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Critically Assessing the Impact of Economic Liberalization: Trade, Finance, and Privatization

   

Added on  2023-07-11

17 Pages990 Words180 Views
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ECONOMIC LIBERALIZATION
POVERTY REDUCTION
GROUP A
M. Ali Bin Qasim
Mateen Rizvi
Jahanzeb Khokhar
Faryal Shahid
Critically Assessing the Impact of Economic Liberalization: Trade, Finance, and Privatization_1

OVER VIEW
• The present chapter critically evaluates the growth, employment and poverty impacts
of three major elements of recent economic liberalization—trade liberalization,
financial liberalization and privatization.
Critically Assessing the Impact of Economic Liberalization: Trade, Finance, and Privatization_2

INTRODUCTION TO ECONOMIC LIBERALIZATION
• liberalisation in short is "the removal of controls" in order to encourage
economic development. Most first world and developing countries have
pursued the path of economic liberalization in recent decades with the
stated goal of maintaining or increasing their competitiveness as business
environment.
• Basically it refers to reduction of government regulations and restrictions in
an economy in order to encourage greater participation by private entities
• Liberalization policies include 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.
Critically Assessing the Impact of Economic Liberalization: Trade, Finance, and Privatization_3

GOVERNMENT INTERVENTION
• Government intervention is regulatory action taken by government that seek
to change the decisions made by individuals, groups and organisations about
social and economic matters.
• From this liberalization perspective, government intervention in markets is
seen as both inefficient and distortionary. Even if an interventionist State acts
with good intentions, it does not have that competence to manage the
economy well.
Critically Assessing the Impact of Economic Liberalization: Trade, Finance, and Privatization_4

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