Deregulation is the process of removing state regulations. It is therefore opposite of regulation which refers to the process of the government regulating certain activities. It is also seen as the reduction or elemination of government power in a particular industry, usually eceated to creat more competition with the industry.
Advantages of Deregulation
Competitiveness: The stated reationale for deregulation is often that fewer and simplier regulations will leaad to a raised level of competitiveness, therefore, higher productivity, more efficiency and lower prices overall.
Access to Credit Markets: Deregulation can enable consumers to gain easier access to credit markets. It boosts spending on consumer durables such as cars, etc.
Generated savings: The biggest gain will be in savings generated from divesting in the sector. This will free up government funds for other activities.
Efficiency: As long as government regulation is removed, it will enhance efficiency in running most of the industries.
Wider choice for consumers: In the provision of goods and services, consumers will have hinder and sufficient choice to make.
New Ideas: New ideas will be injected into the economy as a result of competition. high quality products and services will definitely be the out come .
Opossition: Opossition deregulation may usually involve apprehension regarding environmental pollution and environmental quality standards such as the removal of regulations on hazardous materials, financial uncertainty and constraining monopolies.
Maximization of Profits: Removal of regulation may lead to high cost of production of goods and services and return consumers may likely pay more for the products. Most of these industries would want ot maximise their profits.
Poor quality products: This may result because laws governing quality standards have been removed.
Refreshment: Deregulation may equally result to retrenchment of the workforce.
Poor Living Standard: This may also come up because people are now paying more for godods and services.