*if an interest group wants to seek influence on the bill, they should do so before the first
draft of the Bill.
a means to promote regional development
A policy instrument of the government
Adam Smith (1723-1790): (classical liberalism) the first academic economist and
founder of the discipline of economics and the author of The Wealth of Nations.
For Smith, human conduct is articulated by six motives:
self love, sympathy,
desire to be free, sense of propriety, habit of labour and propensity to truck barter
From this concept, human has its own self-interest and if he/she
allowed to puruse it, he will contribute unwittingly to the common good.
process of pursuit self-interest, each one is led by an invisible hand.
hand is a market guided by the force of demand and supply.
possible the simultaneous satifaction of individual interest and, therefore, there
must be no obstacles to trade, which serves to maximize the advantage of division
of labour and specialization (productivity) (trade theory).
Economic freedom and
competition must, therefore, be made to prevail.
The consequence of this belief is
the defined role of the government.
Government is best which governs least
The function of government should limit to:
(a) defence against
foreign aggression, (b) exact administration of justice, and (c) undertaking public
works that are not profitable to private enterprise. (economic liberalism or
ppl lving in a specific territory under a common legal and political
is the monopoly of coercive power wielded by the state, exercised
by government as the agent of the state.
a government is limited and restrained by checks and
balances, including the assertion of political rights and freedom.
took its characteristics form during 18
and gave ideological expression to the profound changes—social, economic, and
political—engendered by the Industrial revolution.
It grew out the dissatisfaction
on the part of new and energetic middle classes with a social order that frustrated
the achievement of their own social agenda. They wanted an environment for free
production and free trade.
They wanted peace, order over areas large enough to
accommodate expanding trade.
They wanted social institutions that would
dispense with an obsolete and hierarchial structure and a political voice
commensurate with the growing economic clouts, particulary in determining what
social services should be provided by the state and how much they would cost.
Value of a society is measured by the satisfaction of the individual.