Role Of Government In Economic Development

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Government defined as the group of the people with the authority to govern a country or state (Oxford Advance Learner Dictionary) plays an important role in the growth of economic and economic development. Government as the leader of the country has a lot of responsibility. One of their duties is to increase the growth and the stability of state economy. The growth of one country showed how prosper the country is. Institution stand to assist government in run their duty. “Institution are the rules of the game in a society or, more formally are the humanly devised constraining that shape human interaction.” (North; 1990, P.3) Based on the definition of constitution they play an important role in controlling human behavior and the human devised such as geographical factor; and they also set the rule which is bring a big impact to the society.

The Economic Growth

A country economic health could measure by looking at their economic growth and the development. The indicator of economic growth is GDP (Gross Domestic Product). A country GDP is the total monetary value of the good and service produced by the country. Example of the economic growth, Indonesia palm oil exporting business added 14 percent to GDP, agriculture provides around two-third of rural household income. With over half of Indonesia’s population lives in rural areas—of which over 20 percent live below the poverty line—the palm oil industry provides an incomparable means of poverty alleviation (World Growth
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