What is meant by ‘liberalization’ ?

Liberalization is any procedure whereby a state lifts limits on some private individual activities. Liberalization takes place when something which used to be barred is no longer barred, or when government regulations are relaxed.

Features of liberalization

1. Liberalization, the relaxation of government controls. Although sometimes linked with the reduction of laws relating to social matters

2. Liberalization is most often used as an economic term. it refers to a decrease in restrictions on international trade and capital.

3. It involves some form of deregulation and privatization of companies.

4. Liberalization reduces the political risk to shareholders and investors.

5. Government bureaucracy is a widespread target area to be efficient and enhanced in the liberalization process.

6. Economic liberalization is generally thought of as a helpful and advantageous process for up-and-coming and developing countries.

7. The original goal of liberalization is to have unobstructed capital flowing into and out of the country to improve growth and efficiencies within the home country.