Liberalisation refers to the process of removing government restrictions and regulations on economic activities, allowing for more competition and market forces to determine the allocation of resources. It is often associated with the transition from a centrally planned economy to a market-oriented one. In the context of the given options, liberalisation can be understood as the combination of privatisation and marketisation.

a) Privatisation:
Privatisation refers to the transfer of ownership and control of state-owned enterprises to the private sector. This involves selling off government assets and allowing private individuals or companies to operate and manage these entities. Privatisation aims to increase efficiency, competition, and productivity by introducing market discipline and reducing government intervention in the economy. It allows for profit motives and market forces to drive decision-making, leading to better resource allocation and improved performance.

b) Marketisation:
Marketisation refers to the process of introducing market mechanisms and competition into sectors that were previously under government control or regulation. This involves creating market-oriented policies, removing barriers to entry, and encouraging private sector participation. Marketisation aims to increase efficiency, innovation, and consumer choice by allowing market forces to determine prices, quantities, and quality of goods and services. It promotes competition as a means to improve productivity and allocative efficiency.

Liberalisation through privatisation and marketisation has been a common approach adopted by many countries to stimulate economic growth, attract foreign investment, and enhance competitiveness. By reducing government control and intervention, it encourages entrepreneurship, innovation, and investment. It allows for the efficient allocation of resources, as prices and market signals guide decision-making. Furthermore, liberalisation can lead to increased consumer welfare through greater choice, lower prices, and improved quality of goods and services.

Overall, privatisation and marketisation are key aspects of liberalisation, as they promote the role of the private sector and market forces in driving economic activities. By removing government regulations and allowing for competition, liberalisation aims to create a more dynamic and efficient economy.