Liberalization

Liberalization refers to a relaxation of previous government restrictions, especially in social and economic policy areas. Liberalization of authoritarian regimes may or may not lead to democratization. In social policy, liberalization can involve relaxing laws around divorce, abortion, homosexuality, and drugs. Economically, liberalization usually refers to trade liberalization or capital market liberalization. While economic liberalization is often associated with privatization, the two processes can be separate, such as the European Union liberalizing energy markets without fully privatizing energy companies. Liberalization is one of three key parts of the Washington Consensus for transitioning economies, along with privatization and stabilization.