Liberalisation and Privatisation.

Question

Distinguish between:

Liberalisation and Privatisation.

Answer 1

Liberalisation	Privatisation
1. Economic reforms which liberalize the economy from government control are called liberalisation.	1. Privatisation refers to including private ownership in publicly owned enterprises.
2. It leads to the opening of the economy to international competition.	2. It leads to the transfer of ownership, management, and control to the private sector.
3. It gives the opportunity for technology improvement which benefits producers and consumers.	3. It encourages monopoly power and may lead to the exploitation of consumers and workers.
4. It ignores the welfare aspect in the whole world.	4. It ignores the welfare aspect within the country.