Economic Sharecropping Must End

During the period of so-called Reconstruction after slavery, the system known as “sharecropping” was the basis for agricultural business in the South. Under this system, Black families would rent small plots of land to work themselves; in return, they would give a portion of their crop to the White landowner at the end of the year. The economic reality was that the White landowners could not manage the crops post-slavery without Black labor, and in most cases, Black people did not or could not own land. It was another form of legally forced servitude. The more things change, the more they stay the same – in the South, North, East and West – that includes Philadelphia, of course.

Over a decade ago, I introduced a Diversity Track Record Ordinance as an amendment to the requirement for an Economic Opportunity Plan (EOP) for City contracts. The EOP should now contain a statement from the contractor, developer and/or recipient of financial assistance summarizing past practices by identifying and describing examples of processes used to develop diversity at any/all levels of its organization including, but not limited to, Board and managerial positions. This statement should also summarize strategic business plans specific to current or past practices of disadvantaged business enterprise (DBE) utilization on government and non-government projects and procurement. Where appropriate, the  statement should contain: (.1) Board, management, and general employment demographics by race, gender, and residential status; (2.) list of DBEs utilized by project and date; (.3) whether the DBE was certified; (.4) size and scope of contract; (.5) dollar/percentage amount of DBE participation; (.6) information on minority and women investment, equity ownership, and other ownership or management opportunities initiated; and (.7) other information requested by City Council during consideration of the EOP. Upon review, if there is no previous DBE utilization, the EOP shall contain a statement that explains the reason for the lack of DBE participation in past contract(s) or project(s). For the most part, this information is not formally requested as it should be, but the EOPs have been relegated to an agreement to set certain aspirational goals for DBE participation and workforce diversity. The goal setting has increased diversity. But these goals too often go unmet by those that were not required to submit a statement regarding their diversity track records. It has become a routine part of a DBE “subcontracting” system which is little more than “modern-day sharecropping”.  Businesses owned by Whites control most of the contract opportunities, and businesses owned by people of color must work on a portion of that opportunity owned by White businesses.

The information requested from City contractors must include investment and equity ownership opportunities for people of color initiated by those contractors in the past – and their proposals should be evaluated on that basis. Otherwise, increasing contracting diversity will never achieve meaningful economic equity. It is still “sharecropping” – another form of legally forced servitude.

Without more Black Ownership, Economic Equity is #FakePhillyNews!