Economic liberalization

Economic liberalization is a broad term that usually refers to fewer government regulations and restrictions in the economy in exchange for greater participation of private entities; the doctrine is associated with neoliberalism. The arguments for economic liberalization include greater efficiency and effectiveness that would translate to a "bigger pie" for everybody. Most first world countries, in order to remain globally competitive, have pursued the path of economic liberalization: partial or full privatisation of government institutions and assets, greater labour-market flexibility, lower tax rates for businesses, less restriction on both domestic and foreign capital, open markets, etc. British Prime Minister Tony Blair wrote that: "Success will go to those companies and countries which are swift to adapt, slow to complain, open and willing to change. The task of modern governments is to ensure that our countries can rise to this challenge." [cite web |url=http://findarticles.com/p/articles/mi_kmnew/is_200511/ai_n16073679 |title= Europe is Falling Behind |author= Tony Blair |accessdate=2007-12-04 |format=HTML |work=Newsweek ] In developing countries, economic liberalization refers more to liberalization or further "opening up" of their respective economies to foreign capital and investments. Three of the fastest growing developing economies today; China, Brazil and India, have achieved rapid economic growth in the past several years or decades after they have "liberalized" their economies to foreign capital. [cite web |url=http://www.imf.org/external/pubs/ft/issues8/index.htm |title=Why Is China Growing So Fast? |author=Zuliu Hu, Mohsin S. Khan |format=HTML |work=International Monetary Fund ] Many countries nowadays, particularly those in the third world, arguably have no choice but to also "liberalize" their economies in order to remain competitive in attracting and retaining both their domestic and foreign investments. In the Philippines for example, the contentious proposals for Charter Change include amending the economically restrictive provisions of their 1987 constitution. [cite web |url=http://www.gov.ph/aboutphil/a12.asp |title=Philippines : Gov.Ph : About the Philippines |format=ASP ]

The total opposite of a liberalized economy would be North Korea's economy with their closed and "self sufficient" economic system. North Korea receives hundreds of millions of dollars worth of aid from other countries in exchange for peace and restrictions in their nuclear programme. Another example would be oil rich countries such as Saudi Arabia and United Arab Emirates, which see no need to further open up their economies to foreign capital and investments since their oil reserves already provide them with huge export earnings.

ee also

* Capitalism
* Economic liberalism
* Free market
* Globalization
* Liberalisation
* Neoliberalism
* Privatization
* Globalization and Health

References


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Economic democracy — is a socioeconomic philosophy that suggests a shift in decision making power from a small minority of corporate shareholders to a larger majority of public stakeholders. There is no single definition or approach for economic democracy, but most… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Liberalization — In general, liberalization (or liberalisation) refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. Liberalization of autocratic regimes may precede democratization (or not, as in the case of… …   Wikipedia

  • Economic globalization — Part of the Politics series on Neoliberalism …   Wikipedia

  • Economic history of Spain — History of Spain caption=Spanish DoubloonThe Economic history of Spain covers the development of the Spanish economy over the course of its history. Ancient Era The prehistoric Iberians and Celts were some of the earliest groups in what is now… …   Wikipedia

  • economic planning — Use of government to make economic decisions with respect to the use of resources. In communist countries with a state planning apparatus, detailed and rigid planning results in a command economy; land, capital, and the means of production are… …   Universalium

  • Economic policy of the George W. Bush administration — During his first term, George W. Bush sought and obtained Congressional approval for tax cuts: the Economic Growth and Tax Relief Reconciliation Act of 2001, the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief… …   Wikipedia

  • Economic inequality — refers to disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among nations. Economic Inequality generally refers… …   Wikipedia

  • Economic history of Chile — Colonial era to 1690In colonial times, the segmentation of Chile into latifundios left only small parcels for native American and mestizo villagers to cultivate. Cattle raised on the latifundios were a source of tallow and hides, which were sent …   Wikipedia

  • Economic history of Zimbabwe — The economic history of Zimbabwe began with the transition to majority rule in 1980 and Britain s ceremonial granting of independence. The new government under Prime Minister Robert Mugabe promoted socialism, partially relying on international… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.