The role of government in the process of industrialisation and growth

Abstract

Countries vary substantially in their level of economic activity. Some are undeveloped, others have passed this stage and are nowadays considered as advanced countries. Furthermore developing countries vary from one another in the level of economic development they have attained. Some have already taken-off into sustained growth, others are striving to achieve this stage, while others are either stagnant or declining economies. This shows that it is quite useless for everyone to give a single generalised solution when dealing with aspects of economic growth. No one, for example, has succeeded in formulating a general theory of economic development because the problems and the situation varies so much from one country to another. Instead of a general solution or theory we have a host of theories all dealing with particular aspects and problems that are often encountered when a country attempts to embark on the road to industrialisation. There are ways and means whereby Government could intervene in the process of industrialisation of a country. There are also some extreme interventions which for the purpose of this paper have no specific value but which could be mentioned. Economic history has taught us many things and as economists no doubt, take past experience very much into account, one could do no harm in mentioning the procedure of some underdeveloped countries before we take Malta as an example. We must also remember that Malta is unique in all its ways.