ECONOMIC LIBERALIZATION

Economic liberalization



Economic liberalization

Introduction

The term economic liberalization is a very broad; its significance has been increasing day by day in this contemporary world. It refers to fewer government restrictions and regulations in exchange for the larger involvement of private entities. In simple term, economic liberalization refers to elimination of government control in order to escalate economic development. Economic liberalization is regarded as one of the burning issues of modern world. The core object of liberalization is to enhance the economic development of the countries. The efficiency of economic growth is the primary objective of every country, by keeping this though under consideration economic liberalization concept has been introduced (Mckay, et, al, 2004, pp 1-14). Liberalization to some extent is related to globalization, due to the involvement of international cash flows. The commonality element between globalization and economic liberalization is the involvement of international trade among different countries. The control of government regulatory is reduced when one refers to economic liberalization. Yet, different experts view economic liberalization from different perspective; some feel that it enhances the economic development while rests of the others are against it. This assignment will cover all the aspects of economic liberalization in detail. I will reflect economic liberalization from both the sides, for and against of liberalization in the context of International cash flows

Discussion

Economic growth and International cash flows

The boom of capital flow has been enjoyed by developing countries between the years 1990-1997. The series of International crisis after this boom has raised a question mark on economic liberalization. The economies of distinctive countries flourished between (1990-1997), but the International crisis has forced the governments to revive their economic policies. Many experts believe that International crisis leads to weak relationship between capital flow liberalization and economic development. All this led the policy makers to reassess the policies, in order to secure economic development of different countries.

Pro Liberalization group

Over the last few decades, private capital flows from developing countries are strongly associated with equal increase in domestic capital flows, but this association has been diminished after the International crisis. The relationship has been increased, due to high financial integration has increased across the borders. The importance of economic liberalization differs from one expert to other experts (Mckay, et, al, 2004, pp 1-14). Few experts believe that, economic liberalization is the gate way of boosting the global economy. They believe that, this liberalization is assisting in escalating the economic prosperity of under developed countries. All the countries get equal opportunity in terms of growth, the effective exploitation of resources is mandatory. On the other side, many experts believe that economic liberalization leads economy of the world towards destruction.

The relationship between private capital flows and productivity growth has been strengthened over time. The chief reason of strong association is the sharing of technology and management techniques. The countries' economies have flourished after the economic liberalization concept, which helped the countries in strengthening the economic development of different countries. The biggest success factor in this contemporary world is the ...