THE current economic conditions require South Africa to have a "Codesa" on economic development and not nationalisation.

This emerged at a debate by various business representatives and civic organisations, on the nationalisation of mines and big businesses, which was held at the Industrial Development Corporation offices in Sandton.

The debate was organised by the South African Chamber of Commerce and Industry to gauge the business community's position on the proposal by the ANC Youth League to nationalise mines and big businesses such as banks.

Roger Baxter, senior executive at the South African Chamber of Mines, said the country's challenge was to eradicate youth unemployment with economic growth.

"At global level, nationalisation has a poor track record."

Baxter said there was no need to nationalise mines because about 92percent of mining revenue went to the government, referring to a study conducted by Dawie Roodt, economist at Efficient Group. He said only 6,3percent of mining profits went to shareholders in the form of dividends.

"Our growth rate would be zero if we nationalise."

Baxter addedthat in most countries, privately owned mining companies outperformed those belonging to the state. "The results of nationalisation in most nations have been negative. They actually forfeited more than two decades' economic growth.

"We, as a society, need to focus on the right medicine - high-level, balanced labour-absorbing growth." But he said there were growth prospects in the mining industry with 100000 jobs expected to be created over the next two decades.

"Nationalisation is not the answer, rather having a Codesa on addressing unemployment in our youth is. I believe we can have 5,6 percent economic growth."

Vivian Atud, economist at the Free Market Foundation, said the challenge with economic growth was the increase in income gap disparity. "Ownership by the state does not mean ownership by the people. When people fought for freedom, they were fighting to realise their potential. This freedom will be taken from the people and given to individuals (in government) if we nationalise."

Atud said individual blacks should be empowered to own assets and minerals of any sector of the economy and not the government.

Her colleague Leon Louw quoted countries in which nationalisation had failed, including Zambia and the Democratic Republic of the Congo. Chile and Ghana were also experiencing a 75percent decline in mining growth.