Marketization

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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.[1]

This is achieved through reduction of state subsidies, organizational restructuring of management (corporatization), decentralization and in some cases partial privatization.[2] These steps, it is argued, will lead to the creation of a functioning market system by converting the previous state enterprises to operate under market pressures as state-owned commercial enterprises.

  1. ^ Rolph van der Hoeven, György Sziráczki. Lessons from Privatization. (1997). International Labour Organization. ISBN 92-2-109452-9 p.101
  2. ^ Sarah Vickerstaff. The Transformation of Labour Relations. (1998). Oxford University Press. ISBN 0-19-828979-0 p.63