Introduction to Economic Liberalization:

Economic liberalization is the process of freeing a country's economy from government control or intervention and encouraging the private sector to participate in economic activities.

In other words, liberalization is the economic policy of giving the authority to decide things like what to produce, how much to price, where to sell, what quality of goods to produce, etc., to the individual or enterprise that is actually producing.

In such an economic policy, the government does not unnecessarily interfere with the private sector. Therefore, entrepreneurs can work independently. This leads to the proper circulation and use of resources, and consumers can obtain good quality goods at reasonable prices.

Economic liberalization started in Nepal from the fiscal year 2048/49 BS (1991/1992 AD). After economic liberalization, private banks, private universities, private hospitals, etc., have come into operation in Nepal. Simultaneously, after adopting the liberalization policy, the Government of Nepal started the process of privatizing public enterprises. 

As of now, 30 public enterprises have been privatized in Nepal.

Positive Aspects of Economic Liberalization: 

Economic liberalization has many positive aspects. These are as follows:

1. High Economic Growth: Economic liberalization encourages the private sector, leading to increased investment. It also attracts direct foreign investment. Increased investment leads to increased national production, resulting in a higher economic growth rate for the country. For example, Nepal achieved a high economic growth rate due to the economic liberalization implemented by the Government of Nepal in 2050 BS (1993 AD). However, later, internal conflict and political instability caused Nepal's economic growth rate to decline.
2. Industrial Development: Under economic liberalization, as the private sector can invest independently, and it also helps attract foreign investment, it contributes to the industrial development of the country.
3. Increase in Employment: Economic liberalization leads to increased investment and rapid industrialization, creating new employment opportunities. This helps in solving the problem of unemployment in the country.
4. Benefit to Consumers: In economic liberalization, competition among producers leads to the production of quality goods at lower prices. Consumers also have the freedom to consume goods according to their preferences. Therefore, economic liberalization benefits consumers.
5. Reduction of Trade Deficit: Economic liberalization plays a significant role in increasing foreign trade. In economic liberalization, there are no restrictions on imports and exports. Therefore, as domestic industries produce goods based on comparative advantage, exports increase, and the country's trade deficit decreases.

Negative Aspects of Economic Liberalization: 

Although economic liberalization has many positive aspects, it also has some negative aspects or disadvantages. 

These are as follows:

1. End of Traditional Technology, Skills, and Knowledge: Economic liberalization creates fierce competition among producers, forcing them to produce quality goods at lower prices using modern technology, skills, and knowledge. This leads to the end of traditional technology, skills, and knowledge.
2. Unhealthy Competition: In economic liberalization, any entrepreneur or producer has to produce quality goods at low cost to survive. This can lead to unhealthy competition among entrepreneurs or producers.
3. Increase in Unemployment: In economic liberalization, modern technology has to be used to compete. This displaces labor, leading to an increase in unemployment in the country.
4. Pollution and Other Environmental Problems: Due to economic liberalization, large industries from wealthy or developed countries are established in underdeveloped countries in search of cheap labor. The smoke, dust, toxic substances, noise, etc., emitted from these large industries cause pollution as well as other environmental problems.
5. Increase in Economic Inequality: Economic liberalization has increased economic inequality. Currently, in the world, the rich are becoming richer, and the poor are becoming poorer. Economic liberalization is one of the reasons for this.