2-10 The Nature of Economic Transformation The shift to market-based economies entails Deregulation Removal of legal restrictions to free markets Privatization I Transfer of state ownership of property into private hands Legal Systems I Creation of systems to protect property rights McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights Reserved.McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-10 The Nature of Economic Transformation The shift to market-based economies entails: Deregulation Removal of legal restrictions to free markets. Privatization Transfer of state ownership of property into private hands. Legal Systems Creation of systems to protect property rights