Section 8: Roles of The

Government
Presenter: Serain Jackson
 Roles of the Government
• Maintain Law, order and security
The government should protect the citizens of a
country. The general aim is to ensure that all
persons in the country is treated fairly. The
government should create laws and operate courts
of justice. It should provide security forces that
are equipped with the necessary resources for the
country’s internal and external defence.
• Strategic Planning

The government should develop plans for

various sectors of the economy. It may want to

promote development in particular industries or

locations that will benefit the economy.

•Provides Jobs and social services to citizens

The government will want to help create the highest level of

employment it can because the greater the number of people

employed, the higher will be the national income, and the

fewer unemployed people there are, the less will be the drain

of the country’s resources. Social Services will include:

Healthcare, Education, Housing, Entertainment, recreation

and family life.

• Protection of the environment
The government plays a very important role in
protecting the environment. It creates laws that
help ensure that the air, water and soils are not
polluted by harmful materials such as toxic waste
and garbage. The government also implements
laws to prevent people from depleting the supply
of fish, birds and other natural resources such as
coral reefs. There are also laws preventing
deforestation that would result in life threatening
land slides. Eg: NEPA, NSWMA.
 Assessment
• Explain FOUR roles of the Government in
your country. (8mks)
 How Businesses Can Protect the
Environment
• Businesses need to adhere to laws such as
environmental laws. They could choose to
dispose their waste in an environmental
friendly way.
• Businesses need to adhere to labour laws as
well.
• Businesses need to adhere to laws relating to
taxation.
Consumerism
Presenter: SERAINJACKSON
 Consumerism
Consumerism refers to an
organized movement to
protect consumers against
unfair business practices.
 Why should we be protected?
Consumers need protection
because they are not always able
to make good assessment of the
goods and services they wish to
buy. Consumers need to be
protected against the unfair
practices of businesses.
 Consumer Rights!
There are eight basic rights of the consumer. They are:
• The right to redress.
• The right to consumer education.
• The right to safety.
• The right to be heard.
• The right to be informed.
• The right to choose.
• The right to basic needs.
• The right to a healthy environment.
 Consumer
Responsibilities!
• To buy wisely, and to follow any instructions
given by the manufacturer.
• To behave reasonably and pay promptly when
buying goods and services.
• To report faulty or unsafe goods.
• To be aware of pressures to make you buy.
• To show respect for the environment by not
littering.
 How the Government Protect Consumers

The government creates various laws and different agencies

to help protect consumers. Examples include:
• The Bureau of Standards
• The consumer affairs commission
• Food and drugs act
• Food storage and prevention of infestation act
• Public Health act
• The standards act
• The Hire Purchase act
• The fair trading act
 Organizations
• The Bureau of Standards.
• The Consumer Affairs Commission.
• The Ombudsman.
 Class Work
Read up and take notes on the following
Consumer protection organizations :
• The Bureau of Standards
• The Consumer Affairs Commissions
• The Ombudsman
 Taxation
The government needs money so that it can carry
out the many functions that they have. This
money is raised in different ways. Taxation is the
main source of revenue for the government.
A tax is a compulsory payment to the state by
businesses and individuals charged on property,
income and the use of goods and services.
 Functions/Purposes of Taxation
• To raise revenue to finance government
activities.
• To maintain economic stability
• To influence expenditure
• To redistribute income
• To discourage undesirable habits like
smoking , drinking and gambling.
 Methods of Taxation
Taxes may be classified into:
• Direct, or
• Indirect tax.
 Direct Taxation
A direct tax is one that is charged/levied directly
on individuals or on companies. Some examples
of direct taxes are:
• Income tax
• Corporation tax
• Capital gains tax
• Transfer tax
 Indirect Taxation
An indirect tax is charged on one person but is
collected and paid by someone else such as a
retailer. Indirect taxes are charged on goods and
services. Examples are:
• Custom Duty
• Excise duty
• Value Added Tax
• General Consumption Tax(GCT)
 Forms of Taxation
• Progressive Taxes
• Regressive Taxes and,
• Proportional Taxes
 Forms of Taxation cont’d
Progressive
This method takes a greater percentage of an
individual’s income as income rises. This is the
form of income tax used in the Caribbean.
Regressive
This method takes a lower percentage of an
individual’s income as income rises.
 Forms of Taxation cont’d
Proportional
This is when an individual pays a fixed amount
of his income as tax. This will cause the more
affluent persons to pay more.
 Government Assistance to Businesses

Most governments will try to support businesses

in the following ways:
• By providing an environment that is
conducive to economic growth. They will do
this by setting rules for business operations,
and providing utilities and other facilities
which support business activities.
 Government Assistance to Businesses

• By the promotion and maintenance of

competitive markets. Governments will
prevent companies from abusing their power
by taking action against monopolistic
activities. This benefits businesses that are not
in a monopolistic position, as well as
safeguard the consumer.
 Government Assistance to Businesses

• Trade promotions
• Providing information to businesses about
foreign markets and trading opportunities.
• Some governments set aside special areas for
industrial development, sometimes
accompanied by subsidies and grants.
• Provide technical assistance.
Impact of Social Services provided by Gov.

• Health care – a healthy population.

• National Insurance Scheme – provision and
security for the elderly.
• Education – an informed and literate
population.
• Roads and transportation – access to goods
and services.
 Home Work
1. Explain TWO roles of the Government in Your
Country. (4mks)
2. Define the term ‘Taxation’. (2mks)
3. State TWO purposes of Taxation. (4mks)
4. Differentiate between Direct and Indirect taxes with
the aid of examples. (6mks)
5. Explain TWO ways how the government of your
country can assist small businesses. (4mks)
6. Explain TWO ways in which the social services
provided by the government impacts the citizens of
your country. (4mks)