The Economics of Deregulation and Ramifications for Law and Development

Abstract

The notoriety of deregulation as a result of the need to liberalise the economy for the purpose of enabling market forces shape effectiveness and reduce inefficiencies in the markets has generated a lot of definitions for the term. Deregulation becomes a necessary policy by the government when it becomes important for certain utilities handled by government to be handed over to private investment. The purpose of deregulation highlights its advantages in a capitalist economy; however, this grandiose economic concept is not without its downside of exploitation. The implementation of the policy of deregulation and its economics has ramifications for the law encompassing socio-economic provisions of the law. Implications for human rights have socio-economic dimensions and may run counter to constitutional provisions with individual socio-economic rights for nations that have adopted the Universal Declaration on Human Rights into their domestic legislations and the Universal Declaration on Human Rights as an international legal instrument itself. The way forward remains that; for certain public sector utilities, government and private participation, as well as a transparent and level-playing system are necessary for the development of the society.

Keywords: deregulation, liberalization, development, law, socio-economic rights