Deregulation can be defined as the deliberate reduction or elimination of government rules and regulations in a particular sector of the economy on the production and distribution of goods and services.
Deregulation involves the reduction of government power which is exercised in a particular industry in order to create more competition within the economy. It is a deliberate policy and action to simplify government regulations that constrain or limit the operation of market forces.
It is usually implemented in socialist and mixed economics where there may be excessive ownership and control of businesses and industries by the government.
Deregulation is usually necessary in order to relax or simplify all forms of government power and control in some economic activities such as production, distribution, consumption, exchange, price control, income distribution etc. Some of the economic sectors that can be deregulated are the downstream sector of oil, communication and aviation industries, power and energyEnergy is the ability to do work. Energy exists in several forms such as heat, kinetic or mechanical energy, light, potential energy, and electrical energy. Units of Energy: The SI unit... More sector etc.
Deregulation also means decontrol which implies putting in place “policies to free trade and other business activities from rules and controls towards a free market economy”.
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