What is "marketization"

n. The exposure of service industry to market forces.

Marketization or Marketisation is a restructuring process that enables state enterprises to operate as market-oriented firms by changing the legal environment in which they operate.

This is achieved through reduction of state subsidies, organizational restructuring of management ( corporatization), decentralization and in some cases partial privatization. These steps, it is argued, will lead to the creation of a functioning market system by converting the previous state enterprises to operate under market pressures as state-owned commercial enterprises.