Nationalisation

Nationalisation is the process by which a government takes public ownership or control of a private sector asset, company, or entire industry. It often involves transferring ownership to the state or to a state-owned enterprise. In many jurisdictions, nationalisation is accompanied by compensation to private owners, though the availability and level of compensation vary and may be disputed in some cases.

Rationale for nationalisation typically includes securing essential services for the public, countering market failures in natural monopolies, ensuring universal access, stabilising prices, and directing investment toward strategic objectives or social goals. Nationalisation may also be used to protect natural resources or recover rents from key industries.

Methods range from full takeover of a company and its assets to acquisition of controlling shares, the creation or expansion of a state-owned enterprise, or sector-wide regulation and public provision of services. Compensations, legislative authority, and governance arrangements such as boards and independent regulators are common elements.

Outcomes of nationalisation are contested and depend on governance, funding, and policy design. Proponents point to broader access, lower prices, and coordinated long-term investment, while opponents warn of inefficiency, reduced competition, political interference, and fiscal costs. Mixed results have emerged in different countries and sectors.

Historical examples include the United Kingdom after World War II, when coal, railways, gas, and electricity were nationalised; Mexico's nationalisation of its oil industry in 1938 and the creation of Pemex; and various Latin American and European cases in different periods. In recent decades many countries have pursued privatisation or mixed arrangements rather than full nationalisation.