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State Intervention &
Political Institution
Submitted By: Submitted To:
Himanshu Mahar Department Of Management Studies
1
23-May-15
Saturday
Contents
 Defining State Intervention
 Types Of State Intervention
 Types Of Control
 Objectives Of State Intervention
 Advantages Of State Intervention
 Disadvantages Of State Intervention
 State Intervention To Improve Quality
 State Intervention To Overcome Market Failure
 Defining Political Institution
 Types Of Political Institution
 Functions Of Political Institution
 Categorization Of Functions
 Conclusion
2
Defining State Intervention
Regulatory actions taken by a government in order to affect or interfere
with decisions made by individuals, groups, or organizations regarding social and
economic matters.
OR
Government intervention refers to the ways in which a government regulates or interferes
with the various activities or decisions made by individuals or organizations within its
jurisdiction.
3
Types Of State Intervention
 Authoritative Intervention
 Interventions Affecting Lifestyles
 Economic Interventions
 Military Interventions
4
5
Objectives for State Intervention
 Maximize social welfare
 Macro-economic objectives
 Socio-economic objectives
6
Advantages Of State Intervention
 Greater Equality
 Market Failure
 Macroeconomic Intervention
 Consumer Protection
 Infant Industry
 Cut-Throat Competition
7
Disadvantages Of State Intervention
 State liable to make wrong decisions
 Taking Away Personal Freedom
 Market Knows Public More Than State Does
 State Own Industries Tend To Lack Profit
 Lead Excess Bureaucracy And Inefficiency
 Government Intervention Creates More Problem Than It Solves
8
State Intervention To Improve Quality
Tending both labour and land into commodities
Dangerous working conditions
Diminishing Marginal Returns To Income
Fairness
Inherited Wealth
9
State Intervention To Overcome Market
Failure
 Public Goods
 Positive Externalities
 Negative Externalities
 Regulation On Monopoly Power
10
Defining Political Institution
A political institution is a system of politics and government.
OR
Political institution is that system of interactions to be found in all independent societies
which performs the functions of integration and adaptation by means of legitimate physical
compulsion.
EXAMPLES: Political Parties, Trade Unions, Legal Courts
11
Types of Political Institution
According to Edward Shills political Institution can be classified as:
Totalitarian system
Oligarchy system
Democratic system
12
Functions Of Political Institution
 The political institution determines and enforces the laws and punishes those who
disobey them.
 To maintain integration of society by determining norms.
 To adapt and change elements of social, economic, religious systems necessary for
achieving collective (political) goals.
 To protect the integrity of the political system from outside threats.
13
Categorization Of Functions
According to Almond and Coleman (1960)
Input functions –
Political socialization, interest articulation and political communication
Output functions –
Rule making, rule appli­cation and rule adjudication.
OR
According to Eisenstadt (1966)
Legislative
Decision­making
Administrative
14
Conclusion
 State intervention is dependent on political institutions.
 Policies made by political institutions should be feasible.
 People of a nation should support government.
 The faith of a nation is in the hand of peoples of that nation.
15
References
 www.123helpme.com
 Essentials Of Business Environment by K.Ashwathappa
 www.ehow.com
 www.lao.ca.gov.com
 www.spunk.org
 www.yourlibraryarticle.com
 www.economicshelp.org
16
THANK YOU
17

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State intervention & political institution

  • 1. State Intervention & Political Institution Submitted By: Submitted To: Himanshu Mahar Department Of Management Studies 1 23-May-15 Saturday
  • 2. Contents  Defining State Intervention  Types Of State Intervention  Types Of Control  Objectives Of State Intervention  Advantages Of State Intervention  Disadvantages Of State Intervention  State Intervention To Improve Quality  State Intervention To Overcome Market Failure  Defining Political Institution  Types Of Political Institution  Functions Of Political Institution  Categorization Of Functions  Conclusion 2
  • 3. Defining State Intervention Regulatory actions taken by a government in order to affect or interfere with decisions made by individuals, groups, or organizations regarding social and economic matters. OR Government intervention refers to the ways in which a government regulates or interferes with the various activities or decisions made by individuals or organizations within its jurisdiction. 3
  • 4. Types Of State Intervention  Authoritative Intervention  Interventions Affecting Lifestyles  Economic Interventions  Military Interventions 4
  • 5. 5
  • 6. Objectives for State Intervention  Maximize social welfare  Macro-economic objectives  Socio-economic objectives 6
  • 7. Advantages Of State Intervention  Greater Equality  Market Failure  Macroeconomic Intervention  Consumer Protection  Infant Industry  Cut-Throat Competition 7
  • 8. Disadvantages Of State Intervention  State liable to make wrong decisions  Taking Away Personal Freedom  Market Knows Public More Than State Does  State Own Industries Tend To Lack Profit  Lead Excess Bureaucracy And Inefficiency  Government Intervention Creates More Problem Than It Solves 8
  • 9. State Intervention To Improve Quality Tending both labour and land into commodities Dangerous working conditions Diminishing Marginal Returns To Income Fairness Inherited Wealth 9
  • 10. State Intervention To Overcome Market Failure  Public Goods  Positive Externalities  Negative Externalities  Regulation On Monopoly Power 10
  • 11. Defining Political Institution A political institution is a system of politics and government. OR Political institution is that system of interactions to be found in all independent societies which performs the functions of integration and adaptation by means of legitimate physical compulsion. EXAMPLES: Political Parties, Trade Unions, Legal Courts 11
  • 12. Types of Political Institution According to Edward Shills political Institution can be classified as: Totalitarian system Oligarchy system Democratic system 12
  • 13. Functions Of Political Institution  The political institution determines and enforces the laws and punishes those who disobey them.  To maintain integration of society by determining norms.  To adapt and change elements of social, economic, religious systems necessary for achieving collective (political) goals.  To protect the integrity of the political system from outside threats. 13
  • 14. Categorization Of Functions According to Almond and Coleman (1960) Input functions – Political socialization, interest articulation and political communication Output functions – Rule making, rule appli­cation and rule adjudication. OR According to Eisenstadt (1966) Legislative Decision­making Administrative 14
  • 15. Conclusion  State intervention is dependent on political institutions.  Policies made by political institutions should be feasible.  People of a nation should support government.  The faith of a nation is in the hand of peoples of that nation. 15
  • 16. References  www.123helpme.com  Essentials Of Business Environment by K.Ashwathappa  www.ehow.com  www.lao.ca.gov.com  www.spunk.org  www.yourlibraryarticle.com  www.economicshelp.org 16