This preview shows page 1. Sign up to view the full content.
Unformatted text preview: value of the property taken. The opposing position has been taken mainly by developing countries, claiming that the question of compensation should be left entirely up to the sovereign state, in line with the Calvo Doctrine. When nationalizing a large business, the cost of compensation is so great that many legal nationalizations have happened when firms of national importance run close to bankruptcy and can be acquired by the government for little or no money. governments have considered it important to gain control of institutions of strategic economic importance, such as banks or railways, or of important industries struggling economically. Nonetheless, national and local governments have seen the advantage of keeping key strategic assets in institutions that are not strongly profit-driven and can raise funds outside the public-sector constraints, but still retain some public accountability....
View Full Document
- Spring '08