Government intervention in the market economy is a controversial issue due to the philosophical differences in the political ideologies of the decision-makers. There are some areas which are mainly controlled by the government because of its superiority and the structure; these are: ensuring social safety and security, providing basic needs and compensating negative externalities, etc. There are two broad swings of the pendulum regarding the practice of government intervention. Some believe that market failure requires government interference while others disagree. This is an ongoing debate whether government is eligible to intervene in the economy and if so then to what extent. The existing research findings do not come up with a decisive solution in this regard. ‘Regulation or Deregulation of an Economic Entity: A Normative Analysis’ is a critical appreciation based on the arguments of different thinkers in favour and against government intervention.
For more information, refer to www.eldis.org/go/topics/resource-guides/governance&id=64875&type=Document#.UVF6pje831U.