The new economic policy 1991 transformed successively towards a market-oriented economy. The entire globe is rotating on the flow of funds. After reforms, the financial sector has grown tremendously. The liberalization and deregulations have provided a new era for the capital market. India's liberalization policy has gained importance in the context of global business scenario. Modern economics is influenced by expansion and diversification.
The free market reforms have varied greatly among transition economies is initial conditions and political developments have constrained government's economic policies and influenced their reforms choice. Hungary and china began liberalizing gradually in the 1960s and the 1970s, respectively. Vietnam accelerated its liberalization in 1989 after partial reforms had failed to raise growth rates or to stabilize the economy sufficiently. Poland liberalize with one "big band", freeing 90 percent of prices, eliminating most trade barriers, abolishing state trading monopolies, and making its currency convertible for current transactions all at once in January 1990. Albania, the Baltic countries, the former Czechoslovakia, and the kyrgya republic followed this model of rapid and comprehensive liberalization. Bulgaria initially did the same, but strong interest group pressures for continued protection and state support to enterprises later brought something of a reversal. In Romania price reforms advanced fitfully for three years after half of all prices were freed in 1990, but liberalization has recently accelerated Russia substantially liberalized prices and imports in January 1992, but extensive export restrictions remained in place until 1995(remaining export duties are set to be eliminated by mid 1996), and many consumer prices are still subject to local government intervention. Countries have usually been slower to adjust or liberalize housing rents and utility and public transport prices.
The world economy at the turn of the century has influenced the process of globalization, global partnership and capital flows as a portfolio of global socio-economic enrichment. The reallocation of goods and services without the movement of labour: emergence of developing countries like India and china as an exporter of goods and services and also as a large market base.
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