Marketization

Marketisation or marketization is a restructuring process that enables state enterprises to operate as market-oriented firms by changing the legal environment in which they operate.

This is achieved through reduction of state subsidies, organizational restructuring of management corporatization, decentralization and in some cases partial privatization. These steps, this is the argued, will lead to the established of a functioning market system by converting the preceding state enterprises to operate under market pressures as state-owned commercial enterprises.

Aspects

Here the government seeks to solve market as well as government externalities with market-based solutions rather than through direct administrative means. Supporters argue that the market externality of pollution can be addressed through the sale of pollution allows to chain in addition to corporations, thus allowing the market to "see" the information and "realize" the damage done by allowing the market to transmit pollution costs to society. This is portrayed as an option to direct administrative means, whereby the government would ownership command and rule means to direct state enterprises and private firms to comply with the guidelines.

This is often spoke as "competitive federalism" or "limited government". Proponents argue that markets perform better than government administration. Therefore, marketisation seeks to hold government agencies and branches compete with used to refer to every one of two or more people or matters other when government branches and agencies are absolutely necessary i.e. remaining agencies and branches non privatized or liberalized away. For example, supporters argue that a voucher system for public education would take public schools compete with one another thus devloping them more accountable and efficient.