Has Liberalization & Deregulation been for the Better or Worse?
"Liberalize the Economy" "Free the economy" The above statements have always been the cry of the Market Fundamentalists. Our current puppet PM Dr. Manmohan Singh is credited with freeing the economy from all its conrols and resulted in a better future for us citizens. But has it been or the better?? Its seems the time has come around and there are increasing calls for more and more regulation in many areas. Lets have a look at what has happened since liberalization: a. Insurance Sector: LIC was the sole entity in Life Insurance sector and had an absolute monopoly. Liberalization resulted in emergence of Private Insurance players such as HDFC, KOtak, ICICI, Aegon Religare with the variety of Insurance products particularly ULIPS. The kind of misselling happened in this sector is well known. Almost all the readers reading this article would have been approached by the Misselling Agents of the Insurance companies and many would have also been a victim of them. Aegon R...