The Role Of Government In Economic Development

Many years ago, governement's role in public affairs was very restricted in many countries due to that the triumphant philosophy about the state function was taken from the French sources and at less degree from the British Revolution. The new political thoughts was a strong reaction against the omnipotent state controlled by the monarchy. So, the new comer philosophy made a clear cut between government's role and private's role in those states where those principles were taken as a guide for political and economic activities. Formally, this old division is still practiced in minor degree in those countries so-called Western WorId. At the beginning the government action was confined to the following areas: Justice Administration, Foreign Policy, Tax Collection, National Defense and Domestic Political Affairs. The collorary of the new thoughts was then and still is today "less government intervention" to allow a strong private initiative from those areas where the government action was practically banned.