Liberalization
189004
225455282
2008-07-13T19:59:52Z
Daniel11
63985
/* See also */ add *[[Drug 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 the [[Prague Spring]]).
In the arena of social policy it may refer to a relaxation of laws restricting for example [[divorce]], [[abortion]], [[homosexuality]] or [[Psychoactive drug|drugs]].
Most often, the term is used to refer to [[economic liberalization]], especially [[Free trade|trade liberalization]] or [[capital market liberalization]].
==Liberalization and privatization==
Although economic liberalization is often associated with [[privatization]], the two can be quite separate processes. For example, the [[European Union]] has liberalized [[gas]] and [[electricity]] markets, instituting a system of [[competition]]; but some of the leading European energy companies (such as [[Électricité de France|EDF]] and [[Vattenfall]]) remain partially or completely in [[government ownership]].
Liberalized and privatized [[public services]] may be [[oligopoly|dominated by just a few big companies]], particularly in sectors with high capital costs, or high [[sunk cost]], such as water, gas and electricity. In some cases they may remain legal [[monopoly|monopolies]], at least for some part of the market (e.g. small consumers).
Liberalization is one of three focal points (the others being privatization and stabilization) of the [[Washington Consensus]]'s trinity strategy for economies in transition.
An example of Liberalization is the "Washington Consensus" which was a set of policies created and used by Argentina.
==Liberalization vs Democratization==
There is a distinct difference between liberalization and democratization, which are often thought to be the same concept. Liberalization can take place without democratization, and deals with a combination of policy and social change specialized to a certain issue such as the liberalization of government-held property for private purchase, whereas democratization is more politically specialized that can arise from a liberalization, but works in a broader level of government. For instance, the United Arab Emirates, while not technically a democracy, is loosening restrictions that are discriminatory against women.
==See also==
*[[Drug liberalization]]
*[[Electricity liberalization]]
*[[Oligopoly]]
*[[Marketization]]
[[Category:Classical liberalism]]
[[Category:Liberalism]]
{{gov-stub}}
[[als:Liberalisierung]]
[[de:Liberalisierung]]
[[fr:Libéralisation]]
[[it:Liberalizzazione]]
[[nl:Liberalisering]]
[[pl:Liberalizacja]]
[[ru:Либерализация]]
[[sv:Liberalisering]]
[[vi:Tự do hóa]]
[[zh:自由化]]