Nationalisation is the operation of writing a theme essay Burr and Burton Academy,
transferring ownership from the private sector to the public sector. According to the writing a theme essay Burr and Burton Academy
minister of finance, Mr Pravin Gordhan stated on the March 14, 2011 that nationalisation of South Africa’s mines and other economic assets are not government policy. â€śNationalisation of writing a theme essay Burr and Burton Academy,
mines means the democratic government’s ownership and control of Mining activities, including exploration, extraction, production, processing, trading and beneficiation of Mineral Resources in South Africaâ€ť(ANCYL, 2010). Therefore this would mean that no mines would be publicly owned but they would be owned by the state. It has been sixteen years since apartheid and the writing a theme essay Burr and Burton Academy
white minority of essay writing about internet vermont academy,
10% of the population owns 80% of the countryâ€™s economic wealth.
The Freedom Charter is a document that expresses the economic, social and political will of South Africans and according to the document, the mineral wealth of what to write a persuasive essay on bodwell high school,
South Africa belongs to the people as a nation. â€śIt is writing a theme essay Burr and Burton Academy
against this background upon which a concrete position on the nationalisation of Mines is formulated in order to guide the ANC in the transfer of what to write a persuasive essay on bodwell high school,
mineral wealth beneath the soil to the ownership and benefit of the people as a wholeâ€ť (ANCYL, 2010). If the state owns the mines it would allow them to manage the economy by controlling the important industries. They could also invest a larger amount of money and narrative essay writing prompts polimoda,
make their services more efficient.
Nationalisation of the mines does not mean all sectors are in the hands of the writing a theme essay Burr and Burton Academy
countryâ€™s citizens and that they will benefit from all the sectors. It does not yet say anywhere what the ratio (between state owned and privately owned) of the division will be when nationalisations occurs, if it does. Therefore people shouldnâ€™t think that the state will automatically have over half or a larger percentage. An important factor is whether nationalisation will be with or without compensation. It would almost be impossible to nationalise with compensation as the government currently doesnâ€™t have the figure of what is an article writing bosworth independent college,
about R 2-trillion which is how much it would cost to purchase the mines. But on the other hand, expropriation without compensation would cause a collapse of the Johannesburg Stock Exchange (JSE). This would bring down provident and what to write a persuasive essay on bodwell high school,
pension funds at the same time. A large number of servants and citizens would be without their retirement investments as well (ANCYL, 2010). Therefore this poses a big problem already. Some people might think why the mines should be nationalised. What is an article writing Bosworth Independent College.
Below are three reasons.
1. â€śNationalisation to narrative essay writing prompts polimoda,
increase the State’s fiscal capacity and better the working conditionsâ€ť (ANCYL, 2010). It states that the money received from taxes is not enough to help each and every single South African citizen, which it is essay writing about internet vermont academy
not. Education, healthcare, safety and security and writing a theme essay Burr and Burton Academy,
housing will not be provided to the masses if the government is not in control of the important sectors. There have been other success stories, such as in Botswana where nationalising the mines provided mineworkers with a safer working environment and higher wages. 2. â€śNationalise to Industrialise and essay writing about internet vermont academy,
Create more jobsâ€ť (ANCYL, 2010). More jobs will be created and what to write a persuasive essay on bodwell high school,
industrial investors will be attracted to add to education, expertise and the economy. 3. â€śNationalisation to transform South Africa’s unequal spatial development patternsâ€ť (ANCYL, 2010). writing a theme essay Burr and Burton Academy.
This means the areas that will be focused on will be ones which will be sustainable in the future as well as effective. Smaller areas that have never been mined before could be targeted as it will provide more jobs in what to write a persuasive essay on bodwell high school,
these areas which rarely see economic activity (ANCYL, 2010).
Malema believes that everybody in South Africa has the right to the wealth that is produced and that the state should own the larger part of the mines. “South Africa is divided as we speak. We’ve got two economies in steps to writing a good essay cheltenham college,
one country, two nations in one country, and it is nationalisation that will unite us” (Andrew, 2011). He also believes many jobs will be created once the mines are nationalised. Patrice Motsepe, a South African businessman, states that he would back Malemaâ€™s decision as long as it is in the best interests of narrative essay writing prompts polimoda,
South Africa. The ANCYL believes South Africaâ€™s minerals, water, land and narrative essay writing prompts polimoda,
marine resources should be used to maximise growth of South Africaâ€™s economy and not purely for profit (Shivambu, 2010).
If the mines are nationalised, new economic centres will be developed, new industrial development zones will be established, jobs will be created as the mines owned and writing a theme essay Burr and Burton Academy,
controlled by the what to write a persuasive essay on bodwell high school
state will increase local beneficiation and writing a theme essay Burr and Burton Academy,
industrialisation of the available mineral resources, and local economies will be developed (Shivambu, 2010). How to write simple essay Domus Academy.
General Secretary of Congress of South African Trade Union (COSATU), Zwelinzima Vavi says that â€śNationalisation can bolster our economy and it will always ensure developmentâ€ť (Beukes, 2011). He said that the nationalisation of the mines will make available money to all the people of the country, not only those who are currently working in the private sector (current mine owners) (Beukes, 2011). One of the ANCYLâ€™s argument is that nationalisation was a demand found in the Freedom Charter and that South African citizens should share the mineral wealth of the nation between each and writing a theme essay Burr and Burton Academy,
every one (Achary, 2010).
Thus there are valid reasons for the mines to be nationalised but the major concern is the cost that the country would incur to make nationalisation happen.
â€śNationalisation is an unaffordable, untimely and writing a theme essay Burr and Burton Academy,
frankly unnecessary suggestion, which has already undermined market stabilityâ€ť (Time, 2009). It would cost South Africa R1.4 to R2 trillion to nationalise the mines which seems silly if you think South Africa has the fifth biggest mining industry in the world. This figure does not include extra running costs as well as the costs that go with running loss-running mines. This shows it is a big part of the economy and writing a theme essay Burr and Burton Academy,
would be tough to be nationalised. writing a theme essay Burr and Burton Academy.
This figure is the same as trebling South Africaâ€™s national debt over a single night, which is university essay writing queen ethelburga’s college
unrealistic (Time, 2009). â€śThe debate on the thorny issue heated up with business executives and analysts warning that nationalisation would damage the economyâ€ť (Isa, 2011). Many say it is a disaster and has been for every country who has tried to pull it off. Susan Shabangu said â€śconsideration of the step was misguided, as the real issue was to address poverty, unemployment, and inequalityâ€ť (Isa, 2011).
This shows that the debates that are ongoing will deter foreign investments. The ANC do realise that itâ€™s close to impossible to nationalise the mines and come off on the right foot but are currently looking at models of how it could be implemented effectively (Isa, 2011). The nationalisation of mines has also been seen as a ploy to try and save Black Economic Empowerment (which has been in place in South Africa for how to write simple essay domus academy
a while, but has not achieved what it hoped to) and not focusing on the amount of poor in the country as well as the amount of unemployed workers (Business Day, 2011). The market value of South African mines (listed) is writing a theme essay Burr and Burton Academy
almost 850 billion rand which is above a third of the countryâ€™s total Gross Domestic Product (GDP). Therefore the writing a theme essay Burr and Burton Academy
government should be more concerned over matters such as the education level and the health of the countries people.
â€śZambia nationalised the copper mines, which supplied 90% of its exports, in the early 1970s. writing a theme essay Burr and Burton Academy.
It ended up hiring back the multinational copper companies to writing a theme essay Burr and Burton Academy,
manage themâ€ť (News24, 2010). Zambia is the worldâ€™s 11th largest producer of copper. The mines were nationalised in 1969 and at this time were exporting about 700 000 tonnes of copper per annum. writing a theme essay Burr and Burton Academy.
By the year 2000, exporting figures had constantly decreased to 225 000 tonnes. The result of the writing a theme essay Burr and Burton Academy
decline was partly because of how to write simple essay domus academy,
a lack of investments as well as mismanagement of the mines. â€śZambia has neither the capital nor the skills to how to write simple essay domus academy,
run the writing a theme essay Burr and Burton Academy
mines by itselfâ€ť (Time, 1969). Other factors were the drop in the price of copper, a lack of skills among the citizens in Zambia and what is an article writing bosworth independent college,
they were unable to raise capital. They lacked a strong plan with which to back up their initial aim (Time, 1969).
Restrictions were placed on essay writing about internet vermont academy,
exports and imports which resulted in exchange rates rising and therefore gains from exports reduced. Zambia also failed to save earnings when the copper price was high and thus when the price fell, they suffered immensely. What is an article writing Bosworth Independent College.
Even though the situation is not exactly the same, it does show that to nationalise mines a lot of debate needs to occur as well as research and writing a theme essay Burr and Burton Academy,
obviously the country needs the required funds to make sure it can be made possible. South Africa does not have these funds at the what to write a persuasive essay on bodwell high school
moment and thus would not be able to nationalise the writing a theme essay Burr and Burton Academy
mines unless they are willing to operate with huge debts which is unfeasible (Osei-Hwedie, 2003).
â€śNationalisation is an unaffordable, untimely and writing a theme essay Burr and Burton Academy,
frankly unnecessary suggestion, which has already undermined market stabilityâ€ť (George, 2009). This statement sums up the idea of nationalisation of mines in South Africa. It obviously has its advantages such as giving higher wages and creating more jobs but it is clearly evident that the narrative essay writing prompts polimoda
positives are outweighed by the writing a theme essay Burr and Burton Academy
negatives. With so many jobs in South Africaâ€™s mining sector at stake, it is writing a theme essay Burr and Burton Academy
irresponsible to talk about writing a theme essay Burr and Burton Academy
placing this key sector of the essay writing about internet vermont academy
economy in the hands of government people. writing a theme essay Burr and Burton Academy.
The country does not have nearly enough funds for this project to take place and thus in my view should not take place in even in the near future (Marais, 2010).