Economic liberalization

The Fraser Institute constructed an index of economic freedom based on size of government, Legal system and property rights, sound money, freedom to trade internationally, and regulation. The Heritage Foundation constructed a similar index with 4 main pillars and 12 subcategories: Rule of Law (property rights, judicial effectiveness, government integrity), Government Size (government spending, tax burden, fiscal health), Regulatory Efficiency (business freedom, labor freedom, monetary freedom), Open Markets (trade freedom, investment freedom, financial freedom). ==Potential benefits==

Liberalization offers the opportunity for the service sector to compete internationally, contributing to GDP growth and generating foreign exchange. As such, service exports are an important part of many developing countries' growth strategies. India's IT services have become globally competitive as many companies have outsourced certain administrative functions to countries where costs (esp. wages) are lower. Furthermore, if service providers in some developing economies are not competitive enough to succeed on world markets, overseas companies will be attracted to invest, bringing with them international "best practices" and better skills and technologies. The entry of foreign service providers can be a positive as well as negative development. For example, it can lead to better services for domestic consumers, improve the performance and competitiveness of domestic service providers, as well as simply attract FDI/foreign capital into the country. In fact, some research suggest a 50% cut in service trade barriers over a five- to ten-year period would create global gains in economic welfare of around $250 billion per annum. Poverty reduction == Potential risks ==

Trade liberalisation carries substantial risks that necessitate careful economic management through appropriate regulation by governments. Some argue foreign providers crowd out domestic providers and instead of leading to investment and the transfer of skills, it allows foreign providers and shareholders "to capture the profits for themselves, taking the money out of the country". • Risk of increased inequality across race, ethnicity, or gender lines. For example, according to the anthropologist Lilu Abu-Lughod we see increased gender inequality in new markets as women lose labor opportunities that existed prior to market liberalization. However, researchers at thinks tanks such as the Overseas Development Institute argue the risks are outweighed by the benefits and that what is needed is careful regulation. Wandel durch Handel or "Change through trade" has been criticized for indirectly financing autocratic regimes. ==By region==

• Economic liberalisation in India • Economic liberalisation in Myanmar • Economic liberalisation in Pakistan • Effects of Economic Liberalisation on Education in Tajikistan • Baltic Tiger (Estonia, Latvia, Lithuania, –present) • Economy of Cuba, starting in 1994 and accelerating under Raúl Castro • Indonesian economic boom, Starting after the Secession of East Timor in 1999 with the beginnings of the 21st century. ==Historical examples==

• Doux commerce • Economic liberalization in the post–World War II era • Reform and opening up • Perestroika (Soviet Union) • Economic history of Brazil in the 1980s and 1990s • Miracle of Chile • (Vietnam) ==See also==