Deregulation Meaning: Definition, Examples, and Translations
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deregulation
[diหหrษษกjสหleษชสษn ]
Definitions
economic policy
The process of removing or reducing government regulations on an industry or sector, allowing for more competition, lower prices, and innovation.
Synonyms
dismantling regulations, liberalization, privatization.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| deregulation |
Again, this term is often used interchangeably, but it emphasizes the broader scope of actions that reduce oversight and controls.
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| liberalization |
Often used in the context of opening up markets and systems to more competition and reducing restrictions, typically focusing on economic policies and trade.
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| privatization |
Used when referring specifically to the transfer of ownership or control of a business or service from the public sector to private individuals or companies.
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| dismantling regulations |
Commonly used in political or activist discourse to emphasize the process of actively removing regulations that are seen as burdensome or unnecessary, often with a negative connotation of undoing essential protections.
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Examples of usage
- Deregulation of the telecommunications industry led to lower prices for consumers.
- Many argue that deregulation of the energy sector will result in increased efficiency and lower costs.
aviation industry
The elimination or reduction of government restrictions on airlines, such as price controls or route assignments.
Synonyms
liberalization, open skies policy.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| deregulation |
Used when referring to the removal or reduction of government regulations or restrictions, especially in industries such as finance, telecommunications, and energy. It often implies a shift towards a more market-driven economy.
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| liberalization |
Often used in broader contexts to describe the process of loosening restrictions in various areas like trade, economy, or social policies. It not only includes reducing government regulations but also encouraging more freedom and openness.
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| open skies policy |
Specifically used in the context of international aviation agreements that aim to remove restrictions on airlines flying between countries. It promotes increased competition and liberalization in the airline industry.
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Examples of usage
- Deregulation of the aviation industry in the 1970s led to increased competition and lower airfares.
- After deregulation, airlines were able to offer more routes and services to passengers.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Context
- In the 1980s, the United States experienced significant deregulation in various industries, notably airlines and telecommunications.
- The shift towards deregulation was influenced by economists like Milton Friedman, who argued it would foster competition and lower prices.
- Data from the late 1990s showed that deregulated markets often led to increased innovation within certain industries.
Economic Impacts
- Deregulation can lead to lower consumer prices, but it can also result in less oversight and increased risks, as seen in the financial crisis of 2008.
- In industries like utilities, traditional regulation was replaced to encourage competition, leading to variable outcomes for consumers.
- Debates continue about the effectiveness of deregulation, as some economists highlight benefits, while others warn of potential abuses.
Global Perspectives
- Many countries have adopted deregulation as a means to stimulate economic growth; however, the results have varied widely.
- The European Union has implemented deregulation in various sectors to enhance market efficiency and competition.
- Comparative studies show that in some regions, deregulation led to better service quality but risks in public safety.
Contemporary Issues
- In many sectors like energy and telecom, calls for deregulation are met with concerns of monopolistic practices and consumer protection.
- Recent discussions around environmental deregulation highlight the tension between economic growth and ecological responsibility.
- Social media platforms are also facing calls for deregulation, especially regarding content moderation and privacy concerns among users.
Origin of 'deregulation'
Main points about word origin
- The term combines 'de-' meaning 'removal' and 'regulation', which comes from the Latin 'regulare', meaning 'to control' or 'to direct'.
- It began to gain popularity in the late 20th century, especially with changes in the economies of many Western countries.
- Deregulation has its roots in political movements that favor free-market policies and reducing government intervention.
The concept of deregulation gained prominence in the late 20th century as a response to the perceived inefficiencies and limitations of government intervention in various industries. It was believed that by removing restrictions and allowing market forces to operate freely, industries would become more competitive and efficient. Deregulation has been a topic of debate, with proponents arguing for increased innovation and consumer choice, while critics raise concerns about reduced safety standards and potential monopolistic practices.