Liberalization: A Critical View

We now live in an era of Globalization; the new world order has made the liberalization, privatization and globalization (LPG) model of development almost irreversible with no escape for any country of or region at least in the present context. Liberalization of the Economy means to free it from direct or physical controls imposed by the government. This may similar to deregulation. Deregulation is the process removing or reducing state regulations, typically in the economic sphere. Liberalization-The removal of governmental interference in financial markets, capital markets, and of barriers of trade has many dimension. In this article critically described the adverse impact of liberalization on developing countries. This article is based on secondary resources.

Today, even the IMF agrees that liberalization has pushed that agenda too far that liberalizing capital and financial markets contributed to the global financial crises of the 1990s and can wreak havoc on a small emerging country. A closer look at how it has worked out in many developing countries serves to illustrate why it is so often so strongly opposed, as seen in the protests in Seattle, Prague and Washington D.C.