What are the disadvantages of Black Economic Empowerment in the economy?

Answer:

In the Case of Zimbabwe or South Africa it has had much failure. Certainly there is a need to help those that are disadvantaged (Blacks) however the policy has hurt the population of both countries with a much reduced standard of living due to the emigration of the educated white citizenry. Any type of BEE movement would need to be phased in over a long period of time to keep the economy stable until enough blacks are educated to make that type of transition. The problem is that in Zimbabwe case the transition happened over a couple year period and the results are catastrophic. Many would argue that anytime that a person is artificially promoted by govt programs to their advantage has never shown to be beneficial to the disadvantaged population or the population as a whole in the long-term.

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