by Tina Sizovuka and Lucien van der Walt
“To assure the labourers that they will be able to establish socialism … [through] government machinery, changing only the persons who manage it… is… a colossal historical blunder which borders upon crime…”
Pyotr Kropotkin,
“Modern Science and Anarchism”
Introduction
Privatisation – the transfer of functions and industry to the private sector – is widely and correctly rejected on the left and in the working class. Privatisation leads only to higher prices, less and worse jobs, and worse services. Given this, some view nationalisation – the transfer of economic resources (e.g. mines, banks, and factories) to state ownership and control – as a rallying cry for a socialist alternative. As the supposedly pro-working class alternative, this cry has resounded in sections of the SA Communist Party (SACP), in the Congress of SA Trade Unions (Cosatu), in the African National Congress Youth League (ANCYL) membership, and on the independent Trotskyite and social democratic left.
This article argues that nationalisation has never removed capitalism, nor led to socialism, and it certainly does not have a demonstrable record of consistently improving wages, jobs, rights and safety. Nationalisation, rather than promote “workers’ control” or companies’ accountability to the public, has routinely meant top-down management, union-bashing, bad services and bad conditions.
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