Role of Government in Economic Development: Focus on Bangladesh

Introduction:

A government is the system or group of people governing an organized community, often a state. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government plays various roles in the state. Among various roles, the economic role is one of the essential roles which leads to a country’s apex of development. Economic development is the growth of the standard of living of a nation’s people from a low-income (poor) economy to a high-income (rich) economy. Government is the group of people with the authority to govern a country or state; a particular ministry in office. It is the system by which a state or community is governed.

Economic development is the development of economic wealth of countries, regions, or communities for the well-being of their inhabitants. From a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base. Government plays various roles to state among those roles one of the crucial roles is economic development. Like all other states, the Government of Bangladesh also emphasizes economic development which is already discussed above.

Theoretical Framework:

What government is, what is economic development and what is meant by role of government? Government:

1. Government is the group of people with the authority to govern a country or state; a particular ministry in office.

2. It is the system by which a state or community is governed.

3. Government is the action or manner of controlling or regulating a state, organization, or people

4. The political direction and control exercised over the actions of the members, citizens, of inhabitants of communities, societies, and states; direction of the affairs of a state, community, etc.

Economic Development:

Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. The concept, however, has been in existence in the West for centuries. “Modernization, “westernization”, and especially “industrialization” are other terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues. Economic development is very often confused with industrial development, even in some academic sources.

Role of Government:

Role of government refers to activities of government. Responsibilities of governing body of state. The government has many roles in economy. Like other businesses, the government spends and makes money, consumes goods and services, and employs people. Federal, state, and local governments raise funds directly through taxes and fees. They often borrow money from the public by selling securities, such as bonds. A bond is an investment in which people loan money to the government for a specified time and interest rate. Governments also disburse money via contracts with businesses or through social programs that benefit the public.

Development of Socio-Economic Infrastructures:

In order to maintain a smooth functioning between agriculture and industrial sectors, a sound socio-economic infrastructure is necessary. Thus, government is investing huge amount money of for the development of overhead capitals like energy, power, transport, communications, education, health, housing etc. Moreover, the government is also giving stress on the development of other tertiary sectors like banking finance, insurance etc.

Efficient Utilization of Resources:

All the countries have different types of natural and economic resources for their own use. These resources are used optimally to satisfy maximum wants among the economy. This will enable the country to achieve the path of economic development. Hence, efficient utilization of domestic resources is the main role of the government.

Maintain Law and Order:

The government or the state plays an important role in maintaining peace law and order within the economy through effective administrative system. The state runs defense, police and court to maintain peace and order both externally and internally.

Social Distributive Justice:

To implement social distributive justice, i.e., to reduce inequalities between rich and poor, the government plays a vital role in an economy. The government takes several measures in this context, such as; Government have taken some crucial steps for ensuring reduce poverty and also has taken some steps for self-employment of man and women. Government allocates 5162 cr tk for development of 1 lakhs 20 thousand villages. Vital steps are given below:

 One House, One Firm.

 Giving loan or grant to poor people with few interest rate or not.

 Given fertilizer by the Agriculture Office to poor farmers.

 Monthly 400/- allowance poor old age people.

Active Participation:

The state actively participates into the economy on the following grounds:

(i) To maintain price stability or to control inflation;

(ii) To stop black marketing, by the policy of price ceiling;

(iii) Direct intervention during the time of political disorder or chaos;

(iv) Direct participation during financial or economic crisis,

(v) Sole intervention during the time of war emergency or natural disasters,

(vi) Regular supply of essential commodities to the weaker section of the society through effective Public Distribution System (PDS).

Conclusion:

In the final analysis, it can show that government plays various role to state among those roles one of the crucial role is economic development .Like all other state, Government of Bangladesh also emphasize on economic development which is already discussed in above.

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