UPSC Economy GS 3

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📍 LIBERALISATION #Reforminindia 💡 The term liberalisation has its origin in the political ideology ‘liberalism’, which took its form by early nineteenth century (it developed basically in the previous three centuries). 💡 The ideology was the product of the breakdown of feudalism and the growth of a market or capitalist society in its place, which became popular in economics via the writings of Adam Smith (its founding father in the USA) and got identified as a principle of laissez-faire. 💡 We see it taking place in the whole Euro-America in the 1970s and particularly in the 1980s. The most suitable example of this process could be China of the mid-1980s when it announced its ‘open door policy’. 💡 In the Indian case the term liberalisation is used to show the direction of the economic reforms—with decreasing influence of the state or the planned or the command economy and increasing influence of free market or the capitalistic economy. It is a move towards capitalism. ▪️@upsc_economy_notes

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📍 THE LPG #Reforminindia 💡 The process of reforms in India has to be completed via three other processes namely, liberalisation, privatisation and globalisation, known popularly by their short-form, the LPG. 💡 Precisely seen, liberalisation shows the direction of reform, privatisation shows the path of reform and globalisation shows the ultimate goal of the reform. ▪️@upsc_economy_notes

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