Nationalization

Nationalization is the act of taking an industry or assets into the public ownership of a national government. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities. The opposite of nationalization is usually privatization or de-nationalisation, but may also be municipalization.

The motives for nationalization are political as well as economic. Since the nationalised industries are state owned, the government is responsible for meeting any debts incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing.