Notes on nationalisation

[NameOfBeast]

Paul Trewhela unpicks the implications of state control of the mining industry:

3. The fate of the Zambian copper industry

The nationalisation - initially, creeping nationalisation - of the Zambian copper industry under the one-party government of President Kenneth Kaunda in the Seventies and Eighties does not give cause for optimism (see article). The Zambian experience with nationalisation should be carefully studied, and conclusions from this study should be made available to South African trade unionists and the electorate.

The whole Zambian copper industry eventually collapsed and some years ago was offered back to its former owner, Anglo American, for a ridiculous sum. The Zambian state effectively pleaded with Anglo American to resume responsibility for mining in Zambia. Anglo American dithered, returned to Zambia and shortly afterwards removed itself again. It appears to have decided that the damage caused by nationalisation was irretrievable for a Western capitalist company.

The beneficiaries would in all likelihood be a new swarm of bureaucrats, to be paid at public expense while the economic infrastructure of the country deteriorated. These would inevitably be political clients and dependents of a ruling political elite, which would tend to behave despotically in the face of aggravated problems of all kinds.

As in the statised economy of the Soviet Union, there would be a danger of political tyranny. It would be a variant form of Mugabeism, with wealth for a few derived from the mining industry and state office, rather than from ownership of land, while poverty for the many became much worse.

http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71619?oid=136151&sn=Detail

 

[DJ...]

George Palmer says the Zuma team needs to reject nationalisation (and quickly)

Zuma did the exact opposite yesterday when he stated that capitalism does not work and we must look carefully at an alternate economic system. Then the secretary general of NUM was on 702 and refused to reject the idea either. When pushed, he merely stated that it would require a change of the constitution. It's pathetic. But it's scary at the same time...

 

[icyrus]

Zuma did the exact opposite yesterday when he stated that capitalism does not work and we must look carefully at an alternate economic system.

Is that available online somewhere?

 

[semiautomatix]

I don't think the ANC-led government is so stupid to attempt to nationalise the mines. In the last 15 years there has been a sudden realisation that the reality of running a country is very different from the ideology that was the Freedom Charter.

 

[icyrus]

I don't think the ANC-led government is so stupid to attempt to nationalise the mines. In the last 15 years there has been a sudden realisation that the reality of running a country is very different from the ideology that was the Freedom Charter.

I do. Undoubtedly.

 

[semiautomatix]

I do. Undoubtedly.

Its just the Youth Leagues blowing off their mouths. It think, personally, that Jacob Zuma takes two Panado's and hopes the headache will just go away.

 

[DJ...]

Is that available online somewhere?

Was a 702 Eyewitness news headline yesterday...

 

[DJ...]

I don't think the ANC-led government is so stupid to attempt to nationalise the mines. In the last 15 years there has been a sudden realisation that the reality of running a country is very different from the ideology that was the Freedom Charter.

Since the ANCYL (and others incl. our communist representatives as well) spewed their mouths off about this issue, all government stakeholders have had a chance to rubbish the suggestion, yet none have. Zuma in fact said it requires contemplation of a new economic system (wtf - has the man checked the deficit lately? You can't say things like that you inebriate), which sparked an interview with (iirc was) Bruce Whitfield and NUM general secretary - the NUM representative would not voice an opinion publicly about NUM's stance (which is maybe a good thing), and instead stated that it would require a change of our constitution.

It really upsets me that Malema is being afforded so much media airplay to cause such a nuisance and to potentially damage this country, in ways his advisers clearly haven't thought through. Why the man feels the need to be controversial about absolutely everything is beyond me - he is setting such a bad precedent for future ANC members/leaders and the fact that the ANC take his suggestions with more than a pinch of salt is disheartening...