chapter  2
Evaluating the Potential Impact of Development Policies
Pages 12

Many Western governments have defi ned their role in economic development policy as ensuring that policies and infrastructure promote privatesector activity that fosters economic growth based on market forces. This situation suggests government is limited to reducing policy intervention and bureaucracy to enhance the ability of the private sector to invest, innovate, and employ. If this premise is accepted, then the public-sector role becomes one of correcting market failures, through investment in pure science, education, and infrastructure, for example:

Government on its own cannot create growth. It is the decisions of business leaders, entrepreneurs and individual workers, which build our economy. What the Government can do is provide the conditions for success to promote a new economic dynamism-harnessing our economic strengths, removing the barriers which prevent markets from supporting enterprise, and putting the private sector fi rst when making decisions on tax, regulation and spending.