A government is a body of men or women governing an organized society, usually a country. In other words, it is one with a constitution, a government and a military. The political parties that occupy an office occupy a political party and are responsible for the policies and actions of the government.
Political parties that claim to govern in accordance with the wishes of the people are known as democracy. democracy brings about a free and fair election process where the citizens can choose their leaders by majority vote. This form of government system is based on freedom of speech and debate. democracy is also reflected in the right of all peoples to practice religion freely and in a secular way. The rule of law and the protection of rights of individuals are some of the basic features of a free and prosperous society.
All these features are manifested in a government structure in order to guarantee a healthy and peaceful society. A sound currency is a prerequisite for a smooth running government and for sound economic development. All nations must have a stable economy, if they wish to progress technologically and economically. But how does the government spend the budget? It is through an elaborate system of taxation and payment of duties. These taxes are collected from those entities that create the wealth of a country and the citizens are given their fair share through government spending and legal system.
Both economic freedom and political freedom are essential to a developed nation and the development of its economic structure. Economic development is crucial for the welfare of the country and thus the role of government spending and taxation is crucial as well. A developed nation has limited resources but excels at providing services and products that are necessary for the betterment of its citizenry. A nation with limited government and unlimited opportunities for economic growth becomes a victim of corruption and decadent activity.
The economic freedom of a nation enables its residents to enjoy the fruits of their labor and at the same time contribute to the development of the nation as a whole. An efficient and progressive government facilitates economic growth by ensuring that whatever the nation earns it spends in its interest. In this respect, the role of government spending and taxation is absolutely vital. If a government wishes to ensure direct involvement in economic development, it has two options – either increase government spending or reduce direct taxation. Both these options have a negative impact on the level of economic freedom of citizens and ultimately affect the prosperity and growth of the nation.
Private property rights are generally not protected in limited governments. The economic freedom enjoyed by most of us in modern societies is highly dependent on government intervention. Private property rights are mostly applicable in small nation states where government control is strong. But in large nations such as India and China, the property rights are nearly nonexistent and the problem is worsened by excessive government regulation and control. This causes problems such as over-extension of property rights, distortion of the property market and hoarding by large private sector interests. Thus, it can be concluded that in case of advanced countries, a limited government with a strong intervention system is best suited for promoting economic freedom and growth.