Changes

'''Nationalization''' means the permanent takeover of a private business by the government. Sometimes it is voluntary with full payment to the previous owners, and sometimes it is involuntary with no payment or worthless bonds.

'''Nationalization''' means the permanent takeover of a private business by the government. It can be voluntary, with full payment to the previous owners, or forced, with no payment or a mock payment in worthless bonds.

[[Socialist]] governments nationalized industry in [[Great Britain]], [[France]] and other countries after [[World War II]].  In most cases they have subsequently been privatized, that is returned to private ownership.  

[[Socialist]] governments nationalized industry in [[Great Britain]], [[France]] and other countries after [[World War II]].  In most cases they have subsequently been privatized, that is, returned to private ownership.  

Temporary seizures of business interests during an emergency--such as turning a shopping mall into a temporary shelter--is not usually considered nationalization.

Temporary seizures of business interests during an emergency, such as turning a shopping mall into a temporary shelter, is not usually considered nationalization.

==History==

==History==

After World War II socialist governments came to power in several countries and set about nationalizing heavy industry, especially coal. The goal was not efficiency but to put the union leaders (who had a loud voice in socialist parties) in a position to dictate terms for the benefit of the workers, rather than the nation as a whole.  In no case were the workers put in control, though [[Tito]] talked of that in [[Yugoslavia]].

After World War II socialist governments came to power in several countries and set about nationalizing heavy industry, especially coal. The goal was not to increase efficiency but to put the union leaders (who had a loud voice in socialist parties) in a position to dictate terms for the benefit of the workers, rather than the nation as a whole.  In no case were the workers put in control, though [[Tito]] talked of that in [[Yugoslavia]].

After World War II many Europeans wanted strong state action to insure economic development since they blamed the timidity and conservatism of private capital for the economic dislocations of the 1930s. Nationalization in Britain, concerted economic planning in France, and a low-key economic management in Germany all grew out of this same impulse. Many of the smaller nations also utilized central economic planning in some form. The common features of all the planning systems were an increase in cooperation between government and the private sector, and the guiding of the economy along selected growth lines. Economic planning became the province of the technocrats rather than of the political <ref> Sima Lieberman, "The Ideological Foundations of Western European Planning" ''Journal of European Economic History'' 1981 10(2): 343-371. </ref>

After World War II many Europeans wanted strong state action to insure economic development since they blamed the timidity and conservatism of private capital for the economic dislocations of the 1930s. Nationalization in Britain, concerted economic planning in France, and a low-key economic management in Germany all grew out of this same impulse. Many of the smaller nations also utilized central economic planning in some form. The common features of all the planning systems were an increase in cooperation between government and the private sector, and the guiding of the economy along selected growth lines. Economic planning became the province of the technocrats rather than of the political <ref> Sima Lieberman, "The Ideological Foundations of Western European Planning" ''Journal of European Economic History'' 1981 10(2): 343-371. </ref>

===Britain===

===Britain===

The history of British nationalization began with 1) program formation during the 1930s and World War II; 2)  widespread implementation in 1945-47; 3) scaled-back activities in 1947-51; 4) stagnation and program retreat in 1951-79; 5) privatization under [[Margaret Thatcher]]'s government after 1979-1990; 6) Labour acceptance of privitization under [[Tony Blair]].  

The history of British nationalization began with 1) program formation during the 1930s and World War II; 2)  widespread implementation in 1945-47; 3) scaled-back activities in 1947-51; 4) stagnation and program retreat in 1951-79; 5) privatization under [[Margaret Thatcher]]'s government after 1979-1990; 6) Labour acceptance of privitization under [[Tony Blair]].

====Planning====

====Planning====

:''Main article : '''[[Economic planning]]'''''

:''Main article : '''[[Economic planning]]'''''

The mobilization of the national economy during World War II was immediately followed by the ascendancy of the Labour Party from 1945 to 1951. The Labour platform of nationalization, planning, and creation of a welfare state was translated into the nationalization of national and local transport, coal, oil and gas, electricity generation and distribution, iron and steel, automotive industries, aerospace, air and sea ports, and many other less high profile industries such as sugar distribution, hotel chains and the then fledgling semiconductor industry in the mid to late 1970s.  

The mobilization of the national economy during World War II was immediately followed by the ascendancy of the Labour Party from 1945 to 1951. The Labour platform of nationalization, planning, and creation of a welfare state was translated into the nationalization of national and local transport, coal, oil and gas, electricity generation and distribution, iron and steel, automotive industries, aerospace, air and sea ports, and many other less high profile industries such as sugar distribution, hotel chains and the then fledgling semiconductor industry in the mid to late 1970s.  

This program led to stagnation and inefficiencies in the economy that led to nationalized industries requiring greater and greater subsidies to stay in business, often despite the same sector in free-market countries booming at the same time. Such subsidies were sometimes disguised as market loans or investments. These inefficiencies played a large part in the labour defeat, and the beginning of conservative rule and Margaret Thatchers reforms at the close of the 1970's.

This program led to stagnation and inefficiency in the economy that led to nationalized industries requiring greater and greater subsidies to stay in business, often despite the same sector in free-market countries booming at the same time. Such subsidies were sometimes disguised as market loans or investments. This inefficiency played a large part in the labour defeat, and the beginning of conservative rule and Margaret Thatchers reforms at the close of the 1970's.

===Nationalization===

===Nationalization===

The guiding principle in [[nationalization]] was that industry would be operated just like a private business using "public corporations" and not directly by government departments. The old pre-1930 ideas of workers' control were rejected. The old management remained in place. The old owners received treasury bonds covering the full market value of their holdings. The role of labour was unchanged; collective bargaining remained the basis of negotiation with management and the right to strike was unaffected.  

The guiding principle in [[nationalization]] was that industry would be operated just like a private business using "public corporations" and not directly by government departments. The old pre-1930 ideas of workers' control were rejected. The old management remained in place. The old owners received treasury bonds covering the full market value of their holdings. The role of labour was unchanged; collective bargaining remained the basis of negotiation with management and the right to strike was unaffected.  

Nationalization was voted by Parliament for the Bank of England, the coal mining industry, hospitals, the iron and steel industry, communications, gas and electricity production, and railways. The owners were compensated.  He began a comprehensive system of social security in 1948 with the National Insurance Act; the Industrial Injuries Act; the National Assistance Act (ending the old Poor Law); and the National Health Service Act, which provided free medical care for all.   

Nationalization was voted by Parliament for the Bank of England, the coal mining industry, hospitals, the iron and steel industry, communications, gas and electricity production, and railways. The owners were compensated.  He began a comprehensive system of social security in 1948 with the National Insurance Act; the Industrial Injuries Act; the National Assistance Act (ending the old Poor Law); and the National Health Service Act, which provided free medical care for all.   

The debate over iron and steel in 1947, however, marked the start of a retreat for the idea of nationalization. It confirmed the government's reluctance to move into manufacturing industry. Thereafter, there were no major new proposals until 1951, and the question did not return to the forefront of politics until after 1974. British nationalization operated in a very different political context and arose from somewhat different ideological roots than that in France or Austria for example, although in each country it was much affected by external financial pressures after 1945.  

The debate over iron and steel in 1947, however, marked the start of a retreat for the idea of nationalization. It confirmed the government's reluctance to move into manufacturing industry. Thereafter, there were no major new proposals until 1951, and the question did not return to the forefront of politics until after 1974. British nationalization operated in a very different political context and arose from somewhat different ideological roots than that in [[France]] or [[Austria]] for example, although in each country it was much affected by external financial pressures after 1945.  

The postwar nationalization programme fell far short of the ideals of the leftists.  

The postwar nationalization programme fell far short of the ideals of the leftists.  

In Eastern Europe, the Communist governments nationalized all the mines and factories after 1945.

In Eastern Europe, the Communist governments nationalized all the mines and factories after 1945.

West Germany did not nationalize industry after 1945, even though the Labour party in Britain favored it and Britain controlled much of the industrial region. The American military governor, General Lucius Clay, apart from a basic distaste for socialization, opposed nationalization of the coal mines and of other basic industries on pragmatic grounds. One german state, controlled by the Socialists (SPD) passed a bill in North Rhine-Westphalia in 1948 to nationalize basic industries. The occupation powers vetoed it, reserving the decision for a future German parliament. But it was not only the Americans who stopped socialization. There was no overwhelming German popular support for nationalization. During the federal election of 1949 Socialist advocates could not offer a concept which was able to secure a national majority for their ideas, because of fears that they would hinder recovery. The ability to meet this concern - "Recovery Now!" - is what made the neo-liberalism of Chancellor [[Konrad Adenauer]] and his economics minister [[Ludwig Erhard]] so appealing at the end of the forties.  

[[West Germany]] did not nationalize industry after 1945, even though the Labour party in Britain favored it and Britain controlled much of the industrial region. The American military governor, General Lucius Clay, apart from a basic distaste for socialization, opposed nationalization of the coal mines and of other basic industries on pragmatic grounds. One german state, controlled by the Socialists (SPD) passed a bill in North Rhine-Westphalia in 1948 to nationalize basic industries. The occupation powers vetoed it, reserving the decision for a future German parliament. But it was not only the Americans who stopped socialization. There was no overwhelming German popular support for nationalization. During the federal election of 1949 Socialist advocates could not offer a concept which was able to secure a national majority for their ideas, because of fears that they would hinder recovery. The ability to meet this concern - "Recovery Now!" - is what made the neo-liberalism of Chancellor [[Konrad Adenauer]] and his economics minister [[Ludwig Erhard]] so appealing at the end of the forties.  

Co-operation on coal trading was the impetus for forming the "European Coal and Steel Community" in 1951.  Integrationists like French foreign minister [[Robert Schuman]] realized that coordinating the coal and steel markets of Germany, France, Italy and the Low Countries  could lead to "spillover" in other policy areas; the ECSC indeed morphed into the [[EEC]] and [[European Union]].<ref>  J. Gillingham, ''Coal, steel, and the rebirth of Europe, 1945-1955'' (1991); Derek W. Urwin, ''The Community of Europe: A History of European Integration since 1945.'' (1995)</ref>

Co-operation on coal trading was the impetus for forming the "European Coal and Steel Community" in 1951.  Integrationists like French foreign minister [[Robert Schuman]] realized that coordinating the coal and steel markets of Germany, France, Italy and the Low Countries  could lead to "spillover" in other policy areas; the ECSC indeed morphed into the [[EEC]] and [[European Union]].<ref>  J. Gillingham, ''Coal, steel, and the rebirth of Europe, 1945-1955'' (1991); Derek W. Urwin, ''The Community of Europe: A History of European Integration since 1945.'' (1995)</ref>