Nationalization or nationalization is known as the process by which the State becomes the owner or controller of goods or activities that, to date, belonged to the private sphere. In this way, a means of production or exploitation ceases to belong to private companies to be under the control of a government in question. The opposite phenomenon by definition to nationalization is privatization.
Through nationalization, an industry or a good becomes the patrimony of a country or its public institutions. This process often has some form of consideration as payment for the operation, although this is not strictly necessary. This compensation is usually made with government bonds as a payment instrument.
On the other hand, these nationalized goods or services from private hands may have national origin (that is, citizens of the country itself) or foreign investors in said location . Through this type of practice, countries assume control or ownership of certain activities, the most common being those related to the infrastructure, health or energy sector.
States often justify this mechanism for reasons of efficiency (private companies seek their own benefit and may not develop the activity in the best possible way), of social justice (ideological reasons in defense of the community against individuality and interest particular), security at social or military level (if the defense or security of citizens is threatened by a certain business activity) and for political and ideological reasons (very common in countries with democratic deficits and socialist governments) and communist ).
The ideological weight is especially important when it comes to talking about nationalization, since depending on the political and economic trend that a state follows, one type or another of statification occurs. The countries marked by socialism seek the community and that society be the owner and responsible for the means of production , while in the opposite case of the most nationalist and authoritarian countries the objective pursued is a strong state that owns and controls all possible share capital in defense of common interests.