Editing Liberalization

{{Use dmy dates|date=January 2023}}
{{Short description|Relaxation of previous government restrictions}}
{{Capitalism sidebar}}
'''Liberalization''' or '''liberalisation''' ([[British English]]) is a broad term that refers to the practice of making laws, systems, or opinions less severe,<ref>[[Cambridge Advanced Learner's Dictionary]]: [https://dictionary.cambridge.org/dictionary/english/liberalization Liberalization]</ref> usually in the sense of eliminating certain government regulations or restrictions. The term is used most often in relation to [[economics]], where it refers to [[economic liberalization]], the removal or reduction of restrictions placed upon (a particular sphere of) economic activity.<ref>[[Oxford English Dictionary]]: [https://www.oed.com/view/Entry/107868 Liberalization]</ref> However, liberalization can also be used as a synonym for [[decriminalization]] or [[legalization]] (the act of making something legal after it used to be illegal), for example when describing [[drug liberalization]].

==In economy and trade==
{{main|Economic liberalization}}
Economic liberalization refers to the reduction or elimination of government regulations or restrictions on private business and trade.<ref>{{cite book | last1 = O'Sullivan |first1 = Arthur | author-link = Arthur O'Sullivan (economist) | first2 = Steven M. | last2 = Sheffrin | title = Economics: Principles in Action | url = https://archive.org/details/economicsprincip00osul | url-access = limited | publisher = [[Pearson Prentice Hall]] | date = 2003 | publication-place = New Jersey | page = [https://archive.org/details/economicsprincip00osul/page/n191 175] | isbn = 0-13-063085-3}}</ref> It is usually promoted by advocates of [[free market]]s and [[free trade]], whose ideology is also called [[economic liberalism]]. Economic liberalization also often involves reductions of taxes, social security, and unemployment benefits.

Economic liberalization is often associated with [[privatization]], which is the process of transferring ownership or outsourcing of a business, enterprise, agency, [[public]] service or public property from the public sector to the [[private sector]]. For example, the [[European Union]] has liberalized gas and electricity markets, instituting a competitive system. Some leading European energy companies such as France's [[Électricité de France|EDF]] and Sweden's [[Vattenfall]] remain partially or completely in government ownership.{{citation needed|date=October 2015}} Liberalized and privatized public services may be dominated by big companies, particularly in sectors with high capital, water, gas, or electricity costs.{{citation needed|date=October 2015}} In some cases they may remain legal monopolies, at least for some segments of the market like consumers.{{citation needed|date=October 2015}} Liberalization, privatization and stabilization are the [[Washington Consensus]]'s trinity strategy for economies in transition.{{citation needed|date=October 2015}}

The [[Bretton Woods Conference]] of 1944, which recommended the establishment of [[International Monetary Fund|International Monetary Fund (IMF)]] ''and the [[World Bank]]'', had also recommended the establishment of an [[International Trade Organization]] (ITO). Although, the IMF and the World Bank were established in 1946, the proposal for ITO did not materialize. Instead, the [[General Agreement on Tariffs and Trade|General Agreement on Tariff and Trade]] ''(GATT)'', a less ambitious institution, was formed in 1948. The primary objective of GATT is to expand [[international trade]] by liberalizing trade so as to bring about all round economic prosperity. GATT was signed in 1947, came into effect in 1948 and lasted until 1994. It was replaced by the [[World Trade Organization]] in 1995. The original GATT text (GATT 1947) is still in effect under the WTO framework. Thus liberalization was born.{{Citation needed|date=October 2020}}

There is also a concept of hybrid liberalization. For instance, in [[Ghana]], [[Theobroma cacao|cocoa crops]] can be sold to competing [[Privately held company|private companies]], but there is a minimum price for which it can be sold and all exports are controlled by the state.<ref>Marcella Vigneri and Paulo Santos (2007) "[http://www.odi.org.uk/resources/details.asp?id=422&title=ghana-cocoa-marketing-dilemma-liberalisation-without-price-competition-achieved Ghana and the cocoa marketing dilemma: What has liberalization without price competition achieved?] {{Webarchive|url=https://web.archive.org/web/20120307102105/http://www.odi.org.uk/resources/details.asp?id=422&title=ghana-cocoa-marketing-dilemma-liberalisation-without-price-competition-achieved |date=7 March 2012 }}", [[Overseas Development Institute]]</ref>
The term liberalization has its origin in the political ideology [[liberalism]], which took form by the early 19th century.

==In social policy and government==
In social policy, liberalization may refer to a relaxation of laws restricting certain practices or activities, such as [[Divorce law by country|divorce]], [[Abortion law|abortion]], or [[Prohibition of drugs|psychoactive drugs]]. Regarding [[Civil and political rights|civil rights]], it may refer to the elimination of [[Sodomy law|laws prohibiting homosexuality]], [[Gun ownership|private ownership of firearms]] or other items, [[same-sex marriage]], [[Interracial marriage|inter-racial marriage]], or [[Interfaith marriage|inter-faith marriage]].{{citation needed|date=October 2015}}

There is a distinct difference between liberalization and [[democratization]]. 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. Democratization is politically highly specialized; it can arise from a liberalization but works on a broader level of governmental liberalization.{{citation needed|date=October 2015}}

==See also==
{{Portal|Law|Liberalism|Libertarianism}}
{{div col}}
* [[Artistic freedom]]
* [[Civil libertarianism]]
* [[Cultural liberalism]]
* [[Decriminalization of sex work]]
* [[Deregulation]]
* [[Drug liberalization]]
* [[Emancipation]]
* [[Energy liberalisation]]
* [[Free trade]]
* [[Freedom of speech]]
* [[Freedom of thought]]
* [[German reunification]]
* [[Libertarianism]]
* [[Liberty]]
* [[Marketization]]
* [[Oligopoly]]
* [[Sex-positive movement]]
* [[Sexual revolution]]
* [[Social liberalism]]
{{div col end}}

== References ==
{{Reflist}}

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[[Category:Market structure]]
[[Category:Economics of regulation]]
[[Category:Law reform]]