Marketization
Marketization refers to the process by which markets are introduced into areas of the economy that were previously controlled by the state or other non-market institutions. This process involves the privatization of state-owned enterprises, the liberalization of trade and investment, and the deregulation of industries. Marketization is often driven by economic reforms aimed at increasing efficiency, promoting competition, and fostering economic growth.
The concept of marketization gained prominence in the 1980s and 1990s, particularly in the context of post-socialist
1. Price liberalization: The removal of price controls and subsidies, allowing prices to be determined by market
2. Privatization: The transfer of state-owned assets to private ownership, often through auctions or sales.
3. Deregulation: The reduction of government regulations and controls over industries and businesses.
4. Foreign direct investment (FDI) promotion: The encouragement of foreign investment to bring in capital, technology,
Marketization has both positive and negative effects. On the positive side, it can lead to increased efficiency,
The success of marketization efforts depends on various factors, including the political will, institutional framework, and