inequalities in South Africa. The thesis further presents brief case studies from the literature on Brazil’s success in reducing its high income inequality and the Malaysian National Economic Policy empowerment program to effect wealth economic transformation, as comparatives to the South African experience. The thesis findings indicate that contrary to the objectives of the BBB-EE instrument and wealth transfers, the program within the banking sector resulted in highly unequal wealth shares and equally high concentration levels. The richest top one per cent of individuals participating in the BEE transactions in the banking sector captured 79 per cent of the total wealth transfers, this providing indications of extremely high concentrations of wealth. Further, wealth meaningfully cumulates at only the 50 percentage level of the wealth distribution, this additionally suggesting that wealth transfers featured less in the bottom half of the wealth distribution. The banking BBB-EE wealth Gini coefficient of 0.88 is evidence of the extremely high levels of inequality that resulted from the BBB-EE program within the banking sector.
- Description
- Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Format
- computer, online resource, application/pdf, 1 online resource (207 pages), pdf
- Publisher
- Rhodes University, Faculty of Commerce, Economics and Economic History
- Language
- English
- Rights
- Moshikaro, Kei Kgaogelo Felia
- Rights
- Attribution 4.0 International (CC BY 4.0)
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | MOSHIKARO-MCOM-TR21-201.pdf | 2 MB | Adobe Acrobat PDF | View Details |