I would like to contribute the following thoughts about the most proper and effective way to compensate African Americans for the suffering of their ancestors under slavery and the continuing racist oppression they experience today: Model relief and compensation to African Americans on the Alaska Native Claims Settlement Act (ANCSA) of 1971. While acknowledging that racism needs to be eradicated as a parallel effort, this essay is specifically about a proposed structure for, and mechanics of, actual reparations.
ANCSA provided a different and creative approach to righting the wrongs that a broader Manifest Destiny wreaked on the Native peoples in Alaska. Arguably ANCSA is a success story from which we may draw analog methods for repairing the damage done to African Americans in a tangible and effective way that is fair—and stands a good chance, I think, of winning the acceptance of all parties including whites and blacks, and also others who are not as directly affected.
As a means of establishing the context for how to apply the successes of ANCSA to an African American reparations solution, here is a high level layman’s summary of the relevant provisions of the 1971 legislation:
- Establishment of Native Corporations, the stock of which would be owned solely by members of specific Native peoples
- Native stock holders were not allowed to sell their stock to non-Native persons. This prevented a repetition of the well documented historical cases on the frontier of whites swindling Natives out of their land and other possessions.
- Land ownership by Natives was protected through the establishment of regional corporations, which in turn had subsidiary corporations usually centered around villages or other tribal structures. These corporations today have preference in federal contracting procedures—and although they often hire non-Natives for labor and specialized expertise—the corporate profits go the the shareholders, who are Alaska Natives.
Some differences between ANCSA and an acceptable candidate for a reparations solution for African Americans are immediately obvious. There are no African American regions, and any attempt to establish them would be laughably artificial. A prohibition on selling one’s stock to anyone one pleased might be perceived as paternalistic at best, or itself offensively racist. Thus ANCSA is presented here as an analog from which to draw ideas, and not an exemplar to duplicate and impose on a different people who may share the same oppressor but who have been oppressed differently.
Acknowledging that capitalism as we’ve known it might be entering its sunset era, the corporation structure still has merit as a means of transferring wealth to African Americans. Stocks are items of value, especially if the business entities they are a part of have preferred contractual and tax advantages. The integrity of these could be fortified in the enabling legislation.
Add tax and preferential regulatory advantages to anyone doing business with a reparations related entity, and the tangible value of supporting that entity is multiplied many times over its initial issue value. In such an economic environment, whites would be clamoring to do business with black businesses—the opposite of the current situation.
Although the idea of regions in the ANCSA model is likely not a good fit for African Americans, the use of real estate in and of itself is a viable means of transferring wealth. The North American continent has vast areas of open land, much of it is not only fertile and cultivatable, but also is useful for renewable energy generation such as from solar and wind. Land is also valuable for manufacturing sites, providing employment for people of all ethnic groups—including whites working for black owners in a prosperous relationship of mutual respect.
The distribution of reparations also could revitalize deteriorated cites. Instead of gentrification, the current residents of devastated neighborhoods would be the recipients of assets of value that would transform their ownership status. When you own something, you care about it. More community based improvements would then be likely. This would be transformative for overall society.
The value and type of the initial issue of reparations assets is best calculated by the several groups and committees studying the related factors in detail. No doubt the political process will steer the eventual solution implemented in directions not originally imagined by those initiating it. It is reasonable to believe, however, that a consensus will emerge that reparations for the wrongs done to African Americans is the right thing to do. When that consensus materializes, meaningful action may be expected implement it.
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