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Nationalization- transfer to state ownership of land, industrial enterprises, banks, transport or other property owned by private individuals. Nationalization can be carried out through gratuitous expropriation - confiscation, as well as through full or partial redemption - requisition.

In the Russian Federation, according to Art. 235 of the Civil Code of the Russian Federation, nationalization must be carried out in the manner established by federal law. Since such a law has not currently been adopted, nationalization cannot be carried out in Russia. However, in practice this applies only to gratuitous nationalization. Full or partial purchase by the state is quite possible on the basis of ordinary purchase/sale agreements.

A number of reference publications (for example, the Newest Encyclopedic Dictionary. ISBN 978-5-271-08330-3) also indicate that the differences in nationalization depend on what historical era, by whom and in the interests of which classes it was carried out.

Nationalization in history

• Nationalization of large industries, real estate and banks in Soviet Russia as a result of the Bolsheviks coming to power.
• Nationalization of oil production in Mexico in 1938 by the government of Lazaro Cardenas
• Nationalization of a number of industries in Great Britain by the government of Clement Attlee in the 1940s
• Nationalization of the Suez Canal by the Egyptian government in (see Suez Crisis)
• Nationalization of American enterprises in Cuba in 1959-1960
• Nationalization of mining in Chile in the 1970s (under President Salvador Allende)
• Nationalization of oil production in Venezuela in 1976
• Nationalization of mortgage corporations Fanni Mae and Freddie Mac by the US Treasury Department in 2008.

Modern Russian interpretation

New definition of nationalization - velvet reprivatization- was first used by the head of Financegroup Oleg Shvartsman in an interview with the Kommersant newspaper. In an article entitled “For us, the party is personified by the power bloc headed by Igor Ivanovich Sechin,” he said that under the guise of the government administration there is a structure whose goal is to seize profitable enterprises from their owners by legal or other means.

see also

• Secularization is the nationalization of church property.

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Notes

Literature

• Blumin I. G. Capitalist nationalization of industry in the interests of monopoly capital // Criticism of bourgeois political economy: In 3 volumes. - M.: Publishing House of the USSR Academy of Sciences, 1962. - T. II. Criticism of modern English and American political economy. - pp. 137-145. - 519 p. - 3,200 copies.

Excerpt characterizing Nationalization

Soon after Christmas, Nikolai announced to his mother his love for Sonya and his firm decision to marry her. The Countess, who had long noticed what was happening between Sonya and Nikolai and was expecting this explanation, silently listened to his words and told her son that he could marry whomever he wanted; but that neither she nor his father would give him his blessing for such a marriage. For the first time, Nikolai felt that his mother was unhappy with him, that despite all her love for him, she would not give in to him. She, coldly and without looking at her son, sent for her husband; and when he arrived, the countess wanted to briefly and coldly tell him what was the matter in the presence of Nikolai, but she could not resist: she cried tears of frustration and left the room. The old count began to hesitantly admonish Nicholas and ask him to abandon his intention. Nikolai replied that he could not change his word, and the father, sighing and obviously embarrassed, very soon interrupted his speech and went to the countess. In all his clashes with his son, the count was never left with the consciousness of his guilt towards him for the breakdown of affairs, and therefore he could not be angry with his son for refusing to marry a rich bride and for choosing the dowryless Sonya - only in this case did he more vividly remember what, if things weren’t upset, it would be impossible to wish for a better wife for Nikolai than Sonya; and that only he and his Mitenka and his irresistible habits are to blame for the disorder of affairs.
The father and mother no longer spoke about this matter with their son; but a few days after this, the countess called Sonya to her and with cruelty that neither one nor the other expected, the countess reproached her niece for luring her son and for ingratitude. Sonya, silently with downcast eyes, listened to the countess’s cruel words and did not understand what was required of her. She was ready to sacrifice everything for her benefactors. The thought of self-sacrifice was her favorite thought; but in this case she could not understand to whom and what she needed to sacrifice. She could not help but love the Countess and the entire Rostov family, but she also could not help but love Nikolai and not know that his happiness depended on this love. She was silent and sad and did not answer. Nikolai, as it seemed to him, could not bear this situation any longer and went to explain himself to his mother. Nikolai either begged his mother to forgive him and Sonya and agree to their marriage, or threatened his mother that if Sonya was persecuted, he would immediately marry her secretly.
The countess, with a coldness that her son had never seen, answered him that he was of age, that Prince Andrei was marrying without his father’s consent, and that he could do the same, but that she would never recognize this intriguer as her daughter.

Nationalization is the transfer of property into state ownership. It is the reverse process of privatization. In historical retrospect, there was both paid and unpaid privatization.

• nationalization of land, real estate, production facilities and financial institutions in Soviet Russia by the Bolshevik government;
• nationalization of oil companies in Mexico (1938) and Venezuela (1976);
• nationalization of the Suez Canal by Egyptian authorities (1956);
• nationalization of large mortgage corporations by the US Treasury (2008).

Nationalization can mediate:

• redemption of property under a civil contract;
• expropriation - forced alienation, which can be:

Gratuitous();

Paid().

Nationalization in Russia

The Civil Code mentions nationalization in the context of grounds for the forced termination of private property rights. It has been established that nationalization is the conversion into state ownership of property owned by private individuals. The nationalization mechanism must be prescribed by a federal regulatory act at the level of law.

If an order terminating the property comes into force, the state undertakes to compensate the former owner for the real value of the property previously owned by him and other losses. The resolution of disputes in this regard is within the jurisdiction of the courts. Nationalization and other legal methods of seizure of property in favor of the state in Russia

• paid seizure of a land plot for state needs (for example, for laying a road, constructing social facilities);
• requisition – paid seizure of property that the state or municipality needed in emergency circumstances (for example, accident, epidemic, natural disaster);
• confiscation – gratuitous seizure of customs confiscated goods; object or instrument of an administrative tort; property of persons who have committed certain types of acquisitive crimes.

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Nationalization concept

The modern mixed economic system presupposes a multi-structured economy and a combination of different forms of ownership in the economic complex. In this case, the state takes an active part in regulating production and public life. To achieve this, the state uses a whole arsenal of political and economic instruments.

One of these instruments is nationalization. It can be used for both political and economic purposes. For political purposes, nationalization was carried out in Russia by the Soviet government after the October Revolution. Currently, nationalization in many developed countries pursues economic goals.

Definition 1

Nationalization is the transfer into state ownership of enterprises and banks, lands, infrastructure and other property that previously belonged to private individuals.

In world practice, two options for nationalization are used: confiscation and requisition.

Definition 2

Confiscation is the gratuitous transfer of an object into state ownership (expropriation).

Definition 3

Requisition is the transfer of an object into state ownership through the payment of a full or partial ransom.

Both nationalization mechanisms are regulated by state legislation. Requisition is possible on the basis of ordinary sales and purchase agreements. At all times, nationalization was carried out in accordance with the interests of the ruling classes of the state.

The basis of the legal framework for nationalization is, in addition to national legislation (in Russia this is federal law dated December 31, 2014 No. 499-FZ “On Nationalization” and Article 235 of the Civil Code of the Russian Federation) the European Convention on Human Rights, which was adopted by the Council of Europe. According to the provisions of this convention, the state has the right to deprive any person of his property in the interests of society, taking into account all the features and procedures provided for by law.

The issue of forced alienation of property into state ownership during the nationalization process can be resolved on the basis of the following legal acts:

• a law that defines the purpose, basis and algorithm for carrying out the process of nationalization of a specific object (property);
• a special law on the nationalization of property at the national level.

Goals of nationalization

When making a decision on nationalization, it is necessary to make additions and changes to the expenditure side of the budget. When making such a decision, the state leadership pursues the following goals:

• preserve industries and facilities that are strategically important for the security of the state, in which private capital is not invested due to high capital intensity, significant financial risks and long payback periods;
• remove from foreign control objects that ensure the economic and political sovereignty of the state and include them in the public sector;
• ensure the implementation of measures for the environmental safety of the state;
• protect consumers from possible abuses under conditions of natural private monopoly;
• carry out structural restructuring of the national economic complex (if this cannot be accomplished under conditions of private ownership);
• stop the illegal withdrawal of funds and profits from the country;
• establish control in case of emergency situations (extreme) over the use of financial resources;
• ensure the implementation of basic socio-economic government plans and projects.

Several circumstances may serve as grounds for nationalization. One of the most compelling arguments is maintaining national economic and political security. It is for this purpose that strategically important facilities and industries are nationalized. Environmental safety issues are also closely related to this problem. It is not profitable for private capital to make additional investments without making a quick profit. And providing public goods requires significant costs. Therefore, nationalization is one of the most optimal solutions.

The next group of reasons for nationalization are purely economic factors. If enterprises in the production and social spheres, which are extremely necessary for society, are on the verge of bankruptcy, then such enterprises are nationalized. Enterprises that, for a number of reasons, may turn out to be natural monopolies in the market for certain goods and services are subject to nationalization. If the repurposing of an enterprise runs counter to the interests of society or if its owners try to illegally transfer profits and assets abroad, then such objects are also subject to nationalization.

Objects that should initially belong to the state are nationalized. This is especially true for objects in the country owned by representatives of foreign capital. Those enterprises that were previously privatized and are now subject to return to state ownership may be nationalized.

Conditions for nationalization

Nationalization can be carried out under various conditions. All of them are determined by state legislative acts. World practice knows the following conditions for the application of nationalization:

• as a punitive measure, without compensation (in France, objects that belonged to people who collaborated with the Nazis were nationalized);
• with compensation for the full cost of the object and losses in the process of nationalization (nationalization of objects during economic reform in India in the middle of the twentieth century);
• with compensation of partial cost of objects (legitimate interests of society require payment of compensation below market value on the basis of the Human Rights Convention).

There are several forms of compensation for costs and damages. This may be a monetary form of payment. With the consent of the parties, the owner of the property may be provided with government bonds for a certain period. In addition, tax benefits can be applied both on a temporary and permanent basis. The form, amount and terms of payment of compensation are regulated by relevant national legislation.

A nationalized enterprise in Russia is placed at the disposal of the state administration of the enterprise with the rights of economic management. In a number of foreign countries, a nationalized enterprise can be declared state-owned (state budget) and placed under the management of the relevant department. It will be financed from the state budget.

The practice of transferring an object to a public corporation is also used abroad. It can be very close to a private company. But it is accountable to the government, although it has significant legal and economic autonomy. It is also possible for both the state and private individuals to participate in the management of the facility.

Nationalization

(Nationalization)

Nationalization is the transfer into state ownership of property owned by private individuals or joint-stock companies

Nationalization of banks, methods of nationalization, forms of nationalization, nationalization of land, industry and transport

Nationalization is the alienation of property from private individuals into state ownership

Nationalization is transfer to state ownership of land, industrial enterprises, banks, transport or other property owned by private individuals or joint-stock companies. Can be carried out through gratuitous expropriation, full or partial redemption.

Nationalization- This alienation of property from private individuals into ownership states carried out on the basis of a special act of the competent state body. Affects mainly sectors and production that require large and long-term investments, or those most affected by the global crisis and which have become unprofitable, enterprises which are under threat of closure. Towards wider practice Nationalization individual industries or industries industries have resorted to many European states after the Second World War; this measure is still used today. defines the procedure for nationalization as a measure carried out in the public interest with payment of compensation to the owner of the nationalized property

For the period from 1917 to 1975 the total size income foreign oil corporations V Republic of Venezuela exceeded $200 billion, while the state received only about $45 billion.

History of economic development. The gross domestic product (GDP) of the Republic of Venezuela - the totality of goods and services produced in the country - amounted to approximately $131.7 billion in 2002, and the average profit per capita was the highest in Latin America. Such a dramatic transformation of the country is explained by one reason - the high level of extraction of earthen oil.

From the early 1920s to the late 1960s, the oil industry experienced rapid growth. provided more than 90% of the revenues of the Republic of Venezuela from exports and 60% of government revenues, accounting for almost 25% GDP; exactly black gold explains the large volume of foreign investment. and the various royalties paid by the oil industry allowed for an extensive public works program and the provision of loans to many private entrepreneurs. Foreign exchange earnings from exporting black gold allow you to purchase abroad not only consumer goods goods, but also goods production purposes in sufficient quantities, which contributes to the rapid growth of production.

After the fall of the Jimenez dictatorship in 1958, the government set a course for more balanced economic development. Increases were made for education, investment in the manufacturing industry was encouraged, and part of the funds were directed to the development of the internal regions of the country. Between 1958 and 1970, the economic growth rate was 6.1% per year. From 1961 to 1971, the number of people employed in manufacturing and trade doubled.

In 1959, the government of the Republic of Venezuela increased income tax oil companies from 26% to 45%, and by the early 1970s - to 50% and above. The procedure for determining prices for oil began to change after OPEC was formed in 1960, of which the republic became one of the founders.

In 1976 at the president Carlos Perez, the oil industry of the Republic of Venezuela was nationalized, but the Republic of Venezuela was unable to effectively use the created opportunities and increased revenues from exporting black gold to increase its own oil production potential, develop the manufacturing industry, create a diversified economy, and reduce the dependence of the economy of the Republic of Venezuela on black gold.

The state oil organization Petroleos de Republic Venezuela SA (PDVSA) worked extremely inefficiently, spending significant funds on expensive and ambitious projects and salaries for high-ranking employees. Despite high oil prices, external .

In the late 1980s, a sharp decline in oil prices on the world market led to economic collapse. In 1989 the president Carlos Perez, newly elected to this post, began implementing a program of economic stabilization and structural adjustment, developed at the initiative of the IMF, but his shock therapy caused massive popular discontent, and Perez was removed from power.

The lack of domestic resources for the development of the oil industry forced President Rafael Caldera to reopen it to foreign consortia, which began exploring and developing deposits of light and medium black gold on production sharing terms.

In 1973-1974 world oil prices market, and consequently, the income of the Republic of Venezuela from the export of black gold increased by 400%. This gave the government the means to implement far-reaching plans, including the development of agriculture, hydroelectric power and new heavy industries, especially metallurgy; the construction of industrial enterprises was planned in the eastern part of the Republic of Venezuela - in Ciudad Guayana and other cities. The economic growth rate in 1970-1977 was 5.7% per year. After 1977, the economy stagnated. In 1986 volume GDP Republic of Venezuela was even lower than in 1977. A decrease in GDP compared to the previous year was recorded in 1989 and again in 1994. During the period from 1965 to 1979, GDP grew by 93%, but from 1979 to 1995 the increase was only 25%. In an attempt to stabilize the economy, successive governments took measures to strengthen the market sector in the economy. In 1989, the Perez administration adopted a program of austerity and spending cuts, which led to unrest and outbreaks of violence. In 1994 and 1995, the Caldera government followed a more liberal program (partly populist in nature) proclaimed during the election campaign, but in 1996 it adopted a neoliberal program that included new loan agreements with the International Monetary Fund and structural restructuring of the economy.

With the coming to power of Hugo Chavez (1999), it was adopted, implying a strengthening of the role of the State and an increase in taxation in the oil sector (2002). The State's share in oil exploration and extraction of earthen oil was set at no lower than 51%. The fee for Bosom— royalties. PDVSA staff, dissatisfied with the reforms, began to go on strike, but in a struggle with the strikers that lasted almost two years, Chavez managed to win: at the beginning of 2003, about 18,000 employees of the Firm (that is, almost half of the staff) were fired. Chavez managed to completely put the activities of the Firm under his own control.

What is Nationalization

Nationalization - This the process of transferring to the government total or partial control of a company, bank, or industry that was privately owned.

Depending on the situation, the state may compensate the owners for part or the full cost of the nationalized property. But this is not a rule; sometimes there are cases when property comes under the control of the state without any payments to the owners.

Why is nationalization happening?

There can be many reasons why the state decides to capitalize a particular area. In some cases, the government takes such measures in order to “protect” the state economy. This occurs in cases where a certain strategic area, under the control of private individuals, begins to dominate its sector, which significantly affects the economic processes in the country.

In other cases, this may occur for the security of the state itself. For example, after September 11, 2001, George W. Bush decided to nationalize the airport security industry in order to improve the quality of security. But it is worth understanding that this measure is a forced and not a common practice.

It should be noted that processes such as nationalization are common mainly in developing or downright depressed countries. whose government and economy are weak and unstable.

History knows of cases when the nationalization of certain industries saved them from bankruptcy, but these are rather exceptions that occurred in developed countries.

In developed countries, this phenomenon occurs as an exception, and only in a situation of emergency or war.

Negative impact of nationalization.

In the world of a free market economy, nationalization creates huge risks for business development among investors. This is explained by the fact that an enterprise built by a foreign investor may be nationalized by decision of the government of that country, and the investor will suffer partial losses or be left with nothing.