The purpose of this report is to exemplify the role of government with the focus on the developing countries by answering the proposed question of Why do we need government intervention? and Why government intervention is necessary for the new economy? The first part of this report illustrates the essential roles of government in social, business, and the future of country aspects. Then, Thailand was chosen as an example of a country entering into the new economy, while using the other countries in East Asia to illustrate the successful government action in transferring the countries to new economy.
1. To provide social welfare for the whole country Education Environment Health care Basic infrastructure Ideally, the government should bear the cost of high-risk or long-term payback project, or even the project that is difficult to finance as a trade-off for the national interest and benefit of its people and, in a way, attracting private sector to invest in the underdeveloped region later on.
2. To set up fair-games, fair competition, rules, laws and regulations, and trade agreements for business sector 3. To determine the future direction of the country Provide information and guidelines for firms to follow Develop strategy for the nation's economic growth 1. Social contexts: 1.1. Environmental protection Waste management: company cannot hold the idea of "more production, more pollution"ÃÂ any longer as it creates externalities (social cost), which in turns will impose a negative impact on the company's reputation.
Government must enforce regulations, inspections, and control on environmental aspect. This is for the social interest so that the firms cannot take advantage from the society. Furthermore, by having regulations, not only the society will benefit from it; it also raises an issue of long-term sustainable development for the business sector to consider upon.
Cons of free-enterprise Only aimed...