explain liberalisation measures and give its achievements,merits and demerits?

Answer 1

Liberalisation in the Economic sense describes the disentangling of government intervention from the market place. Generally, market liberalisation (and it's American equivalent, liberalization) has referred to a reduction of trade barriers and development of more mature financial markets that are capable of integrating more directly with MNC operations.

If you follow the Washington Consensus, market liberalization is an unqualified success, and its merits include the reduction of trade barriers, increased efficiencies and job growth. Often, liberalisation features privatisation of state industries, which may yield stronger and more stable businesses.

If you follow a detractor such as Joseph Stiglitz (author of "Globalization and its Discontents"), market liberalization is nice for a nation that is ready for it, but tends to mire the economies of nations not yet ready for it by turning state-run monopolies into abismally-run private entities, suffocating local supply through imports of more efficient goods produced in the industrialized nations, and stymie the nascent financial and capital markets through speculative attacks.