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Case Studies on Public Policy - Vol. I

Edited by : Priyanka Ramgopal
ISBN : 81-314-0691-1
Price: $25  ( INR)
252 pages( Hardcover edition )

Snapshot of the casebook

For many years, the government played a primary role in the economic development of a country. Governments across the world became prime movers of economic growth. They promoted education, technology, finance and social infrastructure to provide groundwork for the businesses to flourish in the growing market-based environment. Issues against the government intervention were raised, as government protection to economies was proved counterproductive. But when the markets fail, the government intervenes and provides incentives, subsidies and enforces laws and implements policies in favour of the businesses. In many cases, governments encourage entrepreneurship, eliminate destructive competition, engage in selective protection from imports and restrict foreign investments.

One of the ways of government intervention is public policy. Government policies for industry are aimed at sustained economic growth. Through the monetary policy, the government manages money supply within a country to constrain inflation, maintain exchange rate, and achieve full employment and economic growth. Through fiscal policy, the government ensures setting a level of expenditure including changes in borrowing and taxes to control the economy. Over the years, more so in the transition economies, government policies led to innovation and competition.

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