Economic liberalization facts for kids
Economic liberalization is a theory about applying the ideas of classical liberalism to the government of a state: In very broad terms, it is about removing as much state control as possible from the economy. The state that follows this path often allows privately owned companies to do some things that governments usually do.
- The state can introduce competition in an economic sector while still controlling a publicly held company. This is the case with many railway systems, for example in France
- The state can privatize a publicly held company, and guarantee a monopoly on the services it offers: This has been the case with the ocmpany responsible for transporting electricity in France, called Réseau de Transport d'Électricité (RTE). It is a subsidiary of Électricité de France (EDF).
Economic liberalization Facts for Kids. Kiddle Encyclopedia.