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A decree of the French Revolution, assigning a convent to the army

Nationalization (British English spelling nationalisation) is the process of taking an industry or assets into government ownership by a national government or state.^[1] 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 and 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.^{[citation needed]}

Nationalization was one of the major strategies advocated by socialists for transitioning from capitalism to socialism. Socialist ideologies that favor nationalization are typically called state socialism. In this context, the goals of nationalization were to dispossess large capitalists and redirect the profits of industry to the public purse, as a precursor to the long-term goals of establishing worker-management and reorganizing production toward use.^[2]

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 debts 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, in 1945 the French government seized the car-makers Renault because its owners had collaborated with the Nazi occupiers of France.^[3]

Compensation[link]

A key issue in nationalization is payment of compensation to the former owner. The most controversial nationalizations, known as expropriations, 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 revolutions, 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 states 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 the US, the Fifth Amendment requires just compensation if private property is taken for public use.

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.

Notable nationalizations by country[link]

Argentina[link]

• 1918 University Revolution and university nationalization
• 1946 Central Bank of Argentina
• 1946 Natural gas (privatized in 1992)
• 1947 Telephone network (privatized in 1990)
• 1947 Radio networks (privatized between 1980 and 1993)
• 1948 Railways (privatized between 1991 and 1999)
• 1949 Petroleum (the state oil concern, YPF, had been established in 1922; mineral resources were nationalized with Article 40 of the 1949 Constitution; the latter was abrogated in 1956, but oil was renationalized in 1958 and private firms operated afterward via leases)
• 1949 Port administration (privatized in 1992)
• 1949 Merchant marine (privatized in 1991)
• 1952 Buenos Aires Metro
• 1958 Electric utilities (privatized in 1992)
• 1974 Television networks (privatized between 1982 and 1998)
• 1980 Austral Líneas Aéreas (privatized in 1985, renationalized in 2009)
• 2003 Postal service renationalized (state-owned between 1949 and 1997)
• 2006 AySA, the water utility serving Buenos Aires (its state-owned precursor, OSN, was established in 1912 and privatized in 1993)
• 2008 Pension funds (transferred to ANSES)
• 2009 Aerolíneas Argentinas renationalized (state-owned between 1949 and 1990)
• 2012 YPF renationalized (state-owned between 1922 and 1993)

Australia[link]

• 1948 The Australian government attempted to nationalize the banks, but the act was declared unconstitutional by the High Court of Australia in the case Bank of New South Wales v Commonwealth.^[4]

Bolivia[link]

• 2006 On May 1, 2006, newly elected Bolivian president Evo Morales announced plans to nationalize the country's natural gas industry; foreign-based companies were given six months to renegotiate their existing contracts.
• 2008 On May 1, 2008, the nationalization of Bolivia's leading telecommunications company Entel was completed, previously having been owned by Telecom Italia.^[5]
• 2010 On May 1, 2010, the government nationalized the country's main hydroelectric plant, thereby assuming control over most of Bolivia's electrical generation and end-user sales.^[5]
• 2012 On May 1, 2012, the Morales government nationalized power grid operator Transportadora de Electricidad (TDE), until then 99.94% owned by Red Eléctrica de España. TDE owns and runs 73% of the power lines in Bolivia.^[5]

Canada[link]

• 1918 Canadian National Railways, created from several systems nationwide following their bankruptcy during and after World War I, and since privatized in 1995. (Air Canada, Canadian Broadcasting Corporation, Marine Atlantic and Via Rail (still government-owned) were all subsidiaries of the company at one time)
• 1944 Hydro-Québec, first created through partial nationalization of electricity concerns around Montreal in Quebec by the Liberal government of Adélard Godbout. During the Quiet Revolution of the early 1960s, the remaining 11 privately owned electricity companies in Quebec were nationalized by the Liberal government of Jean Lesage.
• 1975 Potash Corporation of Saskatchewan, Province of Saskatchewan nationalized part of the potash industry. Many potash producers agreed to sell to the government instead of being nationalized.

Channel Islands[link]

• 2003 Aurigny Air Services was bought by the States of Guernsey to keep precious routes from the island to London.

Chile[link]

• 1972 Chilean nationalization of copper mining industry by the government of Salvador Allende.

Croatia[link]

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[link]

The Castro government gradually expropriated all foreign-owned private companies after the Cuban Revolution 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.^[6] Only a minor amount, $1.3 million, was paid to U.S. interests before deteriorating relations ended all cooperation between the two governments.^[6] 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[link]

• 1945 Large manufacturing enterprises.
• 1948 All manufacturing enterprises.

Egypt[link]

• 1956 On July 26, 1956 Egyptian President Gamal Abdel Nasser nationalized the Suez Canal Company.

France[link]

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 Telecom 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.^[7] A second wave followed in 1982.

• 1938 Societe Nationale des Chemins de Fer Francais (SNCF) (originally a 51% State holding, increased to 100% in 1982)^[7]
• 1945 Several nationalizations in France, including most important banks and Renault.^[7] The firm was seized for Louis Renault's alleged collaboration with Nazi Germany, 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 France, Electricite de France (EdF), Gaz de France (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 Mitterrand and the PS-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[link]

The German railways were nationalised after World War I. Partial privatisation of Deutsche Bahn 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.

• 2008 Renationalization of the "Bundesdruckerei" (Federal Print Office), which had been privatized in 2001.

Greece[link]

• 1974 Nationalization of Olympic Airlines, main airline of Greece. The company was bought out by its founder, Aristotle Onassis.
• 2011 Proton Bank is effectively nationalized in the midst of the Greek financial crisis

Iceland[link]

• 2008 Renationalization of Iceland's largest commercial banks: Kaupþing, Landsbanki, Glitnir and Icebank.
• 2009 Nationalization of Straumur Investment Bank and the savings bank SPRON.

India[link]

The nationalised banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.^[8][9]

• 1949 (1 January) Reserve Bank of India nationalised (Ref.- Reserve Bank of India chronology of events). The Reserve Bank of India was state-owned at the time of Indian independence.
• 1953 Air India under the Air Corporations Act 1953.
• 1955 Imperial Bank of India and its subsidiaries (State Bank of India 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[link]

• 1953 Iranian Prime Minister Mohammed Mossadegh nationalized the Anglo-Persian Oil Company in Iran.

Ireland[link]

Railways in the Republic of Ireland were nationalised in the 1940s as Coras Iompair Eireann.

• 2007 On August 3, 2007, the Irish government were offered a stake in Eircom's copper network infrastructure.^[10] Ireland's telephone networks were privatised in 1999.
• 2009 On January 16, 2009, the Irish Government nationalised Anglo Irish Bank to secure the bank's viability.^[11]
• 2010 Irish state owned bank Anglo Irish Bank is to take majority control of one of Ireland's largest companies QUINN group bringing it under Public ownership.^[12]

Israel[link]

• 1983 Nationalization of the major Israeli banks: Bank Hapoalim, Bank Leumi, Discount Bank, Mezrachi Bank due to the Bank stock crisis that struck Israel in 1983.

Italy[link]

• 1905 The Italian railways were nationalised as Ferrovie dello Stato.

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.

Japan[link]

• 1906 Railway Nationalization Act of Japan nationalized 17 railway companies to form the nationwide railway network that was later called Japanese National Railways.

Lithuania[link]

In 2011 Snoras bank was nationalized by Lithuanian government.

Latvia[link]

In 2008 Parex Bank was nationalized by Latvian government.

Malta[link]

• 1974 Bank of Valletta is founded following nationalisation of the National Bank of Malta

Mexico[link]

• 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.^[13]
• 1982 The nationalization of the Mexican banking system made by President José López Portillo, later in the Carlos Salinas de Gortari presidency (1988–1994) a large number of banks were privatized.

The Netherlands[link]

• 2008 The Dutch State nationalizes the Dutch activities of Belgian-Dutch banking and insurance company Fortis, which had come in solvability problems due to the international financial crisis.

New Zealand[link]

• 2001 Central government purchased the Auckland railway network from Tranz Rail.
• 2003 The Labour Government of New Zealand took an 80% stake in near-bankrupt national air carrier Air New Zealand 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, ONTRACK, was established to maintain the rail infrastructure.
• 2008 The rolling stock of Toll New Zealand was purchased by central government, bringing the rail system under total state ownership and renamed KiwiRail.

Pakistan[link]

• 1972 On January 2, 1972, Zulfiqar Ali Bhutto, after the fall of East Pakistan, 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. ^[14]

Philippines[link]

During the administration of Ferdinand Marcos, 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.

Poland[link]

• 1946 Following World War II the People's Republic of Poland nationalized all enterprises with over 50 employees.

Portugal[link]

• 1974 In the years following the Carnation Revolution, the Junta de Salvação Nacional and Provisional Governments nationalized all the banking, insurance, petrol and industrial companies. Among those companies were Companhia União Fabril (CUF), the assets of the Champalimaud family and SONAE. 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 sector, 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.^[15][16]

• 2008: BPN - Banco Português de Negócios bank nationalised to prevent its collapse.

Romania[link]

• 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 economy to a planned economy.
• 1950 With the Decree 92 of April 19, 1950, a huge number of private houses and lands are confiscated.

Russia[link]

• 1998 The Yeltsin government began seizing Gazprom 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 privatization. However, the stake of the Russian Government in Gazprom has since been increased to 50% with Vladimir Putin's plan to increase the stake to a controlling position. Gazprom is also buying up both Russian and other international utility companies.

South Korea[link]

• 1946 USAMGIK nationalized all South Korean private railroad companies and made Department of Transportation. This now becomes Korail.

Soviet Union[link]

• 1918 All manufacturing enterprises, many retailing enterprises, any private enterprises, the whole bank system, agrarian sector, others. Later the government of Lenin introduced the New Economic Policy that shifted the country somewhat towards market economics until the end of the revolutionary period and Stalin's acquisition of power.

Spain[link]

• 1941 Spain's railways were nationalised, as RENFE, in the aftermath of the Spanish Civil War.
• 1983 Nationalization without compensation of the Spanish Rumasa. Separate business were later privatized.

Sri Lanka[link]

• 1958 The Government nationalised Bus transport (creating the Ceylon Transport Board). The Colombo Port was also nationalised the same year.
• 1961 The local subsidiaries of the foreign owned petroleum companies, Caltex, Esso and Shell had formed a cartel, to break which they were nationalised. The Insurance companies and the Bank of Ceylon were also nationalised in the same year.
• 1971 Graphite mines nationalised.
• 1972 Locally owned Tea and Rubber plantations were nationalised under the Land Reform law.
• 1975 Sterling plantation companies (owned by British plantation companies) were nationalised.
• 2009 Seylan Bank 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".^[17]

Sweden[link]

• 1939-1948 Nationalisation of most of the private Railway companies.
• 1957 The mining company LKAB is nationalized. The state had owned 50% of the corporation's shares, with options to buy the remainder, since 1907.^[18]
• 1992 A large part of Sweden's banking sector is nationalized.^[19]

United Kingdom[link]

The following companies/industries were the subject of nationalisation in the given year:

• 1868 Nationalisation of inland telegraphs under the GPO^[20]
• 1875 Suez Canal Company - The Egyptian share in the company was bought out by the British Government.
• 1912 Nationalisation of inland telephone services under the GPO, apart from Portsmouth, Hull, Guernsey, and Jersey. The Portsmouth telephone service was nationalised the following year.
• 1916 Liquor Trade - The nationalisation of pubs and breweries in Carlisle, Gretna, Cromarty and Enfield under the State Management Scheme; mainly an attempt to restricting alcohol consumption by armaments factory workers. The scheme was privatised by asset transfer in 1973.^[21]
• 1926 Central Electricity Board 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 Company (a privately owned company) became British Broadcasting Corporation (BBC), a public corporation operating under a Royal Charter.
• 1933 London Transport
• 1938 Nationalisation of UK Coal Royalties under the Coal Commission^[22]
• 1939 British Overseas Airways Corporation (BOAC) later to become British Airways (BA) - combining the private British Airways Ltd. and the state owned Imperial Airways
• 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); Bank of England - the latter had had private shareholders who were bought out by the state.
• 1947 Central Electricity Generating Board and area electricity boards, Cable & Wireless 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 & Son under the British Transport Commission. Separate elements operated as British Railways, British Road Services, and British Waterways, also national health services created (as England and Wales, for Scotland and for Northern Ireland) taking over a mixture of previously local authority, private commercial and charitable organisations.
• 1949 Local authority gas supply undertakings in England, Scotland and Wales
• 1951 Iron and Steel Industry (denationalised by the following Conservative Government)^[23]
• 1967 British Steel
• 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) Ltd - The strategically important aero-engine part of the recently bankrupt Rolls Royce Limited.
• 1973 Local authority water supply undertakings in England and Wales
• 1973 British Gas plc Corporation created, replacing regional gas boards.
• 1974 British Petroleum - the combination of a 50% stake bought by Winston Churchill as First Lord of the Admiralty after World War I with around a 25% stake acquired by the Bank of England 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 Board - a State holding company for full or partial ownership of industrial undertakings
• 1976 British Leyland Motor Corporation - became British Leyland upon nationalization. Privatized in 1986 to British Aerospace.
• 1977 British Aerospace - combining the major aircraft companies British Aircraft Corporation, Hawker Siddeley and others. British Shipbuilders - combining the major shipbuilding companies including Cammell Laird, Govan Shipbuilders, Swan Hunter, Yarrow Shipbuilders
• 1981 British Telecom created, taking control of telecommunications services from the Post Office
• 1984 Johnson Matthey - purchased for a nominal sum of £1 by the Thatcher government ^[24]
• 1997 Docklands Light Railway - John Prescott announced to the 1997 Labour Party Conference that he had nationalised this, although it was already in public hands anyway.^[24]
• 2001 Railtrack - 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 guarantee) 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.^[25]
• 2008 Northern Rock - 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.^[26]
• 2008 Bradford & Bingley (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.^[27]
• 2008 In October, the Royal Bank of Scotland, and the newly merged HBOS-Lloyds TSB 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 package.
• 2009 On 13 November, Directly Operated Railways, a government company, took over the East Coast Main Line railway franchise that National Express had bought in 2007 for £1.4 billion, a sum originally to be paid over 7 years. The nationalised service operates as East Coast and includes services from London to York and Edinburgh. 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[link]

• 1940s Argentine railways
• 1953 British Petroleum's Iranian assets by their government (actually a nationalisation of part of a part-nationalised company)
• 1956 The Egyptian Government nationalised the Suez Canal, owned by the Suez Canal Company which was part owned by the British State.
• 1962 The Sri Lanka Government nationalised the assets in the country of the partly British-owned Royal Dutch Shell company.
• 1975 The Sri Lanka Government nationalised the assets in the country of the British-owned plantation companies.

United States[link]

• 1862: The Legal Tender Act 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. railroads were nationalized as the Railroad Administration during World War I as a wartime measure. The United States Railroad Administration was returned to private ownership in 1920.
• 1939: Organization of the Tennessee Valley Authority entailed the nationalization of the facilities of the former Tennessee Electric Power Company.
• 1971: The National Railroad Passenger Corporation (Amtrak) is a government-owned corporation created in 1971 for the express purpose of relieving American railroads of their legal obligation to provide inter-city passenger rail service. The (primarily) freight railroads had petitioned to abandon passenger service repeatedly in the decades leading up to Amtrak's formation.
• 1976: The Consolidated Rail Corporation (Conrail), another government corporation, was created to take over the operations of six bankrupt rail lines operating primarily in the Northeast; 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 Railroads won out.
• 1980s: Resolution Trust Corporation seized control of hundreds of failed Savings & Loans.
• 2001: In response to the September 11 attacks, the then-private airport security industry was nationalized and put under the authority of the Transportation Security Administration.
• 2008: Some economists consider the U.S. government's takeover of the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association to have been nationalization (or renationalization).^[28][29] The conservatorship model used with Fannie Mae and Freddie Mac is looser and more temporary than nationalization.^[30]
• 2009: Some economists consider the U.S. government's actions with regards to Citigroup to have been a partial nationalization.^[31] Proposal was made that banks like Citigroup be brought under a conservatorship 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 conservatorship structure.^[30] The U.S. government's actions with regard to General Motors in replacing the CEO with a government approved CEO is likewise being considered as nationalization.^[32][33] 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"^[34]

Venezuela[link]

• 2007 On May 1, 2007, Venezuela stripped the world's biggest oil companies of operational control over massive Orinoco Belt crude projects, a controversial component in President Hugo Chavez's nationalization drive.
• 2008 On April 3, 2008, President Hugo Chavez ordered the nationalization of the cement industry.^[35]
• 2008 On April 9, 2008, Hugo Chavez ordered the nationalization of Venezuelan steel mill Sidor, in which Luxembourg-based Ternium currently holds a 60% stake. Sidor employees and the Government hold a 20% stake respectively.^[36]
• 2008 On August 19, 2008, Hugo Chavez ordered the take-over of a cement plant owned and operated by Cemex, an international cement producer. While shares of Cemex fell on the New York Stock Exchange, 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.^[37]
• 2009 On February 28, 2009, Hugo Chavez ordered the army to take over all rice processing and packaging plants.^[38]
• 2010 On January 20, 2010, Hugo Chavez signed an ordinance to nationalize six supermarkets in Venezuela under the system of retail stores of a French company because of increasing price and speculation hoarding illicit.^[39]
• 2010 On June 24, 2010, Venezuela announced the intention to nationalize oil drilling rigs belonging to the U.S. company Helmerich & Payne.^[40]
• 2010 On October 25, 2010, Chavez announced that the government was nationalizing two U.S.-owned Owens-Illinois glass-manufacturing plants.^[41]
• 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.^[41]

Zimbabwe[link]

• Zimbabwe has nationalized its food distribution infrastructure.

Other countries[link]

• Nationalization of the oil industry in numerous countries, including Libya, Kuwait, Mexico, Nigeria, Saudi Arabia, and Venezuela.

See also[link]

• Compulsory purchase
• Constitutional economics
• Eminent domain
• Confiscation
• Government agency
• Planned economy
• Privatization - the reverse process
• Public ownership
• Railway nationalization
• Reprivatization
• Sequestration
• State capitalism
• State-owned enterprise
• State sector
• Socialization (economics) - the process of making cooperative in management or ownership

References[link]

Bibliography[link]

On banks nationalization[link]

• Dougherty, Carter, Stopping a Financial Crisis, the Swedish Way, The New York Times," September 23, 2008.

• Hilferding, Rudolf (1981) Finance Capital: A Study of the Latest Phase of Capitalist Development (London: Routledge & Kegan Paul), p. 234. ISBN 0-7100-0618-7, ISBN 978-0-7100-0618-9

• La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, Government Ownership of Banks, The Journal of Finance, vol. 57, No. 1 (Feb. 2002), 265-301.

• La Botz, Dan (2008) The Financial Crisis: Will the U.S. Nationalize the Banks? Monthly Review 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 Quarterly, Vol. 64, No. 2 (June

External links[link]

Look up nationalization in Wiktionary, the free dictionary.

• The importance of public banking - article on Indian public sector banks
• Time for Permanent Nationalization by economist Fred Moseley in Dollars & Sense magazine, January/February 2009
• The Corporate Governance of Banks - a concise discussion of concepts and evidence

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Michael Savage (born Michael Alan Weiner; March 31, 1942) is a conservative American radio host, author, and political commentator. He is the host of The Savage Nation, a nationally syndicated talk show that airs throughout the United States on Talk Radio Network. The Savage Nation has an audience of 8 to 10 million listeners on 400 stations across the United States, making it the fourth most listened-to radio talk show in the country.^[2][3] He holds master's degrees from the University of Hawaii in medical botany and medical anthropology and a Ph.D. from the University of California, Berkeley, in nutritional ethnomedicine. As Michael Weiner, he has written books on herbal medicine and homeopathy. As Michael Savage, he has written four New York Times-bestselling political books.^[4][5][6][7]

Savage has summarized his political philosophy in three words: borders, language, and culture. Some, including Savage himself, have characterized his views as conservative nationalism,^[8] while critics have characterized them as "fostering extremism or hatred."^[9] He outspokenly opposes illegal immigration to the United States, supports the English-only movement and argues that liberalism and progressivism are degrading American culture. Although his radio delivery is usually characterized as confrontational and politically themed, some of his show involves ruminating on topics such as medicine, nutrition, music, literature, history, theology, philosophy, sports, culture, and personal anecdotes.

Since 2009, Savage has been barred from entering the United Kingdom, for allegedly "seeking to provoke others to serious criminal acts and fostering hatred".^{[9][10][11][12]}

Personal life[link]

Savage was born Michael Alan Weiner in the Bronx, New York, one of three children of Benjamin and Rae Weiner; he comes from Russian Jewish heritage.^{[13][1][14][15]} He described his childhood as difficult.^[1] His father, the owner of an antique shop, died of a heart attack at age 57,^[13] and his mother died in 2003.^[15]

After graduating from Jamaica High School in 1958,^[16][17] Weiner attended Queens College, where he earned a bachelor's degree in biology in 1963.^[13] After college Weiner taught high school for several years in New York City. His first marriage to Carol Ely in 1964 ended in divorce, and he remarried after meeting his current wife Janet in 1967. His first wife says that she became pregnant twice and aborted both pregnancies over Weiner's objections.^[1] During this time Weiner also worked for famous psychedelic drug advocate Timothy Leary as keeper of the stone gatehouse on Leary's Millbrook estate. Leary hired him to the post because Weiner did not use LSD himself.^[1] Weiner then earned two master's degrees in ethnobotany and anthropology from the University of Hawaii at Manoa. He obtained a Ph.D. in 1978 from the University of California, Berkeley, in nutritional ethnomedicine.^[18] His thesis was titled Nutritional Ethnomedicine in Fiji.^[19]

While in the South Pacific, he became fascinated with the 19th-century sailor Charles Savage, who was believed to have been the first man to bring firearms to Fiji.^[20] That fascination led to Weiner's name change to Savage.

Savage and his second wife Janet have two children, a daughter and a son; his son, Russell Weiner, is the founder of the company that produces the Rockstar energy drink.^[21] Russell's mother, Janet, served as CFO of his company until July 2009.^[1] Daughter Rebecca Lin Yops has worked as an elementary school teacher.^[22] Savage has said that although he believes in God, he attends houses of worship only a few times a year.^[23] During the 1980s, Savage attended Friday night services at a Chabad house in Berkeley.^[13]

Shift in philosophy[link]

Savage introduced himself to certain writers in the North Beach area of San Francisco in the early 1960s.^[22] He befriended and traveled with Beat poets Allen Ginsberg and Lawrence Ferlinghetti. Stephen Schwartz, also an acquaintance of Savage from this time, reported Savage possessed a photograph of himself and Ginsberg swimming naked in Hawaii and used the photograph as sort of a "calling card."^[1][22] Savage maintained a correspondence with Ginsberg consisting of ten letters and a trio of postcards across four years, which is maintained with Ginsberg's papers at Stanford University.^[1][24] One letter asked for Ginsberg and Ferlinghetti to come do a poetry reading, so others could "hear and see and know why I adore your public image."^[14] One postcard mentions his desire to photograph Ginsberg in a provocative way, though Savage states that this correspondence is actually a forgery created by homosexual detractors.^[1] Another acquaintance was poet and author Neeli Cherkovski, who says Savage dreamed of becoming a stand-up comic in the mold of Lenny Bruce.^[1]

Around 1980, an acquaintance, Robert Cathcart, says in his private conversations with Savage he knew him to have conservative political views.^[22] Schwartz stated Savage became alienated from the North Beach scene in the early 1980s. Savage had intense arguments with his liberal friends.^[22] When asked about his shift in politics and other views, Savage replied, "I was once a child; I am now a man."^[14] Savage has cited many occurrences in his life that helped shape his conservative views. Savage states that his opinions on welfare were partly shaped by his first job out of college as a social worker.^[25] He described one incident in which his supervisor had him deliver a check to a welfare client to furnish their apartment, while his own apartment was furnished with cardboard boxes.^[26] Another turning point occurred for him as a writer of health and nutrition books in the 1980s, when he experienced what he saw as "political opposition" after making the suggestion that the closure of homosexual bathhouses might be necessary in response to the emerging AIDS epidemic.^[27] In 1994 his final health and nutrition manuscript, Immigrants and Epidemics, was rejected by publishers for being inflammatory.^[28] In 1996, Savage applied to become the Dean of the Graduate School of Journalism at the University of California, Berkeley. The University instead selected award-winning journalist and China scholar Orville Schell. Savage sued the University, contending discrimination for being conservative.^[22] Savage later dropped the lawsuit.^[29]

Career as commentator[link]

Radio show[link]

The rejection of his 1994 manuscript prompted him to record a demo tape with a mock radio talk show about illegal immigrants and epidemics. He mailed this tape to 250 radio stations in an attempt to change careers and become a radio talk show host.^[22][30] On March 21, 1994, Savage began his radio career on KGO (a San Francisco news/talk radio station) as a fill-in host for the liberal Ray Taliaferro. Less than a year later, he began hosting his own show on KGO's sister station KSFO.^[13][1]

At the time, his slogan was "To the right of Rush and to the left of God." On January 1, 1995, he was given his own show during the drive-time hours. The show quickly became a local hit. During his time at KSFO, Savage reached #1 in Arbitron ratings among both adult men and women over 18 during afternoon drive-time in San Francisco and became top talk host in his timeslot in Northern California.^[31] In 1999, he came to the attention of the Talk Radio Network, based in Oregon, which currently syndicates his The Savage Nation radio program.

As of the fall of 2006, Savage has 8–10 million listeners per week,^[32] making his show the third most widely heard broadcast in the United States. Savage calls his listeners "literate callers with intelligence, wit, and energy." He says that he tries to make a show that has a "...hard edge combined with humor and education...Those who listen to me say they hear a bit of Plato, Henry Miller, Jack Kerouac, Moses, Jesus, and Frankenstein."^[31] Mark de la Viña of the San Jose Mercury News wrote of Savage, "In contrast to Rush Limbaugh, Sean Hannity and Laura Schlessinger, Bay Area-based Savage mixes conservative diatribe and blunt observations with acerbic humor and a gift of gab. It has propelled him to the top of radio talk-show ratings as well as bestseller book lists."^[14]

On September 10, 2009, KNEW-AM (910 kHz) in Savage's home market of San Francisco announced that it was dropping his program and replacing him with John and Ken from sister station KFI-AM (640 kHz)/Los Angeles.^[33] John Scott, program director of KNEW said in an e-mail that the station was headed "...in a different philosophical and ideological direction, featuring more contemporary content and more local information."^[34] According to Arbitron monthly ratings, KNEW-AM dropped in the ratings since Savage was let go. San Francisco station KTRB picked up the program for the San Francisco market, and saw a ratings boost in the afternoon drive. However, the program was among the first casualties when KTRB went into receivership in September 2010.^[35]

Savage had asked his audience for their opinion prior to consenting to a profile interview by Kelefa Sanneh of The New Yorker; Savage eventually accepted that offer and the New Yorker profile, titled "Party of One", was published in the August 3, 2009 issue, which covered Savage's life and personality in great detail.^[13][36]

On January 22, 2010, Savage revealed to his audience that a writer for Playboy had contacted him via email to do a lengthy interview, and again asked his listeners if he should accept the offer. During the show, Savage read from personal emails between the Playboy writer and himself. The writer admitted to being a listener of the Savage Nation but a critic of the profile done by The New Yorker. The writer also stated that the purpose of the interview was to "rattle" Playboy's readers. On May 12, 2010, Savage revealed that he had granted the interview at his home. Playboy published the interview in June 2010.^[26] He read from a pre-publication copy of the 8,000 word Playboy interview, in which the writer expressed animosity for Savage and his views. Savage said that he was disappointed at the lack of journalistic objectivity, but did not harbor hatred for the writer. He referred back to the New Yorker interview by Kelefa Sanneh, and praised Sanneh as a "real writer" who had understood his subject.

On October 1, 2011, Michael Savage was ranked as the #2 for online streams according to the internet rankings report published by TalkStreamLive.com ^[37]

MSNBC television show[link]

Savage was hired by MSNBC president Erik Sorenson to do a one-hour show beginning March 8, 2003, despite Savage's previous criticism of the network in his book The Savage Nation and the objections of NBC employees like anchor Tom Brokaw, who asked NBC executives, "Is this the sort of man who embodies the values of NBC?"^[24] Sorenson, at the time, called Savage "brash, passionate and smart," and promised that he would provide "compelling opinion and analysis with an edge."^[38]

From the very beginning of his stint at MSNBC, the Gay & Lesbian Alliance Against Defamation (GLAAD) urged the show's sponsors to stop advertising on the show. Savage did not sue GLAAD, but Talk Radio Network Inc. (TRN), which syndicated his radio show, did sue the owners of three small noncommercial websites that had criticized Savage and endorsed the call for advertisers to withdraw their support for the show. The suit alleged that the defendants had caused Savage financial damage by interfering with his relationship with advertisers, had used material from The Michael Savage Show without permission, and had spread "false and malicious" information about Savage.^[39] The suit was brought in Illinois, the location of Culligan, a company that stopped advertising with TRN.^[40] Public Citizen undertook the legal defense of the owners of savagestupidity.com.^[41] Savage also contended before the National Arbitration Forum that the "savagestupidity.com" and "michaelsavagesucks.com" domain names were "confusingly similar" to his own "michaelsavage.com", and that he should be given those domain names.^[42] Several months after filing the lawsuit, TRN withdrew it without obtaining any concessions from the defendants.^[43] The National Arbitration Forum ruled against Savage's claim.^[44]

Four months later, on July 7, Savage was fired from his MSNBC television show after remarks made in response to a caller, later identified as prank caller Bob Foster, who insulted Savage's teeth. Savage then asked if Foster was a "sodomite", to which the caller answered, "Yes, I am." Savage then said to the caller,

Oh, so you're one of those sodomites. You should only get AIDS and die, you pig; how's that? Why don't you see if you can sue me, you pig? You got nothing better to do than to put me down, you piece of garbage? You got nothing to do today? Go eat a sausage, and choke on it. Get trichinosis. Now do we have another nice caller here who's busy because he didn't have a nice night in the bathhouse who's angry at me today? Put another, put another sodomite on....no more calls?...I don't care about these bums; they mean nothing to me. They're all sausages.^[45][46]

The day after being fired, Savage apologized on his radio program and on his website. He explained that he believed that MSNBC had gone to commercial to cover the gaffe of the attempted sabotage by a prank caller and that he was off the air at the time of the offensive comments, despite the fact that clips of the segment show Savage going to commercial after he made the comments. He also said his remarks were meant only to insult the caller, not all people with AIDS.^[47]

Political views[link]

Michael Savage calls himself an "independent-minded individualist" and says that he "fits no stereotype."^[31] He has also cited Barry Goldwater as an influence.^[48] Savage criticizes big government as well as liberalism and liberal activism, accuses the news media of liberal bias, and champions conservationism and animal rights.^[8] He considers the three aspects that define a nation as borders, language, and culture; those aspects inspired the motto of the Paul Revere Society.^[49]

In 2003, Savage said that he voted in 2000 for George W. Bush "quite reluctantly, incidentally."^[50] In 2004, Savage and the Revere Society hosted a party at Schroeder's Cafe in San Francisco celebrating the re-election of Bush.^[49] Savage donated $5,600 to the campaign of Democratic candidate Jerry Brown in the 2006 California Attorney General election.^[51]

Regarding candidates for the 2012 Republican primaries, Savage said that Ron Paul had "great ideas" but expressed that Rick Perry should be the nominee.^[52]

On December 12, 2011, he offered Presidential candidate Newt Gingrich "1 million dollars" to withdraw from the Presidential contest, saying that only Mitt Romney had a chance to beat Barack Obama, a man he regards as a Communist and a possible foreign usurper^[53], in the 2012 election^[54].

Activism[link]

Legal defense contributions[link]

Savage has regularly donated money toward the legal defense of the Marines accused of murdering civilians in Haditha, Iraq; occasionally, Savage will offer proceeds from any sales through his website. Savage had regular contact with the attorneys of the accused and criticizes their treatment at Camp Pendleton.^[55] Most recently, Savage has donated over $10,000 to the U.S. Marines Charity Defense Fund at the Thomas More Law Center^[56] On April 25, 2007, he pledged $1 for each copy of Healing Children Naturally and Reducing the Risk of Alzheimer's purchased from his website to be donated to the U.S. Marines Defense Fund.^[57] The Marines were ultimately found not guilty.

Lieutenant Michael Behenna[link]

On his nationally syndicated talk radio program, Michael Savage announced that he had sent another $50,000 to aid in the defense of First Lieutenant Michael Behenna, who has been sentenced to 15 years in prison for allegedly murdering terrorist suspect Ali Mansur Mohammed while serving in Iraq with the 101st Airborne Division in 2008. Savage has previously given $50,000 to Behenna’s defense from the Savage Legal Defense Fund and his own personal contributions. According to Vicki Behenna, the lieutenant’s mother, additional contributions from listeners since Savage brought up this topic on his program have amounted to over $40,000. This brings the total contributions from Savage and his listeners to nearly $150,000.^[58]

Awards, criticisms, and controversies[link]

Awards[link]

On June 9, 2007, Talkers Magazine awarded Savage with the publication's annual "Freedom of Speech Award," and he accepted it with a pre-recorded speech.^[59]

Criticisms[link]