The Role of the State in Development Policy
Economic development has been one of the most difficult to define aspect of any nation in the world. There have been many debates about the target rates of the growth of the state together with the different economic problem such as unemployment as well as unacceptable level or rates of inflation. But despite of all the debates and conference about the said issue, the central or main definition of the problem is still vague (Barker 1983, p. 5). The role of the state in policy development has been considered as the oldest topics in the economic literature and the controversy still continue over the comparative qualities of the market system as opposed to the state interference or involvement (Chowdhury & Kirkpartick 1994, p. 1).
In order to understand, plan and implement different government activities that will prevent the harmful effect of the negative situation of the economy, development policy is a must. It is being implemented at all levels of the government or state as a response to the perceived problems and is not considered as an attempt to meet the targets (Barker 1983, p. 5).
The state has a huge role in planning and implementing different development policy. The effectiveness of the state and the development policy is judge on the basis of their ability to put right those problems that they have developed to resolve (Barker 1983, p. 5).
Due to the haste change of the global economic condition, each and every state or government must do something in order to protect their own economy for the sake of their citizens. States play an important role in every development policy. Nowadays, governments are already going beyond the traditional way of planning and implementing different vital macro-economic policies such as low deficits as well as inflation (Stiglitz 1998, p. 1) Most of the states are putting their market as the center of their development process and strategies but they were not loathe to intervene in market, or, to use the govern market (cited in Stiglitz 1998, p. 1)
Knowing What the Problem Is
Development policy does exist due to the fact that a certain state or government is facing a problem. Knowing what the problem is and the possible effect of that given problem is the most important role of the state in the development policy. In addition to that, knowing the groups or category of the citizen who will be greatly affected will be a great factor. It can help the government to focus on the group of their citizens or of their people who will be in great need.
Setting of Corrective Strategy
A corrective strategy is important because it can help to address directly the different problems that will not quickly vanish of its own accord (Baker 1983, p. 6). Corrective strategy can be done by first identifying the different cause of the problem with regards to the different aspect of the economy of particular nation. It will be important to focus on the three different and most important aspect of the economy: the places, the people and the jurisdiction (Baker 1983, p. 6).
Create Regulated Institution
The state has a primary role in setting out different activities and projects that will help to create different regulated institution that will help to promote savings and will help to allocate different resources, as well as the scarce investment. The state must also promote different investment in the infrastructure, human capita and the improvement and development of different technology (cited in Stiglitz 1998, p. 1).
Advocate of Economic Growth
The state has a very important role in development policy because they serve as a promoter of economic growth. The state plays an important role in getting the nation into the right business (Reinert 1999). It is considered as the starting point and the activity-specific nature of the economic growth activity of each and every nation (Reinert 1999). It is the process in which the state will put the nation into its proper place or by finding the right path or way where in the nation will be taking.
The state has a great responsibility in allowing and authorizing different business or institution that will help the economy of its nation. It can also help to protect the international position and rights of one country and nation
Image Builder
The state has a great role in building the international or global image of particular country in the world market. It has a big responsibility in maintaining and organizing peacefulness as well as the freedom of the people in one particular country. It is the responsibility of the state to create different laws and policies that will help them to organize and maintain the reliability and honesty in the government.
There are some cases, where in the state are facing some scandal, the said issue might affect the development process of the country and the state must do something in order to prevent such thing from happening or do things that will help them to correct their wrong or lessen the negative impact of the scandal in the global image of the country in the global market.
It is also the responsibility of the state to protect the environmental situation or aspect of the country in order to promote health and wellness of their citizen as well as to promote the tourism industry of the country.
Acting as a Referee in Competition
It is the responsibility and important role of the state to focus in enhancing the competition in their local market. Restriction about the competition is often related to the decrease in the welfare, and can be considered as one of the most frequent symptoms of unjustified influences by special interests. That is why it is the responsibility of the state to act as a referee in the market economy in order to reduce the competition in the market (Stiglitz 1998).
More specifically, it is the role of the government to lessen or restrict the competition between those private and public institution, in order to protect the rights of those employees.
References
Barker, M 1983, State Taxation Policy, Duke University Press
Chowdhury, A & Kirkpartrick, C 1994, Development Policy and Planning: An Introduction to Models and Techniques, Routledge, New York
Stiglitz, J 1998, What Should It Do? How Should It Do It? And How Should These Decisions Be Made? The World Bank, draft, viewed 20 February 2008, <http://www.w orldbank.org/html/extdr/extme/redefine.pdf>
Reinert, E 1999, ‘The Role of the State in Economic Growth’, Journal of Economic Studies, vol. 26, no. 4/5, pp. 286-326
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