Comrades,
 
I actually made an appeal to everyone that let's depersonalise the debate and 
engage in constructive discussion to encourage a culture of robust debates 
which feed into the main objective of this forum.
 
Back to basics: should we still nationalise the mines against the background of 
"some ideological questions on the nationalisation of mines?" I do not think so.
 
I also did not want to engage on the socialisation question as raised by cde 
Jeremy Cronin but there is sustainable dimension compared to populist analyses 
of what informed a debate on the nationalisation of mines. It's safe to say 
socialisation is a complex subject matter but if done in the right way with 
realistic expectations, not a haphazard affair, its tenets will yield positive 
results compared to nationalisation - and the state would be able to generate 
income to invest in the development of the country.
 
Cde Rosa Luxemburg on the Socialisation of Society (December 1918), brings this 
dimension: The proletarian revolution that has now begun can have no other goal 
and no other result than the realisation of socialism. The working class must 
above all else strive to get the entire political power of the state into its 
own hands. Political power, however, is for us socialists only a means. The end 
for which we must use this power is the fundamental transformation of the 
entire economic relations.
 
Currently all wealth – the largest and best estates as well as the mines, works 
and the factories – belongs to a few Junkers and private capitalists. The great 
mass of the workers only get from these Junkers and capitalists a meagre wage 
to live on for hard work. The enrichment of a small number of idlers is the aim 
of today’s economy.
 
This state of affairs should be remedied. All social wealth, the land with all 
its natural resources hidden in its bowels and on the surface, and all 
factories and works must be taken out of the hands of the exploiters and taken 
into common property of the people. The first duty of a real workers’ 
government is to declare by means of a series of decrees the most important 
means of production to be national property and place them under the control of 
society.
 
Only then, however, does the real and most difficult task begin: the 
reconstruction of the economy on a completely new basis. This observation 
highlights the fact that a call for nationalisation of mines is not only late 
but ambiguous and unable to see the unintended consequences of serving the 
interests of the bourgeoisie. 
 
The sad reality is that the nationalisation which is being bandied about places 
the obligation on the part of the state to carry the burden of near insolvency 
or actually insolvent mines, including all unproductive assets and BEE 
shareholding on the brink of liquidation. 
We understand the rationale behind nationalising mines, but the state is not in 
a financial position to use good money to keep bad business in business which 
ordinary people never benefitted from it. Again, we cannot selectively 
nationalise mines and leave agricultural land, banks, factories, as if they did 
something to realise a new dispensation. No superficial nationalisation 
programme can take place as long as it does not take into account the 
socio-economic challenges and political developments in the country.
 
I would rather lobby for socialisation in a sense that there are tested models 
for sustainable and profitable means of production which many communist 
countries place them under the control of society, with guaranteed returns to 
meet the political mandates of their election manifesto. 
 
A compromise, under current economic conditions, would be for the state to 
establish a mining company to carry out its political mandates in a sustainable 
manner - whose business model will be designed to be resilient in all 
conditions - where the state will provide guarantees for it to raise funds in 
the markets. It means should the corporation become unable to repay the debt, 
government will give surety to repay it on behalf of the corporation.
 
This is very sustainable without risks of placing expected losses in the hands 
of the state, like in the case of nationalisation. It's good to know that 
government understands this and is acting accordingly - because it's not 
convinced about the graphical details of the probity and viability of the 
nationalisation programme.
 
There is no room for trial and error experiments without economic substance. 
It's not even somewhat alarmist but a fact of life in society that if you have 
a recession, firms are not making profit and the economy is depressed. Not even 
some foreign exchange to be generated from the 2010 World Cup will create a 
boom. There is no context of dialectical materialism will justify arbitrary use 
of tax-payers' money to "unintentionally bale-out private capital." 
 
Indeed, problems of liquidity of mining companies and indebtedness for BEE 
shareholding are very much real and statistics show that our depressed economy 
has shed about 770 000 jobs. Isn't that "acute."
 
I submit therefore that we cannot nationalise the mines, under the 
circumstances, precisely because it will not only be a costly exercise but 
unsustainable and destructive for a developmental state.
 
I remain comradely,
Morgan Phaahla
Ekurhuleni


"Sometimes, if you wear suits for too long, it changes your ideology." - Joe 
Slovo

--- On Tue, 12/1/09, Nyiko Floyd Shivambu <[email protected]> wrote:


From: Nyiko Floyd Shivambu <[email protected]>
Subject: Re: [YCLSA Discussion] Some ideological questions on the 
Nationalisation of Mines
To: [email protected]
Date: Tuesday, December 1, 2009, 3:43 PM


I understand and accept that every cannot be about me Cde Dominic. I was not 
really responding to what you specifically said..... I was generally speaking 
about some of the questions raised in the forum, wherein comrades expressed a 
concern about a possible shift. And the question about the Freedom Charter? Is 
that clarified?




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