FEATURE TOO ‘CRITICAL’ FOR THE PUBLIC Nationalizing Subsea Communications in the 21st Century
BY KRISTIAN NIELSEN
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ubsea communication cables are the invisible backbone of the modern digital age. They carry over 95% of international data traffic, enabling everything from financial transactions to social media interactions. As global dependency on these cables intensifies, the debate over their management has gained prominence: Should governments nationalize these critical infrastructures to protect them, or should private investment continue to drive innovation and efficiency? This article explores the complexities of managing subsea communications by examining academic insights from Stephen Korbin and D’Souza & Megginson. We will delve into the potential benefits and challenges of nationalization and privatization and consider how Public-Private Partnerships (PPPs) can offer a balanced solution that leverages the strengths of both models.
KORBIN’S INSIGHTS: UNDERSTANDING NATIONALIZATION
Stephen Korbin’s research in the 1980s provides a foundational understanding of why governments choose to nationalize industries. His studies show that nationalization is often a strategic decision driven by economic motivations,
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rather than political opportunism. It is typically selective, targeting industries of strategic importance, such as oil and telecommunications, where national control can significantly influence economic stability and security. One of Korbin’s key concepts is the ‘Domino Effect.’ During the 1970s, Libya’s decision to nationalize British Petroleum’s assets inspired a wave of similar actions across the Middle East. Countries like Algeria, Iraq, and Iran followed suit, driven by a desire to control their natural resources and assert economic sovereignty. These actions were not merely reactive; they were part of a broader strategic effort to increase state revenue and reduce foreign dependency. Korbin’s methodology was rigorous. He analyzed political and economic factors across a broad range of countries and industries from 1960 to 1980. By identifying patterns and outcomes of nationalization efforts, he highlighted how these actions align with broader national goals. His research suggests that governments may consider nationalizing subsea cables for similar reasons: to protect national interests, secure critical infrastructure, and reduce reliance on foreign entities.