Liberalization refers to the process of reducing government intervention and regulation in various sectors of the economy, such as trade, investment, and financial markets. This often involves opening up markets to competition, removing barriers to entry, and allowing for the free flow of goods, services, and capital. Liberalization is typically pursued by governments as a means to stimulate economic growth, increase efficiency, and promote innovation. However, it can also lead to challenges related to inequality, environmental degradation, and social instability.