Government, the Safeguard for the Market-Based Economy

Government, the Safeguard for the Market-Based Economy 1. The role of the government in history 2. The characteristics of market-based economy 3. The requirements of the market based economy for the government 4. Conclusion In view of the actual development of market economy around the world, and taking into consideration of the criteria of market economy, five major aspects are particularly important in defining a market economy country, from which five universally applicable standards can be obtained. (Raymond, 2003) They are the role of the government, enterprises' rights and behaviors, costs and prices of production factors, trade environment and financial parameters. In all the factors, the role of the government is of vital significance. Governments face a stream of choices over how best to fit their national economy into a bustling world system, more particularly how to capture the technical resources, the capital, and the access to foreign markets and investment that development requires.