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Thu. Aug. 8, 2002

Living Shari`ah > Contemporary Issues > Human Conditions & Social Context

The Role of Government in the Economy

By  Muhammad Akram Khan

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The recent past has seen fundamental changes in the government's role in the economy. With the defeat of socialism and the worldwide onslaught of privatization, a new scenario is emerging. The direct role of government is shrinking and its indirect role is increasing. Arguably, privatization does not necessarily mean "no government," but rather "better government." As a result, the following new issues are emerging: What is the extent and nature of government regulation in the economy? How can government play an effective role in the redistribution of economic power and still keep the free market economy undisturbed? What structural changes are necessary to protect the public interest? How can government itself be regulated? How can we prevent government from becoming an instrument of injustice and tyranny? The present paper seeks to discuss these questions from the Islamic perspective.

Director General in the Department of Auditor General of Pakistan.  

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