Functions of Government in Pubic Policy

FUNCTIONS OF GOVERNMENT

1. Providing economic infrastructure:

Governments provide basic institutions, rules and arrangements, or the lubrication that allows a system to function: e.g., protection of property rights, enforcement of contracts, provision of currency, etc.

2. Provision of various collective goods and services:

These are the public goods that are beneficial for society such as the currency. Education, health, cleans water, and sewerage.

3. Resolution and adjustment of conflicts:

Inevitably, human disputes mean that governments have for thousands of years pursued systems of’ law, rules and regulations, industrial relations, etc. to resolve disputes between individuals, groups, and institutions

4. Maintenance of competition:

As market mechanisms are not always perfect. governments step in to try to maximize the operation of competition in the market

5. Protection of natural resources:

This relates to protection against depletion of natural resources, including the environment in general. Some governments choose to take little or no action in this regard.

6. Provision for minimum access by individuals to goods and services:

This relates to issues such as poverty, unemployment, malnutrition and health but also old age, illiteracy, language barriers, etc

7. Stabilization of the economy:

The government is regarded as being responsible for this as the well-being of all depends on it.

CAUSES OF GOVERNMENT INVOLVEMENT

Public goods:

Goods which benefit all users, whether or not they have directly paid for them, such as public parks, clean air, and national defense. Access cannot be denied to non-payers--—the goods are non-excludable’. While there can be arguments for the user paying. such as for bridge tolls, etc., this is not always feasible. Includes merit goods—goods that are desirable for the benefit of all of society, such as education and health care.