Role Of Government In Economy

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Government Government is a system of social control under which the right to make laws, and the right to enforce them, is given to a particular group in society. Government power can be held by one individual, a few, or a majority. Government come in different forms. The basic law determining the form of government is called the constitution and may be written, as in the United States, or largely unwritten, as in Great Britain. In the present world governments have many jobs including: • Providing for the security of their country. • Keeping order. • Establishing a system of justice so that people are treated fairly. • Providing welfare services to those in need. • Regulating the economy. • Establishing educational systems. Role of government in Economy The government of a nation adopt the suitable economic system based on her socio-economic structure and on the basis of state of economic growth. The common economic systems are: socialist economy- public sector dominant, capitalist economy-private sector dominant and the mixed economic system –the interplay of public and private sector. With the adoption of appropriate economic system, the government- by the people and for the people, tries to make equitable distribution of income, stability of the economy, and to ensure the adequate rate of growth. History of the economy and how government interference At earlier phase there was less role of government in economic related activities, the ruler control the economy. In the
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