Lakhasly

The role of the state in maintaining economic stability:
The freedom of markets does not mean chaos in performance or the absence of the
government’s role, as some people might think. Experts and those interested in a free market
economy believe that the government should have a specific role in specific aspects, focused on
maintaining the stability of the currency ( And curbing inflation), protecting competition,
protecting consumers and preventing monopoly, laying down the basic rules and provisions for
the market and maintaining their application, the arbitration system for settling disputes. Meaning that the government's role in a market economy is to work to improve market
functions, and that its intervention must be in favor of the action of market forces (supply and
demand) and prices. Nevertheless, many experts believe that excessive government intervention
may result in stopping the transmission of information necessary for the functioning and activity
of the market, and he believes that government interventions are dangerous, as they may lead to
inflation, deflation, or a decline or slowdown of economic activity. He believes that the Great
Depression results from government influences, and that is why it is responsible for the causes of
this depression.
The role of the state has evolved from direct intervention, to supervision, guidance and
follow-up as a regulator and monitor of activity, with its role being limited to implementing
infrastructure projects, creating a general climate, comprehensive review
of legislation, laws, regulations and policies, institutional development and improvement of the
business environment ... to reflect on economic performance (At the macro and sectoral level)
and achieving development in a market economy, protecting competition and preventing
monopolistic practices.
In this context, the Law on the Protection of Competition and the Prohibition of
Monopolistic Practices in the Egyptian Economy was issued, which affirms that the practice of
economic activity is in a manner that does not lead to preventing, restricting, or harming freedom
of competition, as indicated in accordance with the provisions of the law, and the importance of
this law increases. And the provisions it contains to protect competition and prevent monopolistic
practices ... in light of the increasing local and global trends towards a market economy and the
liberalization of global trade and the increasing role of the private sector.
When we address the issue of the government's role in the market economy, protection of
competition, prevention of monopolistic practices, and consumer protection ... the issue of
protecting local products must be addressed.
Global economies are keen to take many measures and means to protect the local product
and protect the industry from flooding the local market with goods and services, which may lead to the closure of many emerging industries, activities and establishments that have not yet reached
the level of productive efficiency that enables them to compete.
The government's tendency to take measures to protect the local product and combat
dumping, which would contribute to the randomness of the market, which is definitely not in the
interest of production ... it must be accompanied by the endeavor to raise the level of productivity,
and when it is possible to achieve higher productivity rates at the macro and sectoral level, this
will help a lot. It is possible to reduce the measures to protect the domestic product, in the sense
that protecting the local product takes place for a transitional period conditional on improving the
real productivity of the national economy and labor productivity.