In a fantastic move for South Africa, the proposed nationalisation of mines has been dropped on its head.
Susan Shabangu, South African Mining Minister, has declared that the country will not pursue nationalisation of its mining industry.
One of SA’s claims to fame is mining; as one of the world’s most significant mining producers, so much of the South African economy rests on mining. Following calls for nationalisation from members of the ANC, the merits of this extreme measure have been intensely debated, and have found to be lacking.
Shabangu told attendees at the Mining Indaba in Cape Town that the government would not be enacting any plans for nationalisation as nationalisation “is not the policy of either government or the ruling party…[and] is not a viable policy for South Africa.”
Before we all break it down in a victory dance, what exactly is “nationalisation” and why is it bad? Basically, it is what the word suggests: privately-owned businesses get taken over by the government. In some instances it’s a good thing – like when a company needs to be bailed out of financial hardship and the government becomes the hero. But when someone wants to nationalise something like the mining industry (when there is really no need for bailing out) the overall taste left in the mouth is one of greed. A bit like someone playing Marie Antoinette in a game of dress up… with absolutely no regard for the real consequences…
Read the following article for more about why nationalisation is not the answer for South Africa: http://mondediplo.com/openpage/south-africa-why-nationalising-the-mines-is-not
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