Globalisation implies the integration of a country's economy with the world economy. It refers to the cross-border exchange of goods, services, products, capital, ideas, technology etc. Liberalisation refers to the policy of removal of restrictions, trade barriers and protectionist measures to enable the free flow of capital, technology and services. Privatisation involves attempts to transfer activities from the public to the private sector or a reduction in the size of the public sector. It also implies a reliance on the market and deregulation by the govt.
Liberalisation is a direct consequence of globalisation of credit and commodity markets while privatisation is a by-product of a composite of factors including the recognition of the need to for the improvement in efficiency and competition, reduction of public budget deficits, widening of the ownership of the economic assets, elimination of political interference in the management of various PSEs, up gradation of technology etc. Today, privatisation is at the top of the economic agenda of many developing countries. Most of them are restructuring the public sector in order to gain financial solvency and to reduce the revenue deficits. It is a fact that the growing interest in privatisation is a direct consequence of the maladies of the PSEs. The emergence of the concept of LPG has given a jolt to the time-honoured conception of state activity and the doctrine of the infallibility of state-controlled economic activity. Even a communist nation like China has taken a pragmatic course in its drive towards modernisation.
During the last decade, the enterprise reform has deepened with greater autonomy. Ownership has been separated from the management and government from enterprises by introducing the contract responsibilit system, leasing property transfer etc. so as to inject more dynamism into the enterprises and help them become independent entities responsible for their own profits and losses. A market system has been gradually taking place yet many critics believe there is a still a lot to do in this front.
Economic development is a complicated phenomenon and not amenable to simple and clear cut formula. it needs a supportive environment with the interweaving of sophisticated technology, skill diffusion, social ethics and values and a state structure with specific forms of mediation in regard to the capital-labour relationship.
Liberalisation is a direct consequence of globalisation of credit and commodity markets while privatisation is a by-product of a composite of factors including the recognition of the need to for the improvement in efficiency and competition, reduction of public budget deficits, widening of the ownership of the economic assets, elimination of political interference in the management of various PSEs, up gradation of technology etc. Today, privatisation is at the top of the economic agenda of many developing countries. Most of them are restructuring the public sector in order to gain financial solvency and to reduce the revenue deficits. It is a fact that the growing interest in privatisation is a direct consequence of the maladies of the PSEs. The emergence of the concept of LPG has given a jolt to the time-honoured conception of state activity and the doctrine of the infallibility of state-controlled economic activity. Even a communist nation like China has taken a pragmatic course in its drive towards modernisation.
During the last decade, the enterprise reform has deepened with greater autonomy. Ownership has been separated from the management and government from enterprises by introducing the contract responsibilit system, leasing property transfer etc. so as to inject more dynamism into the enterprises and help them become independent entities responsible for their own profits and losses. A market system has been gradually taking place yet many critics believe there is a still a lot to do in this front.
Economic development is a complicated phenomenon and not amenable to simple and clear cut formula. it needs a supportive environment with the interweaving of sophisticated technology, skill diffusion, social ethics and values and a state structure with specific forms of mediation in regard to the capital-labour relationship.
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