What is nationalization?

Nationalization refers to the process where the government takes control of private businesses, transforming them into publicly owned entities. This typically involves the government acquiring the majority or full ownership of companies that were previously operated by private individuals or corporations. The rationale behind nationalization can vary, including aims to manage essential services, stabilize an economy, protect jobs, or ensure a more equitable distribution of resources.

In contrast, transferring ownership from the government to the private sector represents privatization, which is the opposite of nationalization. Limiting competition in the market could lead to monopolistic practices but does not directly define nationalization. Lastly, creating new private enterprises refers to entrepreneurship and the establishment of businesses without government intervention, further distinguishing it from the concept of nationalization.