Nationalisation is the process where a government takes control of industries or assets that were previously owned by private individuals or companies. The state assumes ownership to achieve public goals, such as providing universal access to services or preventing private monopolies.

Key points:

• It is frequently used for natural monopolies, such as electricity, water, rail transport, and postal services.
• The goal is to stop private companies from charging high prices because there is no competition.
• State ownership allows the government to prioritize social needs over making a profit.
• Supporters believe it makes essential services affordable and available to everyone.

However, nationalisation can lead to government failure. Because state-run businesses do not focus on profit, they may become inefficient, lack innovation, and rely on constant financial support from the government.