Difference between Liberalization and Privatization
Business Environment in Nepal
BBA
Management Notes
Liberalization is the removal or loosening of restrictions on something, typically an economic or political system.Liberalization refers to relaxation of government restrictions in areas of economic policies.When government liberalizes trade, it means it has removed the tariff,subsidies and other restrictions on the flow of goods and services between companies.
Privatization is the process of transferring an enterprise or industry from the public sector to the private sector.In the international context privatization typically refers to the denationalization of government-run industries.In the international context privatization typically refers to the denationalization of government-run industries.Privatization means replacing government monopolies with the competitive pressure of the marketplace to encourage efficiency,quality and innovation in the delivery of goods and services.
S.No. |
Liberalization |
Privatization |
| 1. | Liberalization is the removal or loosening of restrictions on something, typically an economic or political system. | Privatization is the process of transferring an enterprise or industry from the public sector to the private sector. |
| 2. | Liberalization is the relaxation of government restrictions in areas of economic policies | Privatization is the opening of an industry that has been reserved for public sector to the private sector. |
| 3. | Liberalization helps to increase foreign investment and ,the consumption and control over price . | Privatization helps in increasing efficiency and professional management. |
| 4. | Liberalization helps in reduction in tax rates and lifts unnecessary controls over the economy. | Privatization improve financial discipline and facilitate modernization. |
| 5. | Liberalization helps in reduction in dependence on external commercial borrowing. | Privatization helps in reduction in economic burden of government |
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