LIBERALIZATION

Although such interconnectedness in the present century is unprecedented, it is not historically delinked from the past. Economically, politically ‘and culturally it can be explained as the expansion of western liberalism with all its facets to the rest of the world. The economic theory relates globalization to the model of a free world market without restrictions of competition and mobility, a global mass culture and a world-encompassing information society. This approach shows that the neo-liberal market of domestic economics has simply been shifted to the world market level. Neoliberal market is particularly followed and pushed by western capitalist states. Thus the globalization becomes synonymous to the western-capitalism as against socialist policies which were followed by many Third World countries after their independence from the clutches of colonialism.

Liberalization refers to a relaxation of government restrictions, usually in areas of social or economic policy. Economic liberalization is often associated with privatization. Some time it is referred to as deregulation. It is also linked with democratization.

In order to understand the impact of globalization and liberalization on the public administration in general and in the form of New Public Management and Good governance in particular we will now focus on certain key issues which brought transformation in the theory and practice of public administration in the post World War II era.

Check your progress Liberalization refers to (Select odd man out) 1.      Market regulation 2.      Privatization 3.      Deregulation 4.      Democratization