Pursuing economic empowerment through purely legalistic and regulatory means has fatal shortcomings which defeat the premise of black or native participation in the economy because history has taught that such a strategy creates a very skewed distribution of the wealth that must be sustainably shared. Black Economic Empowerment and Indigenization pursued solely from this strategy is a sophisticated form of socialism especially where there is little in the way of economic growth. Its process and eventual outcome create a skewed wealth distribution and novel kind of class structure. A vibrant economy is the most potent instrument of empowerment, inclusion, and participation of the people of that country. Vibrant economies are not the result of chance but are the result of deliberate pursuit and action. Read: Three things TMEA brings to Ethiopia in expansion plans Creating an economy that is enabling and empowers all citizens requires the development of the following pillars: Capital formation Manpower or human capital Infrastructure Governance Capital Formation Capital formation is the accumulation of the net capital over an accounting period for a specific nation. It also refers to the addition of capital goods, such as tools, equipment, electricity, and transportation assets. In other words, capital formation
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