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Whenever we're told about the policy of nationalization we're mostly told of its failures particularly in former socialist states.However many proponents against nationalization will almost never tell you about how the state in many developed countries today played a crucial role
in their developmental stages and how in many developed countries, the state onced nationalized many industries. For example, France's embrace of nationalization began when France's economy was in ruins at the end of the second world war. Between 1944 and 1946, the state took
control of business in energy, transportation and finance. Private coal companies were reorganized into the public mining giant Charbonnages de France; gas and electricity producers were likewise nationalized to create ĂlectricitĂ© de France and Gaz de France.
The state absorbed Air France. It nationalized the countryâs eleven largest insurance companies, along with Banque de France(central bank of France) and the four biggest commercial banks. Taken together, these measures transformed the state into a giant economic actor in France
It was, by any measure, a great success. Nationalized industries and five-year plans may transgress the treasured tenets of neoliberal orthodoxy, but they didnât stop France from enjoying three decades of sustained economic growth and prosperity.
In Korea for example, we are usually told about the failures of communist North Korea with its failed nationalization and prosperous free market South Korea, however many will not tell you about how the state in South Korea also played a huge role in their developmental stages
In 1961, South Korea took control over business by nationalizing the banks and merging their agricultural cooperative movement with their agricultural bank. The South Korean State developed 5 year economic plans for the development and transformation of their economy
Between 1962-1965 the first plan sought to expand electrical/coal energy industry, emphasizing on the importance of infrastructure for establishing a solid foundation, agricultural productivity, export etc. The korean economy observed a 7.8% growth exceeding
expectations. The state in South Korea guided private industry through a series of export and production targets, utilizing the control of credit(banks), informal means of pressure and persuasion and traditional monetary and fiscal policy. The state continued on with their plans
and had tremendous growth as a result. The South Korean govt only started privatizing the banks after it achieved its goal within their 5 year plans in the 1990s. In Singapore, we are usually told about their prosperous free market policies, the welcoming of foreign investment
and the ease of doing business, however many will not tell about how the govt of Singapore plays a crucial role in their economy. In Singapore,90% of all land is state-owned,85% of housing is provided by the state and more than 22% of their GDP comprise of State owned enterprise
This showcases to us how the state can play an extremely crucial role in economic development. In China we are also told about the failures Chairman Moa Zedong great leap forward polices and complete state control of the Chinese economy before he died and
the market reforms introduced by Deng Xiaoping is what changed China and became prosperous however many will not tell you that the govt of China still plays a crucial role. Despite the market reforms introduced by Xiaoping, 22-30% of the Chinese economy till this day remains
centrally planned through the activities of state-owned enterprises and only about 60% of the Chinese economy in the hands of the private sector while the remaining 10% is the agricultural sector which is both private and public. Many Rich and wealthy people and businesses in
China has very close ties with communist party which shows the interwoven nature between business and politics in China. Proponents against nationalization are usually not very objective and do not mention how many developed countries within their developmental stages did not
really have market polices to become developed. In South Africa, after the ANC abandoned its nationalization policy they opted for neoliberalism and market forces through its GEAR policy. The result of GEAR raised more questions. South Africa remains as one of the most unequal
societies in the world where the gap between the haves and have not became much wider. Large corporations and banks grew more under democracy than they did under apartheid while poverty rates remain stagnant and unemployment rates remain very high.
If South Africa is to be defined as a developmental state it also means that the state should play a crucial role in the development and transformation of its economy in banking, mining, energy as well as manufacturing as well.
Sources:
France: https://www.dissentmagazine.org/article/lessons-from-the-nationalization-nation-state-owned-enterprises-in-france
Singapore:
https://www.peoplespolicyproject.org/2018/03/09/how-capitalist-is-singapore-really/
South Korea:
https://en.m.wikipedia.org/wiki/Five-Year_Plans_of_South_Korea
@LandNoli @errolbsk @Kgomo389 @SizweLo @Kgomo389 @trevorchiks @KhandaniM
France: https://www.dissentmagazine.org/article/lessons-from-the-nationalization-nation-state-owned-enterprises-in-france
Singapore:
https://www.peoplespolicyproject.org/2018/03/09/how-capitalist-is-singapore-really/
South Korea:
https://en.m.wikipedia.org/wiki/Five-Year_Plans_of_South_Korea
@LandNoli @errolbsk @Kgomo389 @SizweLo @Kgomo389 @trevorchiks @KhandaniM
