Deregulation - Controversy

Controversy

See also: Anti-globalization, Globalization, and Neoliberal

The deregulation movement of the late 20th century had substantial economic effects and engendered substantial controversy. As preceding sections of this article indicate, the movement was based on intellectual perspectives which prescribed substantial scope for market forces, and opposing perspectives have been in play in national and international discourse.

The movement toward greater reliance on market forces has been closely related to the growth of economic and institutional globalization between about 1950 and 2010.

Critics of economic liberalisation and deregulation cite the benefits of regulation, and believe that certain regulations do not distort markets and allows companies to continue to be competitive, or according to some, grow in competition. Much as the state plays an important role through issues such as property rights, appropriate regulation is argued by some to be "crucial to realise the benefits of service liberalisation".

Critics of deregulation often cite the need of regulation to:

• create a level playing field and ensure competition (e.g., by ensuring new energy providers have competitive access to the national grid);
• maintain quality standards for services (e.g., by specifying qualification requirements for service providers);
• protect consumers (e.g. from fraud);
• ensure sufficient provision of information (e.g., about the features of competing services);
• prevent environmental degradation (e.g., arising from high levels of tourist development);
• guarantee wide access to services (e.g., ensuring poorer areas where profit margins are lower are also provided with electricity and health services); and,
• prevent financial instability and protect consumer savings from excessive risk-taking by financial institutions.