Question

identify three of Stiglitz’ six roles for government in economic development. Along with each government role, what is the source of economic development? Stiglitz also identified one common role in an economy that government should not perform. What is that an unwise role for government? What might be the harm if government took that role?

Answer 1

Joseph.E.Stiglitz is an American economist and professor at Columbia University. He also served as the chief economist of the Roosevelt institute.Being the receipient of the memorial Nobel prize for economic sciences in the year 2001, he also served as the senior vice president and chief economist for the World bank. Heis notable contribution in the economic science has been recognized globally.

Among the six roles for Government in economic developement, Joseph Stiglitz identified three basic things and set them as his basic objectives. They are:

1. One must change the thinking of developement of the the economy with respect to its own objectives. We must wide our perspective and look up to the development from the growth of the GDP per capita to expect a more democratic and equitable development.
2. To change the thinking about eceonomics.
3. The process of thinking about the developement should be changed from the reflections of partenalistic to North. According to him Economist is not just a person who states the the government what to be done but he must lay out consequences and let the country to make its own decision in the cours eof its actions.

Along with the above mentioned roles of the government, there came the sources of economic development that witnessed a tremendous growth in certain fields like Education , Health care, Infrastructure and Political stability. A stable Government is one wherein its civilians are freed from civil unrest, wars, depressions loss of life and uncertainity about the pertaining future. It is more like;y to have a structured economic plans and long term developments to make its easier for accumulating the sources of economic growth.

While in the years of 1950's and 1960's there prevailed a talk among the economists that the goverment ha sfailed to perform its roles or lost its capacity in the process of correcting the markets failure and developed a sceptic[not likely to believe something or doubtfulabout something] view in the point of all economists.Although it took a lot of time to identify the failures of the central planning, but a solution has to be arrived at inorder to resume major shortfalls. So, it was decided that a state-led industrialization would organize and co-ordinate the ecomic activities on a sustainable basis. Variants of the market system now provide armatures for development .