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Government And Economic Development Essay

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Government defined as the group of the people with the authority to govern a country or state (Oxford Advance Learner Dictionary) plays an important role in the growth of economic and economic development. Government as the leader of the country has a lot of responsibility. One of their duties is to increase the growth and the stability of state economy. The growth of one country showed how prosper the country is. Institution stand to assist government in run their duty. “Institution are the rules of the game in a society or, more formally are the humanly devised constraining that shape human interaction.” (North; 1990, P.3) Based on the definition of constitution they play an important role in controlling human behavior and the human devised …show more content…

Post World War 2; in the middle of 1980’s, Indonesia former president Soekarno has been facing a deteriorating economic situation because of the decreasing price of the primary product. To solve it, President Soekarno introduces the nationalist economic policies. However, the result made that condition becoming worst. The export trade was affect and government was force to reduce import of industrial goals (Imagawa, 1993).Under the Soeharto leadership Investors are attracted by a large consumer base, rich natural resources and political stability, but often equally deterred by poor infrastructure, rampant corruption and growing calls for economic protectionism(BBC News , 2015). From the example above, showed that government role in making a decision toward the economic growth and development is …show more content…

(Graff, 2003). For example, Freeport in Timika, Papua .They bought the gold from Indonesia with cheap price . Not only exploited Indonesia’s gold but also destroy the natural resource. These happened because the human resource in the Indonesia is not competitive, lack of education. Indeed, government needs to renew the contract with Freeport, increase the quality of education so that the citizen has skill to compete in these era of

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