The basic and literal meaning of liberalisation is to make freer or liberal. Liberalisation meaning covers a wide area of topics under the economy and socio-political policies.
Liberalisation Meaning in Hindi
उदारीकरण का मूल और शाब्दिक अर्थ स्वतंत्र या उदार बनाना है। उदारीकरण का अर्थ अर्थव्यवस्था और सामाजिक-राजनीतिक नीतियों के तहत विषयों के एक विस्तृत क्षेत्र को शामिल करता है।
Liberalisation Means: Etymology and more
Liberalisation is a part of the ‘Liberal’ family. Liberal in its literal meaning is ‘Openness’. Whether it be openness of views or inclusion of more rights, Liberalisation is a process of free and easy ‘conditions’.
According to the Cambridge Dictionary, Liberal means, “Respecting and allowing many different types of beliefs or behaviour.” Liberalisation meaning has been extended from the same and is a process of making things liberal. Liberalisation meaning, according to the Cambridge Dictionary is, “The practice of making laws, systems, or opinions less severe.”
Unprejudiced, Permissive, Unbigoted, Open-minded, Enlightened, Free and easy, Laissez-faire, Libertarian, Latitudinarian, Non-partisan, indulgent, Lenient, are some of the synonyms of Liberalisation meaning.
Narrow-minded, Conservative, Bigoted, Strict, Scant, Careful, and Miserly are some of the opposite words(antonyms) for Liberalisation meaning.
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Liberalisation Meaning In Economics (Trade and Commerce)
To get to know the Liberalisation meaning through the purview of trade and commerce, we should dive into the history and understand what happened during The Great Depression of 1929.
Often described as the ‘longest, deepest, and most widespread depression of the 20th century’, The Great Depression was an economic depression that occurred worldwide around the 1930s. After the world faced this economic disaster, there was the ultimate realisation of freer and liberal trade, worldwide.
After the establishment of the General Agreement on Tariff and Trade(GATT) in 1948, it lead to liberalise trade and bring economic prosperity all around. The primary motive of GATT was to bring economic revolution with free and fair trade.
Liberalisation meaning in trade and commerce is often associated with the reduction of taxes, labour market flexibility, social security, privatisation, and less severe trade laws.
Define Liberalisation with Examples (Trade and Commerce)
Abolition of Licence Raj System
The Licence Raj or Permit Raj was a system of complicated regulations, restrictions and licenses. Later the government of India initiated a liberalisation policy in year 1991 and that’s when the Licence Raj became outdated.
Loosening of government controls over private sector
Loosening of goverment controls over private sector also curbed the monopoly of the public sector from various areas of our economy. Private sector, when starts working with fewer restrictions in the country, it depicts liberalisation in the country.
Liberalisation Meaning: Social and Political purview
Liberalisation meaning in social and political purview refers to the relaxation of laws. These relaxations are made for more ease of living and to allow people to choose. For example, abortion, divorce and the use of psychoactive drugs were preventive in the past. However, the relaxation of laws over these ‘restricted activities’ provided individuals with some choices to choose from.
Moreover, relaxation in the laws might add up more of the civil rights to the individuals. Relaxations of laws related to homosexuality, inter-faith marriages, inter-racial marriages, same-sex marriages have given individuals the right to live with ‘their chosen partners’.
Liberalisation Meaning: Examples (Social and Political purview)
Decriminalisation of homosexuality
In the year 2018, section 377 of the Indian Penal Code was scraped down and considered unconstitutional by the apex court of India, The Supreme Court. After years of protest and grassroots activism, the following section was ruled unconstitutional, and thus, it effectively decriminalised homosexual activities. According to the petitioners, Section 377 of the Indian Constitution was a challenge to their right to sexual privacy, dignity. The petitioners felt that it was their freedom of expression to argue against the constitutionality of Section 377.
Thus, decriminalisation of homosexuality is a kind of liberalisation.
Decriminalisation of Adultery
Sexual relations of a married person to someone who is not their husband or wife is considered adultery.
In the year 2018, a five-judge bench decriminalised adultery by scraping down Section 497 of the Indian Penal Code (IPC). The ground on which the unanimous decision ruled out Section 497 was that the bench considered it as ‘paternalistic law, which infringes upon a woman’s autonomy and dignity’.
Liberalisation under the purview of commerce and trade refers to freer trade with tax relaxations and fewer trade regulations.
Whereas, in the socio-political scenario, liberalisation stands for openness of views or inclusion of more rights.
Differentiate between Liberalisation and Privatisation?
Liberalisation means ‘opening’ or ‘freeing’. Removing restrictions and making the laws less severe is what liberalisation stands for.
In the terms of economy and commerce, liberalisation refers to tax relaxation and lessening of trade regulations.
However, Privatisation refers to the transfer of ownership from public ownership to private ownership.
What are the advantages of Liberalisation?
- It increases competition among domestic industries, thus reduces the threat of monopoly. The competition allows relief in cost and better quality products.
- It will attract more inward investment. This will be effective for the country’s development.
- Increased exports can also be observed.
- Comparative advantages due to the presence of foreign traders and industries.