Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



the return to private ownership of property (such as industrial enterprises, banks, land, and shares of stock) previously nationalized by the state. The purpose of denationalization is to strengthen the private capitalist sector, and it is a form of state financing of large monopolies.

Denationalization is carried out by selling state property, usually at reduced prices. At the same time, former owners are given a preferential right of purchase. Denationalization may be partial, as when some of the shares of stock of state companies are sold and state ownership is converted to a mixed state-private ownership. The metallurgical industry in Great Britain was denationalized in 1953 and the truck transportation industry in 1955. Laws passed in France in the 1950’s authorized the sale of 30 percent of the capital of Air France and transferred the firm France Color, which then produced 75 percent of the country’s dyes, into private hands. In the Federal Republic of Germany during the 1950’s the stock of more than 30 enterprises was sold to private capitalists. In Austria in 1957, 40 percent of the stock of the largest nationalized banks, Kreditanstalt and Lenderbank, and of several dozen industrial enterprises was transferred to private ownership. In Italy in 1959 the stock of two large chemical companies was similarly sold.

Another form of denationalization was the sale at reduced prices of enterprises built at state expense during World War II. In the United States in 1946 the large monopolies, which had rented 79 percent of all capacity built with state capital, purchased 70 percent of it at a price that averaged 60 percent of the initial cost. The situation in Great Britain was similar.

Acute class struggle develops around denationalization. The working people oppose denationalization, seeing state ownership as a factor in the further collectivization of capitalist production and a means of limiting the economic power of the monopolies. Monopoly capitalists usually strive for denationalization of highly profitable enterprises and sectors. Attempting to avoid open class struggle against denationalization, Western European capitalists carried it out during the 1950’s under the slogan of “people’s capitalism.” Partial denationalization by selling stock to production and office workers at state enterprises is used for the same purpose. Denationalization in the developing countries is usually carried out by reactionary and conservative regimes, frequently under the pressure of foreign capital, which has made denationalization the price of economic and military-political assistance by the imperialist states.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
The institutionalization of the passport and denationalization policies create the conditions for Gales's extreme exploitation on his next berth, on board the Yorikke, the ill-fated death ship he boards with profound dread at a port in Barcelona.
And yet calls for denationalization have proliferated across the West in recent years, as many politicians have come to regard it as a legitimate counterterrorism policy.
Before the matured deadline, the denationalization bonds of citizens might be used for settling the payment for public property apartments.
Due to the lack of real political will, attempts to draft denationalization have brought no results.
The reforms are then compared to the existing UK regime, where denationalization has recently been deployed with increasing enthusiasm.
From 2009 to 2013, a total of 618 complaints about denationalization have been submitted to the Ombudsman and according to Memeti, the fact that the process last more than ten years is an indication that the institutions have faced problems when returning the properties.
"Subsoil, forest fund, water resources, airspace, territorial waters and resources of marine economic zone cannot be the objects of denationalization and privatization of state property," according to the second paragraph of Article 6 of the law.
Parties opposed to the privatization agenda argue that basic rights of labor are trampled upon after the process of denationalization. Therefore, the government must be prepared to shoulder the responsibility of bearing the high social cost of privatization.
Zia's major domestic initiatives included the consolidation of the fledgling nuclear program, which was initiated by Zulfiqar Ali Bhutto, denationalization and deregulation and the state's Islamization.
Umanovska also stressed that this matter does not pertain to private property because Latvia's Jews, just like all other residents of Latvia, had their legitimate property returned to them during the denationalization process.
It appears to me that during all this period, especially in recent years, the laws we passed, the law on discrimination, which the Council of Europe said must topple stereotypes, barriers and taboos in Macedonia, the law on the legal state of a church, religious community and religious group, the law on denationalization, the law on religious holidays, all of them brought about a different alphabet among the religious communities and among the very leaders in Macedonia.