The Role of Government

The Role of Government

Introduction

The government intervention has been considered as the most common phenomena that the governments of the developed and developing countries adopt for the redistribution of welfare among the poor segments of the society. The role of government in distributing the benefits to the needy families is crucial. The role of government in providing and distributing the benefits among the needy people is very important. The government can play this role efficiently by collecting the taxes from the rich people and distributing it among the poor and needy families. There are other ways as well through which government intervention can help needy and poor families. The government can charge heavy taxes on the use of imported goods as they are principally used by the rich segments of the society. The collections from this tax can then be redistributed among the poor families. Moreover, the government can start the income support program for such families in which it can offer different kinds of employment to these people. They can work and earn their living on their own. The system of taxation is basically used for the redistribution of income from the rich segments of the society to the poor segments of the society (Smith, 2004).

The prosperity of nations, as some understand it, depends of institutions that respect private property and economic freedom. From this derive many things: the need for a system to enforce contracts, punish violations of rights to life and property (justice) and to protect them from abuse by third parties (security and defense). It is also important to maintain a sound currency not subject to large fluctuations in value and enjoy a free trade regime in which to compete. But sometimes we see how governments are unable to fulfill this function, and engage in other tasks like stealing at gunpoint to redistribute income population or for the benefit of his acolytes and friends. This is one of the most serious problems suffered much of the underdeveloped countries, especially in Africa (Snowdon, 2001).

Most countries recognize the importance of science and technology as tools for economic growth, but many developing countries focus exclusively on the generation of knowledge in basic research support. The economic growth is dependent on number of factors that includes the financial intermediation and the social factors that give rise to the economic development in the society. The economic growth is largely associated with the economic development of the country. The factors that are responsible for the economic growth are also responsible for the economic development. The research study will look at the effects of the monetary regimes on economic development in different parts of the world in the post financial crisis era. The economic growth is stimulated through different variables that exist in different economies of the countries.

The Role of Government in Economic Development

The consensus on the role of government in agricultural development has changed over time to a less direct management of economic activities and fewer controls on prices ...