Although their government is a big player in the economy, it is trying to allow more entrepreneurship, which would make it a

Free market economy.

Explanation:

The free market economy is one in which the government allows the full development of the market and the private sector as the main engine of the economy, reducing regulations and taxes, and increasing incentives for investors to decide to invest in the country.

Thus, the case that the government reduces its participation in the economy would be a clear shift from a mixed economy towards a market economy and free trade.

what are local authorities doing to fix the problem

explanation:

what are the others?