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]]