Responsibilities of a Government in an Economy

Governments are appointed by citizens to manage the affairs of their country. Their responsibilities include:

-Ensuring the security of a state- Government must maintain law and order internally. This is realized through legislation, the court of justice and the police force. Externally the armed forces protect citizens against external threats.

-Protection and general welfare of citizens   - Government is responsible for the general health and education of citizens. Welfare programmes must be provided for those who are very poor and vulnerable.

-Management of the economy – Governments are appointed by citizens to efficiently manage the economy to bring about growth and development. This includes: encouraging local and foreign investment, controlling inflation, maintaining the foreign reserve (NIR), curbing balance of payments deficits and achieving high levels of employment.

-Protecting the environment – Sustaining the environment is important to the well-being of citizens. Ways of protecting the environment include: legislation to prevent further degradation, zoning to protect wildlife areas from disruption by development of factories, shopping and residential areas and taxation to reduce the level of pollution by firms.

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