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Is there a consensus view on the responsibility of government?
Highly controversial and depends onto your view like to whether markets work. International agencies as like the World Bank and most developed countries are adamant LDC governments accept a markets work laissez faire approach to growth:
• Own and lead the development procedure into own country supported through international community.
• Take action to decrease corruption and the misuse of power for private advantage or advantage,
• Ignore economic activities best undertaken through the private zone
• Make sure stable macroeconomic environment and stable currency to enable and promote private sector
• Collect progressive taxation at rates which do not discourage employees or discourage firms by taking risk for profit
• Give a safety net for those is not capable to take part into a market economy for example disabled
• Make sure political, economic and social stability
• Accurate the worst features of market failure and give public and merit goods for example universal primary schooling
Why are markets considered as unsuitable for promoting development? The process of establishing a market system frequently includes radical reform which produces both winners
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