Functions of Government(corporate governance)PSCM Lecture 11

• (a) Provisions of goods and services [roads, defence & welfare payments]

• (b) Provision of subsidy to encourage private sector to provide desired goods & services [farm subsidies]

• (c) Production of goods and services for sale, on user pays principle [electricity & water services]

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• (d) Makes Regulation– Govt and its organization have coercive

power to enforce compliance with the laws [police services which are supported by the judicial system]

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Functions only Government carry out• (Hughes, 1998: 336-37)• (a) Providing economic infrastructure [protection

of property rights, enforcement of contracts, provision of currency, maintenance of law and order]

• (b) Provision of various collective goods & services such as national defence, roads, bridges, flood control, sewage disposal, traffic control systems. Services divided into 4 categories:– Utilities– Communication– Transportation– Land development

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• (c)The resolution & adjustment of group conflicts in pursuance of justice, order and stability. Incl., enactment & enforcement of laws relating to equity, exploitation, workers’ compensation schemes.

• (d) The maintenance of competition by regulation of matters such as formation of cartels & price fixing

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• (e) Protection of natural resources, including conservation of assets (such as a regulation of forest reserves) & protection of environment from damage and pollution.

• (f) Provision of minimum access by individuals to the goods & services of the economy. Incls welfare programs to prevent access to disadvantaged groups (such as legislation for people with disability)

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• (g) Stabilization of the economy through monetary policy & control over wages and prices.

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• Key role for govts is to ensure their societies & economies able to meet the challenges for change

• Need high performance public service

• Govt leaders encourage public service leaders to adopt value common to high performing organizations:

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• (a) a focus on customers• (b) quality & productivity• (c) flexibility and continuous

improvement• (d) trust & integrity• (e) openness, cooperation and

involvement; and• (f) personal growth, security and dignity

(see Kempt, 1983:3)9