WAYS IN WHICH THE GOVERNMENT PARTICIPATES IN ECONOMIC ACTIVITIES
- Establishment of financial institutions: Government participates in economic activities by establishing financial institutions to grant overdraft and loans to private and public enterprises, e.g. Central Bank and Industrial Banks,
- Establishment of public corporation: Public corporations are established by government to provide essential goods cc services for the welfare of the people
- Establishment of joint business ventures: Government, in conjunction some private entrepreneurs, can establish joint business outfit to provide goods and services for the people
Import monopoly: Government can also participate in economic activities by exercising monopoly over certain items importation – a system in which government is the only agency that carries or
import certain goods for economic reasons.
Enactment of appropriate laws: Government can also participate in economic activities by the enactment of appropriate laws which govern the smooth operation of certain business activities.
Granting of tax holidays: Government can grant tax holidays to companies by way of attracting entrepreneurs to set up business.
Provision of social amenities: For economic activities to thrive, government must provide social amenities like roads, electricity, water and telecommunications.
Indigenization policy: Indigenization policy is a process by which government makes the indigenes of a nation to participate actively in the running of major or sectors of her economy
Nationalization policy: In nationalization policy, government tries to make sure that that state controls the ownership and management of key industries.