IN a world where resources are often abundant, the disparity in wealth distribution raises crucial questions about the mechanisms that perpetuate inequality.
Among these mechanisms, power and access to power stand out as critical factors that can either facilitate or hinder the accumulation of generational wealth.
Part 1 of this instalment explores the intricate relationship between power, access to power, and wealth generation, elucidating how these elements can create a divide between those who thrive and those who struggle.
Power and access to power facilitate not only just personal wealth, but also the ability to shape industries, policies and societal norms, creating pathways for generational wealth creation.
Part 2 will talk about the currency of power and wealth accumulation, the interconnection of power and wealth, the mechanisms of wealth accumulation and its consequences, systemic exclusion and generational poverty and the merits and demerits of seeking power.
Power and access to power are crucial for generational wealth across the globe. For instance, in the United States, families such as the Rockefellers have leveraged political and economic influence to maintain wealth through strategic investments and philanthropy.
In India, prominent business families, such as the Ambanis have utilised political connections to secure favourable regulations, expanding their conglomerate and ensuring wealth across generations.
In Brazil, access to political power has enabled families such as the Marinhos, owners of Globo, to dominate media and influence public opinion, thereby securing economic advantages. Similarly, in South Africa, the Oppenheimer family has used their mining interests and political connections to preserve and grow their wealth since the apartheid era.
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These examples illustrate how power dynamics shape opportunities for wealth accumulation, enabling families to sustain financial success across generations.
Understanding access to power
Power is a multi-faceted concept that permeates every aspect of human interactions, from personal relationships to global politics. It can be defined as the capacity to influence or control the behaviour of others or the course of events.
Power manifests in various forms, including political, economic, social, and cultural dimensions. Understanding these forms of power is crucial in grasping how they shape societies and impact individuals' lives.
Dimensions of power
Political power: This form of power is typically associated with governance and the ability to make decisions that affect a community or nation. Political power is wielded by elected officials, government institutions, and political organisations. Those with political power can enact laws, allocate resources, and influence public policy. Access to political power often determines who gets to voice their concerns and priorities, making it a pivotal factor in societal change.
Economic power: Economic power relates to the control of resources, wealth, and capital. Individuals or entities with significant economic power can influence markets, dictate terms of employment, and shape economic policies. Corporations, wealthy individuals, and financial institutions often hold substantial economic power, allowing them to leverage their resources to gain further advantages, thus perpetuating cycles of wealth accumulation.
Social power: Social power is derived from an individual's or group's social status, networks, and relationships. This form of power can manifest in various ways, including cultural influence, community leadership, and the ability to mobilise others. Social capital, which enshrines, trust, norms, and networks that facilitate coordination and cooperation, plays a significant role in determining who has access to opportunities and resources.
Cultural power: Cultural power pertains to the ability to shape societal norms, values, and beliefs. It is often wielded by those in the media, education, and the arts. Cultural narratives can influence public perception, reinforce stereotypes, and shape identity. Those with cultural power can elevate particular perspectives while marginalizing others, impacting social cohesion and individual self-worth.
Access to power
Access to power is the means by which individuals or groups can leverage their influence or control. This access can be achieved through various channels, including education, social networks, and institutional frameworks. Understanding access to power is crucial for recognising why some individuals or groups can navigate systems effectively while others remain marginalised.
Education: Education is a powerful tool for accessing power. It equips individuals with the knowledge and skills necessary to engage in civic life, advocate for their rights, and pursue economic opportunities. Higher levels of education often correlate with increased political participation and economic mobility. However, disparities in educational access can create barriers, perpetuating cycles of exclusion.
Social networks: Personal connections play a vital role in accessing power. Networks can provide individuals with opportunities for mentorship, collaboration, and support. Those who are well-connected are often more likely to gain access to influential circles, enhancing their ability to effect change. Conversely, individuals from marginalised backgrounds may lack these networks, limiting their opportunities for advancement.
Institutional support: Institutions such as governments, organisations, and community groups can facilitate or hinder access to power. Supportive institutions can provide resources, training, and platforms for individuals to express their voices and advocate for their interests. However, institutions can also perpetuate structural inequalities, maintaining barriers that prevent certain groups from accessing power.
The implications of power and access
The interplay between power and access has profound implications for social justice and equity. When power is concentrated in the hands of a few, it often leads to systemic inequalities that marginalise entire communities. Those without power may find themselves excluded from decision-making processes, denied essential resources, and trapped in cycles of poverty.
Conversely, when power is dispersed and access is equitable, societies can foster innovation, creativity, and resilience. Diverse voices contribute to more comprehensive and inclusive policies, addressing the needs of various populations. This inclusive approach not only enhances social cohesion but also drives economic growth by unlocking the potential of a broader range of individuals.
Currency of wealth accumulation
The relationship between power and wealth is reciprocal, wealth can be a source of power, just as power can lead to increased wealth. This symbiotic relationship is undisputed. Individuals who hold power are more likely to have access to lucrative opportunities, whether through business ventures, investments, or employment.
This access allows them to accumulate wealth not just for themselves but for subsequent generations, creating a cycle of prosperity.
For instance, consider the role of political power in shaping economic policies. Politicians with influence can enact legislation that favours certain industries or businesses, creating an environment where their allies can thrive.
This not only enriches them but also allows their families to benefit from the economic advantages that flow from such policies. In contrast, individuals without political connections may find themselves trapped in a system that offers limited opportunities for advancement.
Real-life examples
In order to utilise power and access to power as vital currencies for achieving generational wealth, there is a prerequisite — a viable enterprise, or various businesses on the ground. This is a key imperative because ultimately, this is where the generational wealth will be sustained over time.
Below is a non-exhaustive list of families around the world who have successfully utilised power and access to it to build generational wealth for their families.
The Mutasa family (Zimbabwe)
The Mutasa family led by Shingai Mutasa, a prominent figure in Zimbabwean business, has utilised his political connections and family legacy to build wealth.
The Mutasa family has historically been influential in Zimbabwe, with Mutasa capitalising on this legacy to establish a foothold in various industries. He acquired TA Holdings in 1997 when the company was riddled with debt but today rebranded into Masawara, a Jersey-registered investment company.
In 2014, Masawara, a diversified conglomerate, has maintained its foothold on the economy with Mutasa owning a controlling stake of 51,32%. His ability to navigate the political landscape has allowed him to secure an advantageous and distinctive business position in the market place, accessing resources, which are crucial for business success.
By fostering relationships with key political figures, Mutasa has been able to create and expand business ventures, ensuring not just his wealth but also opportunities for future generations within the Mutasa family.
The Masiyiwa family (Zimbabwe)
The Masiyiwa family, led by Strive Masiyiwa, is renowned for creating significant wealth through innovation and entrepreneurship. Masiyiwa founded Econet Wireless, becoming a pioneer in Zimbabwe’s telecommunications sector.
His success stemmed from leveraging not only his business acumen but also strategic partnerships and networks within both local and international markets.
Masiyiwa’s resilience in navigating economic challenges and regulatory hurdles has established a lasting legacy. The Masiyiwa family prioritises philanthropy and social responsibility, further enhancing their reputation and influence.
This commitment to community and education ensures that their generational wealth is not only preserved but also contributes positively to future generations.
The Meikles family (Zimbabwe)
The Meikles Family, led by John Moxon, are involved in retail through TM Supermarkets now Pick n Pay and hospitality through the legendary Meikles Hotel in Zimbabwe until 2020, when it was sold for US$20 million to Dubai-based Albwardy Investments.
The Meikles family also has a joint venture with Southern Sun formed in 1975 that created Meikles Southern Sun Hotels, including Bulawayo Inn, Bulawayo Sun, Bumi Hills Safari Lodge and Caribbea Bay Resort and Casino family.
The family has maintained significant wealth and influence in the retail sector and hospitality for generations. Their connections to political leaders have allowed them to navigate the business landscape effectively, ensuring their continued prominence.
The Dangote family (Nigeria)
Aliko Dangote, Africa's richest man, has built a vast business empire through the Dangote Group, which spans cement, sugar, and other industries. His connections to political leaders and government officials have facilitated access to lucrative contracts, enabling the family to accumulate substantial wealth.
The Adedeji family (Nigeria)
The Adedeji family has made its mark in the oil and gas sector, leveraging connections with government officials to secure contracts and licences. Their political ties have helped them navigate Nigeria's complex energy landscape, contributing to their wealth.
The Mbeki family (South Africa)
Former president Thabo Mbeki's family has benefited from his political connections. The Mbeki family's involvement in various businesses, combined with their political influence, has enabled them to accumulate wealth and maintain a legacy of leadership.
The Khamas (Botswana)
The Khama family has historically held political power in Botswana, with Seretse Khama being the country's first president. Their political influence has helped them amass wealth through various ventures, including tourism and agriculture.
The Akinwunmi family (Nigeria)
This family has been involved in various sectors, including telecommunications and real estate. Their connections with both private and public sector leaders have facilitated access to opportunities that contribute to their wealth.
These families exemplify how leveraging political connections, navigating complex business environments, and maintaining influence can lead to significant wealth accumulation and generational success in Africa.
Below are influential families in other parts of the globe using power and access to power as a leverage for generational wealth creation.
Vanderbilt family (United States)
The Vanderbilts built wealth in the 19th century through railroads and shipping. Their political connections and influence in industry allowed them to expand their empire, establishing a legacy that includes significant real estate holdings and philanthropic efforts, such as Vanderbilt University.
Khan family (Pakistan):
The Khan family, particularly through cricket star Imran Khan, has leveraged political power to influence public policy. Imran Khan’s rise to prime minister enabled access to government resources, which can translate into economic opportunities for the family.
Gates family (United States)
Bill Gates, co-founder of Microsoft, has not only amassed personal wealth but also established global influence through the Bill & Melinda Gates Foundation. Their philanthropic efforts shape public health and education policies, creating lasting impacts and opportunities for future generations.
Carlos Slim (Mexico)
Slim, one of the world's richest individuals, has accumulated wealth through telecommunications and other industries. His close ties with the Mexican government have facilitated business expansions, demonstrating how political access can enhance economic power.
Zhou family (China)
The Zhou family has benefited from China's rapid economic growth and political connections. Access to government officials has enabled them to secure lucrative contracts and investments, allowing for the accumulation and preservation of wealth across generations.
Familia Merck (Germany)
The Merck family has controlled the Merck Group, a global pharmaceutical company, for centuries. Their long-standing political and economic influence in the industry has allowed them to adapt and thrive through changing market conditions, ensuring the family's wealth endures.
Walton Family (United States)
The heirs of Sam Walton, founder of Walmart, have significant wealth due to their control of the company. Their influence over corporate governance and philanthropy enables them to maintain and grow their wealth while shaping community initiatives.
These examples reflect the diverse ways in which power and access to power facilitate not just personal wealth but also the ability to shape industries, policies, and societal norms, creating pathways for generational wealth
Conclusion
Power can be defined as the ability to influence or control the behaviour of people or the course of events. It manifests in various forms — political power, economic power, social power, and cultural power.
Access to power, on the other hand, refers to the means by which individuals or groups can leverage their influence or control. This access can stem from various sources, including social connections, education, wealth, and institutional support.
In many societies, those who possess power and have access to it can shape policies, create economic opportunities, and foster environments conducive to wealth accumulation. Conversely, those without power or access are often relegated to the margins, struggling to meet basic needs and perpetuating cycles of poverty.
Understanding power and access to power is essential for addressing the root causes of inequality and fostering a more just society. By recognising the various forms of power and the mechanisms that facilitate access, individuals and communities can work toward dismantling barriers and creating pathways for empowerment.
Advocacy for equitable access to education, resources, and decision-making processes is vital in building a society where everyone has the opportunity to thrive. In a world rich with potential, ensuring that power is accessible to all is not just a moral imperative but also a necessity for collective progress.
- Ndoro-Mkombachoto is a former academic and banker. She has consulted widely in strategy, entrepreneurship and private sector development for organisations that include Seed Co Africa, Hwange Colliery, RBZ/CGC, Standard Bank of South Africa, Home Loans, IFC/World Bank, UNDP, USAid, Danida, Cida, Kellogg Foundation, among others, as a writer, property investor, developer and manager. — @HeartfeltwithGloria/ +263 772 236 341.
