Nationalization is the transfer of privately owned assets, companies, or industries into government ownership or control, typically through legislation, regulation, or executive action. This process may occur with compensation, partial compensation, or no compensation at all, and is often justified on the grounds of public interest, economic stability, national security, or social equity.
In practice, nationalization shifts decision-making, risk, and profit from private owners to the state. While proponents argue it can protect essential industries or ensure broader access to goods and services, critics contend it undermines property rights, distorts market incentives, discourages private investment, and often leads to inefficiency, capital flight, and reduced innovation.
Common examples include the nationalization of banks during financial crises, utilities or energy companies in resource-rich countries, and transportation or healthcare systems under centralized economic models.
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