The Role of Governments in Dynamic Economic Development


A world- wide tendency toward regional integrations and
internationalization of free- economy, requires technological economic,
and organizational balances. The success of government to reach the
mentioned situations depends on the degree of uniformity and power of
public institutions in a vast variety- sociological, economical; and
political, the dimensions which provide and guarantee for benefits of
public, against the benefits of pressur groups and hold the . reins of
productive economic activities through fundamental investments.
In the process of industrial development, any productive activity of
private sector requires a minimum amount of social investment by
government. Government initiation in provision of,social investment,
accumulation of capital,legal and institutional basis ,accelerate and
promote the productive capacity of private sector. Compatability among
private sector's goals and national ideals, stractual flexibility, and
reduced power of interest groups ,is the necessary condition for a
desired managemant of investments and optimal allocation of factors of
production for development process of any country.
Experiences of successful countries illustrate the reality that also
government's protection of private and public sectors is for granted, any
protection must be based on cost-effectiveness, and/or cost-benefit
analysis. Accordingly, protectioner governments according to
international and domestic facts,design propose a dynamic strategy of
development based on foreign trade, such a strategy must expand the
national industrial capabilities through transfer of modern technologies
on a gross-root development basis and localization of industries and
modern technologies as a result