What are the advantages and disadvantages of state intervention in economic development in?

Question

cont......
developing countries

Answer 1

Advantages include:
1-Having a centralized development plan helps eliminate reduandancies and ensure cooperation and harmony.
2-Government intervention in the development efforts ensures fair (but not necessarily equal) distribution of the yields of development.
3-Government means large-scale endeavors, thus ensuring certain types of economies of scale and cost reductions.
4-Government intervention can ensure that the developmental efforts will not result in certain harmful social costs such as pollution and monopoly.
5-Government's massive economic resources (as compared to the resources controlled by the private sector) can ensure ambitious efforts and outstanding results.

The disadvantages may include:
1-Government's intervention can brake down or hinder the workings of the profit motive and free private competition, thus leading to less-than-optimum efficiency and competitivity.
2-Governments are often less economically innovative and proactive than the profit-oriented private sector.
3-Too much government outlays on developmental projects can result in: greater public debts, greater inflation (especially in the case of unjustifiable or uncovered money-note issuing), and less liquidity available for short-run uses.
4-Most governments in underdeveloped countries are either inefficient or corrupted.
5-Too much governmental intervention in the development programme of a country leads to less variety and less freedom of choice in front of its citizens.

Answer 2

Government Intervention In The Economy

Answer 3

one of the big advantage of the gorvernment intevention in economic development is that ,since government is there to provide services to her people it means that it will invest on what we call public goods which in most cases the private firms are less interested like for example its unlikely that the private firms can effectively get involved in projects like construction of roads,water,things like defence which are enjoyed collecively by all the people regard less of who pays for it you can not charge utility fee for defence and thats why its the duty of the government to incur the cost for this component which is very essential for the country developments as far as peace and tranqulity is concerned as the pre-requisite for development

on the other hand the disadvantages of the government involvement in the economy among other things is that ,in most cases governments seek to provide services to her peolple and hence concider more issues of fairness at the expence of efficiecy and that is why in my country almost all the governmental parastals collapsed because of lack of this essential elements efficieny,lack of competition,complacence which are the major bottlenecks to the government commanded economies










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Answer 4

the main impact of development state on local economic development are :-

it impact on profit motive and free private competition in which gevernment may brokdown and hinder ,thus leads less then optimal efficiency and compititivity
it impact also on