On the nationalization of mines in South Africa.

The nationalization of the mines in South Africa is a controversial issue at the best of time. Mining is an enormous part of the South African economy. This means that the decision to do so would affect each and every citizen. One needs to weight the positive affects against the negative affects of such an action. My argument is that the positive affects of the nationalization of South African mines would outweigh the negative affects with proper management.

The constitution of the republic of South Africa states that the mineral riches of the country belong to its people (1996). Currently mostly conglomerate companies own mines. The nationalization of the mines would mean that ownership in the mines by private parties would be transferred to government. To understand this further, one needs to look at potential pitfalls of this action.

Mismanagement or corruption in the handling of profits by government would not server the general social interest of the country. In this case, the nationalization of the mines would only serve to further enrich the bourgeoisie and expand the already wide gap between the rich and poor. One only needs to look at the situation of the power utility Eskom to see how a situation like this could arise.

Investor confidence is an important aspect for the South African economy as it stimulates economic growth. The nationalization of the mines would no doubt weaken investor confidence in South Africa, which could have a disastrous impact on the economy. Economic growth would decline which means that there would possibly be less jobs, which would negatively affect society. The nationalization of the mines would not just have negative affects. There would be a positive spin-off too.

Most of the revenue generated by the mines ends up in the pockets of private individuals. Assuming that government is properly managing mines, there would be a much need influx of cash which could be spent on improving the life’s of South Africans. More people could then have education. Poverty levels would decrease, as more people would have employable skills. The spinoff of this is that crime would also decrease.

The nationalization of the mines in South Africa would bring in the transformation that South Africa has long been seeking since 1994. The question then is not if we should nationalize the mines, but rather if we are able to manage them without corruption so they can actually benefit society.

List Of References:

· 2006. The Constitution of the Republic of South Africa.