Deregulation.
Ans. During the late 1970s and 1980s, some forms of regulation were seen as imposing unnecessary 'red tape' and other restrictions on businesses. In particular, government support of cartel activity was seen as diminishing economic efficiency. Regulatory agencies were often seen as having capture. by the industries, diminishing competition between industry participants, and so not serving the public interest. As a result, there has been a movement towards deregulation in a number of industries. These include transportation, communications and some financial services. An accompaniment of deregulation is 'privatisation' of industries that previously had been under government control. The hope was that market forces would make these industries more efficient. Thus, worldwide wave of de-regulation begins towards the end the 1970s.
• In the US: Airlines, Railroads, trucking, passenger buses, long distance telephony and power were deregulated in a phased man- ner. In fact, only 6.6 per cent of GNP was fully regulated by 1988 (17 per cent in 1977). • In Europe: Rail, Telecoms, Electricity, Gas, Postal Services and Air transport were all subject to national and European Union.
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