Public policy and public administration

1. Presentations of pubic
policy and public
administrative

2.  Name:Vaishnavi Rajendra Bhalerao std
 Std: ba.llb 2nd year
 Subject: public policy and public administrative subject
 Subject teachers: adv shah mam
 Topic name: state v/s market debate
 College name: shri omkarnath malpani low college sangamner

3. Introduction
 The state v/s market debate represents the relationship between
the roles of the government and the market in a given economy
and society .
 This debate between the state and market has once again
assumed important due to change in public policy of liberal
democracies in 1980.
 The bottomline of this their is a newd to reduces the role the
government and conrol in market by providing opportunities for
full play of free market in the economy.

4. Concept of
state v/s
market debate
 The state v/s market debate is a result of economic reform and
structural adjustments that took place in many countries including
developing and the developed.
 The state v/s market debate approach explain that government
perform its function like,a business ,emulating private sector
entrepreneurs.
 It further explain that to treat citizens as consumer.

5. Opinion of
some
philosopher‘s
 According to the MargaretThatcher of great Britain:
they represented state v/s market debate approach as a change
administrative system by reducing that size and role of
government and increasing the opportunities for full play of free
market in the economy.

6. Role of state in
economic
development
of country
 1) state‘s responsibility of planing: it is the government that is
primarily responsibility for planning about utilization of scarce
resources of the economic in such a way that maximum benefit ifs
obtained at manimun cost.
 2) quantative changes: ot is very important for under developed
and developing countriesTo make quatative changes in a
backward social system and traditional attitude of people by
facilitating education.
 3) social responsibility of the state:the state has to undertake
various measures to reduce inequality.

7. Failure of state
 M. Laxmikanath in his book,public administration stated that after
1980, the state has came under critical reviews due to the
following measures
 1) the huge growth in public expenditures and the consequent
high inflation and high high taxation in both developed and
developing countries.
 2)The failure state countries in delivering public goods and
services as law and order ,education,health ,housing
,transportation,etc.
 Excessive state interference in economics of developing countries
leading to market distortion,widespread corruption. .

8. Privatization
and market
machanism
 Privatization is the process by which government transfers the
productive activities from public section to private sector.
 Private sector are those introduce profit,decision making process
in the working of enterprise in order to improve efficiency in
market.
 For this purpose many countries, particularly,oecd members
forced lmf and world the black to carry out privatization as per
Condition for eExtending assistance under economic stabilization
and adjustments programs.

9. Market
friendly
approach
 The lpg moder i.e.liberalization,Privatization and globalization
favoured market friendly approach.
 Thos approach stands for lesser role of state and larger role of market
in the society and in the economy.
 Market friendly approach has following essential characteristics:
 1) free enterprises
 2) profit motive
 3) perfect competition
 4) efficient services
 5) choice to public.

10. State v/s
market debate
in India
 Government of india further expanded public sector in
telecommunications and thus continues to enlarge the scope of
public sector.
 A number of activities of pubic sector resulted into state failure
explained above and new industral policy of 1991 avocated
privatization of public sector enterprises.
 This privatization started from the sale of public sector equality to
the private sector .

11. Privatization in
india
 1) deregularizaion of industries: the new policy of 1991
deregulated economy in a sustantial manner.
 2) user charges on public utilities:the 8th five year plan of india
stressed On the need For increase in the user charge on public
utilities such as electricity,madical facilities.
 Contracting out: contracting out specialized services agencies has
been emphasized, instead of creating separate departmental units
within the government.

12. John
Robinson‘s
view on role of
government
for
maintaining
free and
healthy market
 Government has to provide proper legal framework for the
enforcement of contract ,price setting,property rights,etc.
 Private economic activities can be increased through government
investment in a physical infrastructure in roads , electricity,
communications,etc.

13. Conclusion
 State v/s market debate stands for apportunities that government
should be less involved in economic activities of the country
instead it should play the role of a facilitator and provides
opportunities to private entrepreneurs.
 This is required to create free market economy.

14. Thanku