Examples Of Nationalization Of Hugo Chavez

A perfect example of nationalization is in the year 2006, Venezuela under President Hugo Chavez initiated naturalization. Nationalization according to Funk and Wagnall’s New World Encyclopedia” is in broad economic terms, the governmental appropriation of property other than land, transferring it from the domain of private property to national control”. However, if a nation decides to nationalize there may be some international investment risk. These risks can be currency inconvertibility, transfer restrictions, war, civil disturbance, and breach of contract. Furthermore, eminent domain, or also called condemnation or expropriation, is the power of government to take private property for public use without the owner’s consent. Meaning just
Under Chavez presidency, he nationalized oil, agriculture, tourism, transportation, finance, telecommunication, heavy industry, gold, steal, and power. The reason naturalization occur was because in the ideology of Chavez, he believed the poor must have the basic necessity and not allow and give the power to the industries and private companies. In other words, Chavez believed to help the poor. However, in 2006 Chávez was elected to a six-year presidential term and initiated a program of nationalization. This program included the takeover of the petroleum sector, which was completed in 2007 when Venezuela assumed operational control of the oil industry in the Orinoco basin—the world’s single largest known oil deposit—from foreign-owned companies (Britannic Academic). This example like many other that occurred under Chavez presidency is a clear illustration of what nationalization is. Nationalization is the government in this case Hugo Chavez deciding what best for the country and in Chavez case the best decision was to takeover petroleum and control
If the government of Kazakhstan wants to nationalize all assets owned by foreign firms and investors. The probability at least obtain payment for the assets may not be possible. According to Michael Lelyveld “A new investment law in Kazakhstan may give the government more power to nationalize companies and make it harder for foreigners to take disputes to international arbitrators.” Similarly, another reason Global may not receive compensation is because of eminent domain, which constitutes that the power of the government to take private property to help the public, without the owner’s consent can be allowed. Therefore, Kazakhstan if nationalized does not have to ask for permission to Global Industries Corporation assets, which may leave Global not receive its