Bhutto Regime and Nationalization
Introduction
In this paper I will discuss:
Why Z.A. Bhutto thought nationalization necessary for the development of Pakistan.
What steps he took and how he went about doing it.
What effects the nationalization had on the economy as well as its social and political impacts.
And finally, why the nationalization failed to produce the desired result Mr. Bhutto had in mind.
What is Nationalization In order to fully understand the content of this paper, it would prove helpful to first have a clear concept of what exactly nationalization is. Nationalization is the act of taking assets into state ownership. Usually it refers to private assets being nationalized, but sometimes it may be assets owned by other levels of government, such as municipalities. Similarly, the opposite of nationalization is usually privatization. Or in other, simpler words, the process of bringing an asset into public ownership is called nationalization. Public ownership is government ownership of any asset, industry, or corporation at any level, national, regional or local (municipal). A key issue in nationalization is whether the private owner is properly compensated for the value of the institution. The most controversial nationalizations are those where no compensation is paid or an amount unreasonably below the likely market rate (expropriation). Much nationalization through expropriation has come after revolutions, especially communist ones. In some instances, nationalization occurs as the government seizes the corporate property of a criminal. An example is Renault, which was seized by the French government from its owners because they had collaborated with Nazi Germany. Some services, such as defense, cannot be provided by the private sector directly - only a government system of taxation can finance them. Thus here it is important this kind of services be under public ownership.
There are many other arguments in favor of nationalization. Another basic
In this paper I will discuss:
Why Z.A. Bhutto thought nationalization necessary for the development of Pakistan.
What steps he took and how he went about doing it.
What effects the nationalization had on the economy as well as its social and political impacts.
And finally, why the nationalization failed to produce the desired result Mr. Bhutto had in mind.
What is Nationalization In order to fully understand the content of this paper, it would prove helpful to first have a clear concept of what exactly nationalization is. Nationalization is the act of taking assets into state ownership. Usually it refers to private assets being nationalized, but sometimes it may be assets owned by other levels of government, such as municipalities. Similarly, the opposite of nationalization is usually privatization. Or in other, simpler words, the process of bringing an asset into public ownership is called nationalization. Public ownership is government ownership of any asset, industry, or corporation at any level, national, regional or local (municipal). A key issue in nationalization is whether the private owner is properly compensated for the value of the institution. The most controversial nationalizations are those where no compensation is paid or an amount unreasonably below the likely market rate (expropriation). Much nationalization through expropriation has come after revolutions, especially communist ones. In some instances, nationalization occurs as the government seizes the corporate property of a criminal. An example is Renault, which was seized by the French government from its owners because they had collaborated with Nazi Germany. Some services, such as defense, cannot be provided by the private sector directly - only a government system of taxation can finance them. Thus here it is important this kind of services be under public ownership.
There are many other arguments in favor of nationalization. Another basic
Bibliography: • Mowahid Shah, "A Simple Living", Pakistan Link, April 18, 2003. http://www.pakistanlink.com/mowahid/04182003.html • Rafi Raza, "Zulfikar Ali Bhutto and Pakistan: 1967 – 1977", Karachi, Oxford University Press, 1977 • Saeed Ahmad Qureshi, "Privatization and Economic Policy", Islamabad, Government of Pakistan, 1993 • Anwar H. Syed, "The Discourse and Politics of Zulfikar Ali Bhutto", New York, St. Martin 's Press, 1992 • Hameed Yusuf, "Pakistan A Study of Political Developments 1947-97", Lahore, Sang-e-Meel Publications, 1999