| Liberalisation | Privatisation |
| 1. Economic reforms which liberalize the economy from government control are called liberalisation. | 1. Privatisation refers to including private ownership in publicly owned enterprises. |
| 2. It leads to the opening of the economy to international competition. | 2. It leads to the transfer of ownership, management, and control to the private sector. |
| 3. It gives the opportunity for technology improvement which benefits producers and consumers. | 3. It encourages monopoly power and may lead to the exploitation of consumers and workers. |
| 4. It ignores the welfare aspect in the whole world. | 4. It ignores the welfare aspect within the country. |
