Nationalization
Encyclopedia
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities
, being transferred to the public sector
to be operated by or owned by the state. The opposite of nationalization is usually privatization
or de-nationalization, but may also be municipalization
.
A renationalization occurs when state-owned assets are privatized and later nationalized again, often when a different political party
or faction is in power. A renationalization process may also be called reverse privatization. Nationalization has been used to refer to either direct state-ownership and management of an enterprise or to a government acquiring a large controlling share of a nominally private, publicly listed corporation.
The motives for nationalization are political as well as economic. It is a central theme of certain fascist
, economic nationalist, populist
and/or national liberation policies that industry should be owned by the state on behalf of the citizenry to allow for consolidation of resources and central planning or control for the purposes of economic development.
Nationalization was one of the major strategies advocated by socialists for transitioning to socialism
. Socialist perspectives that favor nationalization are typically called state socialism
. The goals of nationalization in this context were to dispossess large capitalists and redirect the profits to the public purse, as a precursor to the long-term goals of the establishment of worker-management and reorganizing production toward use
.
Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities
. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs — for example, rural postal and transport services. As an instance, the United States Postal Service
is guaranteed its nationalised status by the Constitution. The government has recognized these social obligations and, in some cases, provides subsidies for such non-commercial operations.
Since the nationalised industries are state owned, the government
is responsible for meeting any debt
s incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. However, if they are profitable, the profit is often used as a means to finance other state services, such as social programs and government research — which can help lower the tax burden.
Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation
. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property
. Some nationalizations take place when a government seizes property acquired illegally. For example, the French government seized the car-makers Renault
because its owners had collaborated with the Nazi occupiers of France.
, are those where no compensation, or an amount far below the likely market value of the nationalized assets, is paid. Many nationalizations through expropriation have come after revolution
s, in particular Communist-led revolutions.
The traditional Western stance on compensation was expressed by United States Secretary of State
Cordell Hull
, during the 1938 Mexican nationalization of the petroleum industry
, that compensation should be "prompt, effective and adequate." According to this view, the nationalizing state is obligated under international law to pay the deprived party the full value of the property taken. The opposing position has been taken mainly by developing countries, claiming that the question of compensation should be left entirely up to the sovereign state, in line with the Calvo Doctrine
. Socialist state
s have held that no compensation is due, based on the view that the former owners acquired ownership through exploitation, or that private ownership
over socialized assets
is illegitimate and exploitative of employees.
In 1962, the United Nations General Assembly
adopted Resolution 1803, "Permanent Sovereignty over National Resources", which states that in the event of nationalization, the owner "shall be paid appropriate compensation in accordance with international law." In doing so, the UN rejected both the traditional Calvo-doctrinist view and the Communist view. The term "appropriate compensation" represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property.
When nationalizing a large business, the cost of compensation is so great that many legal nationalizations have happened when firms of national importance run close to bankruptcy
and can be acquired by the government for little or no money. A classic example is the UK nationalization of the British Leyland Motor Corporation
. At other times, governments have considered it important to gain control of institutions of strategic economic importance, such as banks or railways, or of important industries struggling economically. The case of Rolls-Royce plc
, nationalized in 1971, is an interesting blend of these two arguments. This policy was sometimes known as ensuring government control of the "commanding heights" of the economy, to enable it to manage the economy better in terms of long-term development and medium-term stability. The extent of this policy declined in the 1980s and 1990s as governments increasingly privatized industries that had been nationalized, replacing their strategic economic influence with use of the tax system and of interest rates.
Nonetheless, national and local governments have seen the advantage of keeping key strategic assets in institutions that are not strongly profit-driven and can raise funds outside the public-sector constraints, but still retain some public accountability. Examples from the last five years in the United Kingdom include the vesting
of the British railway infrastructure firm Railtrack
in the not-for-profit company Network Rail
, and the divestment of much council housing
stock to "arms-length management companies", often with mutual status.
of 1959. Most of these companies were owned by U.S. corporations and individuals. Bonds at 4.5% interest over twenty years were offered to U.S. companies, but the offer was rejected by U.S. ambassador Philip Bonsal
, who requested the compensation up front. Only a minor amount, $1.3 million, was paid to U.S. interests before deteriorating relations ended all cooperation between the two governments. The United States established a registry of claims against the Cuban government, ultimately developing files on 5,911 specific companies. The Cuban government has refused to discuss the effective and adequate compensation of U.S. claims. The United States government continues to insist on compensation for U.S. companies. In 1966-68, the Castro government nationalized all remaining privately owned business entities in Cuba, down to the level of street vendors.
and La Poste
are relics of the state postal and telecommunications monopolies.
There was a major expansion of the nationalised sector following World War II. A second wave followed in 1982.
The Paris regional transport operator, Regie Autonome des Transports Parisiens (RATP), can also be counted as a nationalised industry.
is currently underway, as of 2008.
Most enterprises in East Germany were nationalised following World War II. After reunification, an agency, Treuhand
, was established to return them to private ownership. However, due to structural and economic problems inherent in the previous regime, many of these had to be liquidated.
, to have helped the Indian economy
withstand the global financial crisis of 2007-2009.
.
The regime of Benito Mussolini
extended nationalisation, creating the Istituto per la Ricostruzione Industriale
(IRI) as a State holding company for struggling firms, including the car maker Alfa Romeo
. A parallel body, Ente Nazionale Idrocarburi (Eni
) was set up to manage State oil and gas interests.
, important companies such as PLDT
, Philippine Airlines
, Meralco
and the Manila Hotel
were nationalized. Other companies were sometimes absorbed into these government-owned corporations, as well as other companies, such as Napocor
and the Philippine National Railways
, which in their own right are monopolies
(exceptions are Meralco and the Manila Hotel). Today, these companies have been reprivatized and some, such as PLDT and Philippine Airlines, have been de-monopolized. Others, like government-formed and owned Napocor, are in the process of privatization.
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
, being transferred to the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
to be operated by or owned by the state. The opposite of nationalization is usually privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
or de-nationalization, but may also be municipalization
Municipalization
Municipalization is the transfer of corporations or other assets to municipal ownership. The transfer may be from private ownership or from other levels of government. It is the opposite of privatization and is different from nationalization.-Services:There have been two main waves of...
.
A renationalization occurs when state-owned assets are privatized and later nationalized again, often when a different political party
Political party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...
or faction is in power. A renationalization process may also be called reverse privatization. Nationalization has been used to refer to either direct state-ownership and management of an enterprise or to a government acquiring a large controlling share of a nominally private, publicly listed corporation.
The motives for nationalization are political as well as economic. It is a central theme of certain fascist
Fascism
Fascism is a radical authoritarian nationalist political ideology. Fascists seek to rejuvenate their nation based on commitment to the national community as an organic entity, in which individuals are bound together in national identity by suprapersonal connections of ancestry, culture, and blood...
, economic nationalist, populist
Populist
Populist may refer to:* A supporter of Populism, a political philosophy urging social and political system change that favours "the people" over "the elites", or favours the common people over the rich and wealthy business owners...
and/or national liberation policies that industry should be owned by the state on behalf of the citizenry to allow for consolidation of resources and central planning or control for the purposes of economic development.
Nationalization was one of the major strategies advocated by socialists for transitioning to socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
. Socialist perspectives that favor nationalization are typically called state socialism
State socialism
State socialism is an economic system with limited socialist characteristics, such as public ownership of major industries, remedial measures to benefit the working class, and a gradual process of developing socialism through government policy...
. The goals of nationalization in this context were to dispossess large capitalists and redirect the profits to the public purse, as a precursor to the long-term goals of the establishment of worker-management and reorganizing production toward use
Production for use
Production for use is a defining criterion of a socialist economy and distinguishes socialism from capitalism...
.
Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities
Externality
In economics, an externality is a cost or benefit, not transmitted through prices, incurred by a party who did not agree to the action causing the cost or benefit...
. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs — for example, rural postal and transport services. As an instance, the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
is guaranteed its nationalised status by the Constitution. The government has recognized these social obligations and, in some cases, provides subsidies for such non-commercial operations.
Since the nationalised industries are state owned, the government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
is responsible for meeting any debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
s incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. However, if they are profitable, the profit is often used as a means to finance other state services, such as social programs and government research — which can help lower the tax burden.
Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation
Confiscation
Confiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...
. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
. Some nationalizations take place when a government seizes property acquired illegally. For example, the French government seized the car-makers Renault
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
because its owners had collaborated with the Nazi occupiers of France.
Compensation
A key issue in nationalization is payment of compensation to the former owner. The most controversial nationalizations, known as expropriationsConfiscation
Confiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...
, are those where no compensation, or an amount far below the likely market value of the nationalized assets, is paid. Many nationalizations through expropriation have come after revolution
Revolution
A revolution is a fundamental change in power or organizational structures that takes place in a relatively short period of time.Aristotle described two types of political revolution:...
s, in particular Communist-led revolutions.
The traditional Western stance on compensation was expressed by United States Secretary of State
United States Secretary of State
The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...
Cordell Hull
Cordell Hull
Cordell Hull was an American politician from the U.S. state of Tennessee. He is best known as the longest-serving Secretary of State, holding the position for 11 years in the administration of President Franklin Delano Roosevelt during much of World War II...
, during the 1938 Mexican nationalization of the petroleum industry
Expropiación petrolera
The Mexican oil expropriation was the expropriation of all oil reserves, facilities, and foreign oil companies in Mexico in 1938....
, that compensation should be "prompt, effective and adequate." According to this view, the nationalizing state is obligated under international law to pay the deprived party the full value of the property taken. The opposing position has been taken mainly by developing countries, claiming that the question of compensation should be left entirely up to the sovereign state, in line with the Calvo Doctrine
Calvo Doctrine
The Calvo Doctrine is a foreign policy doctrine which holds that jurisdiction in international investment disputes lies with the country in which the investment is located. The Calvo Doctrine thus proposed to prohibit diplomatic protection or intervention before local resources were exhausted...
. Socialist state
Socialist state
A socialist state generally refers to any state constitutionally dedicated to the construction of a socialist society. It is closely related to the political strategy of "state socialism", a set of ideologies and policies that believe a socialist economy can be established through government...
s have held that no compensation is due, based on the view that the former owners acquired ownership through exploitation, or that private ownership
Private property
Private property is the right of persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other forms of property. Private property is distinguishable from public property, which refers to assets owned by a state, community or government rather than by...
over socialized assets
Socialization (economics)
In economic discourse, socialization has several different but related connotations. In socialist economics, the term usually refers to the process whereby production is reorganized away from producing for private profit to producing goods and services directly for use, along with the end of the...
is illegitimate and exploitative of employees.
In 1962, the United Nations General Assembly
United Nations General Assembly
For two articles dealing with membership in the General Assembly, see:* General Assembly members* General Assembly observersThe United Nations General Assembly is one of the five principal organs of the United Nations and the only one in which all member nations have equal representation...
adopted Resolution 1803, "Permanent Sovereignty over National Resources", which states that in the event of nationalization, the owner "shall be paid appropriate compensation in accordance with international law." In doing so, the UN rejected both the traditional Calvo-doctrinist view and the Communist view. The term "appropriate compensation" represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property.
When nationalizing a large business, the cost of compensation is so great that many legal nationalizations have happened when firms of national importance run close to bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
and can be acquired by the government for little or no money. A classic example is the UK nationalization of the British Leyland Motor Corporation
British Leyland Motor Corporation
British Leyland was a vehicle manufacturing company formed in the United Kingdom in 1968 as British Leyland Motor Corporation Ltd . It was partly nationalised in 1975 with the government creating a new holding company called British Leyland Ltd which became BL Ltd in 1978...
. At other times, governments have considered it important to gain control of institutions of strategic economic importance, such as banks or railways, or of important industries struggling economically. The case of Rolls-Royce plc
Rolls-Royce plc
Rolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
, nationalized in 1971, is an interesting blend of these two arguments. This policy was sometimes known as ensuring government control of the "commanding heights" of the economy, to enable it to manage the economy better in terms of long-term development and medium-term stability. The extent of this policy declined in the 1980s and 1990s as governments increasingly privatized industries that had been nationalized, replacing their strategic economic influence with use of the tax system and of interest rates.
Nonetheless, national and local governments have seen the advantage of keeping key strategic assets in institutions that are not strongly profit-driven and can raise funds outside the public-sector constraints, but still retain some public accountability. Examples from the last five years in the United Kingdom include the vesting
Vesting
In law, vesting is to give an immediately secured right of present or future enjoyment. One has a vested right to an asset that cannot be taken away by any third party, even though one may not yet possess the asset. When the right, interest or title to the present or future possession of a legal...
of the British railway infrastructure firm Railtrack
Railtrack
Railtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from its formation in April 1994 until 2002...
in the not-for-profit company Network Rail
Network Rail
Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain .; it is not responsible for railway infrastructure in Northern Ireland...
, and the divestment of much council housing
Council house
A council house, otherwise known as a local authority house, is a form of public or social housing. The term is used primarily in the United Kingdom and the Republic of Ireland. Council houses were built and operated by local councils to supply uncrowded, well-built homes on secure tenancies at...
stock to "arms-length management companies", often with mutual status.
Argentina
- 1918 University RevolutionUniversity RevolutionThe University Revolution or Argentine university reform of 1918 was a general modernization of the universities, especially tending towards democratization, brought about by student activism. The events started in Córdoba and spread to the rest of Argentina, and then through much of Latin America...
and university nationalization - 2009 Aerolíneas ArgentinasAerolíneas ArgentinasAerolíneas Argentinas , formally Aerolíneas Argentinas S.A., is Argentina's largest airline and serves as the country's flag carrier. Owned in its majority by the Argentine Government, the airline is headquartered in the Torre Bouchard, located in San Nicolás, Buenos Aires...
renationalization
Australia
- 1948 The Australian government attempted to nationalize the banks, but the act was declared unconstitutional by the High Court of AustraliaHigh Court of AustraliaThe High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, has the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the States, and...
in the case Bank of New South Wales v CommonwealthBank of New South Wales v CommonwealthBank of New South Wales v The Commonwealth 76 CLR 1, also known as the Bank Nationalisation Case, is a notable case of the High Court of Australia.-Background:...
.
Bolivia
- 2006 On May 1, 2006, newly elected BoliviaBoliviaBolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
n president Evo MoralesEvo MoralesJuan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...
announces plans to nationalize the country's natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
industry; foreign-based companies are given six months to renegotiate their existing contracts.
Canada
- 1918 Canadian National RailwayCanadian National RailwayThe Canadian National Railway Company is a Canadian Class I railway headquartered in Montreal, Quebec. CN's slogan is "North America's Railroad"....
s, created from several systems nationwide following their bankruptcy during and after World War I, and since privatized. (Air CanadaAir CanadaAir Canada is the flag carrier and largest airline of Canada. The airline, founded in 1936, provides scheduled and charter air transport for passengers and cargo to 178 destinations worldwide. It is the world's tenth largest passenger airline by number of destinations, and the airline is a...
, Canadian Broadcasting CorporationCanadian Broadcasting CorporationThe Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...
, Marine AtlanticMarine AtlanticMarine Atlantic Inc. is an independent Canadian Crown corporation offering ferry services between the provinces of Newfoundland and Labrador and Nova Scotia.Marine Atlantic's corporate headquarters are in St...
and Via RailVIA RailVia Rail Canada is an independent crown corporation offering intercity passenger rail services in Canada. It is headquartered near Montreal Central Station at 3 Place Ville-Marie in Montreal, Quebec....
were all subsidiaries of the company at one time) - 1944 Hydro-QuébecHydro-QuébecHydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
, first created through partial nationalization of electricity concerns around MontrealMontrealMontreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
in QuebecQuebecQuebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
by the Liberal government of Adélard GodboutAdélard GodboutJoseph-Adélard Godbout was an agronomist and politician in Quebec, Canada. He served as the 15th Premier of Quebec briefly in 1936, and again from 1939 to 1944. He was also leader of the Parti Libéral du Québec .-Youth and early career:Adélard Godbout was born in Saint-Éloi...
. During the Quiet RevolutionQuiet RevolutionThe Quiet Revolution was the 1960s period of intense change in Quebec, Canada, characterized by the rapid and effective secularization of society, the creation of a welfare state and a re-alignment of politics into federalist and separatist factions...
of the early 1960s, the remaining 11 privately owned electricity companies in Quebec were nationalized by the Liberal government of Jean LesageJean LesageJean Lesage, PC, CC, CD was a lawyer and politician in Quebec, Canada. He served as the 19th Premier of Quebec from 22 June 1960, to 16 August 1966...
. - 1975 Potash Corporation of SaskatchewanPotash Corporation of SaskatchewanThe Potash Corporation of Saskatchewan Inc. , also referred to as PotashCorp, is a Canadian corporation based in Saskatoon, Saskatchewan. The company is the world's largest potash producer and the third largest producers of nitrogen and phosphate, three primary crop nutrients used to produce...
, Province of Saskatchewan nationalized part of the potash industry. Many potash producers agreed to sell to the government instead of being nationalized.
Channel Islands
- 2003 Aurigny Air ServicesAurigny Air ServicesAurigny Air Services was founded by Sir Derrick Bailey and started operations on 1 March 1968 after British United Airways withdrew the Alderney to Guernsey route...
was bought by the States of Guernsey to keep precious routes from the island to London.
Chile
- 1972 Chilean nationalization of copperChilean nationalization of copperThe nationalization of the Chilean copper industry commonly described as the Chilenización del cobre or "Chileanisation of copper," was the progressive process by which the Chilean government acquired control of the major foreign-owned section of the Chilean copper mining industry. It involved the...
mining industry by the government of Salvador AllendeSalvador AllendeSalvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....
.
Croatia
The HDZ government, on the break-up of Yugoslavia, nationalized private agricultural, non communist nationalized, property and rezoned it under the guise of forest statesmanship when their publicly professed agenda was to only complete the nationalization of the communists. Much of this land is in the process of being restituted and the model rethought.Cuba
The Castro government gradually expropriated all foreign-owned private companies after the Cuban RevolutionCuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...
of 1959. Most of these companies were owned by U.S. corporations and individuals. Bonds at 4.5% interest over twenty years were offered to U.S. companies, but the offer was rejected by U.S. ambassador Philip Bonsal
Philip Bonsal
Philip Wilson Bonsal was a United States foreign diplomat and the last United States Ambassador to Cuba.-Biography:Bonsal was born in New York in 1903, his father was Stephen Bonsal, a well-known Far Eastern correspondent. Bonsal became Ambassador to Colombia 1955, Bolivia 1957-59, Cuba 1959-60...
, who requested the compensation up front. Only a minor amount, $1.3 million, was paid to U.S. interests before deteriorating relations ended all cooperation between the two governments. The United States established a registry of claims against the Cuban government, ultimately developing files on 5,911 specific companies. The Cuban government has refused to discuss the effective and adequate compensation of U.S. claims. The United States government continues to insist on compensation for U.S. companies. In 1966-68, the Castro government nationalized all remaining privately owned business entities in Cuba, down to the level of street vendors.
Czechoslovakia
- 1945 Large manufacturing enterprises.
- 1948 All manufacturing enterprises.
Egypt
- 1956 On July 26, 1956 EgyptEgyptEgypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
ian President Gamal Abdel NasserGamal Abdel NasserGamal Abdel Nasser Hussein was the second President of Egypt from 1956 until his death. A colonel in the Egyptian army, Nasser led the Egyptian Revolution of 1952 along with Muhammad Naguib, the first president, which overthrew the monarchy of Egypt and Sudan, and heralded a new period of...
nationalized the Suez Canal CompanySuez Canal CompanyThe Universal Suez Ship Canal Company was the Egyptian corporation which was formed by Ferdinand de Lesseps during 1858, constructed the Suez Canal between 1859 and 1869, and owned and operated it for many years thereafter...
.
France
Nationalization in France dates back to the 'regies' or state monopolies first organized under the Ancien Régime, for example, the monopoly on tobacco sales. Communications companies France TelecomFrance Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
and La Poste
La Poste (France)
La Poste is the mail service of France, which also operates postal services in the French Overseas Departments of Réunion, Guadeloupe, Martinique and French Guiana, and the territorial collectivities of Saint Pierre and Miquelon and Mayotte...
are relics of the state postal and telecommunications monopolies.
There was a major expansion of the nationalised sector following World War II. A second wave followed in 1982.
- 1938 Societe Nationale des Chemins de Fer Francais (SNCFSNCFThe SNCF , is France's national state-owned railway company. SNCF operates the country's national rail services, including the TGV, France's high-speed rail network...
) (originally a 51% State holding, increased to 100% in 1982) - 1945 Several nationalizations in France, including most important banks and RenaultRenaultRenault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
. The firm was seized for Louis RenaultLouis Renault (industrialist)Louis Renault was a French industrialist, one of the founders of Renault and a pioneer of the automobile industry....
's alleged collaboration with Nazi GermanyNazi GermanyNazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
, although this condemnation was without judgement and after his death, making this case remarkable and rare. A later judgement (1949) admitted that Renault's plant never collaborated. Renault was successful but unprofitable whilst nationalised and remains successful today, after having been privatized in 1996. - 1946 Charbonnages de FranceCharbonnages de FranceCharbonnages de France is a French enterprise created in 1946, as a result of the nationalization of the private mining companies....
, Electricite de FranceÉlectricité de FranceÉlectricité de France S.A. is the second largest French utility company. Headquartered in Paris, France, with €65.2 billion in revenues in 2010, EDF operates a diverse portfolio of 120,000+ megawatts of generation capacity in Europe, Latin America, Asia, the Middle East and Africa.EDF is one of...
(EdF), Gaz de FranceGaz de FranceGaz de France was a French company which produced, transported and sold natural gas around the world, especially in France, its main market. The company was also particularly active in Belgium, the United Kingdom, Germany, and other European countries. Through its part-owned Belgian subsidiary SPE...
(GdF) - 1982 A large part of the banking sector and industries of strategic importance to the state, especially in electronics and communications, were nationalized under the new president François MitterrandFrançois MitterrandFrançois Maurice Adrien Marie Mitterrand was the 21st President of the French Republic and ex officio Co-Prince of Andorra, serving from 1981 until 1995. He is the longest-serving President of France and, as leader of the Socialist Party, the only figure from the left so far elected President...
and the PSSocialist Party (France)The Socialist Party is a social-democratic political party in France and the largest party of the French centre-left. It is one of the two major contemporary political parties in France, along with the center-right Union for a Popular Movement...
-led government. Many of those companies were privatized again after 1986.
The Paris regional transport operator, Regie Autonome des Transports Parisiens (RATP), can also be counted as a nationalised industry.
Germany
The German railways were nationalised after World War I. Partial privatisation of Deutsche BahnDeutsche Bahn
Deutsche Bahn AG is the German national railway company, a private joint stock company . Headquartered in Berlin, it came into existence in 1994 as the successor to the former state railways of Germany, the Deutsche Bundesbahn of West Germany and the Deutsche Reichsbahn of East Germany...
is currently underway, as of 2008.
Most enterprises in East Germany were nationalised following World War II. After reunification, an agency, Treuhand
Treuhand
The Treuhandanstalt was the agency that privatized the East German enterprises, Volkseigener Betrieb , owned as public property. Created by the Volkskammer on June 17, 1990, it oversaw the restructuring and selling of about 8,500 firms with initially over 4 million employees...
, was established to return them to private ownership. However, due to structural and economic problems inherent in the previous regime, many of these had to be liquidated.
- 2008 Renationalization of the "BundesdruckereiBundesdruckereiThe Bundesdruckerei is a German manufacturer for banknotes and stamps, identity cards, passports and visas, driving licences and vehicle registration certificates....
" (Federal Print Office), which had been privatized in 2001.
Greece
- 1974 Nationalization of Olympic AirlinesOlympic AirlinesOlympic Airlines was the flag carrier airline of Greece, with its head office in Athens. It operated services to 37 domestic destinations and to 32 destinations world-wide. Its main base was at Athens International Airport, with hubs at Thessaloniki International Airport, "Macedonia" and Rhodes...
, main airline of Greece. The company was bought out by its founder, Aristotle OnassisAristotle OnassisAristotle Sokratis Onassis , commonly called Ari or Aristo Onassis, was a prominent Greek shipping magnate.- Early life :Onassis was born in Karatass, a suburb of Smyrna to Socrates and Penelope Onassis...
.
Iceland
- 2008 Renationalization of Iceland's largest commercial bankCommercial bankAfter the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s: Kaupþing, LandsbankiLandsbankiLandsbanki, also commonly known as Landsbankinn in Iceland, is a private Icelandic bank with international operations...
, GlitnirGlitnirGlitnir is the hall of Forseti, the Norse god of law and justice, and the seat of justice amongst gods and men. It is also noted to have been a place of dwelling for Balder, Forseti's father in Norse and Germanic mythologies...
and Icebank. - 2009 Nationalization of Straumur Investment BankStraumur Investment BankStraumur-Burdaras Investment Bank hf. was a regional investment bank headquartered in Reykjavik, Iceland, that was closed by regulators in March 2009.The company was mainly owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson...
and the savings bankSavings bankA savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
SPRONSparisjóður Reykjavíkur og nágrennisSparisjóður Reykjavíkur og nágrennis , often shortened to SPRON is an Icelandic savings bank. It has six branches, all in the Reykjavík capital area. The bank was established March 5, 1932, and was nationalized in 2009 following a major banking and financial crisis in Iceland.- External links :* *...
.
India
The nationalised banks were credited by some, including Home minister P. ChidambaramP. Chidambaram
P. Chidambaram or Chidambaram Palaniappan, sometimes written Palaniappan Chidambaram is an Indian politician with the Indian National Congress and present Union Minister of Home Affairs of the Republic of India. Previously he was the Finance Minister of India from May 2004 to November 2008...
, to have helped the Indian economy
Economy of India
The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...
withstand the global financial crisis of 2007-2009.
- 1949 (1 January) Reserve Bank of India nationalised (Ref.- Reserve Bank of India chronology of events). The Reserve Bank of IndiaReserve Bank of IndiaThe Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
was state-owned at the time of Indian independenceIndian independence movementThe term Indian independence movement encompasses a wide area of political organisations, philosophies, and movements which had the common aim of ending first British East India Company rule, and then British imperial authority, in parts of South Asia...
. - 1953 Air IndiaAir IndiaAir India is the flag carrier airline of India. It is part of the government of India owned Air India Limited . The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Its corporate office is located at the Air India Building at Nariman...
under the Air Corporations Act 1953. - 1955 Imperial Bank of IndiaImperial Bank of IndiaThe Imperial Bank of India was the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into State Bank of India in 1955.-Origin:...
and its subsidiaries (State Bank of IndiaState Bank of IndiaThe State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
and its subsidiaries) - 1969 Nationalization of 14 Indian banks.
- 1973 Coal industry and Oil companies
- 1980 Another six banks nationalized
- 1972 Nationalisation of 106 insurance companies into four
Iran
- 1953 IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian Prime Minister Mohammed Mossadegh nationalized the Anglo-Persian Oil CompanyAnglo-Persian Oil CompanyThe Anglo-Persian Oil Company was founded in 1908 following the discovery of a large oil field in Masjed Soleiman, Iran. It was the first company to extract petroleum from the Middle East...
in Iran.
Ireland
Railways in the Republic of Ireland were nationalised in the 1940s as Coras Iompair EireannCóras Iompair Éireann
Córas Iompair Éireann , or CIÉ, is a statutory corporation of the Irish state, answerable to the Irish Government and responsible for most public transport in the Republic of Ireland and, jointly with its Northern Ireland counterpart, the Northern Ireland Transport Holding Company, between the...
.
- 2007 On August 3, 2007, the IrishRepublic of IrelandIreland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
government were offered a stake in EircomEircomEircom Group LTD is a telecommunications company in the Republic of Ireland, and a former state-owned incumbent. It is currently the largest telecommunications operator in the Republic of Ireland and operates primarily on the island of Ireland, with a point of presence in Great Britain.As Bord...
's copper network infrastructure. Ireland's telephone networks were privatised in 1999. - 2009 On January 16, 2009, the Irish Government nationalised Anglo Irish BankAnglo Irish BankAnglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
to secure the bank's viability. - 2010 Irish state owned bank Anglo Irish BankAnglo Irish BankAnglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
is to take majority control of one of Ireland's largest companies QUINN groupQuinn GroupThe QUINN group is a business group headquartered in Derrylin, County Fermanagh, Northern Ireland. The privately owned group has ventured into cement and concrete products, container glass, general insurance, radiators, plastics, hotels, and real estate...
bringing it under Public ownership.
Israel
- 1983 Nationalization of the major Israeli banks: Bank HapoalimBank HapoalimBank Hapoalim is Israel’s largest bank. As of 31 December 2008 it had total consolidated assets of NIS 306.85 billion. The Bank has a significant presence in global financial markets. In Israel, the Group has over 260 full-service branches, eight regional business centers, and industry desks...
, Bank LeumiBank LeumiBank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
, Discount Bank, Mezrachi Bank due to the Bank stock crisis that struck Israel in 1983.
Italy
- 1905 The Italian railways were nationalised as Ferrovie dello StatoFerrovie dello StatoFerrovie dello Stato is a government-owned holding which manage infrastructure and service on the Italian rail network. The subsidiary Trenitalia is the main rail operator in Italy.-Organization:Ferrovie dello Stato subsidiaries are:...
.
The regime of Benito Mussolini
Benito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....
extended nationalisation, creating the Istituto per la Ricostruzione Industriale
Istituto per la Ricostruzione Industriale
The Istituto per la Ricostruzione Industriale was an Italian public company set up by the fascist government in 1933 to combat the effects of the global depression on the Italian economy...
(IRI) as a State holding company for struggling firms, including the car maker Alfa Romeo
Alfa Romeo
Alfa Romeo Automobiles S.p.A. is an Italian manufacturer of cars. Founded as A.L.F.A. on June 24, 1910, in Milan, the company has been involved in car racing since 1911, and has a reputation for building expensive sports cars...
. A parallel body, Ente Nazionale Idrocarburi (Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
) was set up to manage State oil and gas interests.
Japan
- 1906 Railway Nationalization ActRailway Nationalization ActThe brought many of Japan's private railway lines under national control. The Diet of Japan promulgated the Act on March 31, 1906. The Act was repealed by Article 110 of the Japan National Railway Reform Act of 1988, which formed the modern Japan Railways Group....
of Japan nationalized 17 railway companies to form the nationwide railway network that was later called Japanese National RailwaysJapanese National Railways, abbreviated or "JNR", was the national railway network of Japan from 1949 to 1987.-History:The term Kokuyū Tetsudō "state-owned railway" originally referred to a network of railway lines operated by nationalized companies under the control of the Railway Institute following the nationalization...
.
Malta
- 1974 Bank of VallettaBank of VallettaBank of Valletta is Malta's longest established financial services provider and one of its largest. Domestic operations include a national network of 45 branches, 6 regional business centres, corporate centre, and a wealth management arm...
is founded following nationalisation of the National Bank of Malta
Mexico
- 1938 The Expropriation of the Petroleum Industry of Mexico: President Lázaro Cárdenas issued a decree that the petroleum companies were in rebellion against the government of Mexico and under the powers granted him under the Expropriation Act passed by the Congress of Mexico in late 1936 expropriated them. March 19, 1938, union personnel took control of the properties.
- 1982 The nationalization of the Mexican banking systemBankA bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
made by PresidentPresident of MexicoThe President of the United Mexican States is the head of state and government of Mexico. Under the Constitution, the president is also the Supreme Commander of the Mexican armed forces...
José López PortilloJosé López PortilloJosé López Portillo y Pacheco was the President of Mexico from 1976 to 1982.Born in Mexico City, López Portillo studied Law at the National Autonomous University of Mexico before beginning his political career with the Institutional Revolutionary Party in 1959.He held several positions in the...
, later in the Carlos Salinas de Gortari presidency (1988–1994) a large number of banks were privatizedPrivatizationPrivatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
.
The Netherlands
- 2008 The Dutch State nationalizes the Dutch activities of Belgian-Dutch banking and insurance company FortisFortis (finance)Fortis N.V./S.A. was a company active in insurance, banking and investment management. In 2007 it was the 20th largest business in the world by revenue but after encountering severe problems in the financial crisis of 2008, most of the company was sold in parts, with only insurance activities...
, which had come in solvability problems due to the international financial crisis.
New Zealand
- 2001 Central government purchased the Auckland railway network from Tranz RailTranz RailTranz Rail, formally Tranz Rail Holdings Ltd , was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003.- Formation :...
. - 2003 The Labour Government of New Zealand took an 80% stake in near-bankrupt national air carrier Air New ZealandAir New ZealandAir New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
in exchange for a large financial infusion. - 2004 The rest of the country's rail network is purchased from Toll New Zealand, formerly known as Tranz Rail. A new state owned enterprise, ONTRACKOnTrackOnTrack was a regional rail line that operated in Syracuse, New York from 1994 to 2007. During its operation, Syracuse was the smallest city in the United States to have regional train service. The line ran from Colvin Street on the city's south side via Syracuse University and Armory Square to the...
, was established to maintain the rail infrastructure. - 2008 The rolling stockRolling stockRolling stock comprises all the vehicles that move on a railway. It usually includes both powered and unpowered vehicles, for example locomotives, railroad cars, coaches and wagons...
of Toll New Zealand was purchased by central government, bringing the rail system under total state ownership and renamed KiwiRailKiwiRailKiwiRail Holdings Limited is the rail operations subsidiary of the New Zealand Railways Corporation, which trades as KiwiRail. Headquartered in Wellington, New Zealand, KiwiRail is the largest rail transport operator in New Zealand. Since July 2010 John Spencer has been the Chairman...
.
Pakistan
- 1972 On January 2, 1972, Zulfiqar Ali Bhutto, after the fall of East PakistanEast PakistanEast Pakistan was a provincial state of Pakistan established in 14 August 1947. The provincial state existed until its declaration of independence on 26 March 1971 as the independent nation of Bangladesh. Pakistan recognized the new nation on 16 December 1971. East Pakistan was created from Bengal...
, announced the nationalisation of all major industries, including iron and steel, heavy engineering, heavy electricals, petrochemicals, cement and public utilities except textiles industry and lands.
Philippines
During the administration of Ferdinand MarcosFerdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
, important companies such as PLDT
Philippine Long Distance Telephone Company
The Philippine Long Distance Telephone Company commonly known as PLDT, is the largest telecommunications company in the Philippines. PLDT is also the largest company in the Philippines, ranked 1138th in the April 2009 update, and 1080th in the April 2010 update, of Forbes' Global 2000 list...
, Philippine Airlines
Philippine Airlines
Philippine Airlines, Inc. operating as Philippine Airlines, is a flag carrier of the Philippines. Headquartered in the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name...
, Meralco
Meralco
The Manila Electric Company , also known as MERALCO or Meralco, is the Philippines' largest distributor of electrical power.The word MERALCO, is an acronym for Manila Electric Railroad And Light COmpany, which was the company's original name from 1903 to 1919.MERALCO is the Metro Manila's only...
and the Manila Hotel
Manila Hotel
The Manila Hotel is a 570-room, five star hotel in Manila, Philippines, located in the heart of the Manila Bay area. The Manila Hotel is the oldest premiere hotel in the Philippines, built in 1909 to rival Malacañang Palace, the official residence of the President of the Philippines, and opened in...
were nationalized. Other companies were sometimes absorbed into these government-owned corporations, as well as other companies, such as Napocor
National Power Corporation
The National Power Corporation , also known as the NPC or Napocor, is a state-owned company that serves as the largest provider and generator of electricity in the Philippines...
and the Philippine National Railways
Philippine National Railways
The Philippine National Railways , or PNR, is a state-owned railway company in the Philippines, operating a single line of track on Luzon. As of 2010, it operates one commuter rail service in Metro Manila and a second in the Bicol Region. PNR restored its intercity service to the Bicol region in 2011...
, which in their own right are monopolies
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
(exceptions are Meralco and the Manila Hotel). Today, these companies have been reprivatized and some, such as PLDT and Philippine Airlines, have been de-monopolized. Others, like government-formed and owned Napocor, are in the process of privatization.
Poland
- 1946 Following World War II the People's Republic of Poland nationalized all enterprises with over 50 employees.
Portugal
- 1974 In the years following the Carnation RevolutionCarnation RevolutionThe Carnation Revolution , also referred to as the 25 de Abril , was a military coup started on 25 April 1974, in Lisbon, Portugal, coupled with an unanticipated and extensive campaign of civil resistance...
, the Junta de Salvação Nacional and Provisional Governments nationalized all the banking, insurance, petrol and industrial companies. Among those companies were Companhia União FabrilCompanhia União FabrilThe Companhia União Fabril is a Portuguese chemical corporation and a part of Grupo José de Mello.-History:The company was founded by Alfredo da Silva in 1871 and managed by his descendents, including José Manuel de Mello as a family-run business conglomerate. CUF was one of the largest and most...
(CUF), the assets of the Champalimaud family and SONAESonaeSonae is a conglomerate, and is the largest private employer in Portugal. The company is primarily engaged in the operation of retail stores through its subsidiary Modelo Continente....
. Along with the telecommunications companies, which were state-owned even before the Revolution, many of the nationalized companies were reprivatized in the 1980s and 1990s. In the agricultural sectorAgriculture in PortugalAgriculture in Portugal is based on small to medium-sized family-owned dispersed units, however, the sector also includes larger scale intensive farming export-oriented agrobusinesses backed by companies...
, according to government estimates, about 900,000 hectares (2,200,000 acres) of agricultural land were occupied between April 1974 and December 1975 in the name of land reform; about 32% of the occupations were ruled illegal. In January 1976, the government pledged to restore the illegally occupied land to its owners, and in 1977, it promulgated the Land Reform Review Law. Restoration of illegally occupied land began in 1978.
- 2008: BPN - Banco Português de NegóciosBanco Português de NegóciosBanco Português de Negócios , or simply BPN, is a Portuguese banking institution. It used to be a private bank, but was nationalized by the Portuguese Government in 2008 after a bad management and malpractice-related debt of 1.800 billion euros and several irregularities uncovered in the...
bank nationalised to prevent its collapse.
Romania
- 1948 With the Decree 119 of June 11, 1948, the new Romanian communist regime nationalised all the existing private companies and their assets in Romania leading to the transformation of the Romanian economy from a market economyMarket economyA market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
to a planned economyPlanned economyA planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
. - 1950 With the Decree 92 of April 19, 1950, a huge number of private houses and lands are confiscated.
Russia
- 1998 The Yeltsin government began seizing GazpromGazpromOpen Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...
assets, claiming that the company owed back taxes. Privatization of Gazprom from the mid 1990s had been reduced to 38.37% with the intention of achieving full privatizationPrivatizationPrivatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
. However, the stake of the Russian Government in Gazprom has since been increased to 50% with Vladimir PutinVladimir PutinVladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
's plan to increase the stake to a controlling position. Gazprom is also buying up both Russian and other international utility companies.
South Korea
- 1946 USAMGIKUnited States Army Military Government in KoreaThe United States Army Military Government in Korea, also known as USAMGIK, was the official ruling body of the southern half of the Korean Peninsula from September 8, 1945 to August 15, 1948...
nationalized all South Korean private railroad companies and made Department of Transportation. This now becomes KorailKorailKorea Railroad Corporation , promoted as Korail , is the national railroad operator in South Korea.Korail operates passenger and freight trains throughout South Korea...
.
Soviet Union
- 1918 All manufacturing enterprises, many retailing enterprises, any private enterprises, the whole bank system, agrarian sector, others. Basically everything was nationalized in the name of the Revolution (a justification phrased used upon the nationalization process), no private ownership was allowed. Later the government of Lenin introduced the New Economic PolicyNew Economic PolicyThe New Economic Policy was an economic policy proposed by Vladimir Lenin, who called it state capitalism. Allowing some private ventures, the NEP allowed small animal businesses or smoke shops, for instance, to reopen for private profit while the state continued to control banks, foreign trade,...
that slightly reverted process, however upon the death of the Soviet vozhd (Lenin) Stalin renewed the process again.
Spain
- 1941 Spain's railways were nationalised, as RENFERENFERenfe Operadora is the state-owned company which operates freight and passenger trains on the 1668-mm "Iberian gauge" and 1435-mm "European gauge" networks of the Spanish national railway infrastructure company ADIF .- History :The name RENFE is derived from that of the former Spanish National...
, in the aftermath of the Spanish Civil War. - 1983 Nationalization without compensation of the Spanish RumasaRumasaRumasa was a holding company founded by Spanish entrepreneur José María Ruiz Mateos and expropriated by the Spanish government on February 23, 1983.In 1982 Rumasa constituted 2% of the Spanish GDP...
. Separate business were later privatized.
Sri Lanka
- 1958 The Government nationalised Bus transport (creating the Ceylon Transport BoardCeylon Transport BoardThe Sri Lanka Transport Board is a bus service provider in Sri Lanka.Between 1958 and 1978, the Ceylon Transport Board was the nationalised enterprise which handled all public bus transport in Sri Lanka. At its peak, it was the largest omnibus company in the world - with about 7,000 buses and...
). The Colombo Port was also nationalised the same year. - 1961 The local subsidiaries of the foreign owned petroleumPetroleumPetroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
companies, CaltexCaltexCaltex is a petroleum brand name of Chevron Corporation used in more than 60 countries in the Asia-Pacific region, the Middle East, and southern Africa.-History:...
, EssoEssoEsso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
and ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
had formed a cartel, to break which they were nationalised. The InsuranceInsuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
companies and the Bank of CeylonBank of CeylonBank of Ceylon is a government-owned, major commercial bank in Sri Lanka. Its head office is located in iconic cylindrical building in the capital Colombo, the political and commercial capital of the islandThe bank has a network of 308 branches and 200+ extension centers covering all parts of the...
were also nationalised in the same year. - 1971 GraphiteGraphiteThe mineral graphite is one of the allotropes of carbon. It was named by Abraham Gottlob Werner in 1789 from the Ancient Greek γράφω , "to draw/write", for its use in pencils, where it is commonly called lead . Unlike diamond , graphite is an electrical conductor, a semimetal...
mines nationalised. - 1972 Locally owned TeaTeaTea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
and RubberRubberNatural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
plantationPlantationA plantation is a long artificially established forest, farm or estate, where crops are grown for sale, often in distant markets rather than for local on-site consumption...
s were nationalised under the Land ReformLand reform[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...
law. - 1975 Sterling plantation companies (owned by BritishUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
plantation companies) were nationalised. - 2009 Seylan BankSeylan BankSeylan Bank PLC is a privately owned Commercial Bank in Sri Lanka, which was owned by the Ceylinco Consolidated. It has branches both in urban as well as rural areas of Sri Lanka. Seylan bank had 114 banking centres island wide with 3900 staff members in 2007....
nationalised to prevent its collapse. - 2011 Sri Lanka's Expropriation Act was passed by the Cabinet. The government will take over "underperforming or underutilized assets of 37 enterprises".
Sweden
- 1939-1948 Nationalisation of most of the private Railway companies.
- 1957 The mining company LKABLKABLKAB is a Swedish mining company. The company mines iron ore at Kiruna and at Malmberget in northern Sweden. The company was established in 1890, and has been 100% state-owned since the 1950s...
is nationalized. The state had owned 50% of the corporation's shares, with options to buy the remainder, since 1907. - 1992 A large part of Sweden's banking sector is nationalized.
United Kingdom
The following companies/industries were the subject of nationalisation in the given year:- 1868 Nationalisation of inland telegraphs under the GPO
- 1875 Suez Canal CompanySuez CanalThe Suez Canal , also known by the nickname "The Highway to India", is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea. Opened in November 1869 after 10 years of construction work, it allows water transportation between Europe and Asia without navigation...
- The Egyptian share in the company was bought out by the British Government. - 1912 Nationalisation of inland telephone services under the GPO, apart from PortsmouthPortsmouthPortsmouth is the second largest city in the ceremonial county of Hampshire on the south coast of England. Portsmouth is notable for being the United Kingdom's only island city; it is located mainly on Portsea Island...
, HullKingston upon HullKingston upon Hull , usually referred to as Hull, is a city and unitary authority area in the ceremonial county of the East Riding of Yorkshire, England. It stands on the River Hull at its junction with the Humber estuary, 25 miles inland from the North Sea. Hull has a resident population of...
, GuernseyGuernseyGuernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...
, and JerseyJerseyJersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
. The Portsmouth telephone service was nationalised the following year. - 1916 Liquor TradeState Management SchemeThe State Management Scheme saw the UK government take over and run the brewing, distribution and sale of liquor in three regions of the UK from 1916 until 1973....
- The nationalisation of pubs and breweries in Carlisle, GretnaGretna, Dumfries and GallowayGretna is a town in Dumfries and Galloway, Scotland. Because they are near the Anglo-Scottish border, nearby Gretna Green and to a lesser extent Gretna, are historically linked to weddings because of the more liberal marriage laws in Scotland...
, CromartyCromartyThe Royal Burgh of Cromarty is a burgh in Ross and Cromarty, Highland, Scotland.-History:It was previously the county town of the former county of Cromartyshire...
and EnfieldLondon Borough of EnfieldThe London Borough of Enfield is the most northerly London borough and forms part of Outer London. It borders the London Boroughs of Barnet, Haringey and Waltham Forest...
under the State Management SchemeState Management SchemeThe State Management Scheme saw the UK government take over and run the brewing, distribution and sale of liquor in three regions of the UK from 1916 until 1973....
; mainly an attempt to restricting alcohol consumption by armaments factory workers. The scheme was privatised by asset transfer in 1973. - 1926 Central Electricity BoardCentral Electricity BoardThe United Kingdom Central Electricity Board was set up under The Electricity Act 1926 to standardise the nation's electricity supply. At that time, the industry consisted of more than 600 electricity supply companies and local authority undertakings, and different areas operated at different...
introduced under The Electricity (Supply) Act 1926 established the National Grid and set up a national standard for electricity supply in the UK. - 1927 British Broadcasting CompanyBritish Broadcasting CompanyThe British Broadcasting Company Ltd was a British commercial company formed on 18 October 1922 by British and American electrical companies doing business in the United Kingdom and licensed by the British General Post Office...
(a privately owned company) became British Broadcasting Corporation (BBC)BBCThe British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
, a public corporation operating under a Royal CharterRoyal CharterA royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...
. - 1933 London TransportLondon Passenger Transport BoardThe London Passenger Transport Board was the organisation responsible for public transport in London, UK, and its environs from 1933 to 1948...
- 1938 Nationalisation of UK Coal Royalties under the Coal CommissionCoal CommissionThe Coal Commission was a United Kingdom government agency, created to own and manage coal reserves. It was set up in 1938 and ceased to operate on 1 January 1947.- History :...
- 1939 British Overseas Airways Corporation (BOACBritish Overseas Airways CorporationThe British Overseas Airways Corporation was the British state airline from 1939 until 1946 and the long-haul British state airline from 1946 to 1974. The company started life with a merger between Imperial Airways Ltd. and British Airways Ltd...
) later to become British AirwaysBritish AirwaysBritish Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
(BA) - combining the private British Airways Ltd.British Airways Ltd.British Airways Ltd was a British airline company operating in Europe in the period 1935–39. It was formed in 1935 by the merger of Spartan Air Lines Ltd, United Airways Ltd , and Hillman's Airways...
and the state owned Imperial AirwaysImperial AirwaysImperial Airways was the early British commercial long range air transport company, operating from 1924 to 1939 and serving parts of Europe but especially the Empire routes to South Africa, India and the Far East... - 1939 At the outset of World War II, much of British industry was subjected to State regulation or control, although not nationalised as such.
- 1943 North of Scotland Hydro-Electricity Board
- 1946 Coal industry under the National Coal Board (later British Coal)British Coalthumb|right|British Coal company logoThe British Coal Corporation was a nationalised corporation in the United Kingdom responsible for the extraction of coal...
; Bank of EnglandBank of EnglandThe Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
- the latter had had private shareholders who were bought out by the state. - 1947 Central Electricity Generating BoardCEGBThe Central Electricity Generating Board was the cornerstone of the British electricity industry for almost 40 years; from 1957, to privatisation in the 1990s....
and area electricity boards, Cable & WirelessCable & WirelessCable & Wireless Worldwide PLC is a global telecommunications company headquartered in Bracknell, United Kingdom. Cable & Wireless specialises in providing communication networks and services to large corporates, governments, carrier customers and resellers...
Ltd - the latter had had private shareholders who were bought out by the state. - 1948 National rail, inland (not marine) water transport, some road haulage, some road passenger transport and Thomas Cook & SonThomas CookThomas Cook of Melbourne, Derbyshire, England founded the travel agency that is now Thomas Cook Group.- Early days :...
under the British Transport CommissionBritish Transport CommissionThe British Transport Commission was created by Clement Attlee's post-war Labour government as a part of its nationalisation programme, to oversee railways, canals and road freight transport in Great Britain...
. Separate elements operated as British RailBritish RailBritish Railways , which from 1965 traded as British Rail, was the operator of most of the rail transport in Great Britain between 1948 and 1997. It was formed from the nationalisation of the "Big Four" British railway companies and lasted until the gradual privatisation of British Rail, in stages...
ways, British Road ServicesBritish Road ServicesThe National Freight Corporation was a major British transport business. It was listed on the London Stock Exchange and at one time, as NFC plc, it was a constituent of the FTSE 100 Index.-History:...
, and British WaterwaysBritish WaterwaysBritish Waterways is a statutory corporation wholly owned by the government of the United Kingdom, serving as the navigation authority in England, Scotland and Wales for the vast majority of the canals as well as a number of rivers and docks...
, also national health services created (as EnglandNational Health Service (England)The National Health Service or NHS is the publicly funded healthcare system in England. It is both the largest and oldest single-payer healthcare system in the world. It is able to function in the way that it does because it is primarily funded through the general taxation system, similar to how...
and Wales, for ScotlandNHS ScotlandNHS Scotland is the publicly funded healthcare system of Scotland. Although they are separate bodies the organisational separation between NHS Scotland and the other three healthcare organisations each commonly called the National Health Service in the United Kingdom tends to be hidden from its...
and for Northern IrelandHealth and Care NIHealth and Social Care in Northern Ireland is the designation of the publicly funded service responsible for the administration of the public health and other social care services in Northern Ireland. The Northern Ireland Executive through its Health Department is responsible for the funding of...
) taking over a mixture of previously local authority, private commercial and charitable organisations. - 1949 Local authority gas supply undertakings in England, Scotland and WalesBritish Gas plcBritish Gas plc was formerly the monopoly gas supplier and is a private sector in the United Kingdom.- History :In the early 1900s the gas market in the United Kingdom was mainly run by county councils and small private firms...
- 1951 Iron and Steel Industry (denationalised by the following Conservative Government)
- 1967 British SteelBritish SteelBritish Steel was a major British steel producer. It originated as a nationalised industry, the British Steel Corporation , formed in 1967. This was converted to a public limited company, British Steel PLC, and privatised in 1988. It was once a constituent of the FTSE 100 Index...
- 1969 National Bus Company, combining former interests of the British Transport Commission with others acquired from the British Electric Traction group.
- 1969 Post Office Corporation created
- 1971 Rolls-Royce (1971) LtdRolls-Royce plcRolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
- The strategically important aero-engine part of the recently bankrupt Rolls Royce Limited. - 1973 Local authority water supply undertakings in England and WalesWater Act 1973The Water Act 1973 is an Act of the Parliament of the United Kingdom that reorganised the water, sewage and river management industry in England and Wales...
- 1973 British Gas plcBritish Gas plcBritish Gas plc was formerly the monopoly gas supplier and is a private sector in the United Kingdom.- History :In the early 1900s the gas market in the United Kingdom was mainly run by county councils and small private firms...
Corporation created, replacing regional gas boards. - 1974 British Petroleum - the combination of a 50% stake bought by Winston ChurchillWinston ChurchillSir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
as First Lord of the Admiralty after World War I with around a 25% stake acquired by the Bank of EnglandBank of EnglandThe Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
from Burmah Oil made the UK Government directly or indirectly BP's majority shareholder, though commercial independence was maintained. The shares were all sold during the 1980s. - 1975 National Enterprise BoardNational Enterprise Board-History:The National Enterprise Board was set up in the United Kingdom in 1975 to implement the Wilson Labour government's objective of extending public ownership of industry...
- a State holding company for full or partial ownership of industrial undertakings - 1976 British Leyland Motor CorporationBritish Leyland Motor CorporationBritish Leyland was a vehicle manufacturing company formed in the United Kingdom in 1968 as British Leyland Motor Corporation Ltd . It was partly nationalised in 1975 with the government creating a new holding company called British Leyland Ltd which became BL Ltd in 1978...
- became British Leyland upon nationalization. Privatized in 1986 to British AerospaceBritish AerospaceBritish Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...
. - 1977 British AerospaceBritish AerospaceBritish Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...
- combining the major aircraft companies British Aircraft CorporationBritish Aircraft CorporationThe British Aircraft Corporation was a British aircraft manufacturer formed from the government-pressured merger of English Electric Aviation Ltd., Vickers-Armstrongs , the Bristol Aeroplane Company and Hunting Aircraft in 1960. Bristol, English Electric and Vickers became "parents" of BAC with...
, Hawker Siddeley and others. British ShipbuildersBritish ShipbuildersBritish Shipbuilders Corporation was a public corporation that owned and managed the shipbuilding industry in England and Scotland from 1977 and through the 1980s...
- combining the major shipbuilding companies including Cammell LairdCammell LairdCammell Laird, one of the most famous names in British shipbuilding during the nineteenth and twentieth centuries, came about following the merger of Laird, Son & Co. of Birkenhead and Johnson Cammell & Co. of Sheffield at the turn of the twentieth century.- Founding of the business :The Company...
, Govan ShipbuildersGovan ShipbuildersGovan Shipbuilders Ltd was a British shipbuilding company based on the River Clyde at Glasgow in Scotland. It operated the former Fairfield Shipyard and took its name from the Govan area in which it was located.-History:...
, Swan HunterSwan HunterSwan Hunter, formerly known as "Swan Hunter & Wigham Richardson", was one of the best known shipbuilding companies in the world. Based in Wallsend, Tyne and Wear, the company was responsible for some of the greatest ships of the early 20th century — most famously, the RMS Mauretania which...
, Yarrow ShipbuildersYarrow ShipbuildersYarrow Limited , often styled as simply Yarrows, was a major shipbuilding firm based in the Scotstoun district of Glasgow on the River Clyde... - 1981 British Telecom created, taking control of telecommunications services from the Post Office
- 1984 Johnson MattheyJohnson MattheyJohnson Matthey plc is multinational chemicals and precious metals company headquartered in London, United Kingdom.It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.-History:...
- purchased for a nominal sum of £1 by the ThatcherMargaret ThatcherMargaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
government - 1997 Docklands Light RailwayDocklands Light RailwayThe Docklands Light Railway is an automated light metro or light rail system opened on 31 August 1987 to serve the redeveloped Docklands area of London...
- John Prescott announced to the 1997 Labour Party Conference that he had nationalised this, although it was already in public hands anyway. - 2001 RailtrackRailtrackRailtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from its formation in April 1994 until 2002...
- The owner and operator of the railway infrastructure, Railtrack, was not nationalised as such. However, its replacement Network Rail, whilst not a state-owned company, has no shareholders (company limited by guaranteeCompany limited by guaranteeIn British and Irish company law, a private company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company does not usually have a share capital or shareholders, but instead has members who act as...
) and is underwritten by the state. In addition prior to this the government began to make use of a residual shareholding of 0.2% (including voting rights) in Railtrack Group Plc leftover from the original sale. - 2008 Northern RockNorthern RockNorthern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
- announced by Alistair Darling, Chancellor of the Exchequer on 17 February 2008 as 'a temporary measure'. The bank will be run at 'arms length' as a commercial business and sold to a private buyer in the future. - 2008 Bradford & BingleyBradford & BingleyBradford & Bingley plc is a British bank with headquarters in the West Yorkshire town of Bingley. In 2008, partly due to the credit crunch, the bank was nationalised and in effect split into two parts; the mortgage book remained with the now publicly owned Bradford & Bingley plc, and the deposits...
(mortgage book only) - announced by Alistair Darling, Chancellor of the Exchequer on 29 September 2008. The loans part of the company was nationalised, while the commercial bank was sold off. - 2008 In October, the Royal Bank of ScotlandRoyal Bank of ScotlandThe Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
, and the newly merged HBOSHBOSHBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
-Lloyds TSBLloyds TSBLloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810...
was partly nationalised. The Government took over approximately 60% of RBS (later increased to 70%, then 80%) and 40% of HBOS-Lloyds TSB. This is part of the £500bn bank rescue package2008 United Kingdom bank rescue packageA bank rescue package totalling some £500 billion was announced by the British government on 8 October 2008, as a response to the ongoing global financial crisis. After two unsteady weeks at the end of September, the first week of October had seen major falls in the stock market and severe worries...
. - 2009 On 13 November, Directly Operated Railways, a government company, took over the East Coast Main Line railway franchise that National ExpressNational ExpressNational Express Coaches, more commonly known as National Express, is a brand and company, owned by the National Express Group, under which the majority of long distance bus and coach services in Great Britain are operated,...
had bought in 2007 for £1.4 billion, a sum originally to be paid over 7 years. The nationalised service operates as East CoastEast Coast (train operating company)East Coast is a British train operating company running high-speed passenger services on the East Coast Main Line between London, Yorkshire, the North East and Scotland...
and includes services from LondonLondonLondon is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
to YorkYorkYork is a walled city, situated at the confluence of the Rivers Ouse and Foss in North Yorkshire, England. The city has a rich heritage and has provided the backdrop to major political events throughout much of its two millennia of existence...
and EdinburghEdinburghEdinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
. It has been stated by the government that their control is a temporary measure, initially to last 2 years.
British assets nationalised by other countries
- 1940s Argentine railways
- 1953 British PetroleumBPBP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
's Iranian assets by their government (actually a nationalisation of part of a part-nationalised company) - 1956 The Egyptian GovernmentEgyptEgypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
nationalised the Suez CanalSuez CanalThe Suez Canal , also known by the nickname "The Highway to India", is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea. Opened in November 1869 after 10 years of construction work, it allows water transportation between Europe and Asia without navigation...
, owned by the Suez Canal Company which was part owned by the British State. - 1962 The Sri Lanka GovernmentSri LankaSri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
nationalised the assets in the country of the partly British-owned Royal Dutch ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
company. - 1975 The Sri Lanka GovernmentSri LankaSri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
nationalised the assets in the country of the British-owned plantationPlantationA plantation is a long artificially established forest, farm or estate, where crops are grown for sale, often in distant markets rather than for local on-site consumption...
companies.
United States
- 1862: The Legal Tender ActLegal Tender CasesThe Legal Tender Cases were a series of United States Supreme Court cases in the latter part of the nineteenth century that affirmed the constitutionality of paper money. In the 1870 case of Hepburn v. Griswold, the Court had held that paper money violated the United States Constitution. The...
nationalized the monetary system under fiat currency. - 1863: The National Bank Act nationalized the banking system and further monopolized the money supply.
- 1917: All U.S. railroadsRail transportRail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
were nationalized as the Railroad AdministrationUnited States Railroad AdministrationThe United States Railroad Administration was the name of the nationalized railroad system of the United States between 1917 and 1920. It was possibly the largest American experiment with nationalization, and was undertaken against a background of war emergency.- Background :On April 6, 1917, the...
during World War IWorld War IWorld War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
as a wartime measure. The United States Railroad Administration was returned to private ownership in 1920. - 1939: Organization of the Tennessee Valley AuthorityTennessee Valley AuthorityThe Tennessee Valley Authority is a federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected...
entailed the nationalization of the facilities of the former Tennessee Electric Power Company. - 1971: The National Railroad Passenger Corporation (AmtrakAmtrakThe National Railroad Passenger Corporation, doing business as Amtrak , is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union...
) is a government-owned corporationGovernment-owned corporationA government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
created in 1971 for the express purpose of relieving American railroads of their legal obligation to provide inter-city passenger railInter-city railInter-city rail services are express passenger train services that cover longer distances than commuter or regional trains.There is no precise definition of inter-city rail. Its meaning may vary from country to country...
service. The (primarily) freightCargoCargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...
railroads had petitioned to abandon passenger service repeatedly in the decades leading up to Amtrak's formation. - 1976: The Consolidated Rail Corporation (Conrail)Consolidated Rail CorporationThe Consolidated Rail Corporation, commonly known as Conrail , was the primary Class I railroad in the Northeast U.S. between 1976 and 1999. The federal government created it to take over the potentially profitable lines of bankrupt carriers, including the Penn Central Transportation Company and...
, another government corporation, was created to take over the operations of six bankrupt rail lines operating primarily in the NortheastNortheastern United StatesThe Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...
; Conrail was privatized in 1987. Initial plans for Conrail would have made it a truly nationalized system like that during World War I, but an alternate proposal by the Association of American RailroadsAssociation of American RailroadsThe Association of American Railroads is an industry trade group representing primarily the major freight railroads of North America . Amtrak and some regional commuter railroads are also members...
won out. - 1980s: Resolution Trust CorporationResolution Trust CorporationThe Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
seized control of hundreds of failed Savings & LoansSavings and loan associationA savings and loan association , also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans...
. - 2001: In response to the September 11 attacks, the then-private airport securityAirport securityAirport security refers to the techniques and methods used in protecting airports and aircraft from crime.Large numbers of people pass through airports. This presents potential targets for terrorism and other forms of crime due to the number of people located in a particular location...
industry was nationalized and put under the authority of the Transportation Security AdministrationTransportation Security AdministrationThe Transportation Security Administration is an agency of the U.S. Department of Homeland Security that exercises authority over the safety and security of the traveling public in the United States....
. - 2008: Some economists consider the U.S. government's takeoverFederal takeover of Fannie Mae and Freddie MacThe federal takeover of Fannie Mae and Freddie Mac refers to the placing into conservatorship of government sponsored enterprises Fannie Mae and Freddie Mac by the U.S. Treasury in September 2008. It was one financial event among many in the ongoing subprime mortgage crisis.On September 6, 2008,...
of the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association to have been nationalization. The conservatorshipConservatorshipConservatorship is a legal concept in the United States of America, where an entity or organization is subjected to the legal control of an external entity or organization, known as a conservator. Conservatorship is established either by court order or via a statutory or regulatory authority...
model used with Fannie Mae and Freddie Mac is looser and more temporary than nationalization. - 2009: Some economists consider the U.S. government's actions with regards to CitigroupCitigroupCitigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
to have been a partial nationalization. Proposal was made that banks like CitigroupCitigroupCitigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
be brought under a conservatorshipConservatorshipConservatorship is a legal concept in the United States of America, where an entity or organization is subjected to the legal control of an external entity or organization, known as a conservator. Conservatorship is established either by court order or via a statutory or regulatory authority...
model similar to Fannie Mae and Freddie Mac, that some of their "good assets" be dropped into newly created "good bank" subsidiaries (presumably under new management), and the remaining "bad assets" be left to be managed under the supervision of a conservatorshipConservatorshipConservatorship is a legal concept in the United States of America, where an entity or organization is subjected to the legal control of an external entity or organization, known as a conservator. Conservatorship is established either by court order or via a statutory or regulatory authority...
structure. The U.S. government's actions with regard to General MotorsGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
in replacing the CEO with a government approved CEO is likewise being considered as nationalization. On June 1, 2009, General Motors filed for bankruptcy, with the United States investing up to $50 billion and taking 60% ownership in the company. President Obama stated that the nationalization was temporary, saying, "We are acting as reluctant shareholders because that is the only way to help GM succeed"
Venezuela
- 2007 On May 1, 2007, VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
stripped the world's biggest oil companies of operational control over massive Orinoco BeltOrinoco BeltThe Orinoco Belt is a territory which occupies the southern strip of the eastern Orinoco River Basin in Venezuela. Its local Spanish name is Faja Petrolífera del Orinoco ....
crude projects, a controversial component in President Hugo ChavezHugo ChávezHugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
's nationalization drive. - 2008 On April 3, 2008, President Hugo Chavez ordered the nationalization of the cement industry.
- 2008 On April 9, 2008, Hugo Chavez ordered the nationalization of Venezuelan steel millSteel millA steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
Sidor, in which LuxembourgLuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
-based TerniumTerniumTernium is a manufacturer of flat and long steel products with production centers in Argentina, Mexico, Guatemala, Colombia and the United States...
currently holds a 60% stake. Sidor employees and the Government hold a 20% stake respectively. - 2008 On August 19, 2008, Hugo Chavez ordered the take-over of a cement plant owned and operated by CemexCemexCEMEX is the world's largest building materials supplier and third largest cement producer. Founded in Mexico in 1906, the company is based in Monterrey, Mexico...
, an international cement producer. While shares of Cemex fell on the New York Stock ExchangeNew York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, the cement plant comprises only about 5% of the company's business, and is not expected to adversely affect the company's ability to produce in other markets. Chavez has been looking to nationalize the concrete and steel industries of his country to meet home building and infrastructure goals. - 2009 On February 28, 2009, Hugo ChavezHugo ChávezHugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
ordered the army to take over all rice processing and packaging plants. - 2010 On January 20, 2010, Hugo ChavezHugo ChávezHugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
signed an ordinance to nationalize six supermarkets in Venezuela under the system of retail stores of a FrenchFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
company because of increasing price and speculation hoarding illicit. - 2010 On June 24, 2010, Venezuela announced the intention to nationalize oil drilling rigs belonging to the U.S. company Helmerich & Payne.
- 2010 On October 25, 2010, Chavez announced that the government was nationalizing two U.S.-owned Owens-Illinois glass-manufacturing plants.
- 2010 On October 31, 2010, Venezuelan President Hugo Chavez said his government will take over the Sidetur steel manufacturing plant. Sidetur is owned by Vivencia, which had two mineral plants appropriated by the government in 2008.
Zimbabwe
- ZimbabweZimbabweZimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
has nationalized its food distribution infrastructure. - Zimbabwe CricketZimbabwe CricketZimbabwe Cricket is the governing body for the sport of cricket in Zimbabwe. Zimbabwe Cricket is a full member of the International Cricket Council, and operates the Zimbabwean cricket team, organising Test tours, One Day Internationals and Twenty20 Internationals with other nations...
formerly the Zimbabwe Cricket Union was nationalised in 2004
Other countries
- Nationalization of the oil industry in numerous countries, including LibyaLibyaLibya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
, KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, NigeriaNigeriaNigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
, Saudi ArabiaSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, and VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
.
See also
- Compulsory purchase
- Constitutional economicsConstitutional economicsConstitutional economics is a research program in economics and constitutionalism that has been described as extending beyond the definition of 'the economic analysis of constitutional law' in explaining the choice "of alternative sets of legal-institutional-constitutional rules that constrain the...
- Eminent domainEminent domainEminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...
- ConfiscationConfiscationConfiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...
- Government agencyGovernment agencyA government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...
- Planned economyPlanned economyA planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
- PrivatizationPrivatizationPrivatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
- the reverse process - Public ownership
- Railway nationalizationRailway nationalizationRailway nationalization refers to the act of nationalizing rail transport assets, taking them into public ownership. Several countries have nationalized part or all of their railway system at different times....
- ReprivatizationReprivatizationReprivatization refers to the process of restoring to its former owners properties seized by a government, or to the process of compensating previously uncompensated former owners. This is often a component of larger privatization schemes...
- SequestrationSequestration (law)Sequestration is the act of removing, separating, or seizing anything from the possession of its owner under process of law for the benefit of creditors or the state.-Etymology:...
- State capitalismState capitalismThe term State capitalism has various meanings, but is usually described as commercial economic activity undertaken by the state with management of the productive forces in a capitalist manner, even if the state is nominally socialist. State capitalism is usually characterized by the dominance or...
- State-owned enterprise
- State sector
- Socialization (economics)Socialization (economics)In economic discourse, socialization has several different but related connotations. In socialist economics, the term usually refers to the process whereby production is reorganized away from producing for private profit to producing goods and services directly for use, along with the end of the...
- the process of making cooperative in management or ownership
On banks nationalization
- Dougherty, Carter, Stopping a Financial Crisis, the Swedish Way, The New York Times," September 23, 2008.
- Hilferding, RudolfRudolf HilferdingRudolf Hilferding was an Austrian-born Marxist economist, leading socialist theorist, politician and chief theoretician for the Social Democratic Party of Germany during the Weimar Republic, almost universally recognized as the SPD's foremost theoretician of his century, and a...
(1981) Finance Capital: A Study of the Latest Phase of Capitalist Development (London: Routledge & Kegan Paul), p. 234. ISBN 0710006187, 9780710006189
- La Porta, RafaelRafael La PortaRafael La Porta is the Nobel Foundation Professor of Finance at the Tuck School of Business at Dartmouth College. La Porta received his A.B. in economics at Universidad Catolica de Buenos Aries in Argentina and his A.M. and Ph.D. in economics at Harvard University in Cambridge, MA. La Porta served...
, Florencio Lopez-de-Silanes, Andrei Shleifer, Government Ownership of Banks, The Journal of Finance, vol. 57, No. 1 (Feb. 2002), 265-301.
- La Botz, DanDan La BotzDaniel H. La Botz is a prominent American labor union activist, academic, journalist, and author. He was a co-founder of Teamsters for a Democratic Union and has written extensively on worker rights in the United States and Mexico...
(2008) The Financial Crisis: Will the U.S. Nationalize the Banks? Monthly ReviewMonthly ReviewMonthly Review is an independent Marxist journal published 11 times per year in New York City.-History:The publication was founded by Harvard University economics instructor Paul Sweezy, who became the first editor...
28 September 2008
- Lohr, Steve, From Japan's Slump in 1990s, Lessons for U.S., The New York Times, February 9, 2008.
- Maxfield, Sylvia, The International Political Economy of Bank Nationalization: Mexico in Comparative Perspective, Latin American Research Review, Vol. 27, No. 1 (1992), pp. 75–103.
- Myers, Margaret G., The Nationalization of Banks in France, Political Science QuarterlyPolitical Science QuarterlyPolitical Science Quarterly is an American scholarly journal covering government, politics and policy, published continuously since 1886 by the Academy of Political Science. It is the oldest political science journal in the United States....
, Vol. 64, No. 2 (June
External links
- The importance of public banking - article on Indian public sector banks
- Time for Permanent Nationalization by economist Fred Moseley in Dollars & SenseDollars & SenseDollars & Sense is a magazine dedicated to providing left-wing perspectives on economics.Published six times a year since 1974, it is edited by a collective of economists, journalists, and activists committed to the ideals of social justice and economic democracy.It was initially sponsored by the...
magazine, January/February 2009 - The Corporate Governance of Banks - a concise discussion of concepts and evidence