Liberalisation

Question 1

Name the three components of the economics policy

Answer 1

Liberalisation, privatization, globalisation

Question 2

Why was there a need for economic reforms? (explain points)

Answer 2

• Weakness of the pre 1991 policies
• Foreign exchange problems
• conditions of the IMF and world bank
• Fall of the USSR

Question 3

What is liberalization?

Answer 3

Economics liberalisation is the policy of deregulation of different segments in society. The objective of introducing liberalisation was to move from a regulated to system to one where regulations were minimized and sectors of society were free from licenses and permits.

Question 4

State the features of liberalization

Answer 4

• deli censing
• relaxation of industrial monopolies
• industrial location policy liberalized.
• removal of restrictions on mergers.
• liberalization of capital market.
• foreign exchange market reforms
• bank reforms
• development of infrastructure

Question 5

What is privatization?

Answer 5

Privatization is the transfer of ownership of the public sector enterprises from the government to private sectors