Government Failure

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Government Failure

A situation in which government intervention leads to the inefficient allocation of resources. This is not the same as a government intervention leading to an unpopular result. A government failure may prove popular, for example, if it subsidizes local jobs at the expense of more efficient companies elsewhere. Examples of government failure include crowding out and pork-barrel spending.
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The Vice President expected the former President to explain to the 'good people of Ghana how his government superintended over outright regulatory failure, which led to the biggest financial crisis ever in Ghana, [but] he rather chose to rewrite history,' adding that not all 'Ghanaians have short memories.'
This is not to say that regulatory failure does not have a role to play in the collapse of such firms.
Following a request from the Treasury Committee, HM Treasury stated that it would direct the Financial Conduct Authority (FCA) on 1 April to conduct a statutory investigation into the possible regulatory failure surrounding London Capital and Finance (LC&F).
"The tragedy that took these men's lives was the consequence of corporate and regulatory failure. Fulfilling the promise to do everything possible to safely re-enter is an act of justice for families who have waited for far too long," said Minister of Justice Andrew Little.
'The involvement with the law enforcement agencies is not only hurting the writ of SECP as the corporate sector regulator but also demonstrates its regulatory failure,' he remarked.
The 240 purchasers, in this case, have been 'robbed' of their hard-earned savings solely due to regulatory failure and negligence of CDA and the federal government as well.
It further contended that "the Commissioners are remiss in exercising (their) mandate of protecting the interest of the electricity consuming public resulting in regulatory failure."
In the past few years farmers have lost their entire crop as a result of maize lethal necrosis, a seed-borne disease that may have entered the country due to regulatory failure. The liberalised seed market must be subjected to a strict regulatory environment if we want to realise food security.
Scholars have written tomes about the causes and consequences of regulatory failure, but few have taken a novel and rigorous quantitative approach to explain how organizational design and political pressure can make or break regulatory performance.
'Thus, if mining companies violate the law, is it not also a case of regulatory failure, where for lack of vigilance, manpower and/or political will, spillage, siltation, and pollution happens?,' he said.
Over the past decades, significant cases of professional misconduct or incompetence have focused the public and the government's attention on regulatory processes, no doubt with the perception of regulatory failure or incompetence.

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