The increasing role of government in a market economy

The increasing role of government in a market economy


06/09/2014 12:40

Some believe that the transition to a market economy cause the cancellation of the government's role in economic affairs while economists see the growing role of this .. how?


In a lecture value delivered economic expert Dr. appearance of Mohammed Saleh at the start of the new season for the second half of this year, the Center for the morning for Strategic Studies said the increasing role of government directly proportional to the economic development happening and the growth of the economy, which is accompanied by the expansion of the need for services to Aigdr the private sector to meet them but limited role of government Thus Zlll favor of the concerns of the other in this regard.


Economists recommend the inevitability of the government to discharge planning, directing, monitoring and policy-making required in the economic life and quit meddling Aokiemha production and establishment of new public companies and leaving that role to the private sector.


Experience has shown Balmoktua failure of many public sector organizations in meeting the needs of the local market with lots of products and goods and commodities and here is the country suffers from accumulations disable more than "92" company and factory, mostly disabled completely and the rest is useless economic statistics show that an army of workers placed in box "disguised unemployment" Atgulwn operating budget without payoff equivalent wages.


Experts believe that the treatment of this phenomenon lies in the privatization of these companies and unconditional guarantee the rights of workers in order to activate it, based on the principle that the private sector looking for profitability and his administration are obliged to this goal and thus distancing the government itself from the problems of the management of these loss-making companies and remains its guarantor of the rights of workers and there processors are many, notably the survival of actual producers and the demobilization of redundant while ensuring their pensions and end of service benefits and thus achieved social justice, according to experts.


Others see the transformation of public companies to joint-stock companies with the participation of the private sector and be the administration, however, the private sector to ensure the achievement of the profits that perpetuate the continuation of the company and this style is the other reluctant government's role in controlling the decisions of companies and makes them free in its decisions and ensures the administration is eager to achieve the output desired, this transformation requires greater oversight role by the government as well as providing services associated with this change.


Expected outcome of these methods is to stimulate the banking sector to support corporate profits guaranteed to distance itself from the risk of bad debts in return for guarantees provided by the companies and thus expanding banking services and the market recovers again.


These measures are a means of transition to a market economy and administration basics to become productive sectors, however, the private sector and the government's role here is growing in tight control on economic performance, especially It possesses the authority and control of the planning and provision of services in support of this transformation and make it work.


The bottom line Eleven years have passed to change and there Amurmasalt stuck and need solutions, including the privatization of companies idle, and now is the golden period after realizing all its advantages and it's time to be applied gradually after the clarity of the picture and the mechanism for the importance of running the economic file by the private sector under the auspices and control of the government and planning for each country's needs.

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